Ruth Writes is a 30-something Liverpool based blog covering mid-size fashion, pescatarian food and beauty.
There’s been a lot of conversation on the internet over the last few months surrounding money and debt and I think it’s such a positive step. This is because it normalises debt, whether that’s just student debt, a mortgage or something slightly more personal such as credit cards, store cards or payday loans and it gets the conversation going.
My debt is threefold: student loan, mortgage & Help to Buy loan and a credit card.
Following a phone call to Halifax over Christmas I realised that by April 2020, my credit card will be repaid in full and promptly closed. This is a debt I ran up in my early twenties so over 10 years ago. We’ve all heard the script, twenty something given a credit card and uses it to buy clothes, handbags, holidays and nights out. Over £3k later and at the age of 31 and 11 months, it will be repaid and I plan to close the account.
I upped the repayments when Darren and I bought our home and having a mortgage meant lower monthly outgoings and I could afford to pay more and get it gone. I’ve also followed Martin Lewis tips over the years and done many balance transfers to keep it 0% interest and avoid paying more than necessary back.
This means from summer 2020 I will be personal debt free. We used the Help to Buy loan and a 5% deposit when we bought our first home. This is because renting for three years crippled our finances and paying extortionate rent meant we struggled to save and pay both of our credit cards off.
The Help to Buy loan is interest-free for five years and we can make two substantial repayments over the five years. As I mentioned we’ll be two years in, in April and our savings are on track to cut a large chunk down in 2020.
We’ve done research and we can also remortgage after five years and add the remaining balance to the mortgage, which we’re planning on doing.
I think it’s ok to admit that money is a mindfield and whether you’re taking steps to undo missguided judgements from your younger years or simply trying to get a hold of money for this year and beyond, that’s a good thing!