Another debt free wannabe

in_need_of_direction

I think you need to factor in what you saved by not getting people in for the small jobs

cwillow1983

in_need_of_direction said:

I think you need to factor in what you saved by not getting people in for the small jobs

Thanks. Yes that's a good way to look at it, particularly in the short term. 

cwillow1983

It's pay day today and a strategy I'm starting this month is to use a second bank account to transfer a set small amount for "guilt free spending" and use the main account for bills, groceries, loan/CC repayments. 

I'm hoping this compartmentalizing will help me stay on track and be more aware of what I can spend on leisure/treats etc and still be in budget overall. 

cwillow1983

Evening all,

So the previously stated strategy lasted approximately two days before I decided to make a silly impulse purchase that basically wiped out the no guilt spending budget for the month. 

A few unforeseen bills means I was back in the overdraft today with another week before pay day. 

I've therefore decided to consolidate my debts*(loan, credit card) into one monthly payment - essentially extending my existing loan term from two to four years in order to give myself a bit of breathing space and a more realistic buffer month to month by reducing the monthly repayments. 

I know it's generally ill advised to take out a loan, however, after some consideration I feel it's best for me in my current financial circumstances. I also need to pay for an interim car service in the next month or so and would've probably had to borrow on the credit card to pay for this. The phrase robbing Peter to pay Paul springs to mind. 

As well as this, I do need to take better steps to reduce my outgoings generally and live within my means. I tend to have the best of intentions but something always comes up. 

Anyway, will update accordingly just in time for new year's resolutions...

*Incidentally, I was quite alarmed at how easy it was to apply and be accepted for a loan for a not inconsiderable amount in just a few taps on my phone. 

Slowlydoesit

We did the same thing at roughly the same time! I took a £14k loan out in November, ive rid myself of my overdraft, loan and two credit cards but entered myself into a four year loan. That said, its one payment and over the run up to Christmas I found it much easier to navigate. I am going to try and overpay but i can only pay the same as my monthly payment which at £400 a month is manageable, £800 may not be.

Good luck and lets see!