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  • FIRST POST
    • dipdap
    • By dipdap 1st Oct 14, 1:22 PM
    • 6,048Posts
    • 88,438Thanks
    dipdap
    Working towards being debt free, a new house and now beyond!
    • #1
    • 1st Oct 14, 1:22 PM
    Working towards being debt free, a new house and now beyond! 1st Oct 14 at 1:22 PM
    This could be a long post with a lot of rambling as I'm not sure where to start.

    Me and DH currently owe £26,059 (I know right down to the penny what we owe ) and are working our backsides off to clear it all away
    This is only a fraction of what we originally owed. I've decided to post on here (it's taken me 18 months since I joined mse to finally feel confident enough to write everything down on here) as I need it to serve as a reminder to me to keep ploughing through this debt as we both really want that end goal.

    I'll start at the beginning way back in 1999.
    We did as many people have in their twenties and ignored our parents advice and spent money we didn't have. I finally realised the extent of our debt when i signed up to check our credit reports in 2009 (for both me and DH) and saw in black and white the amount we owed. My memory is a little hazy but a recent calculation has set the figure at £68,000 in early 2009. This was the peak of our debts and i was a figure I've been scared to utter for many years since. Nobody knows exactly how bad we were, just me and after a few months DH (I initially kept it to myself while i tried to get my head round everything).
    Like many other people I have no idea where some of it has gone (3 brand new cars over the years account for quite a bit).
    On top of that we have a house which was bought for £30,000 many years ago and after remortgaging a few times (yes I know how stupid it was) the mortgage ended up at £100,000

    Seeing this written down makes me feel sick but I've felt the need to post it here to serve as a reminder to myself and DH that we will not make the same mistake again down the line.
    I set myself up a spending diary in January 2013 (back then it was a little notebook, today I have a 2014 diary) which documents every penny we spend and all money that comes in.
    I've just totted up how we've handled our debt in the last 5 years (using the free to access credit report)
    *edited to include a couple more years *

    2009 = £63600
    2010 = £62200
    2011 = £55200
    2012 = £47900
    2013 = £37600
    2014 = £26000
    2015 = £7520
    2016 = £2500

    In the last couple of months we've had an agreement in principle on the mortgage for the new house we want to buy (new build, not very mse i know) and we have about £38k in equity in this house, so the new mortgage is on the proviso that we clear all our debts before we move (I know a mortgage shouldn't be used to clear debts, but we're happy to go down that route as any spare money when we move will be used to overpay and bring down the balance).

    Sorry for rambling, we have gone it alone in clearing off the debt, I've posted on here as money recently has become less tight as monthly commitments have been removed. I don't want us to become complacent, we can keep working on this debt

    I wish I'd posted this at the start of last year, but at the same time I just couldn't bring myself to write it down
    Last edited by dipdap; 05-01-2017 at 10:50 AM. Reason: Adding new figures
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
Page 35
    • dipdap
    • By dipdap 2nd Jan 18, 2:06 PM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Morning diary
    Well we've started the year with a really tight January. Forgot the parking permit needed paying for
    Currently only got a couple of hundred in the account to last us the next 2 weeks so trying to be on best behaviour.
    I will not shop in the sales! (I'm trying so hard!)
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • dipdap
    • By dipdap 5th Jan 18, 9:22 AM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Morning diary
    Well money is still tight but we're surviving at the moment.
    I've set myself a new savings challenge for this year (I tweaked an idea I saw on Facebook)
    Save £1 Mon, £2 Tue, £3 Wed thru to £7 Sun and start again.
    Hopefully we can stick it out to the end of the year, if not it's still a nice amount to have in the jar in an emergency
    Roll on pay day!
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • Working Mum
    • By Working Mum 5th Jan 18, 11:12 AM
    • 38 Posts
    • 119 Thanks
    Working Mum
    Hi dipdap,
    I do two savings plans each year - one is known as a penny per day and give me £667 at the end of the year. The other is a £1 for the week we are in £1 for week one, £2 for week two etc which give me £1378 at the year end.
    I start low in January and build up but you can effectively start anywhere.
    I am doing the weekly one for my emergency fund this year and the pennie one for Christmas pressies!
    Good luck with your savings goals :-)
    • dipdap
    • By dipdap 5th Jan 18, 2:13 PM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Hi workingmum
    They sound really good ideas
    I'm hoping to find a good savings idea I can get my kids involved in, in the future (eldest is already pretty good with money, next one down, not so good )
    Need to get in some overtime next week, start of the year is usually quiet for overtime in most companies I think. May have to put in more hours with my low online earnings for the month.
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • dipdap
    • By dipdap 6th Jan 18, 4:55 AM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Morning diary.
    Insomnia time!
    I hate waking up and not being able to get back to sleep.
    Just logged on to check the end dates for the 0% rate on the credit cards.
    The lower one ends at the end of this year, which I was pretty much aware of.
    The higher balance credit card ends in 2020. Hadn't realised it was so far away (I actually thought it ended in January next year)
    Will be glad when it's all cleared off
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • dipdap
    • By dipdap 10th Jan 18, 7:56 AM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Morning diary.
    Still slogging along.
    Got in a few hours overtime this week so extra money for next payday
    Down to the last £30 or so in the bank, just waiting for some extra money to come in at the end of the week.
    I do find it funny that my bank account has a £1,000 overdraft and I never use it. Gone are the days when I'd be forever in the red, now I treat the overdraft as the evil it is and will do everything I can not to go into it (dipped in for 4 hours a few months back, was having palpitations until I fixed it!)
    I don't know whether to bring the overdraft down or leave it where it is (doesn't cost me anything so long as I don't use it)
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • dipdap
    • By dipdap 11th Jan 18, 1:57 PM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Hello diary.
    Well today I found out how the 'help to buy' aspect of our house works.
    Our fixed term mortgage comes to an end in 2020 and if we want to remortgage apparently there is only a limited amount of lenders we can use.
    If we want to remortgage we also need to make sure there's at least 10% equity in our house.
    We also intend on borrowing more to pay off the htb so it looks like we need to focus on our debt clearing differently.
    My plan now is to be debt free by the end of 2019. Our current debts are all at 0% so it doesn't make a lot of sense to pay them off much quicker. We're better off overpaying the mortgage instead so we have more of a chance of a good deal in 2020.
    Hopefully all that gibberish makes sense
    We should hopefully still be debt free by the end of next year
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • abba1772
    • By abba1772 11th Jan 18, 4:15 PM
    • 4,152 Posts
    • 13,126 Thanks
    abba1772
    That's sounds like a good plan........we are due to remortgage at the end of March and it's very stressful I'm targeting my debts to see how much we can pay off before the financial adviser comes round to start the process xx
    NEXT TARGET HALIFAX CC WAS July 17 £3572.57 NOW £3998.33
    POAMAYC 2011 £6382.66 POAMAYC 2012 £5000.78
    POAMAYC 2013 £3480.04 POAMAYC 2014 £4085.14
    POAMAYC 2015 £7565.24 POAMAYC 2016 £8000.90
    POAMAYC 2017 £7278.80 POAMAYC 2018 £365.69
    • dipdap
    • By dipdap 13th Jan 18, 9:13 AM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Morning diary
    Hey Abba it doesn't seem that long ago either of us were discussing moving and new mortgages and now we're talking about remortgages
    Where does the time go?!

