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    • debtfreeby2020
    • By debtfreeby2020 25th Feb 18, 10:30 AM
    • 88Posts
    • 172Thanks
    Debt Free By 2020
    • #1
    • 25th Feb 18, 10:30 AM
    Debt Free By 2020 25th Feb 18 at 10:30 AM
    Hello everyone!

    Thank you for stopping by to read my DFD. My name is Lynsey and I have started out on my debt free journey. Over the last few years I have made many silly mistakes with my finances. I figure now that I am almost 30, I need to grow up and get my life in order. I thought I should start out my diary with a debt confession post.

    Debt Confession

    My problems with money started in 2015. I was a doctoral student and I had just run out of research funding. I was fortunate enough to have a grant from a well-known medical research body, which paid a tax-free stipend of £2000 a month. Did I save any of it? Absolutely not. I squandered the lot on clothes, partying, foreign trips...the usual things that students spend their money on. I also funded my wedding from it, so I suppose that I have a husband to show for it!

    When that money ran out, it was a sharp shock. I got a job as an educational consultant but it paid nowhere near the same as my doctoral stipend. Did I live within my means? No. Do I regret it? Hell yes. I ended up in considerable debt. Not as much as many of my friends but enough to make myself uncomfortable. It did encourage me to focus and get my doctorate finished. I passed in 2015 and now have my first grown-up job, which pays an ok salary.

    What were the consequences of my actions? Well, I was in overdraft every month. I had an interest free £1000 overdraft with RBS on their student account. I was into that at least £500 a month and I have literally just gotten out of it this month. Not by underspending. Too late for that. I decided to use a 0% money transfer deal on my Barclaycard to get out of it. I have 18 months to pay that off, which is completely doable. All of the perks from my student and graduate accounts have ended so I pay £6 for entering my overdraft every month. I also have other debt on my credit card.

    As a self-employed educational consultant, I was liable for tax and National Insurance contributions. In my mind, I didn't have enough to save for the tax bill and was planning to do this when I was in full-time employment. Still, I didn't put the money away. I hadn't learned my lesson. I was making more money when I was a doctoral student than in full-time employment and was struggling every month. I put the £3000 tax bill on a credit card.

    Here is the really stupid thing that I did. I decided to take out the personal loan for £5000 with the intention of paying off the credit card. When that money landed in my account, I had pound signs in my eyes. I did pay off the credit card and had £2000 leftover. I spent this on a holiday instead of keeping me afloat. In hindsight, I should have made a one-off payment to the loan to reduce the monthly payments, but I didn't. Instead of getting rid of the card. I kept it for 'emergencies.' Emergencies on this occasion turned into clothes I didn't need, holidays I couldn't afford, Christmas, evenings out...ridiculous. Absolutely ridiculous.

    Honestly, I am ashamed of what I have done. I am an educated woman. A woman with a doctorate. I really should know better at this stage.

    The Damage

    So what is my total debt?

    Barclaycard: £3196 - accruing monthly interest
    Tesco Bank: £4026/£5369.00 - the £369 is pre-paid interest.

    Enough is enough. I am going to attack this debt this year and stay out of it for good. I will post my plan of attack in the next post.

    Thanks for reading,

    Last edited by debtfreeby2020; 25-02-2018 at 10:33 AM. Reason: Misquoted a figure
    Emergency Fund: £300.01/£1000 (30%) March NST: 2/18 NSDs
    Tesco Loan: £3,877/£5000 Barclaycard: £3149.99/£3169.79
Page 5
    • MoneysavingmadGem
    • By MoneysavingmadGem 6th Mar 18, 8:41 AM
    • 55 Posts
    • 249 Thanks

    Just read through your thread. Im similar age but my debts came from doing up a house and then splitting from hubby.

    Re sim only I got a good deal with ee as thats my only internet (no phone line) its about £21 but does have 20gb, this was through a sale so keep an eye out.

    Good luck with the debt busting!!
    Iv been looking into going back to do a masters its the financing of it thats stopping me at the moment.
    Crazy clothes 2018 #7 - £24.23/ £120, handmade or cs
    Pay all debt off xmas 2018 #066.(£909.95/ £10565.90)
    2018 frugal living #34 (£2500)
    1% a day #36 (9000)
    • debtfreeby2020
    • By debtfreeby2020 6th Mar 18, 9:00 PM
    • 88 Posts
    • 172 Thanks
    Hi there. Thanks for taking the time to read my thread. What stage of the journey are you on? Cool to hear you’re thinking of doing a masters. What subject?
    Emergency Fund: £300.01/£1000 (30%) March NST: 2/18 NSDs
    Tesco Loan: £3,877/£5000 Barclaycard: £3149.99/£3169.79
    • MeenaM
    • By MeenaM 13th Mar 18, 7:01 PM
    • 249 Posts
    • 456 Thanks
    Hi just checking in , how are things going?
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/687.95- 0% ends April 2019 virgin 0% ends july 2020 £4138 3929.89AA Credit Card £860 0- 0% ends Dec 2017 Sainsburys Credit Card £521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £614/£1000
    • MoneysavingmadGem
    • By MoneysavingmadGem 15th Mar 18, 10:57 PM
    • 55 Posts
    • 249 Thanks
    Sent application in to do msc in psychology of education. I worked for 6 years as senco last 2 years iv been a HE study skills tutor so will be taking a diversion into ed psych career fingers crossed!!

    Hope its going ok for you last couple weeks.
    Crazy clothes 2018 #7 - £24.23/ £120, handmade or cs
    Pay all debt off xmas 2018 #066.(£909.95/ £10565.90)
    2018 frugal living #34 (£2500)
    1% a day #36 (9000)
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