£15,000 to 0

Silver_Queen
Silver_Queen Posts: 824 Forumite
edited 27 February 2018 at 10:00AM in Debt free diaries
Hi :hello:

I have decided to re-join this forum so that I can stay motivated to bust my debt.

A bit about me...I work full-time in London which gets me about £1.4k per month.

I owe £15,000 exactly on 0% interest. This is £13,500 to bank of ma and pa (started at £15,500 in October), which paid for my postgrad, and £2k of student overdraft.

I pay £250 per month to my parents but I would like to start making overpayments.

Frankly, until now, I have not really even thought about my student overdraft because it's on 0%. However, in June or July (not sure which - oops), it will reduce by £1k so I will need to pay it back ASAP.

I live at home at the moment, although I will be moving out in September.

My monthly expenses are food and £350-ish on a train ticket since I commute into London daily. I also pay £200 per month into a help to buy.

Goals
1. Pay back £1k into my overdraft by end of July, whilst continuing to make £250 repayments monthly.
2. Save a £1k moving fund. I am trying to declutter and become more minimalist so that I don't have so much stuff to move, but there will be general moving expenses.
3. This one is a bit ambitious - I would like to try to pay back all the monies owed to my parents by next year. The current agreement is that I would keep paying them £250 pa until 2021 but I really really don't want to do that, because...
4. This one is long-term. Save £20k by 2021 so that I can be on my way to putting down a deposit for a house.


I have started this diary because although I have been on the debt free journey for about three/four months, I have been noticing myself slipping lately, so hopefully this will hold me accountable! :beer:
Debt Totals July 2019::
[STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
Total £7,000
«13456745

Comments

  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 1440
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1440


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 35
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 20
    Petrol/diesel........................... 20 (I have access to my parents' car and fill it up occasionally if it needs it. I do not pay for maintenance, road tax or car insurance.)
    Road tax................................ 0
    Car Insurance........................... 6.49 (I pay for AA for myself and my dad)
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 350 (Train ticket to work plus the occasional bus into town when I'm feeling too lazy to walk in the morning)
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10 (spread out across the year)
    Haircuts................................ 0
    Entertainment........................... 150 (my boyfriend is currently living 200 miles away for work and he comes down to see me around four times a month, so this includes paying his petrol twice a month)
    Holiday................................. 20
    Emergency fund.......................... 0
    Total monthly expenses.................. 711.49



    Assets

    Cash.................................... 900 (£400 of this is in a Help to Buy ISA and I'd prefer not to touch it)
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 900


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Bank of Mum and Dad............13000.....250.......0
    Overdraft......................2000......0.........0
    Total unsecured debts..........15000.....250.......-



    Monthly Budget Summary

    Total monthly income.................... 1,440
    Expenses (including HP & secured debts). 711.49
    Available for debt repayments........... 728.51
    Monthly UNsecured debt repayments....... 250
    Amount left after debt repayments....... 478.51


    Personal Balance Sheet Summary
    Total assets (things you own)........... 900
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -15,000
    Net Assets.............................. -14,100


    Created using the SOA calculator at [
    Reproduced on Moneysavingexpert with permission, using other browser.
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
  • EssexHebridean
    EssexHebridean Posts: 21,190
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    Welcome! You seem to have a pretty savvy idea of how you want to do things already, so well done you!

    Out of interest, have you done a secondary SOA with the alterations that will kick in when you move out of home? I ask because your surplus currently seems a bit low to allow you to meet rent, bills, and all the other odds and ends that come with living in your own place?

    If I were you I'd throw everything possible at that overdraft and just get the whole thing gone. At some stage even the £1000 you'll still have is going to stop being 0%, and frankly, you're in a better position to get shot of it at the moment than you will be once you have household bills to pay.

    Silly question - but that food budget - do you cook for yourself, so this is three meals a day? Or are you cooked for at home, and this is buying lunches?
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    Welcome! You seem to have a pretty savvy idea of how you want to do things already, so well done you!

