August 2013 Debt Repayment Update

I’ve been waiting to write this blog post for days. In fact, I’ve been waiting for weeks. It’s this magical time of the month again when I get to make yet another payment towards my debt! Seriously, I cannot wait to get paid at the end of each month, but these days it’s for one reason alone – to keep paying off my debt so that one day in the not-so-distant future my debt is gone fo-re-ver. I really enjoy making these monthly payments and seeing my overall debt figure drop. I don’t feel sad that I can’t keep this money instead or that my debt is still massive, I get proud and happy and even more determined to part ways with debt for good, and I can only hope this will not change.

I have set another £361.65 aside for my flight to South America next year, and today I have booked and paid for my flight!  The total cost was £721.65 for a return flight (the amount I saved in 2 months) to three different countries. I will soon share the details in a separate post. I have previously mentioned two countries I will be visiting, but can you guess the third one? 😛

I have been living an extremely frugal lifestyle for the past 3 months and during this time I have been denying myself any sort of entertainment, apart from free one. On second thought, let me re phrase this. I have not really felt like going out, eating out, buying clothes or anything else. All I felt like doing was travelling. So… I am taking a short four-day-trip to Ljubljana (Slovenia) and Zagreb (Croatia) in two months’ time. I have booked my flights this morning and paid £56.15 for them. Bargain!

And finally, my debt numbers –

Debt #1
End of July Figure -£3,713
End of August Figure -£3,508

Debt #2
End of July Figure -£9,088
End of August Figure -£8,987

Debt Total
End of July Figure -£12,801
End of August Figure –£12,495

Technically, I have put £483.00 towards by debt this month but some of it has been taken by my bank in interest. Yes, I could have put £900 towards my debt this month had I not paid for my flights, but… I made a conscious decision to travel while paying off debt, and really there are no regrets whatsoever. Now that my flights are paid for (all in cash!), I can concentrate on throwing all my money towards debt, so I’m already looking forward to my next salary 😛

My overall debt has gone down from £13831 (end of May) to £12,495 (end of August), which means that in the course of 3 months I have repaid £1,336 in principal debt! I might treat myself to Kit Kat tomorrow to celebrate! 😛

I have also put just under £50 into my savings account this month. I am not saving big and I will not be building a massive emergency fund. I think I will be happy with £500 which I will hopefully reach in the next 4-6 months.

How are you doing with your debt/savings goals this month? I hope you’re pleased with your progress! 😛

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24 Comments

  1. Congrats 🙂 Tracking progress is so fulfilling! I’m not paying off debt at the moment but I am making efforts to increase my income and also trim my monthly spending. Writing down everything really makes it so much easier. It’s great that you are prioritising travel over other things! It just proves that anyone can travel if its something they truly want to do.

  2. I love how you sound so positive about your debt in this post Eva! I love it even more that you’re going to treat yourself to a Kit Kat bar hehe. Congrats on paying for your plane tickets in cash and paying down some debt this month!
    Girl Meets Debt recently posted…Ask GMD – The AnswersMy Profile

  3. I’m really jealous that you’re going to Croatia and Slovenia!! Both those place are next on my list!! I can’t wait to read about it. I don’t have any debt but this month I have to be extremely frugal because I’m traveling to Portland/Seattle and I didn’t have a lot of freelance work in August that will bring in the income in Sept. Kind of a bummer because Im really needing a massage right now from doing a lot of working out. ouch!
    Budget and the Beach recently posted…Don’t Quit/Link LoveMy Profile

  4. Brilliant job paying off so much debt in the last few months 🙂 You certainly deserve to have a kit kat 😆 What’s also nice is that inflation is currently around 2.7% in the UK. So every year you’re automatically paying down about £337 of your debt in real terms as it becomes easier to service that debt 😀 I paid off some debt in August as well, but I’m still a long way to become debt free 😛
    Liquid recently posted…Getting a Home Equity Line of CreditMy Profile

  5. Sounds like you are doing great and I am so jealous of your travels! Croatia is on my list! My debt payment was really good this month. Savings is static at $150 per month and $50 towards retirement. I know there will be more travels for me in 2014. I also will not wait until I am debt free to travel.
    Dear Debt recently posted…End of August UpdateMy Profile

  6. Great progress, Eva! Sure, you could have put more money towards your debt, but I think it’s great that you’ll be travelling while you’re in debt! I know it’s incredible hard to deny yourself of entertainment, and as long as you’re still throwing money at it, you should be fine!
    Lisa E. @ Lisa Vs. The Loans recently posted…Weekend Recap: Wine Not?My Profile

  7. We are visiting South America this year as well (Peru & Ecuador) – we’ll have to dig into some past posts to see if there is any overlap. We’re in complete agreement about still traveling, celebrating, & otherwise enjoying life while we are still trying to reach our financial goals. Between the extremes of 100% dedication to debt repayment/savings accumulation and 100% hedonism, is a balance that allows us to do both.
    Done by Forty recently posted…Is it Moral to Let a Sucker Keep His Money?My Profile

    1. I think this is the way forward! I don’t spend a lot these days to try and save every penny as I know what I really want: pay off debt and travel. It’s not a problem for me to say no to everything else as long as I get to travel while paying off debt, that’s all that matter to me.

      I’d love to go to Peru too and hike the Inca Trail. One day 😛 I’m sure you’ll have a great time!

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