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Trials and tribulations of a Debt Free Wannabee!
savingholmes
Posts: 29,049 Forumite
Hi all - I thought I would start my own diary as my life is about to change yet again. I lose my job end of March and despite beginning my search mid January, I still have nothing lined up to go to. Started temp job Tues 26/5 - 17/6 still looking for higher paid and/or perm work
I will post more exact figures later but basically there are 4 of us - we currently owe around £17K which is a lot better than when we started last July and we currently have about £3.7K in savings. Our income even after job seekers allowance and any tax credits will half come the end of March...
If I had kept my job we would have been debt free by about this time next year if we used the savings to help clear the debt. If I don't get a job and just pay minimum payments and all debts stay on 0% interest it will take up to 7 years... All our current debt is on interest free although some of that will be expiring over the next few months. We have a too good credit rating so generally getting new credit is not a problem... We are reluctant to use savings to clear debt until I get my next job as we want to guarantee our ability to meet minimum payments going forward.
I have worked out a budget on which we can theoretically manage without using savings or going into more debt but it will require more willpower (and possibly good luck) that we normally have...:o
I would love some company on my journey as traditionally I don't cope well being off work - the financial pressures are just an additional burden. I'm one of those people who needs to work to stay sane!:eek:
I will post more exact figures later but basically there are 4 of us - we currently owe around £17K which is a lot better than when we started last July and we currently have about £3.7K in savings. Our income even after job seekers allowance and any tax credits will half come the end of March...
If I had kept my job we would have been debt free by about this time next year if we used the savings to help clear the debt. If I don't get a job and just pay minimum payments and all debts stay on 0% interest it will take up to 7 years... All our current debt is on interest free although some of that will be expiring over the next few months. We have a too good credit rating so generally getting new credit is not a problem... We are reluctant to use savings to clear debt until I get my next job as we want to guarantee our ability to meet minimum payments going forward.
I have worked out a budget on which we can theoretically manage without using savings or going into more debt but it will require more willpower (and possibly good luck) that we normally have...:o
I would love some company on my journey as traditionally I don't cope well being off work - the financial pressures are just an additional burden. I'm one of those people who needs to work to stay sane!:eek:
Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £172.5K Equity 36.11%
2) £1.8K Net savings after CCs 13/9/25
3) Mortgage neutral by 06/30 (AVC £26.8K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 32.6/£127.5K target 25.6% 13/9/25
(If took bigger lump sum = 54.5K or 42.7%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise)
(If bigger lump sum £15.8/30K 52.67%)
5) SIPP £4.8K updated 13/9/25
1) MFW Nov 21 £202K now £172.5K Equity 36.11%
2) £1.8K Net savings after CCs 13/9/25
3) Mortgage neutral by 06/30 (AVC £26.8K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 32.6/£127.5K target 25.6% 13/9/25
(If took bigger lump sum = 54.5K or 42.7%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise)
(If bigger lump sum £15.8/30K 52.67%)
5) SIPP £4.8K updated 13/9/25
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Comments
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Hi savingholmes,
Just wanted to say good luck with your debt free journey. You'll be glad to know that I'm in almost as much debt but mines is all my own unfortunately. Have paid if off countless times only to run it up again, I'm lucky (for the moment) that my job is safe but you never know.
Will watch out for updates!0 -
hi SH, and happy new diary - sorry that the job situation is not looking so great. But remember that 7 years is the MAX, and even that is not the end of the world......the whole situation would have been a lot worse had you not found this site and made the changes that you did, when you did.
So.....fingers firmly crossed for a swift change in fortunes for you!Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0 -
Hello again - thanks for the replies - and thanks to the lurkers out there for showing an interest.
Well long term debts £16.8K checked out my status on what's the cost when I got home! 2 x CC and 1 loan. On-going payments £140, £25 and £40 as minimum payments.
Saving pot 1 £1406 and Saving pot 2 £2324 so about £3730. Our net debt after savings is about £13K which does sound much better
Got home to confirmation that I have paid one of my cards off in full - always nice to see a nil balance. A cashback cc we use for food, petrol, interview expenses etc was £618 :eek: which was a bit of a shock (aiming for more like £350) but our main account was showing that our overdraft was about £500 less :j than it was for the same time last month so that was really positive. Also one of my interviews has promised to refund me approx £100 which when it arrives will help!
Do have my car insurance to pay still this month which could be as much as £356 :eek: - but will try and get cashback on that and lower it thro quidco or similar.... Have £275 to pay for a holiday which we pay now but will get back in Sept.
Tomorrow we are going to one of those presentations where they give you £50 in vouchers for going - we are going to torture them by taking our kids with us:rotfl: !
Still no interviews.... not applied for any new roles today - they all seemed to be repeats of the same jobs I have seen all week!
