How living in a London hostel for a year helped clear £30,000 debt
Hostel living cleared £30,000 debt in London

Zahra Khozema, a 30-year-old from Toronto, cleared £30,000 of debt by living in a London hostel for a year. In 2019, she accepted an unpaid internship at the Canadian Broadcasting Corporation's international news bureau while studying for a Master's in journalism. To cut costs, she swapped her £500-a-month flat for a bottom bunk at Bowden Court Hostel in Notting Hill, West London, priced at £80 per week.

Hostel living arrangements

The hostel included two meals daily, laundry service, gym access, twice-daily cleaning, weekly sheet changes, and 24-hour security. The longer she stayed, the cheaper the rent became, eventually dropping to between £50 and £60 per week. 'It was the cheapest I could find. The room was tiny; if one person was standing up, it felt crowded,' Zahra said.

She shared a room with three other women. 'The people I met were really diverse. There was a Japanese guy who cut everyone's hair, a British gentleman who liked to paint portraits, lots of students, people who came from the EU to learn English, working in retail and hospitality and a few British pensioners too,' she added.

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Community and challenges

Zahra initially planned a short stay but ended up living there for a year due to the community. They threw parties, taught each other languages, and shared meals. She preferred hostels over hotels, finding them 'as clean as Airbnbs.' However, she lacked personal space, storing everything in a suitcase, nightstand, and small wardrobe. 'Some people really made it their own. People had furniture that they brought in, beautiful sets of matching beddings, curtains that they bought, fluffy pillows and rugs,' she said. 'But there were no chairs in the room and my roommate would sit on my bed. I really don't like outside clothes on my bed, so I would have to ask her not to.'

When her roommate started dating, her boyfriend slept on the top bunk, causing the bed to move. Despite these issues, she explored the area, frequenting coffee shops and parks for alone time.

Financial impact

According to the Office for National Statistics, average London rents hit £2,302 in June. In contrast, four weeks at Bowden Court Hostel cost £720 for the cheapest option. Zahra saved money due to low living costs and the pandemic limiting outings. After the internship, she worked full-time in communications, paying off her debt. 'When I moved to the UK, I only had enough for a one-way ticket, but when I returned home after two years, I was clear of debt. I was really grateful that I was able to do that,' she said.

She eventually moved into a house with four flatmates from the hostel, calling it a major step up. Current hostel prices start at £180 per week for a three-bed dorm, including food and bills, with no contract required.

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