Fun vs focus

kl_jones2021

Hello.

I've been wanting to start this debt diary since the beginning of the year, but I didn't want to get caught up in the ‘new year, new me’ frenzy. However, now feels like the right time to share my journey and keep myself motivated.  I've already made some progress this year by paying off **£7,341.79**. 

Current Situation

As of now, I have a total of £20,359 in 0% interest debt. This breaks down into. 

- **£2,084** in medical expenses

- **£18,700** for my car

My goal is to pay off the remaining balance no later than September 2025. Ideally, I'd love to have everything cleared by July next year, but one step at a time.

My Plan

1. I'm carefully tracking my budget to maximise my debt repayments.

2. I'm earning extra cash through dog sitting, selling on Vinted and cashback. 

3. I currently have £2,119.70 in an easy access savings account. I plan to keep £1,000 as a starter emergency fund.

4. Save the £2084 until I can pay the medical debt in full and then pay what I can to the car. 

Motivation

This diary is a way for me to stay on track and motivated. I love travelling and often find myself planning last minute trips, but my main focus now is to clear this debt and build a solid emergency fund by the end of next year.  

I'm aware that I could earn interest by saving the money instead, but I would prefer to reduce my monthly payments to lower my outgoings.

Challenges - fun vs focus 

Next year, I have a family wedding and two big birthday celebrations, which will require some financial planning. Nevertheless, I'm determined to stay within my budget and continue making progress on my debt. 

To keep things enjoyable, I have a fun budget each month and a goal to try one new free activity per month. So far, I've managed to stick to this mini goal. 

Cheers

Mark_d

Rather than a debt problem this appears to be a case of you treating yourself to a new car and now paying it off - as is always the case when people buy things on credit.

If you're serious about clearing the debt, then I would consider selling the car and buying a used car for around £6000.(This is slightly more than the most I ever spent on a car)

Reducing your debt reduces the monthly repayments and therefore gives you more spare money to repay the remaining debt.

It sounds like you are similar to me in your love of travelling.

In terms of maximising the amount of money you have available to repay debts, I suggest you looks to reduce all your costs to the minimum and review the amount you treat yourself.  Maybe you can do without that Spotify subscription and focus on maintaining your own music collection.  Maybe there are cheaper ways of getting your TV entertainment.  Maybe you don't need gigabit broadband.  Maybe your mobile bill could be £5 per month rather than £50 per month.

In terms of travelling I'm cutting costs by reducing the amount I spend on hotels.  I do day trips where possible

kl_jones2021

Thanks for the comment. I definitely agree with your first point. I will consider the sale advice. I don’t have any subscriptions and I’m on the £4 phone bill with a very old phone that works ok. 

 Mark_d said:

Rather than a debt problem this appears to be a case of you treating yourself to a new car and now paying it off - as is always the case when people buy things on credit.

If you're serious about clearing the debt, then I would consider selling the car and buying a used car for around £6000.(This is slightly more than the most I ever spent on a car)

Reducing your debt reduces the monthly repayments and therefore gives you more spare money to repay the remaining debt.

It sounds like you are similar to me in your love of travelling.

In terms of maximising the amount of money you have available to repay debts, I suggest you looks to reduce all your costs to the minimum and review the amount you treat yourself.  Maybe you can do without that Spotify subscription and focus on maintaining your own music collection.  Maybe there are cheaper ways of getting your TV entertainment.  Maybe you don't need gigabit broadband.  Maybe your mobile bill could be £5 per month rather than £50 per month.

In terms of travelling I'm cutting costs by reducing the amount I spend on hotels.  I do day trips where possible

kl_jones2021

Off to a Great Start!

I won £10 from the postcode lottery, and a £9 Vinted sale just hit my bank account. Both went straight to the medical bill fund.

This weekend, I'm planning spend nothing and will be pet sitting through the Rover app to earn some extra cash.

On the food front, I’ve doing some meal prep to help lower my food bill. I’ve got a load of veggies from my garden ready to harvest and prep for future meals. I even swapped some of my homegrown veg for eggs. Plus I've also got a load of chicken bones ready to make stock, and my sourdough starter from two weeks ago is ready to use too. 

kl_jones2021

Today, I paid off £1,220 towards my debt. This includes my regular £425 car payment and £795 towards my medical bills.

I also had another lucky break with a £10 postcode lottery win, adding to the one I mentioned earlier.

Additionally, I received £7.95 from cashback, but I’m putting that into my current account to cover an overspend against my food budget.

I’m pet sitting again this weekend and using gift vouchers from my birthday to enjoy some fun activities at no extra cost.

Balance Update

As of now, I have a total of £19,139 in 0% interest debt. This breaks down into:

- **£1,289** in medical expenses

- **£17,850** for my car

Saving balance is £1356.61 

kl_jones2021

Saturday was going so well as I was earning money not spending it. Then Sunday I went off budget and dipped into the saving.  I’ve been stupid for a DIY project. 

Lunch and dinner made for today and no plans to spend any money until Wednesday. 

kl_jones2021

The budget took a hit after the above overspend. I managed to earn some extra cash from pet sitting, but still. I have enough for a very small food shop and two bills. My savings balance is £1130.29, and I've paid £1220 towards debt this month. Only a week until payday—I can do this!

kl_jones2021

A belated updated. I’ve had a summer of good budget friendly fun.  Apart from the blip above I’ve managed to stay in budget minus a hot water tank issue. 

Debt balance today is £18,114 made up of Medical debt at £1,289 and a Car is £16,825. 

Saving balance is £1067.53

Off work in two weeks and planning to have go camping with my mates and stick to a food and drink budget.

Sarahwithlove

Tbh at that price I'm guessing you are at the start of your car repayment plan and its going to have dropped several thousand in value just by driving it off forecourt. So whilst car loans are a pain in !!!!!!, if you are going to own it in the end and it's 0% you may be better off just paying it and knowing you have a car that you know the history of. 

kl_jones2021

Yes this was my rationale but given I now owe more on the car than it’s worth, it was a stupid move.  I’m learning… 

Sarahwithlove

Yes an expensive mistake but one you won't make again