Total spend today about £4 - but had £3 in vouchers which I used towards that...Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £172.5K Equity 36.11%
2) £1.8K Net savings after CCs 13/9/25
3) Mortgage neutral by 06/30 (AVC £26.8K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 32.6/£127.5K target 25.6% 13/9/25
(If took bigger lump sum = 54.5K or 42.7%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise)
(If bigger lump sum £15.8/30K 52.67%)
5) SIPP £4.8K updated 13/9/250 -
Hi Swinstie - Thanks for replying :A I see you are new... We have previously been terrible with regards to debt and have got up to £33K in debt 2 or 3 times - but I have been a reformed character since I joined the site last year so I am hoping that we have finally learned our lesson... I used to be rather a shopaholic.... The make £10 a day challenge has also helped by giving me some additional funds to spend on luxuries, food, pressies or whatever - so if you are not already part of that I recommend that you give it a go!Swinstie73 wrote: »Hi savingholmes,
Just wanted to say good luck with your debt free journey. You'll be glad to know that I'm in almost as much debt but mines is all my own unfortunately. Have paid if off countless times only to run it up again, I'm lucky (for the moment) that my job is safe but you never know.
Will watch out for updates!
Hypno - nice of you to drop in!:TAchieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £172.5K Equity 36.11%
2) £1.8K Net savings after CCs 13/9/25
3) Mortgage neutral by 06/30 (AVC £26.8K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 32.6/£127.5K target 25.6% 13/9/25
(If took bigger lump sum = 54.5K or 42.7%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise)
(If bigger lump sum £15.8/30K 52.67%)
5) SIPP £4.8K updated 13/9/250 -
Hi hun
I just popped over from the paper hat thread to say hi and to wish you wellf or your shiny new diary. I am rubbish at keeping up with diaries but will try and pop in from time to time to say hi.
I am with Hypno - 7 years is your worst case scenario, just think, when you get that fabulous new job that date will come plumeting down. I have every faith that you will be back in the rat race soon.
You are doing fantastically - keep on at it hun£34,547 (Dec 07); Current debt: £zilch (Debt free December 2010)
Sealed Pot #389 (2010=£133)0 -
Thanks PAID - the hardest thing is we've been doing so well but now thro no fault of my own we are stalled again... Thanks especially for the faith!:Apoorandindenial wrote: »Hi hun
I just popped over from the paper hat thread to say hi and to wish you wellf or your shiny new diary. I am rubbish at keeping up with diaries but will try and pop in from time to time to say hi.
I am with Hypno - 7 years is your worst case scenario, just think, when you get that fabulous new job that date will come plumeting down. I have every faith that you will be back in the rat race soon.
You are doing fantastically - keep on at it hunAchieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £172.5K Equity 36.11%
2) £1.8K Net savings after CCs 13/9/25
3) Mortgage neutral by 06/30 (AVC £26.8K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 32.6/£127.5K target 25.6% 13/9/25
(If took bigger lump sum = 54.5K or 42.7%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise)
(If bigger lump sum £15.8/30K 52.67%)
5) SIPP £4.8K updated 13/9/250 -
And that is what you have got to remember - this hitch is THROUGH NO FAULT OF YOUR OWN, but how you approach it, and get through it, and move on from it is very much of your own doing. The change in attitude from 12 months ago may well be the difference between getting through it financially still intact (ok, not easy, but doable) and going under.Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0
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savingholmes wrote: »Thanks PAID - the hardest thing is we've been doing so well but now thro no fault of my own we are stalled again... Thanks especially for the faith!:A
You still are - if it isn't going up you are doing well in my book! :T
Just think how much better a position you are in because you have done so well until now too. If this had happened a year ago.....£34,547 (Dec 07); Current debt: £zilch (Debt free December 2010)
Sealed Pot #389 (2010=£133)0 -
True January 2008 we owed close to £30K with no savings whatsoever!!!!:eek: We are much better than that now:j A lot can happen in a year or two!poorandindenial wrote: »You still are - if it isn't going up you are doing well in my book! :T Just think how much better a position you are in because you have done so well until now too. If this had happened a year ago.....Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £172.5K Equity 36.11%
2) £1.8K Net savings after CCs 13/9/25
3) Mortgage neutral by 06/30 (AVC £26.8K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 32.6/£127.5K target 25.6% 13/9/25
(If took bigger lump sum = 54.5K or 42.7%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise)
(If bigger lump sum £15.8/30K 52.67%)
5) SIPP £4.8K updated 13/9/250 -
Hi SavingH,
Popped over to say hello and I have also subscribed to this thread as well. You have to think about how far you have come in clearing a lot of your debts. You have gotten rid of so much since Jan 2008. I have my fingers crossed that you get a job soon so you can keep up the momentum.Total (Aug 19):€58,567 Now:€26,947
DFD:Nov 22/June 22
Mortgage: €199,712
MFD: March 2042/July 20340
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