Digging myself out of my twenties Debt Hole

[Deleted User]

jeepjunkie wrote: »

Do you have a spare room? When I was younger I let out my spare room to students through the local Uni. Back then is was the best part of £300pm tax free, rate was set by the Uni. Of course it was term time only. Airbnb another option.

Bar mobile cost and car insurance which will naturally come down in price I can't see much else bar checking quidco cashback and shopping around for the usual bills annually.

For a while we ran with no TV licence. As long as you don't watch live TV and watch iPlayer then all good. Just fill out the declaration not to get bothered with the usual threatening letters. We just used the remaining catch-up, Netflix and Youtube etc More than enough to watch.

Suggest tracking all annual bills so you have time to search for the best deals and budget accordingly using a separate bills current account e.g. Santander 123 lite for cashback maintaining a float to cover all DDs etc.

Hi JeepJunkie, thanks for your reply. I'm in a one bed flat so I am unable to let out a room. My partner and I have talked about potentially moving in together but it doesn't feel like the right time in our relationship just yet and I don't want to move in with someone just for financial reasons when I am juuuuusssst about scraping by living by myself. I would hate it if it put pressure on our relationship, both of us cramped into one of our respective one bed flats.

Since someone earlier on suggested using Quidco I have done, and have already got £2.00 tracked, after four online purchases (a birthday present for my sister, my train tickets to work, a much needed haircut and some lightbulbs). I can't believe I haven't been using this earlier, it is such a good idea. I know the money tracked is only small but every little helps I suppose. £2 is one free journey to work!

Going to give up the TV license, just need to watch the last episode of His Dark Materials first. I'm absolutely gripped by it! Will miss the BBC dramas, but Netflix has plenty others to keep me occupied.

I hadn't thought of using a cashback account for bills. At present I am using Monzo for everything as this really is helping me to keep a tight grip on my finances. If only Monzo did cashback on bills (if any Monzo developers are reading this, please take note!). I guess I could transfer out £300 odd per month to a Santander 123 account which I hope would cover council tax, bills, etc. 3% cashback on £300/month would give me £9/month, for a £1 monthly fee. £96 saved over the year...definitely worth doing isnt it. Thanks so much for the tip.

Symbio have all of a sudden decided to charge me £127.90 for electricity this month, despite me being away and not using any electricity for a week over christmas, and also despite me originally being quoted £67/month based on my actual annual usage from my old supplier (last month it went up to £84.50, now it has gone up again!). I'm shocked that they can just extortionately increase my DD without my prior consent, there must be something in their T&Cs somewhere:mad:. Looking forward to much lower bills in the summer however (fingers crossed). Will be giving them a bad review on MSE energy club though.

ceb1995 wrote: »

I d seriously consider getting pet insurance sorted we have a 7 year old cat and its less than £7 a month for very comprehensive cover. you could definitely get your food bill down, two of us eat for that much and we're not missing out on anything, living in manchester there should be a lidl or aldi nearby you can use.

Hi Ceb1995

Thanks for suggesting that. Gosh you have really cheap cover,if you don't mind me asking who is your provider?

Yes there is an Aldi nearby which I do shop at. Time to look hard at how much I'm spending on food. I don't eat like a king but I do eat lots of fresh fruit, fish etc. Have already started to think a bit more economically about food, for instance I batch cooked a big daal last week which worked out at around £1/portion. Bargain!

I've also decided to do a 90 day booze free challenge, which I think is likely to save me a lot of money..one bottle of wine a week, plus odd drinks out..I reckon I could save £60/month on that. Will see how long my reserve lasts..6 days in though and I'm doing fine. Only another 84 days to go..! I have an app that tells me so far I've regained 2 hours of life so far, not quite sure how it has worked that out but I hope that those 2 hours will be without debt!

StartingAgainAt29 wrote: »

Hi debtfree, while my circumstances are different to you we're of a similar age so I'll be following your diary with interest. I would definitely recommend getting insurance for your cat, she's important to you so why not give yourself a bit more peace of mind and have her covered? I have two cats and live on £25 a week for groceries, so you should have some wriggle room to get that down.

