I can do it: £41,000 debt in October 2023. Debt-free in March 2025?

annetheman

beanielou said:

March 25 is only another year  Don't think you should think your SL as a loan.  As Martin says think of it as a graduate tax.

Thank you @beanielou you're right - not long!

Definitely good advice and I'm not going to be student loan free next March '25, just the other ones. If I continue my student loan payments as they are with no overpaying, I will be done in November 2026. I do enjoy tracking it because it helps to know there's an end in sight, as it is £500 taken off my pay every month - ouchie! Lol  

annetheman

Gosh time to dust off my diary! I am in a state of limbo with my house purchase so I've at least got some good news I can focus on with regards to my debt clearance - in 2 weeks, I will be paying off my Natwest Credit Card #2 in full!

So I was sort of forced into it because the 0% period ended last month (ha!) but still really happy to be able to cross that one out soon.

I'll take the little wins when I've just had a hard search applied AGAIN by Santander because my house sale is taking so long, we are applying for a new mortgage offer (despite the old one still being valid, expiring soon)... I'm looking on the bright side - this means I can focus on my debt repayments for now!

Yes, I need the money for the house but honestly, I am making hay while the sun shines and might as well pay the debt rather than save for jobs that may or may not be prioritised (in a house I may or may not buy...) 

That's something I definitely learned in this forum - always look on the bright side of debt repayment! :P

Sarahwithlove

Yes definitely pay off the debts whilst you can. Is it the same house that needs the work doing to it? Or have you found something else? 

annetheman

Sarahwithlove said:

Yes definitely pay off the debts whilst you can. Is it the same house that needs the work doing to it? Or have you found something else? 

Yes, this house needs a lot of work - 27 weeks after offer, we're still not close to exchange...

I wish I could find something else for my shoestring budget in London! I'd leave this headache house... Dodgy kitchen extension means the valuation is by no means guaranteed to pass (single skin non-regulation compliant brick - failed valuation with another lender, somehow passed with Santander).

IF by some miracle I get a second mortgage offer, I will do my best to keep going with the debt over-repayments alongside fixing it up.

Seeing the light at the end of the debt tunnel has made me see the bright side of maybe not getting this house for now, though. 

Thank you so much for reading!

beanielou

27 weeks!!! Glad I live in Scotland.

annetheman

beanielou said:

27 weeks!!! Glad I live in Scotland.

Haha it's a bonnie country with a much better house buying process - I'd never leave beautiful Scotland, either

annetheman

The light at the end of the tunnel... is looking brighter now! Reminder to self: I don't know what's good for me, ever, and my own will and judgement is never the right path to take. 

Case in point: I was wailing and whining about this house purchase taking so long and having to move in with my dad to remain proceedable, I was even going to pull out earlier this week.

After some prayer and volunteering at the church, I am back in the mindset of gratitude!

I should have been thanking God (I did, but saying and showing are both equally important!) and lucky stars for the privilege of being "homeless/between homes" with my lovely dad and what that will do for my debt-free plan, which I cast aside for this house purchase. I now realise that this LONG delay means that I can do both, this delay means I don't have to choose between house purchase OR debt paydown. How very grateful I am now for the luck I have...!

Sticking with the house purchase
The seller's solicitors are applying for the Title for the third time and claim they'll get it right this time... Now I know the process and timelines inside out, the earliest - assuming they apply in the coming week - to obtain approval will be 2 months. That is IF they are right in that the site survey isn't needed:

1 week receipt by post and open new application
2 weeks expedited LR review
2 weeks requisitions
-skip 2 weeks site survey-
3 weeks notification to adjacent landowners

So November 20th-ish. I will receive 2 pay checks in that time - 20 October and 20 November. Almost all will be used to pay debt!

What does that mean for my debt-free plan
Amazing progress, God-willing. I will use my October's pay to pay off the Tesco loan entirely (£2,511). I will use November's pay to pay off Natwest credit card entirely (£1,780).

So I could move into the house (please, God, please, let it be possible!) no matter what the date after 20 November with only 1 credit card to pay down on 0% (Barclaycard) and 1 loan remaining (Close Brothers Car Loan).

My monthly minimum payments will be approx £200, from more than £500 currently, so I can overpay what's left of the debt even more aggressively with no net change to my outgoings and still put away into the house improvements savings pot. 

One thing is for certain: I will not use any debt to fund the house improvements.

I will save for each project, build, improvement and fix, and I will build up an emergency fund so disasters don't mean new debt. That non-compliant kitchen extension and bathroom are going to have to do for a little while longer and that's okay!

I've updated my DFP here.

The only backwards step which has annoyed me and sent my CC debt a bit higher is TfL refunds are out of action due to a cyber attack a few weeks ago - so I'm owed at least £200 refunded to my Natwest credit card [they've double dipped and charged me on both my debit and credit for the same journey] and I can't get the refund yet! But when I do it goes straight back to the credit card.

beanielou

Sounds promising. 

Aimingforthegoodlife

Sounds like you have had a good amount of time to think things through, and I am hopeful that 20th Nov will be the date! Fab news and plans with the next two debts, how great to think they will just be gone!

annetheman

Thank you so much @Aimingforthegoodlife that's really encouraging!