    Out of interest, have you done a secondary SOA with the alterations that will kick in when you move out of home? I ask because your surplus currently seems a bit low to allow you to meet rent, bills, and all the other odds and ends that come with living in your own place?

    If I were you I'd throw everything possible at that overdraft and just get the whole thing gone. At some stage even the £1000 you'll still have is going to stop being 0%, and frankly, you're in a better position to get shot of it at the moment than you will be once you have household bills to pay.

    Silly question - but that food budget - do you cook for yourself, so this is three meals a day? Or are you cooked for at home, and this is buying lunches?


    Hi! Thanks for popping in. I have been an MSE reader on and off for nearly 10 years now, and yours is one of my favourite diaries to read :D

    I completely agree with you about the overdraft. I am working hard to cut it down but to be honest, I'm still struggling to get out of the student mentality of it being free money :rotfl:

    I've actually been fortunate enough to find a place to move into in September already, which will cost me £400 inclusive of rent and bills. My commute will hilariously become longer time-wise since the house will be on the edge of Zone 4, but will only cost £120 compared to my current £340-£350-ish per month. The main extra will be food costs, and that's something I have to keep an eye on.

    The food budget is actually grossly overestimated because I can't be sure exactly how much I spend on food in a month :o. I usually get in from work at about 8.30-9pm on weekdays and dinner is usually leftovers from what my family have had :rotfl:. I feed myself and my sister on weekends. I'd say I spend £15 or so per week on food, realistically, since I bring my own lunch to work. The added complication is that we don't currently have an oven. I don't really like using the stovetop because it plays up and you have to light it with a match/lighter. So essentially, if I cook, I use the microwave...clearly I haven't moved on from student living :o
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    Oh, I forgot to mention that I have a student loan to the tune of 45-50k but quite frankly, they're not going to see a penny from me for a good few years at this rate, so I'm ignoring its existence for now :p
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    Morning diary!

    Well, this morning was fun. Signalling failure on trains meaning that the train that I did manage to get on was absolutely packed, and the air con wasn't working! It's only a half hour train into London but I thought I was going to turn into a raisin.

    I have a bit of a thing about sweat, I hate it, I think it's disgusting and would rather deal with literally any other bodily fluid in the world. Being packed in a sweltering tin can surrounded by sweaty people in suits...no thank you :eek:

    Nothing much moneysaving to report today, except that it should be a NSD since I've brought lunch.

    Account Balances

    Natwest Student Account: -£1990.47 (£3.34 available balance :o)
    Amex Card: +£43.80 (positive balance thanks to a refund!)
    Help to Buy: £400
    Nationwide FlexDirect: £501


    Payday is tomorrow, can't wait! I usually get paid by cheque though so might not clear until the Monday after bank holiday :(
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
  • EssexHebridean
    EssexHebridean Posts: 21,190
    Name Dropper First Anniversary Photogenic First Post
    Forumite
    Aww thank you for your lovely comment about my diary - very much appreciated! :D

    Do you currently pay your salary cheque into your FlexDirect? And is the Amex card a cashback one? I like that I gain a little bit of interest even now from the FlexDirect even though it never has it's full limit for interest purposes in there - it's my personal account so I just transfer the pennies of interest to our "virtual sealed pot" saving account when they land at the end of the month - it all helps! Of course if you're in the first year of having it then it would make sense to maximise that 5% rate by letting everything spare sit in there until it gets to the threshold, then starting to feed the ISA again?

    I had a feeling you were going to say that the maths on the move was already done - well done on that! The slightly longer commute for that level of financial gain sounds like a worthwhile trade off. In spite of the fact that there is such an apparent focus in driving cars off the road, commuting costs really don't reflect this do they - we ended up buying a second car because it worked out SO much cheaper for MrEH to drive part way then use the train into central London than to just get the train from our local station. Ludicrous!

    Absolutely the right thing to ignore the student loan for the time being - you can worry about that as and when!

