Sorting out the mess 'past me' got me in to, for a happier 'future me'

FOMO_overspender

Wow, I can’t quite believe it’s been over a year since I last updated this! I honestly don’t know where it’s gone, but hey ho! 

Ok, so here’s an update on figures:

• CC: £0 - this has been cleared and closed 
• Loan: £2,500 (3.9% APR) 
• Total remaining: £2,500 
• % of debt gone forever since LBM: 90% 
• Original debt: £26,380.49

I’m super close and currently on track to pay off the total amount by June. I also need to get a final resettlement figure as I’ll be paying this off early, so should actually be less than £2,500 left. 

I’m super happy to be overdraft and credit card  debt free - I use an Amex but pay it off every week. YNAB has been a lifesaver for keeping on top of credit card spending. 

I’m also building up my Emergency Fund - currently standing at £450. Aiming to get this to £1k by the time the loan is paid. Then it should mean I can allocate the same per month as my loan min payment (which is £585) to savings! 

I’ve also had a cost-of-living crisis salary uplift of 5% as well, so that will help. 

Definitely feeling positive and very excited about being officially debt free!

FOMO_overspender

Managed to pay some more from my loan since last updating, so now at £2,350. Really
hoping I’ll be able to clear this in the next couple of months.

I’ve got £450 in my Emergency Fund savings pot and I’m wondering should I just chuck it to the loan to get it paid quicker? I don’t like not having any savings buffer, but once I’ve paid my loan I can put £585 a month to savings, so would save it back up quickly. 

Going to try and do some more surveys etc as well to try and chip away at this last bit of loan. 

FOMO_overspender

OK, so post payday update: 

• Loan remainig: £1,200 
• % of debt gone forever since LBM: 95.5%
  
• Original debt: £26,380.49

I am feeling great to be this close to being debt-free!!!! I am one payday away from clearing the loan, so need to get my final loan settlement figure as I will be paying off the amount early.

outoftheviciouscircle

Hey
Well done on nearly being debt free. I discovered YNAB only last month and so far I am loving it, or as my other half would say, Im obsessed. Would you really say its helped you that much?

FOMO_overspender

Thank you! 

Yes, honestly, it’s been a game changer. The fact you can incorporate credit card spending works for me - as it was always spending on credit that I would overspend on. Now I know that my budget is my budget and it’s all tracked. I cleared so much whilst I’ve had it. 

enthusiasticsaver

Well done.  I remember when you started on this journey and you are so close to getting rid of the debt now. 

FOMO_overspender

Thank you! I honestly can’t wait for next payday. Then it’ll be making sure I save, save, save. 

I should add I’ve still been saving alongside the debt busting. Savings are currently at £650. I’ve been focussing on paying down the loan, so not been saving a lot, but the plan is once the loan is gone I can then save the amount I had on DD, so approx £600 a month. 

enthusiasticsaver

FOMO_overspender said:

Thank you! I honestly can’t wait for next payday. Then it’ll be making sure I save, save, save. 

I should add I’ve still been saving alongside the debt busting. Savings are currently at £650. I’ve been focussing on paying down the loan, so not been saving a lot, but the plan is once the loan is gone I can then save the amount I had on DD, so approx £600 a month. 

Great idea. I am a big fan of saving as you might imagine from my user name 😂 Why not join one of the savings challenges. I used to split spare money three ways. One third saved for short term like holidays, short breaks, new furniture/white goods etc, one third for medium term like a new car or home improvements and one third long term either in pensions, stocks and shares ISAs or mortgage overpayments. Of course if you are saving for a new house then it might be better to save all in one place. 

FOMO_overspender

Thanks @enthusiasticsaver - I will have a look at the challenges. I already have some savings pots (so Xmas, Holidays, Gifts etc) but I do need to look at the best option for saving larger sums to start saving for a house/flat deposit.

On the debt front, I have had my final loan settlement figure which is £1,127.29, so around £72 reduction for interest. So, in theory, by the end of this month, I will be able to pay it off!! 

FOMO_overspender

It’s payday 🥳 which means I can now FINALLY pay off my loan. 

My direct debit of £585.43 has just come out, so waiting for that to clear and then I am going to call to pay the remaining £541.86!

I am so happy to be here, after a few hiccups and delays.