Biting the bullet 21 May 2020 at 8:39AM in Debt free diaries 68 replies 4.3K views

Lu2025

Well done, you are doing fab!

savvylondoner

Over a week since payday and direct debits having gone out... This is the longest period in probably at least 15 years I haven't used a credit card to bridge a gap. Determined not to again! I was trying to think about what specifically got me into the cycle. First CC was offered by a canvasser on the street in my first year of uni - loan running low, in need of cash, it seemed too good to be true. This helped me continue an unbudgeted lifestyle beyond my means that spiralled bit by bit. Nice holidays, lovely meals out and lots of time with friends but this all comes at a price. I now earn enough to live that lifestyle, but ironically can't live it as I'm dealing with the aftermath of before. Fingers crossed though, around a year from now, things will be all cleared and very different. 

savvylondoner

I read lots on here about pots. What do people do? Set them up with a target and add what you can, or a set amount every month? This is my next step I think to avoid unexpected costs. 

WinterWarrior

I have opened a Monzo account and have created savings pots for different things, e.g. Christmas, birthdays, savings, etc. You can add targets and also lock them until certain dates. At first I was adding to the pots and then taking it back out again after a few weeks...I am determined this month to not do that! I have set one called ‘pay loan off early’ and I hope to keep adding to it, each time I have enough to cover an extra payment I will send it to the loan, but this way I have it there as an emergency back up if I do need it.  It’s so hard to get into the savings mindset. I know people recommend pots for yearly expenses like insurances etc. But I’m still paying mine monthly. When I get in front I’ll start to prepare those, but I’m not there yet. 

Good luck x 

ImpulseSpender

I use pots for saving but I use an app called Plum which links up to your bank account and then withdraws money incrementally throughout the month e.g. £4.50 here and £7.90 there, so you don't really notice its being taken out. You can then set how you want the money to be divvied out between pots e.g. 50% into Holiday Pot, 25% into Christmas etc. You can also have it take larger amounts out when you want too. I just use any extra income I get through the month in addition to anything I put in there on payday and what it takes out automatically. You can set goals on there too. The app does have some other features too but thats the main one.

savvylondoner

Thanks @Suzanne54321B and @ImpulseSpender - I didn't get notifications so only just seen your helpful responses! Is Plum a bit like Chip? I have used that in the past and it's great but not sure it works with Monzo? Yes, the worry with pots is that it is so easy to take it out again. Lacking will power strikes again...

savvylondoner

It's pay day today and last month didn't quite work as planned. Ended up having some unplanned expenses so as I had zero-budgeted and have no EF yet I had to use the AMEX Going to be a bit more cautious with my CC payments this month to avoid this happening again.

savvylondoner

An update! Not doing badly, but want to do better!!! It's clear that I've reached for the AMEX a few times, and used PayPal for some online spends...
Virgin was £700, now £0
Natwest Loan was £1570.31, now £961.72
Natwest CC was £1966.35, now £0
Barclaycard was £2067.41, now £699.22
Paypal was £2650.01, now £2653.18
Lloyds CC was £3763.34, now £3660.31
AMEX was £6879.31, now £7106.01

savvylondoner

A few more things cleared, so updated balances:
Virgin was £700, now £0
Natwest CC was £1966.35, now £0
Barclaycard was £2067.41, now £0
Natwest Loan was £1570.31, now £635.93 (final payment in September)
Paypal was £2650.01, now £2620.68 (now overpaying on this one)
Lloyds CC was £3763.34, now £3456.39
AMEX was £6879.31, now £6966.37  (using this when I don't quite manage my budget - need to stop)

savvylondoner

Beginning of the month update now all payments have been made and interest added...

Virgin was £700, now £0
Natwest CC was £1966.35, now £0
Barclaycard was £2067.41, now £0
Natwest Loan was £1570.31, now £644.45
Paypal was £2650.01, now £2575.85
Lloyds CC was £3763.34, now £3600
AMEX was £6879.31, now £6994.07

30% paid off since 26 April LBM. Total amount now sub £14k. Desperate to reach the £10k mark by the end of the year!