Incredible! I wanted to do one for my spending, but I always forget to update it, and my little ADHD brain gets no thrill from seeing how much i've spent, only how much i've earned/saved
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I know 100% I would think the same as you, having seen those figures! What’s in the student debt pot if you don’t mind me asking? What’s the interest rate when it kicks in?
The ‘right’ answer would be to use your savings to pay it off before December, but like I say, I wouldn’t be doing it.
I’d throw as much into the student debt pot as I could, then before the interest kicks in, I’d pay all that off it. With what’s left to pay, unless the interest rate was stupidly high, I’d just carry on paying the £250 a month off (assuming that’s significantly more than the minimum monthly payment) and just make my peace with paying the interest.
Having 40k of savings is incredibly freeing and will be more useful to you as a deposit
This is always a really good plan. Don't know if you've heard of Dave Ramsey but in his baby steps method you should save an initial £1000 emergency fund prior to really starting to throw everything at the debt for exactly the reason you've mentioned.
Any chance you could give us a template / screenshot of how you have yours set out?
I use my notes on my phone to tick off whats been paid each month, but feel I would benefit from a spreadsheet just dont know how to set it up !!
I don't know if this is incredibly naïve and stupid, but I've never really considered my student debt as something urgent that needs paying off. I pay some of it off through my work (think it's about 9%), but the amount I pay doesn't even pay off the annual interest, so it never goes down. I know it won't get in the way of me securing a loan or mortgage etc, so I concentrate on topping up my savings and paying off regular payments instead of spending it on my student loan.
I’ve got €12,871.00 in my student debt pot and could get another €5,000.00 out of a different pot. I won’t know the interest till October/November. At the moment it’s 1.78% so it’s not big, but it feels like a waste of money to spend it on interest if I have it in the bank. But what if I need my savings..
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I don’t live in the UK!
So assuming 250 is going into the debt pot every month, you’ll have a little over 15k to pay off 28k of debt by the end of the year, which is really good going.
That’d leave around 13k left. I think in that position, I’d clear half from savings (which will be around 15% of what you’ve got saved there, so still leaving you a big chunk) and then just pay 250 a month off for just over two years. At least that way, there’s an end in sight and you haven’t decimated your savings.
That’d leave around 13k left. I think in that position, I’d clear half from savings (which will be around 15% of what you’ve got saved there, so still leaving you a big chunk) and then just pay 250 a month off for just over two years. At least that way, there’s an end in sight and you haven’t decimated your savings.
I hope this works.
All figures are fake. I hope it makes sense but happy to explain anything if needed. I can provide the formulas used if you want them as I can't upload an excel file.
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I have a grand total of £0. I have a relatively high salary but just can’t get my head into a savings mentality.
Due to getting £6k of back pay (I’m in RMT so we just accepted a pay offer finally) and £2k in holiday overtime pay this month along with having worked a decent amount of overtime/Sundays, I’ll finally have the chance to save around £6k- can anyone help with how I actually keep it in my savings account this time? I’d like to be able to access it if I actually need it (I’m in the process of selling my house and buying a new one so might need it) but I just need to stop with the ‘treat myself’ thoughts! I’m a super impulsive spender and can’t seem to help myself.
Due to getting £6k of back pay (I’m in RMT so we just accepted a pay offer finally) and £2k in holiday overtime pay this month along with having worked a decent amount of overtime/Sundays, I’ll finally have the chance to save around £6k- can anyone help with how I actually keep it in my savings account this time? I’d like to be able to access it if I actually need it (I’m in the process of selling my house and buying a new one so might need it) but I just need to stop with the ‘treat myself’ thoughts! I’m a super impulsive spender and can’t seem to help myself.
I'd give yourself a balance each month that you're allowed to spend - or maybe do the month challenge? So if you want something, you have to wait a month before you buy it, this way you will save the money before your next pay day, and if you may realise you don't even really want it!
I got stuck in a rut when I was working in London as the shops on my lunch break were calling my name - I then got into a routine that I could look, take pictures and when it had been a month I normally had forgotten about it or didnt want it anymore and therefore didnt spend the money!
Or I'd set yourself a goal of what you want to use that money on, but you can only spend it if you have 3 times the amount if that makes sense? So say you want a pair of trainers for £300, you wait until you've got £900 minimum and then decided? Bit different to 6k I know lol but just something to think about!
That’s also an idea thank you. Just hope the interest is not going to increase too much.
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I give myself 12,5% of my wages to spend on whatever I want to spend it on. And for me it really helps to have goals for my savings and have different saving pots. I watch a lot of budget YouTube videos, maybe that helps for you?
Sorry this wasn't aimed at you! I have seen a few people talking about repaying their UK student debt (my friend's parents gave her a lump sum to pay off her student finance, when she has a considerable amount of credit card debt she could have paid off instead), and just wondered whether I had missed something
I definitely think premium bonds or another savings account where it takes a few days to get the money helps. As it still gives you access to the money within a few days if needed but it stops me spending. As I know I can’t automatically access it and I think oh I want to buy this I need to get some money out but then I think by the time I get the money will I actually still want it and most of the time I decide no so just leave it.
I used it whilst saving for my house as well so I easily got it out on time to pay my deposit for the house but it prevented me from spending whilst I was saving
Maybe her parents wanted to contribute more towards college/uni so paid off her student finance and not pay her cc debt off?
What will your interest rate be on your student loan once the 0% period ends? Assuming it’s higher than the interest rate on your savings, I would prioritise paying it off but probably by overpaying instead of paying it all off and depleting your savings.
Yeah, it’s different in the U.K. It’s 9% on everything over the threshold (which depends on which plan — ie when you started uni — you’re on.
I wouldn’t bother overpaying until you’re in a position where you’ll almost certainly pay it off. At the moment for you the balance is irrelevant because you’re not on course to pay it off and it’ll probably be wiped anyway. If you thought mathematically you’d earn enough to pay it off then overpayments are worth it as you’ll save a load of interest.
I don’t know how much it will be yet, normally they announce it in October and then you keep the same interests for 5 years. Mine was still 0% but other people are paying 1.78% since this year. Interest on my savings is 0.40% up to €30,000 and 0.30% up to €50,000. So interest on my student debt will be way higher than on my savings. Because of the current economy I don’t think the interest will go down, probably will go up.
I use a spreadsheet but if you switch to a bank like Monzo they do a breakdown for you as well. I now have two bank accounts, my main one that my income goes into, from that I have direct debits set up to my various savings pots, all bills etc. Then I 'pay myself' an amount I consider reasonable to 'live on' for the month into Monzo, and let Monzo do the breakdown about what I've spent it on, it works really well
I think you should pay off the debt you have a large amount of savings and are losing value on those savings with the current high inflation rate and also then in addition starting to pay interest on the loan. 12k is still a nice pot to start resaving again and by the time that grows inflation might have calmed down and you wouldnt be losing as much value.
I’m back at square one as bought a car. However I’ve just got a new job so payrise and bonus so fingers crossed can start to get money behind me again. I try to budget but struggle and I get so demotivated. I find it hard to stay on track 
Congratulations on the new job and car! Sounds like you were doing something right if you were able to save for your new set of wheels, just carry on doing what you're able to do! When I've received a payrise from a new job i've always tried to put the 'extra' amount I receive every month in to savings, so that I don't get too used to the increase in money and just spend it all. Appreciate that might not be an option if you need the money, but might be worth thinking about if you're able to.I’m back at square one as bought a car. However I’ve just got a new job so payrise and bonus so fingers crossed can start to get money behind me again. I try to budget but struggle and I get so demotivated. I find it hard to stay on track