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  • FIRST POST
    • girlatplay
    • By girlatplay 9th Jun 15, 10:22 AM
    • 2,456Posts
    • 14,540Thanks
    girlatplay
    New tunnel - no light yet
    • #1
    • 9th Jun 15, 10:22 AM
    New tunnel - no light yet 9th Jun 15 at 10:22 AM
    Hi everyone

    I am not a newbie around here. I hit rock bottom during the first quarter of 2007 and proudly became debt free in December 2011. I have had two diaries: HERE and HERE but briefly; I am a single parent to Little Miss Gap (age 14). We have two cats (hers, not mine). I have an interest only mortgage over a shared equity flat and I have been slowly trying to bring the balance down over the past couple of years.

    So, why am I back?

    Well, I have just borrowed £20,000 from the bank

    I have contacted MSE Badger to have my debt free badge removed.

    The story:
    While everyone around me has been seeing an increase in their property prices (my sister sold hers last month for £10k more than she paid for it 4 years ago) the property prices in my street have gone down and are showing no signs of coming back up just yet (the flat next door to me sold last month for £32k less than what I paid for mine (7 years ago) and other property in the street has sold for similar prices in the past couple of years). I had a valuation done on 18th May and it is currently valued at £110,000. That means I have to pay £33,132 to the HA. The HA have agreed this and once all the paperwork is finished, the flat will be all mine (and the bank's of course, until I figure out a plan to change that ). There is no way I would be able to remortgage to the full amount (negative equity, big LTV, blah blah), hence why I went for a loan. I have some savings which I will be using too. I have (had?) a sparkly clean credit history which I worked so hard to build up since the first diary. It has totally paid off.

    Being not new here (grammar??) I am quite in control of my finances. I have a budget and a spreadsheet that I check and tweak every day. I have tried the YNAB free trial a couple of times but it is so very similar to my own spreadsheets that I feel I am posting the information twice and I worry that I might miss something on one of them and screw it all up. My spreadsheets have been going since 2008 and I don’t know what I would do without them. If I screwed them up I would be…well…screwed.

    I don’t need to post up an SOA as I am happy that I can afford the monthly payments and still have money to get my hair done! (just). I have a small 'rainy day' fund for just in case.


    So, the point of my diary is this: it is a £20k loan at 3.9%, £366.81 per month for 60 months. Total amount payable £22,008.60. I have already made the first month's payment plus a small overpayment of £65.60, so 59 months to go. I need this diary so I can be accountable to myself. It really helped the first time round and I have every intention of getting rid of this loan as quickly as possible.

    59 months eh? That sounds like a challenge to me!

    Last edited by girlatplay; 09-06-2015 at 10:28 AM. Reason: Copy and paste is not perfect...
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

Page 9
    • Toni'sfriend
    • By Toni'sfriend 16th May 17, 3:15 PM
    • 816 Posts
    • 7,285 Thanks
    Toni'sfriend
    Another couple of wee stories:
    When my son was at school one of his friends (a lovely boy but not at all academic) hated school and left the day after his 16th birthday. Now has his own business (electrician), has travelled extensively and has a lovely family and home.
    Boy next door (again not academic) got a part time job in one of our largest supermarket chains and now manages one of their big stores.
    Moral of the stories - whilst they can be important success in exams is not always necessary to be successful
    Good luck her. I'm sure she'll do very well.
    • girlatplay
    • By girlatplay 17th May 17, 3:25 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Thank you TF. She said yesterday's exam was worse than the one last week. I have told her to stop worrying about it now. No point in worrying about something that is now in the past.




    Child benefit in yesterday and allocated to the various pots.


    Managing to scrape lunch together each day so not spending daily. I found an Irish bread roll thingy in the freezer when I was digging for bread this morning so brought that and bread for today and tomorrow which is handy as I have a seminar which is work-related tonight so I won't make it to Mr M's later. Wednesday is usually grocery night.


    I have a £1 coin in my purse which I'm hanging on to for just-in!
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • mummytogirls
    • By mummytogirls 17th May 17, 3:45 PM
    • 5,411 Posts
    • 16,488 Thanks
    mummytogirls
    Awww poor LM Gap, exams are just awful aren't they.

