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  • FIRST POST
    • BelleOfBilboa
    • By BelleOfBilboa 28th Jun 18, 7:41 PM
    • 23Posts
    • 52Thanks
    BelleOfBilboa
    The Debt Diary of a 20-something Spendaholic
    • #1
    • 28th Jun 18, 7:41 PM
    The Debt Diary of a 20-something Spendaholic 28th Jun 18 at 7:41 PM
    I am 26 and I am in debt.

    I loooove to spend money and I quite like to ignore the consequences…well not anymore! The only way I will be able to achieve my goal of being a home owner by 30 is to get rid of my debt! Step one: acceptance

    For the first time ever I have collated all of my debts and calculated the total *drumroll*… ~£10220.56! I realise that might not seem like a massive amount to someone with a mortgage/pets/kids…but to your average 26 year old without responsibilities I think that might be quite the sum. And an unnecessary one at that!

    I pay roughly £500 in debt repayments monthly and have been doing so consistently for a while now but the big figure hasn’t really gotten that much smaller. I tend to get stuck in a vicious cycle: borrow from the bank of Mum & Dad > pay back what I owe > rinse and repeat. For a while I was your typical girl living a champagne lifestyle on a lemonade wage, but now my income isn’t half bad and I really should be making bigger dents in that £10k!

    I hate asking my parents for money but it’s too easy and my parents would rather I ask them than see me get a credit card...I REALLY need to learn how to live within my means!

    I’ve had a little bit of a wakeup call recently as I am just about to move in with my boyfriend (literally in 2 days) and so I will be moving out of my shared house where bills have been included and into a rented property where I will need to pay for rent + bills. The rent is the same as what I’m currently paying but the bills are going to cost me around another £150 each month. We have budgeted and I can afford this but only if I am sensible with my money.

    FYI my boyfriend is in a lot of debt too (accrued before we got together may I add, not my influence!) so we are in this together. He has even sparked an interest in creating his own debt free diary! You might make MSEs out of us yet

    In order of priority, here’s the breakdown:
    Next £362.91
    Natwest Overdraft £2000
    Natwest Loan £1692.30 25%APR
    Career Development Loan ~£4000*
    Bank of M&D £2165.35
    *I have estimated my CDL figure slightly but when I get a new statement I will update to the accurate figure.

    I’ve prioritised my debts and I’m going to treat them like mini goals. The Next account is my smallest debt and the result of frivolous spending so I need to get rid for good. My overdraft is scaring me a little as I accrued this as part of a student account and I have read horror stories of Natwest demanding their money back at short notice! My Natwest loans are recent debts as a result of poor planning for an expensive holiday earlier this year. I had to get a career dev loan to pay for my masters degree. And last but not least, the bank of M&D have lent me money in the past to buy my car, pay for last year’s holiday of a lifetime and that’s additional to general handouts.

    If I continued clearing my debt at £500 each month (without getting into more debt) then I should have a DFD of Spring 2020! Not too bad but I think I can beat this, I would love to start 2020 debt free! This goal will require some work and some significant overpayments but I have two jobs and I also earn money from cat/dog sitting. If I commit then I can definitely do this!

    I spend hours stalking other diaries on here but now I want to join the club!

    As a result of my stalking, I have recently signed up to Prolific Academic, Grassroots Mystery Shopping and I have an eBay account to sell bits and bobs so any money I accrue from them I will only use to repay debt. My promise to you.

    So here goes! My first (and hopefully only) debt free diary!

