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    • lazyrose
    • By lazyrose 9th May 18, 8:33 AM
    • 8Posts
    • 1Thanks
    lazyrose
    Wanting to get rid of debt (and eventually buy a house!)
    • #1
    • 9th May 18, 8:33 AM
    Wanting to get rid of debt (and eventually buy a house!) 9th May 18 at 8:33 AM
    Hi everyone,

    Iíve lurked the MSE forums for a long time, but Iíve started to take my debts more seriously and so Iím here!

    For background, Iím 25 and my debts have almost exclusively been built from escapism based purchases e.g. trips abroad. Itchy feet and feeling generally a bit unfulfilled~ is also something Iím working on, as for me itís my biggest weak spot when it comes to spending.

    My debts are not overwhelmingly big yet, but Iím conscious of how easily it built up. My family live in debt like itís the norm, and weíve never had savings - so Iím kind of feeling out this financial literacy thing myself!

    Debt breakdown:
    - MBNA credit card: 3,953 (0% interest until Nov 18)
    - HSBC credit card: 105 (not sure on interest and it doesnít say on the app, Iíll be able to check this evening)
    - Very: 120 (0% until Aug 18)

    Due to some money back from my energy supplier, and some from my old landlord, the HSBC and Very debt should be gone by next month.

    With the MBNA debt, I plan to balance transfer this at the end of my interest free period.

    However, Iím really torn between paying off this card and putting money in a Help to Buy. As of June, I will have £400pcm for debt/savings. Because itís interest free, and because of the monthly limits on the H2B, my gut is to split it 50/50 in each, so Iím slowly but relatively painlessly paying off the card, while still tangibly building my ISA. What do you guys think?

    Thanks everyone. And enjoy the sun today !!!127774;
Page 1
    • FTBNow
    • By FTBNow 9th May 18, 8:55 AM
    • 114 Posts
    • 78 Thanks
    FTBNow
    • #2
    • 9th May 18, 8:55 AM
    • #2
    • 9th May 18, 8:55 AM
    Happy new diary lazyrose!

    I'm a lot like you: it's not their fault but my parents happily lived in overdraft most of the time they were together, remortgaged the house, had a DMP with PayPlan and regularly took out payday loans. I grew up around debt like it was the norm, really. We will had a nice house and expensive presents at Christmas as they didn't like the debt to have an effect on me or my sister.

    If I were you I'd 50/50 between the HTB ISA and your credit card. It's what I've done and, if I've had a good month moneywise, I tend to smash the credit card.

    Have you got anything you could sell that you no longer use/wear? I've found this a good way to get rid of my credit card debt too.
    • lazyrose
    • By lazyrose 9th May 18, 10:12 AM
    • 8 Posts
    • 1 Thanks
    lazyrose
    • #3
    • 9th May 18, 10:12 AM
    • #3
    • 9th May 18, 10:12 AM
    Happy new diary lazyrose!

    I'm a lot like you: it's not their fault but my parents happily lived in overdraft most of the time they were together, remortgaged the house, had a DMP with PayPlan and regularly took out payday loans. I grew up around debt like it was the norm, really. We will had a nice house and expensive presents at Christmas as they didn't like the debt to have an effect on me or my sister.

    If I were you I'd 50/50 between the HTB ISA and your credit card. It's what I've done and, if I've had a good month moneywise, I tend to smash the credit card.

    Have you got anything you could sell that you no longer use/wear? I've found this a good way to get rid of my credit card debt too.
    Originally posted by FTBNow
    Exactly! Debt has always been the norm for us, and I think it may affect my life differently than my parents (bought a house at 22 with a 100% mortgage...).

    Glad to hear you agree, I wasn't sure whether it was sensible or not, but with 0% interest it seems to make sense. I also feel like it benefits me psychologically to feel like I'm building something!? If that makes any sense!?

