Hey budgeting buddies,
Today is one of my absolute favourite posts to write – even if I have only written one so far. It is one I look forward to every month. That is… my August 2019 debt snowball review.
I get to break down my progress and to congratulate myself on the hard work I have put in, and to inspire other people to pay off some debt. By showing them, they can do it too.
Without further ado, let’s get started.
My overdraft (the one I am currently focusing on) started off at £1705.98. After putting about £85.71 towards it, the new balance is a cool £1,620.27. This is exciting because:
I can finally see some results, as for the last year it was be hoovering at around £1,600 – £1,700.
This is because I got caught up in the re-using the credit cycle. I would pay some down then spend the money. Then pay it down more. It was a bit of a vicious cycle. While it is currently in that range, I have confidence that I have a plan, and it will not ever get that high again.
Secondly, I am slowly gaining confidence in budgeting and sticking to my budget. First time I’ve stuck to it 100% which allowed me to pay the full allotted amount to debt.
Personal loan 1 is a instalment bank loan. This balance went from £5,019.50 to £4,919.11 after I paid the monthly payment of £100.39.
I am super happy it is finally past the £5,000 which was the original loan amount, which makes me ecstatic to get to this point. Now every penny afterwards to this debt is actual money that I borrowed. Not just the interest the bank was charging me.
The other two debts are student loans and a second personal loan I have not paid any money to either accounts this month.
The Student loans company are still saying that I owe the same amount of money, which is £37,431.05. Whether this is because they have decided by their own parameters that I can’t afford to pay them, (which I can’t) or they just haven’t added the interest yet, who knows, I am sure they will let me know at some point.
I will keep an eye out on the account to see if they add the interest or if they contact me.
My goal is to pay off my overdraft and then roll over the money I had been paying from that to the student loan. We will see how that goes.
While this will be less than the interest rate accruing, at least I can begin to slowly chip away at it, and I will then be able to prevent most of the interest compounding. £125 a month of interest is crazy high and adds up quicker than you’d expect.
For my second personal loan, I am pausing this one. The money was given to me as a gift (as far as I am aware); however, I feel like I should give it back. On the other hand, this is also my third priority debt wise, as the person who gave it to me has not mentioned it needing to be paid back. As I am doing it on my own, I will only start saving to give this back when debts 1 and 2 have been paid.
The person who gave it to helped me in many ways, and I feel in my hearts of hearts to give it back. Whether the person accepts it, is up to them, and I won’t push it, but if they don’t, I will get them a really nice gift.
These are all my debt balances, up to the 31st of August 2019. I hope this encourages you guys to keep ploughing away at your goals whether it is staying current, paying off debt, saving an emergency fund or reaching other saving goals.
My genuine biggest regret was listening to budgeting youtubers and thinking “I could not do that”; “I don’t earn enough to pay my bills, never mind my student loan”; “This isn’t applicable to me.”
Well I am going to call my past self’s BULLPOOP. If you also are reading this, with the same thoughts, I am going to call yours too.
If I had bothered to start this journey, even a year ago; my overdraft would be paid. I would have about £2,500 in my accounts with the personal loan attached. That is just with the small amounts that I can pay right now.
So just get started. Even if you can only put an addition $ 5 -10 to your emergency fund or to debt a month, you would be so much better off a year from now. For some reason, when you are deliberate with your money, somehow you find more, or you re-adjust your priorities.
Thank you for sticking with me, and please share how your month has gone!
Much love, and happy debt paying!
Comment time questions:
What is everyone paying to debt this month?
What is the highest amount you have ever been able to pay?
What is the lowest you have ever paid?
what is something that inspires you to work harder for your financial goals?