    Nice to hear stories of success though xx
    Mummytogirls x

    £23164.32 - 12/12/10
    £6936.45 - 04/09/17 - 70.99% paid off
    • girlatplay
    • By girlatplay 23rd May 17, 2:53 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Thank you mummy


    Nothing much to share this week. I got 2 x £2 coins in my change the other day so they went in the pot.


    New job starts Monday.


    Payday on Tuesday.


    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • girlatplay
    • By girlatplay 26th May 17, 11:10 AM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Last day in the old job today I've nearly been in tears twice already due to the lovely friends I've made here. I've hated this place from day one but I can't fault my fab colleagues.




    Going for cocktails at lunchtime
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • Hiddenidenity
    • By Hiddenidenity 26th May 17, 12:14 PM
    • 4,743 Posts
    • 20,600 Thanks
    Hiddenidenity
    Have a lovely time and good luck Monday! X
    DFW £1313.71/£7348.71 Rent Arrears £466.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • girlatplay
    • By girlatplay 8th Jun 17, 1:36 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Oops! Didn't mean to leave it so long.

    Started the new job a week past Monday so nearly at the end of my second week. My only complaint is that I don't like not knowing what I'm doing so I'm struggling a wee bit with that but other than that, so far so good. I'm having to finish a wee bit later than contracted but I can't just walk out and leave my team if why're not finished. That's not good leadership! I'm loving that I feel quite at home here. Never felt at home in the last place.

    Anyway financial news:

    Loan down to £7,530.
    Mortgage £89,690

    There's enough money in the grocery budget for 3 decent weeks. I just need to make sure not to go overboard. Apart from my first day at work I've been organised enough to take lunch every day so I'm very pleased about that.

    Got a HUGE cc bill to pay in a few days. I have the money ready so not worried about that but it's eye watering to look at.

    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • Hiddenidenity
    • By Hiddenidenity 8th Jun 17, 1:47 PM
    • 4,743 Posts
    • 20,600 Thanks
    Hiddenidenity
    Glad the job is going well. Knowing what to do comes with time and you'll get there
    DFW £1313.71/£7348.71 Rent Arrears £466.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • girlatplay
    • By girlatplay 8th Jun 17, 1:55 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Thank you HI
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • enthusiasticsaver
    • By enthusiasticsaver 8th Jun 17, 2:11 PM
    • 4,226 Posts
    • 7,605 Thanks
    enthusiasticsaver
    Just read your diary and you are doing so well in reducing that loan. Presumably when that is done you will overpay more on the mortgage as it is interest only?


    Great example to set your daughter re managing finances.
    Countdown to early retirement on 31.12.17 3.5 months to go.
    • beanielou
    • By beanielou 8th Jun 17, 3:46 PM
    • 47,202 Posts
    • 169,542 Thanks
    beanielou
    All sounding good
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding***
    • mummytogirls
    • By mummytogirls 8th Jun 17, 4:45 PM
    • 5,411 Posts
    • 16,488 Thanks
    mummytogirls
    All sounding good and organised with you GAP , new job sounds great. Hope you're not having to stay too late though xx
    Mummytogirls x

    £23164.32 - 12/12/10
    £6936.45 - 04/09/17 - 70.99% paid off
    • girlatplay
    • By girlatplay 9th Jun 17, 7:09 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Just read your diary and you are doing so well in reducing that loan. Presumably when that is done you will overpay more on the mortgage as it is interest only?


    Great example to set your daughter re managing finances.
    Originally posted by enthusiasticsaver

    Thank you ES. Yes, you are right, the plan is to overpay the mortgage once the loan has gone. The original mortgage was £98,000 interest only. I was only just getting back on my feet when I got it and IO was the only way at the time. I tried to overpay little bits when I could and I think that paying off £8,300 in 9 years is not bad going considering how skint I was 9 years ago. It was also shared equity and the loan was to buy out the HA. I had also saved £10k so put that in too. The mortgage is next on the hit list!
    We're not that hard done by as we have managed a couple of nice holidays along the way but we have missed out on day to day things that "normal" people wouldn't think twice about buying. I have absolutely worked my a$$ off though. Didn't get where I am by waiting for it to fall in my lap. I just hope I have been a good enough role model. If nothing else she's learned the word No haha

