Hey budgeting buddies,
Today is the monthly debt snowball check in for September 2019. I will be honest, writing these reviews and collecting the information for the process makes me so happy.
It is one of the most favourite parts of my month. Sad? Maybe… However, it keeps me focused on my goals instead of constantly wanting around and trying to justify the purchase of things that can wait.
Enough of my chit-chat… The numbers are in…
The first debt which I am tacking is a bank Overdraft. The previous balance was £1,620.27. I put £190.65 towards my debt, making the new balance £1,429.62. Just under the original £1,500 overdraft limit.
This has had me so excited for the last two days when I realised that it was finally under the original limit, which got extended because English banks randomly change the limits sometimes.
While I wish to take the credit of this being all of my hard work, squeezing every penny of that out of my budget this month. I do need to be as transparent as I can, as well as I mentioned it in previous posts, that about £80 of this is actually a birthday gift.
This was an amazing gift, and one I am very thankful for. Even though I could have spent it on a massage, I decided would be put to better use taking down debt. Maybe next year…
For my Personal loan 1, the previous balance was £4,919.11. After paying the usual £100.39 to it, the new balance is at £4,818.72. I am happy to see it going down. As I am a firm believer in slow and steady… However, I cannot wait to see it completely gone.
For my student loan, it is still at £37,306.69. This is due to me not currently contributing to it, and the interest rate has not yet posted. I get the impression that the interest rate gets posted every quarter. Honestly, as a financial coach, it sounds bad, but honestly, every time I check the website is broken or it has not been applied. So, I just do not know when they apply interest.
Also, my student loan is staying the same because I am not currently paying on it. This is because I am not earning enough to begin paying it back. For those not in the English system for school loans, there is a threshold that you must earn before they expect you to pay them back. Kind of like an American deferment. They still charge interest and they still expect you to pay at some point. As I do not meet that threshold, and as I have other debts, I am not going to pay until I am ready and can afford to do so.
As for my second loan, that balance is also still at its original amount of £1,500. This is for two reasons.
One, as far as I am aware, I am not actually expected to pay it back. It was a gift. I just feel like I should.
The second reason is, I cannot afford to. The person who gave me the money, would rather me never give them the money back and be happy than to give it back to them and I am miserable for the next five years.
In total, I paid, £291.04 to my debts this month. Whilst that doesn’t sound a lot… it is £291.04 I will never have to pay to someone else again. I am ecstatic.
This is my September debt snowball check in. I hope this has inspired you to take note of your journey, and to celebrate the little wins. Even if it’s just reaching the original amount, or an extra £5 to your debt that you hadn’t budgeted for.
How did you all do?
What was your monthly debt payment goals?
Did you reach your monthly goal?
I would like your opinion on this system of school loans. How do you pay if you have any? Is a threshold you need to earn? Is there a grace period? How do your higher educational system work?
Thank you for reading. 😊
As always, my chart is at the bottom.
Much love and happy budgeting ❤