Hi StartingAgainAt29

Thanks for the recommendation. Since you're not the only person to say this to me I do think I've been silly not to get her cover up until this point so this weekend I'm going to have a look at a few quotes (via Quidco!). I take your point on the groceries budget, and as I've said earlier I am now actively trying to eat more economically.

I hope that you are dealing with society's (/parental) expectations of someone in their late twenties/early thirties - car, house, family, savings....it wears you down doesn't it! Wishing you all the luck on your journey to be debt-free. :wave:

[Deleted User]

tlc678910 wrote: »

Hi OP,
A little later in the year (maybe August/Sept) you could advertise at the hospital (staff room?) for a room to rent. If you could get all in inc bills and maybe even car parking for £500 odd you might be able to clear your debt in less than a year (assuming that you have already made a dent in it before then). You could then move on from a debt free position or if it working out well stay to save up your house deposit.

I realise you have a cat but assuming you can say "with one well trained house cat" you might find a cat lover that is happy to accommodate.

I noticed you said you paid all your savings off your debt. Moving can be expensive of course so you might need to try to keep something aside before the end of your lease.

Good luck.

Hello, and thank you so much for taking the time to post on my thread.

I have lived by myself now for four years, after being in house shares since I was 18 years old. I was previously right on the outskirts of Manchester which was much cheaper to live alone, but it was a really tough commute over to Liverpool, hence the move into a more expensive flat in MAnchester city centre. I justified the increase in rent by time and money saved on public transport into town. I am very hesitant to go back into sharing with someone else if I can at all avoid it- I love my own space now (being back at my parents' house for christmas definitely confirmed this!!:undecided). Perhaps I should just face it and accept that this would be a good way to save...but equally it is a trade off for my happiness and if I am just about scraping by now, I think the balance would tip towards staying by myself.

What is your view on saving, whilst paying off debt? There are so many different perspectives on this aren't there. Currently I'm just throwing every last penny at my debt with absolutely nothing in my savings - if I got a big unexpected expense I would need to revert to credit again to pay it. Do you have experience with sinking funds? I have tried this but have ended up withdrawing from them at the end of each month to cover costs before payday. Hmmm.

[Deleted User]

kangoora wrote: »

For cheap holidays the all-inclusive coach holidays can't be beaten for price (Shearings/National etc). Food/accom can be a bit hit and miss but if you've had student accomodation (and food) then can be endured if you get a bad one.

Just be prepared to be the youngest person on the coach by about 30-40 years You can pretty much just keep to yourself in terms of entertainment if you like.

It might be an experience............

Hey Kangoora

Sorry I missed your post when writing my replies earlier! My Nan used to go on the coach holidays so I totally get what you mean about being the youngest person!!

I had a frank discussion with my partner about holiday costs (i.e. the lack of funds for a holiday this year) over the christmas break. I was a little nervous about it as I don't want to be a bore but he completely understood. Actually his parents live overseas, but still keep a home in the UK - he has suggested that we use his parents' home ( a couple of hours north of manchester) as a base to explore the Lakes / the Yorkshire Dales on cheap weekends away in place of a longer holiday this year... lots of money saved and altogether a very good idea I think. Will save the coach holiday for a rainy day!

fatbelly

debtfreefrom2020 wrote: »

Since someone earlier on suggested using Quidco I have done, and have already got £2.00 tracked, after four online purchases (a birthday present for my sister, my train tickets to work, a much needed haircut and some lightbulbs). I can't believe I haven't been using this earlier, it is such a good idea. I know the money tracked is only small but every little helps I suppose. £2 is one free journey to work!

I hadn't thought of using a cashback account for bills. At present I am using Monzo for everything as this really is helping me to keep a tight grip on my finances. If only Monzo did cashback on bills (if any Monzo developers are reading this, please take note!). I guess I could transfer out £300 odd per month to a Santander 123 account which I hope would cover council tax, bills, etc. 3% cashback on £300/month would give me £9/month, for a £1 monthly fee. £96 saved over the year...definitely worth doing isnt it. Thanks so much for the tip.