    All sounding good
    Originally posted by beanielou

    Thanks Lou

    All sounding good and organised with you GAP , new job sounds great. Hope you're not having to stay too late though xx
    Originally posted by mummytogirls

    Thanks mummy It's not too bad. I was away by 5.30pm tonight and that's because I was taking my time clearing up. A couple of nights it was 6.30pm but we had some issues those nights. At least I feel comfortable there and that is really important to me.
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • beanielou
    • By beanielou 9th Jun 17, 7:49 PM
    • 47,202 Posts
    • 169,542 Thanks
    beanielou
    Yes, feeling comfortable is a big one.
    Have a lovely weekend
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding***
    • Hiddenidenity
    • By Hiddenidenity 9th Jun 17, 7:57 PM
    • 4,743 Posts
    • 20,600 Thanks
    Hiddenidenity
    Have a lovely weekend
    DFW £1313.71/£7348.71 Rent Arrears £466.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • girlatplay
    • By girlatplay 9th Jun 17, 9:07 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Thank you both Have lovely weekends too!


    Just popped back on to say that the £30 on the loan was annoying me and since I have quite a decent amount in the grocery budget this month I decided to move it across. It won't show on my loan balance until about Tuesday but I'll change my signature now as the funds have left my account.


    Chipping away
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • Hiddenidenity
    • By Hiddenidenity 9th Jun 17, 9:44 PM
    • 4,743 Posts
    • 20,600 Thanks
    Hiddenidenity
    Chipping away works well
    DFW £1313.71/£7348.71 Rent Arrears £466.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • girlatplay
    • By girlatplay 13th Jun 17, 1:46 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    Child benefit in today so transferred to the various pots.

    Nothing much else happening at the moment but at least all is calm
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • girlatplay
    • By girlatplay 18th Jun 17, 2:28 PM
    • 2,456 Posts
    • 14,540 Thanks
    girlatplay
    I'm sitting enjoying a lazy Sunday (lazy but done a washload and a dishload) and I started thinking about what money I have put away in the different pots. I like to have "rainy day" funds for just-in as I don't ever want to end up not being able to afford food again. I have two rainy day funds, one is an old ISA that I used when I was saving the funds to buy out the HA and the other is a random one (non-ISA) that I started saving in when I wasn't able to pay anymore into the ISA. I kept both accounts and the ISA just plodded along with about £400 in it and the other one is the one I put a wee bit into every month now.


    My salary this month will include an extra 3 days' pay as I started on 29th May.


    I (perhaps recklessly) decided that I could close the ISA which is earning 1% at the moment and pay the money off the loan (3.9%). is always telling us that we should pay off debt with savings so because I have £600 in the other rainy day account I have decided just to close the ISA. It's done now (total was £448) and I have borrowed from another account to pay off £500 today and will repay it when the ISA proceeds hit my account. I will use the extra money in my salary to repay the balance. It won't show up on my loan account until about Wednesday but I will update my signature today.


    I know that I could have kept the money in the ISA for the tax wrapper but this works for me and I am happy with my decision.


    I am always looking for ways to pay off this loan quicker and I am now aiming to reduce it by £500 each month. I am delighted that I have managed an extra £500 this month. I know this wouldn't suit everyone but it works for me. Definitely won't manage that every month.


    In other news, Little Miss got accepted into college so she will finish up school this week and start her new course in Aug/Sept (not sure of the date yet). She is absolutely over the moon and I am really chuffed for her.


    That's the washing finished so I'm going to take it out then get myself organised and go to the folks' early since it's Father's Day.


    Enjoy the rest of the weekend everyone
    Loan (£20k) current balance: -£770
    IO Mortgage current balance: -£89,660

    • Hiddenidenity
    • By Hiddenidenity 18th Jun 17, 2:45 PM
    • 4,743 Posts
    • 20,600 Thanks
    Hiddenidenity
    As long as you know its the best for you that's great! Doesn't matter what works for someone else.

    Well done, have a lovely day
    DFW £1313.71/£7348.71 Rent Arrears £466.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
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