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Time to start taking this whole adulting thing seriously...

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hiyaimtel
hiyaimtel Posts: 17 Forumite
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edited 7 April 2020 at 5:35PM in Debt free diaries
Hello!

I thought it was about time I made my own diary, as I spend so long pondering other peoples! Really inspiring so thanks everyone! 

So how did my debt all start...University! It went from having an interest free overdraft and splurging on eating out, nights out and clothes! Then from this I discovered the glorious 0% purchase cards “oh perfect, I will definitely pay this back over the 12 months easy!”. From this I then discovered the 0% balance transfer cards and I have been doing the credit card shuffle ever since (also adding to the debt in the process).

Since University my debt has mainly accumulated through travelling/working overseas for 2 years, living life as a “yes” person whatever the consequences financially and shopping.

I moved out at 19 and moved back home at 29! Haha. Decided then to take this adulting more seriously, proper job and clear my debts.

I have been living at home a year right now and don’t really have much to show for it in terms of savings, as I have been on many holidays and too much shopping. I decided to sort my debts out for good on the 22nd January 2020 this is my current status:

Current Debt:

Barclaycard - £1393.20 (0% expires Feb 22) 

Halifax - £2359.73 (0% expires Aug 21)

M&S - £2397.04 (0% expires July 21)

Loan - £10590.36 (6.69%) - Final Payment: Nov 23 

Total Debt: £16740.33 

Current Repayment Plan:

Loan - £240.69 pm

Snowballing CC in this order: (£250 total pm)

£150 Barclaycard
£30 Halifax
£70 M&S


I am not looking to clear the debt really fast, just in manageable amounts so I can still do the things I love! I am planning on moving in with my partner towards the end of this year, he has just bought a house.

I don’t really have any long term goals! Just get rid of this debt within 2 years and start contributing towards a retirement fund of some sort! 

I hope that wasn’t too boring I felt like I was waffling haha :)
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Comments

  • CreditCardJunkie
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    Hey! Welcome! I just wanted to say, Ive had a couple of attempts at trying to clear my debt. This time has really been the only successful time, I think the main difference is I have allowed myself money to spend each month, rather than ploughing everything spare into debt repayments! It's definitely a marathon not a sprint. Good luck! 
    Debt Free as of December 2020 👏

    Save 12k in 2024 #25 - £200 / £2000

    MFW - 2 months shaved off the mortgage
  • Poniesatemymoney
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    I also accumulated debt through various 0% credit cards both during and after Uni.  It paid for my lifestyle (and my first horse!) back in those days transfers were free too so it was super easy and they literally just gave them out.  Didn’t feel like real money :) 
    On the basis above wouldn’t you be better paying of them loan as that is the only one paying interest? And shift the rest to 0% to max out those cards? But keep paying the same amount each month? 
  • ryanm8655
    ryanm8655 Posts: 1,152 Forumite
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      Best of luck! I’m a similar age and in a similar situation, only more debt.

    I’ve found two things really helpful:
    1) snowballing by clearing the highest interest balances first (including seeing a card with only £400 left and overpaying that month to clear it), it’s really rewarding focusing on a smaller balance and seeing fast progress.
    2) having something else to aim for - I’ve found the lower my debt has got the more I have been able to think about longer term goals like house buying, which has really added some impetus.

    Take advantage of the lockdown as well, assuming you are still earning. I’m anticipating a bit of a splurge when things are back to normal some months down the line but am hammering the debts hard while I’m saving on commute and entertainment costs in the meantime.

     

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320

    <br>

  • hiyaimtel
    hiyaimtel Posts: 17 Forumite
    First Post Combo Breaker First Anniversary Name Dropper
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    Hey! Welcome! I just wanted to say, Ive had a couple of attempts at trying to clear my debt. This time has really been the only successful time, I think the main difference is I have allowed myself money to spend each month, rather than ploughing everything spare into debt repayments! It's definitely a marathon not a sprint. Good luck! 

    I think that is definitely the best way to look at it, allowing myself some freedom and breathing room! I was trying to spend everything I had on the debt each month and therefore ending up with me just borrowing me to cover the end of the month.
  • Sarahwithlove
    Sarahwithlove Posts: 2,158 Forumite
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    Have u sat down and worked out how much you would need to pay each month to clear the CC by end of 0% period. I noticed you are paying off the one that ends last and I have longer to pay first. I'd suggest tacking whichever 0% is going to end first and then minimum on others. If u then have any spare at end of month I would suggest paying extra toward the loan. Have u done a SOA or budget? I found that helps me as I have to think about what I have planned for the month and how much I want to spend before deciding if I can afford to do other things. It's getting the right balance between having a life and debt busting. 
    *Dad loan - £5300 - £1700
    *Virgin Credit Card - £3552.50 - £0
    *Barclaycard - £0

    *Total debt - £1700*

    *Sinking Fund - £2000/£3000*
    *Emergency Fund -£50/£2000

    *Debt Repayments Pot - £0/0*

    New diary- https://forums.moneysavingexpert.com/discussion/6474943/the-three-cs-coffee-clothes-credit-cards/
  • hiyaimtel
    hiyaimtel Posts: 17 Forumite
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    edited 15 April 2020 at 3:22PM
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    I have managed to do a little bit of debt shuffling and also paid about £800 off with this months pay. Hopefully in the long run this will save me some interest on the loan as I did a money transfer to pay off the loan - I already had with some decent offers on some existing credit cards.

    Previous Debt total: £16740.33
    New total: £14916.70

    Barclaycard
    1 - £1361.86 (0% expires Feb 22) 
    2 - £2241.80 (0% expires October 21)

    Virgin  - £1836 (0% expires October 20)

    M&S - £2327.04 (0% expires August 21)

    Halifax - £7150 (3.9% P.A. for 36 months)

    I am hoping to move the Halifax onto a 0% offer within the next 6 months but at the moment I don’t have any good offers. 

    I am planning to pay them off in the order that they are due to expire and then make the minimum payments on the others. 

    Any tips or thoughts welcome, in my head it made sense to do the money transfer offers because I would save around £500 minimum in interest on the loan.





  • hiyaimtel
    hiyaimtel Posts: 17 Forumite
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    edited 15 April 2020 at 3:22PM
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    @Sarahwithlove thanks for your ideas! I did sit down and do a SOA and manage to cut a few things back. 

    At the moment I am living at with family so my living costs are much cheaper than usual (£150) but my season ticket for work is £565 per month very expensive! I am going to review my job situation once everything calms down maybe look for something more local! 
  • hiyaimtel
    hiyaimtel Posts: 17 Forumite
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    I’ve spent this morning look at Sim only deals! Trying to find one with a good amount of data and also cheap! 

    Decided to try out this Smarty one from Three - £10 per month 1 month contract. 30GB data and ultd texts and phone calls! 

    Hopefully it has good coverage! If anyone has any other good sim only deals for £10 or less please post them! Thanks 😊 
  • hiyaimtel
    hiyaimtel Posts: 17 Forumite
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    I’m finding this whole staying on track while in lockdown very easy! I am worried about the temptations after lockdown though MUST RESIST!

    I have created a spreadsheet for my spending and also added some more pots to my Monzo to help keep things separate so no big surprises!

    Also been looking lots at houses really would like to look at making my first purchase at the end of 2021 or early 2022! I however feel I will be at a big disadvantage having debt as a first time buyer - need to do more research on this! 
  • savingholmes
    savingholmes Posts: 27,676 Forumite
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    Good luck on your journey. 
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 235 payments to go - now £182,428 Equity 27.02%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £6.7K on 0% spends card but offset by £34.2K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.1K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.1K
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