Symbio have all of a sudden decided to charge me £127.90 for electricity this month, despite me being away and not using any electricity for a week over christmas, and also despite me originally being quoted £67/month based on my actual annual usage from my old supplier (last month it went up to £84.50, now it has gone up again!). I'm shocked that they can just extortionately increase my DD without my prior consent, there must be something in their T&Cs somewhere:mad:. Looking forward to much lower bills in the summer however (fingers crossed). Will be giving them a bad review on MSE energy club though.

I had a frank discussion with my partner about holiday costs (i.e. the lack of funds for a holiday this year) over the christmas break. I was a little nervous about it as I don't want to be a bore but he completely understood. Actually his parents live overseas, but still keep a home in the UK - he has suggested that we use his parents' home ( a couple of hours north of manchester) as a base to explore the Lakes / the Yorkshire Dales on cheap weekends away in place of a longer holiday this year... lots of money saved and altogether a very good idea I think. Will save the coach holiday for a rainy day!

We may have missed a trick with Quidco - if you look on the referrers board there is a thread with quidco referral codes giving you £5 to start your account.

With the Santander account you also get access to a linked 2.5% regular saver

Symbio have the lowest unit costs so stick with them but ask on the energy board (there's a dedicated symbio thread) about getting the d/d changed

The holiday sounds great

[Deleted User]

fatbelly wrote: »

We may have missed a trick with Quidco - if you look on the referrers board there is a thread with quidco referral codes giving you £5 to start your account.

With the Santander account you also get access to a linked 2.5% regular saver

Symbio have the lowest unit costs so stick with them but ask on the energy board (there's a dedicated symbio thread) about getting the d/d changed

The holiday sounds great

Ahh what a shame about the quidco referral code. Perhaps I could open another account with a second email adrress- will look into it tonight.

I've been in touch with Symbio today to complain about the fact that they've near enough doubled my monthly fee which was quoted to me on opening the account. They've cancelled my DD for £127 due on 10th, and reinstated it at a fixed amount of £67. Happy with that. But of hassle and unnecessary worry in the mean time though!

Does anyone have any experience of matched betting? Looking into other side hustles as I've been studying for the Lionbridge exam and it is just far far too intensive for me right now:eek:! I'm thinking about giving it a miss.

curlytop12

holiday idea sounds great!
you could get a referral code for topcashback cashback site?
I'd stick a tenner of yout surplus into EF- its a start and a positive, once you have paid off halifax you can up it as the other debts are interest free.
I think you could afford your contents and cat insurance out of your grocery budget if you meal plan/ are more mondful food/drink wise?

[Deleted User]

Yep, first free weekend away planned for the end of January..I think I'm going to need it after the madness these first three days back. Finding it really hard to get my brain in gear after a lovely long break from work.

Will look into Topcashback referral codes, hopefully this site has as wide a coverage as Quidco.

I've not got a huge amount of surplus to put towards an EF but I do really need to change my habits, I'd like to get good at sinking funds - eg for car servicing etc and Christmas. I have tried this on my monzo account the past few months but have ended up withdrawing the whole balance of my sinking fund pots at the end of the month to cover shortfalls rather than dipping further into credit. I just want to pay off the Halifax debt ASAP then that cash can go towards EF and sinking funds.

Have turned down two dinner invites this week, instead I'm having a friend over for a cheap tea and film tonight - hoping I've got all the ingredients in the cupboard for a bean chilli. Looking forward to watching JoJo Rabbit in the cinema this weekend, as long as the rest of the week is cheap and cheerful. Working from home the next two days which will help the minimal spend effort! Until these past few months I've never really had the mindset to say no to things, or think hard about affordability. Its safe to say I've been living beyond my means for a faie while and now I'm kicking myself for having to dig myself out of it. It was fun, but not worth this delayed stress! Now however, I feel (strangely) satisfied that I know where every £ of my hard earned cash goes, and that control is quite pleasing..but it doesn't completely ease the debt headache. Got to make sure I cut myself a bit of slack though and have some fun from time to time (alcohol free until the end of March though!)

