The Mental Debt Struggle...

Keedie

I've left chargers and all sorts at hotels and people's houses before @Cherryfudge, so now I try to consciously remember. Still mess up from time to time though, with a few narrow escapes like the coat incident 😂.

The restructure is definitely making me think about life and priorities. And I need to get a grip of my spending. And a lot of that starts with getting on top of food etc. Monzo is doing 3% cashback in Lidl which is exciting as I shop there anyways, so I can go and do a big shop as the new fridge is still rather bare. It's got ice on the back wall of the fridge which confusing as it's frost free. I'm starting to consider that £90 payment for the fridge cover for 3 years. But knowing my luck, it would degenerate outside of that period 🙄. 

I've been considering amalgamating my savings challenges (aside from my son's 18th one) and put it all in my emergency fund. Then once that gets to the £1,000 target, starting on the build a buffer of £500.

I've also redone my budget so that I can get on top of savings, and spending so that I have surplus money to go towards debt overpayments and savings challenges. It's tight, but it is based upon a figure that is universal credit, PIP, child benefit and side hustle money so that I know that if the work situation does lead to loss of earnings, I can still keep afloat. If work continues as is, and I increase my hours, then anything above the new budget I've set from July 2024, will get split between additional savings and debt overpayments.

beanielou

Can’t remember if you still get CB when DS is at college? 

Keedie

Yeah you still get child benefit after the child is 16, but only if they are in full time education. As my son's course was for 1 year, I suspect I'll have to update them again by 31 August to confirm that he is remaining in education.

I think it can go up to 19 years old, only if they are in education, but to get it at 19, I believe they have to have started the course in the academic year in which they turned 18 and they are finishing off the course. Which will be the case with my son, as he's 18 in October, but will be starting the first year of a 2 year course so he'll be a few month's shy of 20 when he finishes college.

Keedie

THE SUNDAY SUMMARY

(Week 23 ~ 9 June 2024)

Debt Regrets

Goal 1 - 100% repayment to Bank of Mum 3 (school fees) - due 1 April 2024
Progress Checker = £3,800/£3,800 (100% repaid)
🎉 Achievement Date = 24 March 2024 🎉

Goal 2 - Clear Barclaycard Plan 1 (£6,508.43) - due by 31 December 2024
Progress checker = £978.43/£6,508.43 (15.03% repaid)
I paid the fixed direct debit of £250 on 28 May 2024, so this has come down. My minimum payment goes from 3% to 1% on 22 July 2024, so I'm debating whether or not I should reduce my fixed direct debit to give me breathing room or it keep it going at £250. I'll have to think on that some more.

Goal 3 - Pay £6,750 off my overall debt balance in 2024 - due by 31 December 2024

Progress Checker = £2,580/£6,750 (38.22% repaid)
There was no debt payment this week, but as I missed last week's check-in, this has still changed. 

Saving Grace

Goal 1 - Save £500 for my son's 18th birthday - due by 30 September 2024
Progress Checker = £155.94/£500 (31.19% saved)
So this has changed, as I'd restarted the build a buffer and decided to amalgamate it into this savings pot instead, along with anything over £200 in the 50 envelope challenge. That has meant that in the last two weeks, £37.28 has gone in here, including some interest the account earned. I should be able to complete the savings required by 31 August 2024, but the likelihood of needing £500 is getting slimmer by the day. So whatever is left, I will put towards Christmas. I worked out that between tomorrow and the end of 26 August 2024 (last Monday in August), there are 12 £10 payments, so an additional £120 to add to the £155.94 which will take me to £275.94. As the balance of the Chase round ups pot is going strong, and it now has £220.70/£200 (up £21.06 in the last two weeks) and so it sits at 110.35%. With the current and projected savings pot, plus the current Chase round ups pot, it will amount to £496.64. So if in the next 20 days before the round up pot matures, I can round up a further £3.36 then I've hit my £500 target a month early. So the countdown continues...

Goal 2 - Save £1,000 emergency fund - due by 31 October 2024
Progress Checker = £603/£1,000 (60.30% saved)
I've moved this from Goal 3 to Goal 2, and brought forward the target date from 31 December 2024 to 31 October 2024. I managed to do that by retiring the 50 envelope challenge for now, and putting £200 of it into the emergency fund, in addition to the £40 paid in over the last two weeks and interest accrued and a round up to even out the balance. So it's now at 60.30% to goal! Once I reach my £1,000 goal, I will keep saving each week and then start to focus on the buffer.