    I definitely need to consider this but to be honest I'm not one for keeping much stuff!
    • lazyrose
    • By lazyrose 9th May 18, 10:28 AM
    • 8 Posts
    • 1 Thanks
    lazyrose
    • #4
    • 9th May 18, 10:28 AM
    • #4
    • 9th May 18, 10:28 AM
    Just a quick run down of what I've done this month:

    !!!8226; Switched energy supplier to Bulb and have been sharing my referral code for £50 bonuses - now £200 in credit with them!

    !!!8226; Opened a Monzo account for day-to-day spending. All bills, debt payments and savings are going out of one account, everything else i.e. groceries and general spending goes through Monzo. Really enjoying the complete transparency it's giving me over spending with basically no effort.

    !!!8226; Reality check - I've completely revamped the spreadsheet I've been using (but also kind of ignoring) to manage my money. It now lines up with what's allocated to which bank account and my balances elsewhere.

    !!!8226; Am also taking small amounts (literally £10, £20 or something) per month and putting them in an instant saver. Maybe this would again be better allocated to my debt? My logic is this is a buffer if something happens that starts pulling me towards my overdraft. E.g. yesterday our chest of drawers literally fell apart!! This is fine because we're at the start of the month, but if it happened later on that £20 would be really handy to browse Gumtree with. What do you think?

    !!!8226; I've deleted social media off my phone. I honestly think it's driving spending sprees - not directly, but subconsciously - a constant stream of people's curated lives doing amazing things ALL the time definitely worms itself into my head (and results in buying flights somewhere...).

    !!!8226; I've moved out of Deliveroo's delivery radius!! Ha! Not specifically for this, but oh my I think it will help.
    • FTBNow
    • By FTBNow 9th May 18, 10:30 AM
    • 114 Posts
    • 78 Thanks
    FTBNow
    • #5
    • 9th May 18, 10:30 AM
    • #5
    • 9th May 18, 10:30 AM
    Exactly! Debt has always been the norm for us, and I think it may affect my life differently than my parents (bought a house at 22 with a 100% mortgage...).

    Glad to hear you agree, I wasn't sure whether it was sensible or not, but with 0% interest it seems to make sense. I also feel like it benefits me psychologically to feel like I'm building something!? If that makes any sense!?

    I definitely need to consider this but to be honest I'm not one for keeping much stuff!
    Originally posted by lazyrose
    Totally understand the psychological side. It's good to go to work everyday and know you're working to build something rather than working and just paying off debt.
    • beanielou
    • By beanielou 9th May 18, 12:03 PM
    • 56,880 Posts
    • 231,717 Thanks
    beanielou
    • #6
    • 9th May 18, 12:03 PM
    • #6
    • 9th May 18, 12:03 PM
    Happy shiny new diary
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
    • lazyrose
    • By lazyrose 9th May 18, 5:22 PM
    • 8 Posts
    • 1 Thanks
    lazyrose
    • #7
    • 9th May 18, 5:22 PM
    • #7
    • 9th May 18, 5:22 PM
    Thank you !!!55357;!!!56842;
    • lazyrose
    • By lazyrose 9th May 18, 5:24 PM
    • 8 Posts
    • 1 Thanks
    lazyrose
    • #8
    • 9th May 18, 5:24 PM
    • #8
    • 9th May 18, 5:24 PM
    Iíve noticed none of my emojis or bullet points work, ha! I wonít use them next time.
    • lazyrose
    • By lazyrose 10th May 18, 9:46 PM
    • 8 Posts
    • 1 Thanks
    lazyrose
    • #9
    • 10th May 18, 9:46 PM
    • #9
    • 10th May 18, 9:46 PM
    Cancelled Amazon Prime! And got 7.99 refunded.
    • lazyrose
    • By lazyrose 15th May 18, 1:58 PM
    • 8 Posts
    • 1 Thanks
    lazyrose
    Well my house deposit came back from my last rental and so I have paid off my HSBC debt completely!
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