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My debt-free journey diary

Nexgenn
Posts: 20 Forumite

The realisation
A while ago, I was diagnosed with ADHD and started medication. For the first time in years, I’ve been able to think clearly—and it’s been both a blessing and a wake-up call. With this fresh perspective, I realised what a pickle I have gotten myself into with debts, mainly on my credit card.
Historical struggles
I have always struggled with managing money. During my first degree around 8 years ago, I was stuck in a cycle of impulsive spending, missed rent payments and payday loans galore. I wasted my grant money on expensive gifts in a desperate attempt to make and keep friends. At one point I was juggling multiple loans just to pay off other ones, and eventually, I got my first credit card.
Over time, I managed to pay off the loan, partially with the credit card and partly with help from family. The CC debt grew as Barclays kept increasing my limit, which I kept hitting. Fast-forward to this year: I got a new job, and I absolutely love it, but it required me moving to a new city. Without savings to pay for the deposit + first months rent, I borrowed £600 from my parents. I have paid £350 so far (at £50/month), but was recently hit with a debt of £700 to my old workplace for over-taking holidays and a bike I received through the cycle2work scheme. I currently work a part time job which is minimum wage, and I'm a part time student (no grant or loan money as I am a distance learner).
Current Debt Breakdown
My debt stands as:
Barclaycard- £3823 (Limit £3850)
Family loan- £250 remaining (£50/m)
Old workplace- £650 remaining (£50/m)
The gory spending details
Decembers projected vs actual finances:
As you can see, my spending habits are out of control. It was Christmas, which always costs more, but that is no excuse.
Taking Action
Today I took my first step in taking back control. I have pulled every figure from my past three statements for both my current account and credit card, and I've put them into categories. I've identified where I overspend, and I'm reigning it back in.
I contacted Barclays, who graciously put me on a 12 month payment plan and froze my interest, reducing my minimum payment to just £35/m. I plan to decrease my spending and pay as much as I can into this.
Next Steps
1) Track every penny I spend as I spend it.
2) Set a budget, creating pots for each category
3) Hold myself accountable by sharing updates.
I also plan on taking on overtime shifts wherever possible, meal prep rather than order takeout, wait a week before making an unnecessary purchase, and walk more rather than use public transport.
My debt free journey starts here, and it will be a long one, but I'm going to get there!
A while ago, I was diagnosed with ADHD and started medication. For the first time in years, I’ve been able to think clearly—and it’s been both a blessing and a wake-up call. With this fresh perspective, I realised what a pickle I have gotten myself into with debts, mainly on my credit card.
Historical struggles
I have always struggled with managing money. During my first degree around 8 years ago, I was stuck in a cycle of impulsive spending, missed rent payments and payday loans galore. I wasted my grant money on expensive gifts in a desperate attempt to make and keep friends. At one point I was juggling multiple loans just to pay off other ones, and eventually, I got my first credit card.
Over time, I managed to pay off the loan, partially with the credit card and partly with help from family. The CC debt grew as Barclays kept increasing my limit, which I kept hitting. Fast-forward to this year: I got a new job, and I absolutely love it, but it required me moving to a new city. Without savings to pay for the deposit + first months rent, I borrowed £600 from my parents. I have paid £350 so far (at £50/month), but was recently hit with a debt of £700 to my old workplace for over-taking holidays and a bike I received through the cycle2work scheme. I currently work a part time job which is minimum wage, and I'm a part time student (no grant or loan money as I am a distance learner).
Current Debt Breakdown
My debt stands as:
Barclaycard- £3823 (Limit £3850)
Family loan- £250 remaining (£50/m)
Old workplace- £650 remaining (£50/m)
The gory spending details
Decembers projected vs actual finances:
PROJECTED/MINIMUM
Outgoings
Rent (inclusive of bills): £550
Phone: £24
Prescriptions: £9.90
Gym: £14.99
Subscriptions: £30
Groceries: £200
Travel: £50
CC repayments: £145.21 in December
Family loan repayments: £50p/m
Old workplace: £50p/m
Rent (inclusive of bills): £550
Phone: £24
Prescriptions: £9.90
Gym: £14.99
Subscriptions: £30
Groceries: £200
Travel: £50
CC repayments: £145.21 in December
Family loan repayments: £50p/m
Old workplace: £50p/m
Total: 1124.10
Income
Wage (December): £1230
Benefit payment: £30
Total: £1260
ACTUAL
Income
Wage: £1033 (less due to Wagestream taking back the wages I took in Nov)
Benefits: £62.18
Taken from Wagestream: £180.28
Total: 1275.46
Outgoings
Rent: £550
Phone: £33.72
Prescription: £9.90
Gym: £14.99
Subscriptions: £30
Groceries: £128.59
Convenience: £47.77
Takeaway: £48.17
Going out: £117.49
Travel: £135
Health and Beauty: £51.82
Online shopping: £38.05
Gifts: £124
CC repayments: £145.21 in December
Family loan repayments: £0 (missed payment)
Old workplace: £0 (missed payment)
Total: 1,474.71
Subscriptions: £30
Groceries: £128.59
Convenience: £47.77
Takeaway: £48.17
Going out: £117.49
Travel: £135
Health and Beauty: £51.82
Online shopping: £38.05
Gifts: £124
CC repayments: £145.21 in December
Family loan repayments: £0 (missed payment)
Old workplace: £0 (missed payment)
Total: 1,474.71
As you can see, my spending habits are out of control. It was Christmas, which always costs more, but that is no excuse.
