The Three C's - Coffee, Clothes & Credit Cards

Sarahwithlove

CreditCardJunkie said:

Sarahwithlove said:

CreditCardJunkie said:

Sounds like a lovely weekend Sarah! Just been catching up and your budgeting is going so well! 

Just a thought, would you not clear the creation with your savings & call your dad's debt a direct debit? From what you said previously your dad isn't concerned about getting repaid quickly (or maybe even at all). I really think that switch could flip your mindset if you were debt free, it seems you've the budget nailed and are unlikely to get into debt again! Might just be freeing!

Thanks, I have considered it but there's something about having savings that reassures me. Creation loan is also 0% so whilst it would be nice to have it gone I'm not in a massive rush. My dad is still very much not in a rush to have it paid back and happy with his £100 a month. But again part of me is like it will be nice when its gone. But you could be right, treat it like another payment. 

Given me alot to think about 

Ahh yes 0% didn't think of that! Fair enough! Sounds like you've got a really nice balance of budgeting and enjoying life!

My plan is to get my savings to £2k with overtime then start overpaying Creation to have it gone. 

Willowtree222 said:

I also have a 0% creation and savings and have had that dilemma loads of times. I always come to the conclusion that whilst there is no interest, having it in savings is best, but then, like you, wonder what it would be like with it gone. 

Its a tricky one, once I am in good place with savings I will get it gone to free up the monthly payment. Though it is only £20 that's extra towards my mortgage which i plan to tackle next. 

Sarahwithlove

Hello! Hope we all had a lovely Christmas. Mine was nice and quiet. 

Currently off work until 5th January which I am very pleased about. Plan is to do some DIY but that's not going well due to getting poorly. So i've been listening to Dave Ramsey podcasts. 

This resulted in my biting the bullet and repaying my creation loan. Well other than Mondays payment as too late to cancel it in time. So on Monday that will be gone. It only frees up £20 a month but it all helps. 

Payday on 31st is a good one due to overtime, so with the break in repaying my dad (come on to that in a minute) it means I will have about £700 in total to put into savings/sinking fund. That's basically repaying what I spent on paying loan off. 

So to my dad loan, well he has agreed for me to pause payments and build savings up as he won't be in position to bail me out again. He has enough to live on and savings of his own for anything he needs and I'm helping him budget so he will be saving up again. 

So I have adjusted my budget, and worked out I can put into savings/sinking fund about £400-500 a month. This does mean I will have to stick to my budget I have set myself. So as bad habits have slipped back in I have restarted my YNAB trial and see how goes but think I will subscribe because using a spreadsheet isnt working for me.

The reason I put the buffer of £100 is because I have restarted weight loss jabs, trying the other brand to see how get on and plan to stay on low dose to reduce side effects. My hope is that I will save alot of the cost in reduced food costs. But will see how it goes and then adjust budget as needed. 

Let's hope the overtime picks up again in January so I can get the savings up some more. 

CreditCardJunkie

Happy New Year Sarah! Congratulations on paying the creation loan! Hope all goes well with the jabs! I'm currently back on the fasting wagon so Monday will tell how successful it has been!

Blackcats

Good work on shuffling and re-jigging your finances.  I do the same on a regular basis as things change, priorities emerge and different ways of thinking happen.  This is in contrast to the previous iteration of me which operated on an ignore it and hope it goes away approach.

happy new year!