    Belle
Page 1
    • redofromstart
    • By redofromstart 28th Jun 18, 9:11 PM
    • 1,842 Posts
    • 11,285 Thanks
    redofromstart
    • #2
    • 28th Jun 18, 9:11 PM
    • #2
    • 28th Jun 18, 9:11 PM
    Hi belle, happy new diary and good luck with your journey
    • BelleOfBilboa
    • By BelleOfBilboa 29th Jun 18, 10:26 AM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    • #3
    • 29th Jun 18, 10:26 AM
    • #3
    • 29th Jun 18, 10:26 AM
    Hello redofromstart! Thanks for popping by
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • BelleOfBilboa
    • By BelleOfBilboa 29th Jun 18, 11:14 AM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    • #4
    • 29th Jun 18, 11:14 AM
    Two Jars, One Debt.
    • #4
    • 29th Jun 18, 11:14 AM
    I’ve had an idea…well I thought I had but my OH informed me that he had definitely heard of it before so…I’ve stolen an idea and I thought I would share! I shall name it: Two Jars, One Debt. (Apologies to anyone who understands that reference!)

    I have bought two glass jars and a selection of pretty blue marbles. I have labelled one jar ‘Debt to Clear’ and the other ‘Debt Cleared’. All of the marbles currently sit in the ‘Debt to Clear’ jar and represent mine and the OH’s combined debt. Each marble represents £500 of our debt and the idea is that moving a marble or two from one jar to the other as we make repayments will keep us motivated to clear it all! I’m hoping as the ‘Debt Cleared’ jar fills, we will get really keen and become super frugal…but I’ll keep you posted on that one

    I’m quite house proud and I have an unhealthy interiors obsession so the marble idea is a way in which we can visualise and take ownership of our debt whilst still having a pretty feature on the kitchen windowsill The only drawback is that it has cost me money to implement… The marbles cost around £10 on eBay and the jars were around £10 from IKEA. On the plus side, there is always a re-use for jars and I can always re-sell the marbles on eBay once debt-free!
    The big move is happening in T-minus 22 hours and I have a feeling that the first thing I will unpack will be my jars of marbles!
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • Puddleglum
    • By Puddleglum 29th Jun 18, 12:09 PM
    • 557 Posts
    • 4,617 Thanks
    Puddleglum
    • #5
    • 29th Jun 18, 12:09 PM
    • #5
    • 29th Jun 18, 12:09 PM
    Hello Belle. Two jars sounds like a great idea. Hope the move goes smoothly.
    "A thousand candles can be lit from a single candle without shortening the life of that candle."

    Pay off debts and save 2018. Time to turn my life around (candle moment).
    • BelleOfBilboa
    • By BelleOfBilboa 4th Jul 18, 3:24 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    • #6
    • 4th Jul 18, 3:24 PM
    • #6
    • 4th Jul 18, 3:24 PM
    Hello Belle. Two jars sounds like a great idea. Hope the move goes smoothly.
    Originally posted by Puddleglum

    Hi Puddleglum, thank you for commenting! The move went really well but I now know what I have spent all of my money on....mugs! I have so many!!

    I think a car boot sale may be on the cards in a few weeks all proceeds to go towards debt clearance of course!
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • Silver Queen
    • By Silver Queen 5th Jul 18, 7:16 PM
    • 411 Posts
    • 1,949 Thanks
    Silver Queen
    • #7
    • 5th Jul 18, 7:16 PM
    • #7
    • 5th Jul 18, 7:16 PM
    Two jars one debt
    Debt Totals July 2018::
    £350 Natwest Credit Card / Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £9,750 £500 train ticket loan from parents / Now £0 (paid off 16/02/18) £2,000 Overdraft Now £0 (paid off 09/03/18)
    • lonelyrat
    • By lonelyrat 6th Jul 18, 8:31 AM
    • 363 Posts
    • 891 Thanks
    lonelyrat
    • #8
    • 6th Jul 18, 8:31 AM
    • #8
    • 6th Jul 18, 8:31 AM
    Two jars one debt
    Originally posted by Silver Queen
    Hahahaha!

