Clearing my debts 1% at a time

Rud0lf

Logged in to see how much is left on my student loan, I have never counted this in my debt balance before as it automatically comes out of my pay each month. As I am within the last two years they are suggesting I pay by direct debit now instead of salary sacrifice. I've looked in to it and it won't make me any worse off as its taken out after tax and insurance. 

The direct debit means I'll be paying less back and for slightly longer but I can pay extra if I want to. I should be about a little each month better off and have a set end date so although I will possibly end up paying a little extra in interest this way I prefer it. I hate that the salary scheme seems to take ages to update the balance and I feel like I never know where I'm up to. 

Once I've paid my other debts I might just pay off the final balance. As it stands the balance is 2252.41 on the website, my direct debit will start in October and will be 129 on the 1st of each month. I'll update my signature to reflect this. My pay will increase by at least the same amount.

Rud0lf

Budget for the month is going okay, my savings pots havent been touched. I have a little left for the next week and then go on holiday so budgets should be okay until payday. I'll keep check on the account while I'm away but have a separate account for holiday spends. This week will have a trip to the vet and a visit from the inlaws so a housework day before that. Bathroom needsa deep clean and all the floors need a once over. 

Looking forward to seeing my payslip to see whether the student loan will come out at the end of the month or whether it will switch and how much my pay will change. 

Also looking forward to building the holiday pot up again for my husbands surprise birthday trip and the girls holiday next year. 

Will be good to see how much less I'll be spending each month once this holiday is done, at the moment I'm picking up things I need for us all, clothes sunscreen, shoes etc most weeks so should have more to plough into savings once we get back. 

Rud0lf

Checked my credit report this morning and the arrangement to pay/partially settled marked has been removed for cc5. This gave me a little boost, 5 defaults to go but they won't start dropping off until October next year, ironically the first default to go is cc1 so still my biggest debt but it will be gone by April before the default drops off. 

Everything else is ticking along nicely, student loan direct debit confirmation has been received, 

Budget for September will be a bit tight because of the amount of childcare needed and my car service although there is money in a car pot for this really so I should probably take it from there. Each of my direct debits seems to have increased by a few pounds recently too. Hopefully the payrise which will probably arrive in November backdated to September will balance these out and a little more. 

Fingers crossed the student loan salary sacrifice will stop before August's pay on the 30th and this will help get me through although if it does I would like to at least pay half off my student loan ahead of the direct debit starting in November. 

For my holidays (which is our first big holiday in 5 years mostly paid for with some inheritance when we paid off the mortgage2 years ago) everything is paid for, money has been switched to the correct currency via revolut and cash. Money for the taxi to the airport is done and I just have a couple of little things like bug spray to pick up. I'm hoping to still have some money left in the revolut when we return which can boost the Christmas pot. This may be the last year the littlest still believes so needs to be as magical as every other year. The eldest has adjusted his Christmas list since he realised its me and dad paying for it all and reduced his expectations last year without any mention of money which is sweet. He has been learning about budgeting in school and although he has some way to go with impulse purchases he is much more careful with his own money than mine and dad's.

I'm hoping to pick up a few Christmas gifts for the boys when they aren't looking whilst on holiday as they will be different things to what I can pick up here, would love a head start, I've normally made a good start by now but so far have one tshirt and a lynx set. 

Counting down the days until dfd, (238 if anyone is interested). Right lots to do so I'd best make a start on the day.

Rud0lf

Last month I spotted a pattern that I am putting money into savings at the start of the month and then borrowing it back at the end of the month so my short term savings pots were almost non existent. To try to fix this I plotted out alongside my budget how much should be in savings pots each month until the end of the year. Seeing this has made me see the importance of not borrowing from them unless I absolutely have to. Because of this I have managed to leave them alone this month except from taking some money from the Christmas pot to spend on Christmas presents while we are away. Hoping this is a mini lightbulb moment. 

My long term savings are in a lifetime ISA which I cant withdraw from until Im 60 and a fixed term ISA which I have to close to withdraw from within a year. This stops me taking anything out. Once I'm debt free I want to look at premium bonds or avcs to my pension so that the extra money I have each month is not easily accessible. This is needed to keep my adhd in check and avoid impulse spending which is probably the symptom which has impacted my life most, the rest is mostly kept at bay by running whilst I await my official diagnosis and hopefully some medication to help. 

My other impulse thing to do is enter races which to me are more excuses for a long run than a race as such. Next month its the Great North Run, then October is Manchester half marathon with my buddy. Hopefully the medication will reduce my need for long runs and I'll get back to just a few miles each week before I kill my body off. 

Finance wise I'm on track for the month all holiday spends are changed to the correct currency and then I arrive home the day before payday. Enough is in my current account to pay bills, just need to get through the next 2 days without going off track.

Rud0lf

Feeling extremely fortunate to have arrived back home with all the air traffic control chaos and the tropical storm which has just hit our destination. We ended up on a different plane and had a 2 hour delay but we took it in our stride. I managed my budget well and including some extra treats at the airport to give a mini dopamine hit (managing my adhd without a mega online shopping trip) I returned home with £27.86 left on my revolut card.