monetxchange

debtfreefrom2020 wrote: »

I've not got a huge amount of surplus to put towards an EF but I do really need to change my habits, I'd like to get good at sinking funds - eg for car servicing etc and Christmas. I have tried this on my monzo account the past few months but have ended up withdrawing the whole balance of my sinking fund pots at the end of the month to cover shortfalls rather than dipping further into credit. I just want to pay off the Halifax debt ASAP then that cash can go towards EF and sinking funds.

That would indicate to me that your budget isn't quite right. You shouldn't have to dip into your savings pots if you've budgeted the right amount for everything else. Are you sure you've allocated enough for groceries, transport, entertainment etc? There's no point underestimating and then keep dipping back into money that's put aside for a reason. That's a slippery slope back into using credit!

Are there areas where, being honest with yourself, you could make mini savings that lead to you spending less on these things? For example, bean chilli is a great idea. One of my faves is Jack Monroe's - all you need is two tins of beans and a tin of chopped tomatoes if you have a basic spice collection. Buy bags of spices from the Asian section rather than expensive little jars. Could you get a 2 for 1 on your cinema trip for example? My brother gets discounted tickets through his work on an app as an example. Or there's Meerkat Mondays if you buy cheap insurance. Check whether there's any vouchers for eating places around it too if you're going to grab a bite too - January is the prime month for offers as places as desperate to get all the dieting/skint/non drinking people in!

You're off to a great start and you've definitely got this

KxMx

Meerkat Movies gives a year of 2 for1 cinema on a Tuesday or Wednesday, also included is Meerkat Meals, 2 for 1 meals Sunday-Thursday.

Can be got for a few £ when you buy a one day Travel Insurance policy.

https://www.moneysavingexpert.com/deals/deals-hunter/2018/07/2for1-meerkat-movies-cinema-and-meerkat-meals-restaurant-trick/

[Deleted User]

monetxchange wrote: »

That would indicate to me that your budget isn't quite right. You shouldn't have to dip into your savings pots if you've budgeted the right amount for everything else. Are you sure you've allocated enough for groceries, transport, entertainment etc? There's no point underestimating and then keep dipping back into money that's put aside for a reason. That's a slippery slope back into using credit!

Are there areas where, being honest with yourself, you could make mini savings that lead to you spending less on these things? For example, bean chilli is a great idea. One of my faves is Jack Monroe's - all you need is two tins of beans and a tin of chopped tomatoes if you have a basic spice collection. Buy bags of spices from the Asian section rather than expensive little jars. Could you get a 2 for 1 on your cinema trip for example? My brother gets discounted tickets through his work on an app as an example. Or there's Meerkat Mondays if you buy cheap insurance. Check whether there's any vouchers for eating places around it too if you're going to grab a bite too - January is the prime month for offers as places as desperate to get all the dieting/skint/non drinking people in!

You're off to a great start and you've definitely got this

I used average spend figures from across the autumn period to make up my SOA, and then November and December hit and I overspent mostly on groceries (minced pies!!) and gifts. My spending rate has been much lower since Christmas has passed, though the balance isn't great since as I've fallen into the January pay trap again. Every year!! Thankfully my work is paying us on 24th this month, but that does make February a few days longer than usual..

Bean chilli was ridiculously cheap (and tasty!) last night, lots of protein, and will feed me for a few more days. 2-4-1 at the cinema is a good idea, I normally go to the independent cinema in Manchester (£££) but good old Odeon is just as good.

Also, can I just say how brilliant the progress that you've made is, going off your signature text. You've absolutely smashed it and the finish line is nearly in sight. It's stories like yours that really inspire the newbies like me. I'm feeling impatient and frustrated that I've got years to go, but reading diaries like yours make me realise that the marathon (not the sprint!) is manageable. Manageable and very worth it. Thank you for your words of encouragement. This online community is really great.