Taking Action
Today I took my first step in taking back control. I have pulled every figure from my past three statements for both my current account and credit card, and I've put them into categories. I've identified where I overspend, and I'm reigning it back in.
I contacted Barclays, who graciously put me on a 12 month payment plan and froze my interest, reducing my minimum payment to just £35/m. I plan to decrease my spending and pay as much as I can into this.
Next Steps
1) Track every penny I spend as I spend it.
2) Set a budget, creating pots for each category
3) Hold myself accountable by sharing updates.
I also plan on taking on overtime shifts wherever possible, meal prep rather than order takeout, wait a week before making an unnecessary purchase, and walk more rather than use public transport.
My debt free journey starts here, and it will be a long one, but I'm going to get there!
0
Comments
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Wishing you all the best on your debt free journey.paydbx2025 #26 £890/£5000 . Mortgage start £148k June 23 - now £138k.
2025 savings challenge £0/£2000 EF £140. Savings 2 £30.00. 171 -
Lots of luck with getting to grips with your spending.
I'm assuming you've put yourself in this position on purpose (part-time minimum wage) because of the future prospects (studying as well) ? In which case, it shouldn't be forever.
Unfortunately the only answer is to cut your cloth for a while - I can see you have plenty of ideas to get you going and that December might not be a typical month but that's why you need a budget for a whole year. Don't forget to check whether you can actually do away with some spends altogether for a while such as phone (go SIM only), one or more in the gym/subs categories, takeaways.
Also do you have/need contents insurance? I can't see any insurance.
Perhaps family might be amenable to delaying repayments while you deal with your ex-employer debt, particularly as you have paid over half already ?
0 -
warby68 said:Lots of luck with getting to grips with your spending.
I'm assuming you've put yourself in this position on purpose (part-time minimum wage) because of the future prospects (studying as well) ? In which case, it shouldn't be forever.
Unfortunately the only answer is to cut your cloth for a while - I can see you have plenty of ideas to get you going and that December might not be a typical month but that's why you need a budget for a whole year. Don't forget to check whether you can actually do away with some spends altogether for a while such as phone (go SIM only), one or more in the gym/subs categories, takeaways.
Also do you have/need contents insurance? I can't see any insurance.
Perhaps family might be amenable to delaying repayments while you deal with your ex-employer debt, particularly as you have paid over half already ?
Yep that's correct. I'm working part time so I can study (and do well in my studies), this job is related to my field of work and once graduated I will be embarking on a paid Masters programme (£25,000 bursary year one, paid training year two). Definitely, I know it won't last forever, and at least I've learned the detrimental effects of getting into debt/having a credit card, so in future I won't let it get so far.
Totally, I think my other issue was I didn't budget at all. I've never budgeted in my life. Now I have gone through the whole process of analysing my incomings and outgoings I am able to really see what I have to spend and where I can cut back. I've also started putting all of my expenses on a spreadsheet so that I can add them up as I go along and ensure I am staying within budget. Absolutely, thankyou! I'm on it
I just have bike insurance for my electric bike which is £40 a year, I shall factor that in. But no, no other insurance.
I've spoken to them they told me just to pay back what I can, and I've amended my payment plan with my ex-employer. I'm planning to send any excess I get (via overtime, selling things) to Barclays and my ex-employer.
Thanks for your well wishes and advice!1 -
So update time.
I'm making progress with my spending habits and budget planning! Here's what I have accomplished so far in order to try and decrease spending.
Financial system in Notion- I have created a dedicated Notion workspace to manage all debt- and money- related activities.
- I have added an expense tracker where I log my daily expenses, tag it by category, and how they were paid. This helps me stay accountable and see how much of my budget I'm spending.
- I've created a table to track my subscriptions and their payment dates to make sure I'm prepared.
- I track 'no spend days' here, allocating specific days to not spending anything at all.
I've gone through my spending habits and identified areas where I spend more (going out, takeaways, convenience shopping, taxis)
Monzo Pots- I've set up various pots in my Monzo accounts with specific budgets:
- £50 for travel
- £75 for going out- I've updated my bank details with payroll, so my wages now go directly to Monzo. When I spend something within one of those categories, I transfer money from the relevant pot to my main account.
- I've utilised Monzo's 'round up' feature and opened a free instant access savings pot, the 'round up' money goes in there (if I spend £3.60, it rounds up to £4 and the excess 40p goes in that account).
- I've started packing lunches for work
- I deleted retailer apps from my phone to avoid impulse purchases and notifications
- I removed my card details from Google autofill to make purchases more manual
- I opened a new account with Nationwide using their switch service, so I should receive £175 next month from them as part of their offer.
I'm hoping this is the beginning of a new, financially responsible me, and I'm looking forward to the results!3
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