I arrived home to a car tax bill which wipedout my car pot and some of the child benefit which was paid whilst I was away. Having had my mot this month and with my service on Friday I have realised this is why I can't dip into savings pots, this will help me avoid it in future. The car service will be covered by the car pot contribution for next month by money moved on payday, then I'm going to let it build up to £1000 this will be around this time next year as long as there are no car emergencies. My car is relatively new and has low mileage, then I'll send the money each month to my general emergency fund. I would like to build this up to cover three months wages but this will take time. 

I am proud that I've managed to save for my first big holiday and not use credit cards to pay everything. I'm chipping away on debt and when I get paid tomorrow will be down to a little under 3500 debt. Each month I am excited to see this dropping. I'm managing not to use anything else except my very account which is budgeted each month and will be paid off before the buy now pay later accrues any interest. I am also going ro reduce the balance so I can't  do any impulse spending especially in the run up to Christmas. 

Managed to get some stocking fillers etc whilst we were away, things we can't buy here that the kids will love so have officially started on the big C word. Struts sleep as is the eldest as our body clocks haven't adjusted yet. 

My number for the Great North Run arrived whilst we were away and I'm looking forward to that next weekend, I'll be travelling alone so it will be easy to budget just need fuel.

I'll be back on to update my signature in the morning when I've been paid and have made my debt payment.

londoner2019

Glad you made it home ok! I took one look at the chaos with air traffic control and shuddered.

Been keeping tabs on your diary and you exhibit similar tendencies to me - saving with the best intentions but having to dip into them by the end of the month. Well done for changing that habit! 

Same thing with the student loan - I’m now looking at it as a debt to clear.

You’ve come so far - that last 10% to go. You got this!

Rud0lf

First pay received without student loan contribution deducted so I can budget better for next month when direct repayments start, this months has been split between paying for a new tyre and buying a Christmas present for my son. 

Have started using Christmas pot to buy some Christmas gifts but need to wait now until next month before buying anything else as its quite depleted. Have bought all gifts for my husband so that's 1 of the big three complete. This month will be tight as the car pot owes me some money which I'll get back next month, haven't had pots up and running for a year yet but I'm getting there. Although it's tight I have used any additional credit and I'm still on track to be debt free by the end of March. 

I'm back to work tomorrow so will find it easier to stay on track payday to payday. Need to add credit to the kids school meal accounts to cover their meals once a week. 

Will take some money from the holiday pot to cover my trip away for the Great North Run next weekend, travellalone so it should be easy to stay on track.

Rud0lf

Staying on track, I've moved some money across to my new chase account, my main thought process being that can be where my spends for the month go each month to try and use it without touching the money in my normal account, I'm hoping this will make a distinct separation between my saving pots, bill money and spending money. The only saving pot I have on chase is for my new emergency fund pot. I've never really had an emergency fund, although I have some savings it's always been earmarked for something but there if desperate
 So far I have £85 in it if I can stick to a really tight budget, if I end the month with 50+ in it I'll be happy.

 Everything else is plodding along until the next pay day on the 29th, I always feel like I'm not doing anything to get rid of debt at this point in the month but I suppose the important thing in between paydays is not increasing it. 

Rud0lf

Now I have my chase card and have had a think about budgets etc again I've decided to use chase as my day to day bank and keep my natwest account set up for all my pots, bills direct debits etc. I'll transfer my spending money for the month and let the other account tick over. I'll still have an emergency fund pot in chase and if any additional pots are needed I can add them there. This should strengthen my will power for my important pots. I've worked out my bills for the next 12 months as some things will be paid for soon or I won't need anymore so my job for today is to decide what to save the extra money towards as and when I stop paying for my husbands birthday surprise and my holiday etc. 

I am enjoying having a better debt /life balance. I enjoyed my beak away for the Great Northrun last week but have decided after next months half marathon I'm going to reduce he long distance running and focus on other forms of exercise still keeping my 2 runs a week but maybe trying some yoga or something to help me to stay flexible and help my joints. 

Have picked up a few stocking gifts and some presents for eldest, I think he'll have some money and some PlayStation credit this year as his main gifts as I can't think of anything specific he needs. The youngest never asks for anything so I'm not sure what to get him yet. I'm going to start looking for ideas for my mum,dad, siblings neices and nephews to try and get organised early and avoid some of the Christmas stress.

Debts are ticking by, I'm glad there are only 6 1/2 months left until its gone.

Rud0lf

It's been payday which means the monthly debt payment has gone so once that clears I'll be under £3000 for the first time in about 20 years. £2963.81 left to pay which is still on track to be done by March payday so cleared by start of April. 

Everything else is on track and ticking away, I'm getting a little better at not borrowing from pots but this is the first month were all spending this month will be done from a different bank to the one with savings pots so I'm hoping that will make it a little easier. 

Christmas shopping is well and truly underway with my mum, husband and great nephews main gifts bought, need some inspiration for some of the others but will get a few more people sorted with this months Christmas money. Think I'll try to get everyone else sorted so I've just got the santa gifts to get with October and November's pay.

My neck is finally feeling better in time for my next half marathon two weeks tomorrow. No other big expenses this month so will do my best to come in under budget.