    Paid £150 off the credit card debts, but managed to forget the car payment is due next week so now we're back to being short of cash again till the end of the month
    We've probably got a hundred quid in the bank to get us through the month (fuel and groceries will go back on the CC as they usually do)
    Roll on pay day!
    Oh well, that'll teach me to read my list of direct debits properly!
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • abba1772
    • By abba1772 13th Jan 18, 1:28 PM
    • 4,152 Posts
    • 13,126 Thanks
    abba1772
    Oh no it's easy done tho isn't it

    Time has defo flown in that's for sure and do much has happened within these last couple of years xx
    NEXT TARGET HALIFAX CC WAS July 17 £3572.57 NOW £3998.33
    POAMAYC 2011 £6382.66 POAMAYC 2012 £5000.78
    POAMAYC 2013 £3480.04 POAMAYC 2014 £4085.14
    POAMAYC 2015 £7565.24 POAMAYC 2016 £8000.90
    POAMAYC 2017 £7278.80 POAMAYC 2018 £365.69
    • dipdap
    • By dipdap 14th Jan 18, 9:01 AM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Morning diary
    Just logged on to my savings and seen how much money is in there
    I've been saving money since 2015 (it comes out of my account on pay day so I rarely notice it's gone) and there's now about £6k in there.
    I set the payment to go up to £500 next month so things could get a bit tighter (although it means more in savings)
    It's locked into a few savings accounts and access to it isn't easy (it's not meant to be) so the first time I can access some of the money is 2020
    It is a nice way of saving - makes us do more overtime to compensate
    I shall feel better about our debts when the savings exceed the amount owed
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • dipdap
    • By dipdap 15th Jan 18, 6:49 PM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Hello diary
    Well I've made another booboo. Someone else wants money!
    I hadn't realised driving lessons needed to be paid for on Monday (not for me!) so that's another hundred quid I need to find from nowhere.
    I may have been a bit naughty today and spent a fiver on gift wrap, crackers and cards for next year. I know we don't need them now but I always buy them in the sales to save money before next Christmas. Don't think DH was impressed!
    I'm trying to be better with money but it's not working too well
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
    • dipdap
    • By dipdap 16th Jan 18, 11:11 PM
    • 6,048 Posts
    • 88,438 Thanks
    dipdap
    Evening diary.
    One of the kids needed a haircut (was long overdue) so yet more money had to be found today
    Still not gone into the overdraft yet, feel like a duck on a lake, calm up top but frantically treading water underneath.
    I will be so glad when pay day rolls around at the end of the month!
    Counting down the days until my holiday off work, it starts on Monday woohoo!
    Historic Debt August 2009 = £63,600 10th March 2017 = £0 100% paid all gone!
    PAYDBX2018 # 102 = £460 / £7,000 6% paid
    Saving for Xmas 2018 = PP £0 TCC £24 Amazon £0
    If you focus on what you have left behind, you won't see what lies ahead - Gusteau
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