    Name aside it's a really good idea!! I've never hear of it before so I'm going to pretend you came up with it yourself Good luck with everything! Another 20-something spendaholic here (hopefully mostly reformed, but not quite sure!) so will be cheering you on
    Total Debt: 625 / 7266.93
    Outstanding Debt: Virgin CC 625
    Weight Loss:14.9kg/ 45kg
    • NeverendingDMP
    • By NeverendingDMP 6th Jul 18, 8:43 AM
    • 77 Posts
    • 416 Thanks
    NeverendingDMP
    • #9
    • 6th Jul 18, 8:43 AM
    • #9
    • 6th Jul 18, 8:43 AM
    There is a thread on here called 1% challenge 100 ways to pay your debt. Or similar to that. That breaks your target down into 1% which seems manageable so in you case just over 100pounds. These are good mini targets to get to if your ebaying or selling.

    Good luck.
    35,213 Jan 2018, 32195 remaining.
    Mortgage 77230 Jan 2018
    76101 remaining.
    • BelleOfBilboa
    • By BelleOfBilboa 9th Jul 18, 6:01 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    Two jars one debt
    Originally posted by Silver Queen



    I've really enjoyed reading your diary Silver Queen!
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • katsoocam
    • By katsoocam 9th Jul 18, 6:25 PM
    • 33 Posts
    • 84 Thanks
    katsoocam
    Love the idea about the marbles and the jar and will be stealing it for my mortgage :-).
    • BelleOfBilboa
    • By BelleOfBilboa 10th Jul 18, 4:00 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    Hahahaha!

    Name aside it's a really good idea!! I've never hear of it before so I'm going to pretend you came up with it yourself Good luck with everything! Another 20-something spendaholic here (hopefully mostly reformed, but not quite sure!) so will be cheering you on
    Originally posted by lonelyrat
    Thanks lonelyrat quite excited to get going with my journey and I have loved reading yours!
    There is a thread on here called 1% challenge 100 ways to pay your debt. Or similar to that. That breaks your target down into 1% which seems manageable so in you case just over 100pounds. These are good mini targets to get to if your ebaying or selling.

    Good luck.
    Originally posted by NeverendingDMP
    I quite like the idea of viewing my debt as a percentage. Knowing that I regularly pay 5% off each month is quite comforting! I’ll definitely find the time to read up on that thread, thank you for sharing NeverendingDMP
    Love the idea about the marbles and the jar and will be stealing it for my mortgage :-).
    Originally posted by katsoocam
    So glad ‘Two debts, one jar’ has gone down well! Quite proud that you are going to do the same katsoocam good luck with the baby! How exciting!
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • BelleOfBilboa
    • By BelleOfBilboa 10th Jul 18, 4:32 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    Happy Tuesday! Couldn't be happier that Monday has been dealt with. Only 3 days til the weekend

    I would quite like to do an SOA but I think I may have to wait a month or two until the household bills direct debits start moving. Currently I pay £120 into a joint account with my OH and he pays £180. I think we have budgeted correctly and the total sum is unlikely to change but even so, as we have only just moved I want to get to grips with our outgoings. Stay tuned for that one!

    I’ve been researching ‘snowballing’ and I like the concept! I think my plan kind of puts it into practice anyway what with aiming to clear the balance of the Next account first – my smallest debt. I really do need to tackle the Natwest OD next though as it has started accruing interest and they could demand the full sum back at any time. Currently the bank are charging me £6 per month in arranged OD usage and £8 per month in unarranged OD usage. I vaguely remember a customer advisor telling me that after a certain amount of time, the first £1000 would be my arranged OD and the second £1000 would accrue charges. I’m going to call them and make sure I’m right and also make sure I am allowed to start paying bits of my OD off at a time. I’m not going to have large chunks of money to pay it off in the near future but if I can reduce it by a little bit every month then that will help. I think I can do that but I just need confirmation from them. Note to self: call bank.

    I have a bout of cat and dog sitting coming up so I think I might be able to clear my Next balance by the end of August (maybe the end of September if eventualities occur). Quite excited at the thought of that!

    I completed my first mystery shopping assignment last week and should have £10 coming my way if my review gets approved! That will be transferred straight to the Next account!