    On the food costs, and keeping them down when you move. Your current £100 per month budget is doable if you're happy to shop at the budget supermarkets for sure. Think about keeping an eye on freecyle for a bread maker - making your own rolls or bread loaves works out a LOT cheaper than buying and you get a far nicer product. Think about lunches for work and what you can easily pack up and take with - in the winter if there is heating facilities at your office things like tinned soup or a jacket potato work work well and also have the advantage of being incredibly budget friendly. (Example - T's usually sell 5 cans of "somebody's" soup, it's currently Crosse & Blackwell I think - for £3. Add a 65p pack of Tiger rolls which can go straight into the freezer and you have a weeks lunches for under £4. Just need to add some fruit and there you go.)
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    Thank you for popping in again EH :)

    I actually already do the soup thing most weeks but if I'm really honest with myself, I actually hate soup :rotfl: so I try to keep variety otherwise I end up buying a McDonald's on my way home!

    I have only just (about four days ago) opened my FlexDirect so I'm well within the promo period. I actually didn't even think about just topping it up to £2.5k to earn max interest. Will definitely be doing that! I used an online calculator which seems to reckon I'd get around £170 in interest for a year which is definitely not to be sniffed at. Thanks for that tip!
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    Afternoon diary :j

    Well, I forgot to bring lunch today so spend £3.89 on a meal deal, oops. It could have been worse though so I'm not too annoyed about it.

    Got free cake today because it's my colleague's birthday :j one good thing about working in central london is that all the birthday cakes are from the nice bakeries around us.

    Had the pleasure of a truly delightful telephone conversation with the rudest person I've ever spoken to :mad: so stroppy and demanding, a social worker too! Feel for all the families that have to put up with her disgusting attitude.

    Not much else to report moneysaving but lots to do over the weekend...

    To Do
    • Ring up Amex/BA Executive Club to check what my login details are. I'm collecting AVIOS nicely and want to be able to spend them!
    • Tidy up my room and the house in general for the bf's extended visit over the bank holiday (yay!)
    • Plan and pack a picnic for our foray into the local AONB that we have planned
    • Plan out my finances for June

    Still haven't been paid yet :( usually we get our cheques in the morning so I normally deposit mine during lunch! It'll just have to wait until Tuesday after the bank hols :o
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    Aaaaannnnd I'm back :o

    Sad to report that I had a very spendy (but very lovely) bank holiday weekend. I went on a short little break with my BF which involved a hotel, two meals out and various other little bits. I had a really lovely time and thoroughly enjoyed it, it's very rare that the BF and I get to spend a whole day together since our working patterns means that we never have a day off together.

    On Sunday we went exploring a quaint little town and I ended up buying a new foundation since I'd run out of mine, and we also went to a garden centre because we're secretly a middle aged couple :rotfl: I got some nice house plants and some repotting media for my orchids (I love orchids) for a grand total of £4 so I'm fairly pleased although still not a necessary spend... All in all, definitely worth it, but my poor wallet is feeling the hit :o

    Yesterday I spent £310 on my monthly train ticket and then a further £13 on a zone 1-5 travel card for a work thing, which I must remember to claim back.

    To Do

    Check when my Natwest overdraft will be reduced to £1000. Make sure it is £1000 it will be reduced by and not £2000! :eek::eek::eek:
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
    So I finally pulled my finger out and phoned Natwest, turns out my overdraft will reduce by £1k on 30th June and not July like I thought. Good thing I've just about got £1k squirrelled away to reduce it! Eek!

    Kicking myself for not planning better but hey ho. It's just going to be a poor month.

    Trying to decide whether to bite the bullet and have them reduce it now, or keep the £1k in my FlexDirect which is paying 5% until the 29th and then transfer it over. My head says to keep the money accruing interest but to be honest I kind of want to get it over with. If I pay it off now I'll also not have the temptation to spend it and leave myself in a sticky situation. What do you guys think?
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0
    Total £7,000
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