Debt at 23

[betrayalboo]

Hi everyone,

I’m 23 and feeling a mix of proud and panicked at the moment! I’ve been paying off debt for the last couple of years, and I’ve only got two payments left 🎉. It’s such a relief, but I’m also really stressed about how to handle Christmas without undoing my progress.

My monthly take-home pay is £1,721, and my essential bills (rent, utilities, phone, transport, etc.) come to around £1,500. Once those are paid, there’s not much left, and I still want to be sensible while enjoying Christmas a bit.

I’ve already decided to keep gifts small this year — maybe homemade bits or Secret Santa style — but I’m worried about things like social events, food, and just feeling left out when everyone else seems to be splurging.

Has anyone been in a similar position? How do you manage Christmas when money is tight but you don’t want to feel like the Grinch? Any budgeting hacks or mindset tips would be really appreciated.

Thanks in advance ❤️

You sound sensible op, debt has a huge impact on some people’s wellbeing, well done for getting it down. Decide what you definitely don’t want to miss out on over Christmas and try to budget for it. Thoughtful gifts don’t have to be expensive, the people who matter will appreciate the thought. Are you able to pick up extra work to cover a few extra treats, or substitute some other luxury, subscriptions maybe? Things may not always be such a struggle, sorry I know not really helped with tips, but wishing you a good future ⭐️

I don’t spend anything in December.
I’m going to two parties, I’ve already paid for them. Same goes for carol concert at the cathedral.
I buy presents in October/November.
I have a few outfits in mind for the parties, for the drinks with the neighbours, I’m not getting anything new, don’t need it, but I think not having a plan is what makes us panic a bit and going out and buying stuff.
I like my December to be stress free. I don’t do a massive shop, but I do get extra stuff in, fancy nibbles, alcohol, in November. I just buy perishables in December.

I really like not being into debt come January, more than feeling like: eh, it’s Christmas, splurge a bit!

Are you able to switch your bank account for the introductory bonus, look on Moneysavingexpert.com.

Can you work extra in December, perhaps baby sitting for parents who are going to their own Christmas events?

Congratulations on getting out of debt. The next step is to review your budget so you're able to save a little each month throughout the year so next year you can afford to pay for Christmas without worrying.

I have managed to clear it within 1 year practically - that being £3000 nearly

But this time of year it’s really scary and I am worried

Have you been through your bills to check that they really are essential and that you are getting the best price?
Might be helpful to make a list of things that you want to spend on over the Christmas period- who you want to buy for, food, nights out etc. Break it down.

Well done on paying off your debt. You are right to not want to get into more!

For going out, if your friends / family are dining out and you are invited too, I'd suggest you join them after they have eaten, (either make an excuse or be honest) you could probably just sit and drink tap water too to keep your costs down.

It doesn't help for this year, but a lot of people will save throughout the year. I like the idea of joining friends after the food etc.

Have you checked if your entitled to any benefits?
Do you live alone? If so are you claiming single adult discount on your council tax?
Are you on a water meter? They are generally cheaper and you can also get water saving devices to keep your usage and bills down.
Are you on the right tax code?
Are there any tax perks available to you?
Have you shopped around for cheaper utilities, phone contracts etc?
Are there expenses you can claim from work?
Is there anything you can sell?

Once you have repaid your debt then budget for annual expenditure (Christmas and birthdays, holidays, car and boiler servicing etc) on a monthly basis. Eg if you want to spend £600 on Christmas then you need to be saving £50 per month from January. (Do the same with the other one off costs).

CocoRats

is spot on, go through your outgoings and see if they can be trimmed

It might not make a lot of difference now - but it will for xmas 26. I regularly go through my broadband, phone deal, water meter readings and utilities to make sure im getting value for money. Last time I trimmed this list I reduced my monthly outgoings considerably. £19 on water (as they had me on a high monthly rate but giving monthly readings brought that right down, utilities wanted £30 more than my average yearly bill divided by 12 and 5% added to account for inflation, broadband and mobile I reduced by £17 so a total of £66 per month or £792 per year. I don't pay less than I should, I make sure the monthly amounts will cover the bills

Also do you pay your council tax in 12 months or 10? remebr you'll have those two months without having to pay council tax if you're on the standard 10 months payment schedule. I put this money away for xmas each year - I know its 11 and 10 months in advance, but its free money I put aside for xmas parties

Do you have a dbs check ? Do you like children, have experience with children? If so perhaps think about advertising on babysitting websites. The extra work at xmas will help pay for the extra nights out. This is the time of year that places are taking on extra staff - see if anything is advertised and do some extra retail shifts at weekends or bar shifts in the evening or waiting on tables

Well done for getting out of debt. I would reduce the amount of presents you need to buy for others if that would help. Also for people who you need to buy for and who buy for you ask for things that would save you money. E.g. a bottle of gin if you would need to buy yourself one for Christmas. Free activities-Christmas walk with a flask are a good way to celebrate. Hope you have a great time.

No good for this year but I save a little bit every month and I top up Tesco Christmas savers too so the Christmas food shop is paid for.

You sound such a sensible women. If you were married DD I'd b very proud of you OP. It's never worth getting into debt over Xmas.

Congratulations on paying off your debt.

Oh well done. Thats a massive achievement. I think maybe accept that this one particular Christmas will be more frugal as with debt repayment you obviously haven’t been able to save. Next year you can save, so it’s a one-off, building healthy habits for life. I would just be honest with people you love and say it’s this year only, but then you’ll be on a good track. I don’t mean get them nothing, just small things. Tell them in advance so there’s no awkwardness. Lots of Christmas stuff is expensive but lots of nice Christmas stuff is free or cheap. Go you, you’ve done so well💪

Huge well done for paying off your debt so far. I think you are very young and a lot of people on MN will say things like, just be frugal for one year, cut your costs etc. But you’re 23 - you want to be going out, shows, clubs and shenanigans! You have so much energy right now. At your age I could work a 60 hr week and still party once or twice a week. Can you get a pub job Friday and Saturday night - earn with a bit of social added in. Or babysit? Or seasonal Xmas work at weekends?

Good luck and do stick with the debt payments. You are so nearly there and are transforming your life.