Taking On My Overdraft Head First

How I paid off my student overdraft! Clear your overdraft quickly and get out of debt

In my first year of uni, I managed to stay clear of my overdraft entirely, having saved quite a bit from a summer job. I also had the usual student loans and picked up a part time job.

By the end of my second year, I had started a cycle that would continue for the next 5 years. I would max out my overdraft, pay my wages/loan into that account, enjoy having an actual bank balance for about 5 minutes before I would end up with my overdraft maxed out once again. If i had -£1900 on a £2000 overdraft, I looked at that as having +£100. I had stopped looking at it as a loan and somehow it had become my day to day spending.

Continue reading “Taking On My Overdraft Head First”

Money Diary: 22nd January – 28th January

Throughout 2018, I will be tracking every last penny I spend, and sharing it here weekly. I’m a (late) twenty-something lady, living in the North of England with my Other Half, commonly referred to as OH. I travel regularly for work, and often spend more time on the motorway than in my own home, which can often account for my fluctuating Car Expenses and entirely random Grocery costs!  By the end of the year, I’m hoping to have a better overview of where my money goes to each month, and have a realistic retirement savings plan in place (as well as the many other savings plans I have in my head, but you can read more about that here). You can also read the full series (so far) of my money diaries here. I’ve built myself a personal money tracker spreadsheet, I am armed with my bank statements, a weekly budget worksheet and a monthly budget worksheet and I am ready to rock!*!

(*Input data)

 

Does anyone else read the Money Diaries on Refinery29?

I. Am. Obsessed. They’re lighthearted, and give a really good insight to what people all over the world spend on a daily basis, how they live off varying salaries, anything from a student loan of £9,000 per year, to multi million pound incomes. It’s so interesting!

 

I have taken inspiration from this and decided to ditch the name “weekly spending report” (it just sounds far too clinical and serious!) and roll out the Money Diaries.

 

This week has been a quite successful financially, I’ve managed to keep my spends low, however, this is only due to a fairly hectic work schedule and have been travelling lots, meaning more food/travel expensed and less time to treat myself!

 

The Breakdown:

Continue reading “Money Diary: 22nd January – 28th January”

Weekly Spending Reports: The Lowdown

Money Diaries Intro - UK Personal Finance blogger tracking my weekly and monthly budget and sharing my Money Diaries

It’s taking me a bit longer to post my first spending report than I’d hoped and I’m still not sure I’m happy with how I’m arranging things, but I can tweak it as I go along!

Below is a quick overview of the categories I’m currently using, if anyone has any suggestions on how I can better organise these, please do share!

I’m wary of adding too many categories, as I don’t want to clutter things up and confuse myself.

Bills: All regular outgoings, including everything from my mortgage to my 79p a month ICloud subscription.

Groceries: Pretty self explanatory, will include cleaning supplies and some consumables like batteries, light bulbs etc, as I usually buy those at the same time.

Continue reading “Weekly Spending Reports: The Lowdown”

Square One: The Best Place to Start

Where to start when paying off your debts. How I paid off my debts quickly.

I Paid Off £3000 Worth of Debt in 6 Months!

My Aim? Pay Off My Debts Quickly!

If you have already read my About Me, I will have already have a fair idea of how much debt I managed to rack up in in just a few short months after graduating.

I had worked out that I owed around £2000 in rent arrears, £1000 in Council Tax and had a £2000 student overdraft still maxed out, just to top it all off.

I was having a pretty hard time with my landlord and some of the arrears had actually been intentionally withheld due to failure to carry out works on the house. In order to move out, I needed to have my rent up to date, so I was in a bit of a sticky situation.

So this was my first port of call in sorting out my life. It was so scary looking at my figure of -£5000 and I very nearly just buried my head in the sand and ignored it all. I gave myself a kick up the arse, and broke it down into more manageable chunks. If I could pay £1000 off my arrears, wouldn’t I feel so much better? And imagine if I could pay £2000 off…

I had been reading generally a lot about “get out of debt strategies”, however, if there is one thing I learned from that, it is that there is no one-size-fits-all approach. Even within my own planning, I had to account for a varying wage weekly.

On top of this, people need help getting out of debt, and I’m not thinking of the financial side of things. Being able to openly talk to my close friends about my situation, and more so, getting their congratulations when I hit a milestone in paying off my debts, helped more than they will ever know. 

I began with my rent arrears, and agreed a payment plan with my landlord, paying weekly to coincide with my wages, rather than monthly, which always felt a bit overwhelming.

I was bringing home up to £400 per week, varying because of my irregular hours and overtime. My rent worked out to £75 each week. I set up a standing order to my landlord for £125 weekly, knocking £50 off my £2000 debt. Of course, I wasn’t happy with this, I would pay it off in 10 months at that rate. I started making regular transfers of smaller amounts, sometimes as little as £20 when I had it spare.

I ended up paying this off in around 5 months (HALF the time!) so paid an average of £175 (£100 off arrears) each week. This was often paid in lump sums when I had saved a bit and was happy that I wouldn’t need that money for anything else. Continue reading “Square One: The Best Place to Start”