    Off to see the horse tonight, he will feature in my SOA as a monthly outgoing but there is no way I’m giving him up. I’m pretty sure he is the only thing keeping me sane
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • redofromstart
    • By redofromstart 11th Jul 18, 11:17 AM
    • 1,842 Posts
    • 11,285 Thanks
    redofromstart
    Loving the two jars, one debt thing. Great for those who respond to visual input.
    • lonelyrat
    • By lonelyrat 11th Jul 18, 3:08 PM
    • 363 Posts
    • 891 Thanks
    lonelyrat
    I've done a few SOA's privately but not posted anything on here. I do plan to once I'm debt free and have a few months of tracked spends to use but at the moment it's all still a bit messy. I remember I did one last year and was adding up all the times I'd used the work vending machines to buy Diet Coke and coffee and it was something like £35 in a month I've banned myself from buying anything while I'm at work now

    Snowballing is great! Even if you don't stick to what you originally plan it's a good starting point I think.

    Is your account with Natwest a graduate account now? My student/ graduate one was with RBS and it's the same I think. Year 1 after graduation is up to £2000 interest free arranged od and year 2 is £1000 interest free and then above that you have to pay.

    They have a calculator on their website I think which is quite handy (just google Natwest overdraft calculator) and you should find it. You pop in which account you have and what your balance is and it works out roughly what you'll be paying. Might be worth having a look as it definitely motivated me to clear mine! It can be a bit daunting ... Mine overdraft with RBS was up at £1998.70 and I genuinely never thought I'd manage to clear it, but once you get the bug it's really fun to see it decrease!

    Overdrafts can be a bit scary as they can call it in if they feel like you can't manage it, BUT they need to give you notice before they do make any changes like that.

    Good news on the mystery shopping and the pet sitting! And it's awesome that you're close to having Next paid off! Well done What's the horse called?
    Total Debt: 625 / 7266.93
    Outstanding Debt: Virgin CC 625
    Weight Loss:14.9kg/ 45kg
    • BelleOfBilboa
    • By BelleOfBilboa 11th Jul 18, 5:16 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    lonelyrat - you should have shares in Diet Coke for £35 a month! My work canteen have started buying in the most glorious chocolate muffins. They are huge, £1 each and are not only triple chocolate chip but they have a gooey chocolate centre they are sooooo good! Pretty sure my entire wage could be spent on them but alas I restrict myself to one or two a week ...probably more than I should be buying looking at my debt figure though!!

    My Natwest account has gone past the graduate stage and is now a select account. I've just read your advice, checked out the OD calculator, panicked and called them! I read that they can charge up to £8 a day with a maximum of £80 and scared myself so I thought it best to call and ask a million questions. Luckily they said the £8 a day is if I go over my agreed OD and I shouldn't get charged any more than around £35 a month. Still money I don't want to be spending but much better than £80! They also asked me about my plans to repay so I explained to them that I would quite like to reduce in small chunks and they were so reassuring! As soon as the Next account is gone then I will throw all spare money at Natwest! They said the minimum I could pay was £1! £1 is more than £0 though so a good place to start I think

    The horse is called Archie and he is such a dreamboat I share him so I pay £100 a month to his owner and I get to ride him as much as I like, I manage to get to the yard about 3x each week on average and we have the most beautiful hacks across Surrey! I feel so lucky!! (relatively close to Dorking lonelyrat)!

    I've just signed up to Receipt Hog, Field Agent and YouGov too! Hopefully the £1s will start rolling in!
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • BelleOfBilboa
    • By BelleOfBilboa 12th Jul 18, 4:41 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    I'm having a NSD and I managed to accrue £8 in surveys today! Double win!
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • BelleOfBilboa
    • By BelleOfBilboa 17th Jul 18, 9:39 AM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    Why is there always so much month and not enough money counting down the days til pay day! (14)
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

    • BelleOfBilboa
    • By BelleOfBilboa 17th Jul 18, 4:39 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    Yay to a NSD!
    Next £362.91/£324.91; Natwest OD £2000/£2000; Natwest Loan £1692.50/£1692.50; CDL £4000/£3790; Bank of M&D £2165.35/£2015.35 DFD 31/12/19

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