Another month, another debt repayment update.
Overall, October has been a good month for me in terms of spending. I have managed to stay within my budget and haven’t even used my whole “entertainment allowance” of £100. I guess when you get used to not spending much, it kind of becomes a habit too. Let’s hope this habit sticks for a bit longer.
There were three main things that influenced my October debt repayment in a not so positive way.
The first one is the fact that I am looking for a new flat to move into along with my sister and my friend. This means that I have no idea how much my share of rent is going to be. I have a rough estimate but until we find a place I will not know for sure. In view of this, I have set aside an extra payment towards my rent. I’d rather have this money in my bank account just in case.
Secondly, my paycheck normally includes commission too and it varies from month to month. I do not rely on commission and look at it as “an extra payment that I can throw towards debt”. Well, my commission payment has been approved for the month of October as I hit the target (hell, I completely smashed the target!) but due to some internal payroll issues my October commission will be added to my November salary which means one thing: no extra payment towards my debt this month.
Lastly, I am going away on a 5-day trip to Slovenia and Croatia in two weeks’ time. I have added an extra day to this trip and booked a room at an airport hotel as my flight in early in the morning. Although half of this trip has been paid for already (my flights, airport hotel, transfers), I budgeted another £150 to cover accommodation costs abroad and some spending money. Also, I have a friend from Moscow visiting next week! N is staying with me for 5 days and I have, of course, set some money aside to spend while she is here.
Nevertheless, I have still managed to throw quite a bit towards my debt. Here are the numbers –
End of September Figure -£2,395End of October Figure -£1,885
End of September Figure -£8,860
End of October Figure -£8,730
End of September Figure -£11,255
End of October Figure -£10,615
This month I have put a total of £753.00 towards my debt (including interest). This converts to approx. USD 1208 and CAD 1260. I had secretly hoped to pay off more and get under £10k mark. This may still happen this month. I will know in a couple of weeks’ time what my rent is going to be like. Hopefully, things will go according to plan, and if so, I will have some more cash to throw towards debt this month. Or maybe I won’t. Either way, I am happy to be able to make this £753 payment today.
I have done some math to keep myself motivated. In the course of 4 months of aggressive debt repayment I have paid off £3,216 of my principal debt. This figure does not include interest that I pay off every month too. This is nearly 24% of my total debt PAID OFF! I think this just goes to show that if you truly want something, it can be done through hard work, dedication and a bit of luck. £3,216 down, £10,615 to go!
How are you doing with your debt repayment/savings goals? Here’s to a great November, friends! Oh, and Happy Halloween! 😛
Related: my previous debt repayment reports