Goal 3 - Build a Buffer of £500 (homemade overdraft) - due by 28 February 2025 ⛔️ ON HOLD ⛔️
Progress Checker = £0/£500 (0% saved)
I've had to change the order of things, so this has gone from Goal 2 to Goal 3. I did restart this challenge this week, then I found out about the restructure at work and my focus changed. I moved the £5 that I had set aside into my son's 18th birthday pot. Once I've fully funded that, I can focus on boosting the emergency fund and then coming back to this one.

Goal 4 - Complete 50 Envelope Challenge (£1,275) - due by 31 December 2025 ⛔️ ON HOLD ⛔️
Progress Checker = 0/50 Envelopes ~ £0/£1,275 (0% saved)
I was sad to retire this challenge, as I would really love to complete it. But I decided to focus on the emergency fund and when things are a bit more stable, I can restart it slowly later in the year and complete it in 2025 hopefully. I'm proud of what I had saved so far though, £211, and the £200 into the emergency fund and the £11 into my son's birthday pot really helped to boost them both. So for that, I am happy 😀.

beanielou

Blimey. Imagine Barclaycard reducing the min payment to 1%. No wonder people can’t get out of debt. 

Cherryfudge

I think focussing on the birthday and emergency funds is a good way to be headed. The birthday is getting closer and you never know when you might need an EF (or of you don't, it's still there as a weight off your mind). It all shows you are taking control.

How are you feeling now? The other day you said you felt your MH was wobbly, but it sounds as though you are being deliberate and have control over your money.

KajiKita

Why not why not split the difference on the B/card repayment until the Buffer fund and some of the ‘Envelopes’ are filled. Yes, you will pay a bit more interest on the BC debt (I can’t remember what percentage you have it on atm?) but I think the MH benefits of having some cushion developing to ‘catch you’ might be worth it. 

KK

Keedie

That 1% on the Barclaycard would definitely keep people in debt for longer @beanielou. I'm considering reducing mine to a fixed amount that is still above the new minimum, so that I can save the rest for about 3/4 months, then increase the repayment again.

The Barclaycard is 0% interest for the entire balance @KajiKita, with the first balance due on 1 February 2025. I'd need to do a money transfer by December 2024/January 2025 to able to avoid paying any interest, as the current balance remaining on that plan is £5,530. If I continue to pay £250, then I would have cleared £1,750 by the end of December 2024, which will leave a balance of £3,780 needing to be transferred. But if my increase in hours at work is approved, then I'll keep the fixed minimum as it is at £250 and save the increase in salary instead plus any side hustle money. That way I would have paid off a good chunk of Barclaycard to be able to do the money transfer and not need to use as much. Then I ease up on it from January 2025.

Knowing that my two main priorities for savings, with my son's birthday and the emergency fund will be taken care of in the upcoming few months does give me peace of mind @Cherryfudge. My mental health is still not in a great place, and I've been waking up between 4am and 6am every morning, even on weekends and trying to force myself to go back to sleep. It's very draining, and I was so wiped out that I couldn't even go to the pub after my bipolar group on Friday evening. I'm hoping that it tails off soon. But I've been really struggling. My son keeps asking me if I'm alright and I say "yeah, I'm just tired from going to and from Manchester and working all week". He doesn't really buy it, but he can't disprove it either and it makes sense, so he chooses to go along with it. But really and truly, I'm just so tired of my life and being in pain, having a serious mental health condition that I'm not medicated for or receiving proper treatment and support, constantly being exhausted and trying to hold it all together as a single parent. I'm just worn out and fed up. But that's not his burden, and so I just lay in my bed and chill. But really, I'm dying inside and I really want a break, and to try on an alternative life, but I know that's not a possibility, so I just bumble along...

Keedie

Oh I keep forgetting to say that I've created a little savings pot in Chase that I put all the 1% cashback into, and the little pennies here and there that have interest. It's got £32.72 in there. I've decided that whenever I get around to opening Leftover Lenny, my little blue cat tin, I'm going to put the money in there.

That money will be guilt free money that I can spend on something that I want or need, that will help if I am in a low mood, having a bipolar episode or just want to treat myself. I reckon I'll have £100 in there by the end of the 2024 once I've opened my tin and added to it over the coming months.

Then next year when the chase round up pot expires in June 2025, it will all be going in that pot too along will all my cash ins for Lenny. It's something for myself that I can do whatever I want with it, but it won't be spent on anything for the flat, my son, my family etc. All for me. And isn't that a nice change?

PennysIntoPounds

You're doing so well. Hope you get news of possible potential move soon. I know things are much more complex than a simple 'better physical wellbeing equates to better mental health', but the less tired and cross and dreading you are of basic things like getting to the shops or seeing loved ones will be such an empowering boost to you, much as you'd rather not need to leave your place x