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    • reality_check
    • By reality_check 25th Jan 16, 3:39 PM
    • 714Posts
    • 1,625Thanks
    reality_check
    Reality Check...
    • #1
    • 25th Jan 16, 3:39 PM
    Reality Check... 25th Jan 16 at 3:39 PM
    I need to start writing this diary while I have the motivation to do so! I have been a lurker for a while and reading all the diaries inspire me and I always think "I wish I could sort out my debt" well....today is the day!

    I have buried my head in the sand for too long and it really is time to get a reality check!

    I have done a quick total of my current debt and it is as follows:

    Credit cards: £9817.86 of a possible £13300
    Overdraft: £1857.77 of a possible £2500
    Student loan: £11600.85
    Loan from family memeber: £7000
    Mortgage: £68213.30

    Total: £98489.78!!

    Credit cards and overdrafts are my main priororty, student loan is automatically deducted from my wages and family loan doens't need paid back ASAP, but would rather get that paid sooner rather than later.

    I live with my daughter and 2 dogs, I will list my incomings and outgoings later today....I have tried to cut back to the bare essentials, but a lot of my recent debt has come from renovating my house and generally living beyond my means and going a bit OTT at christmas!

    I am hoping this diary will help hold me accountable for my spendings and get me on the right path to living debt free!!

    Fingers crossed!! xxx
Page 45
    • Seasidegal58
    • By Seasidegal58 31st Dec 17, 3:47 PM
    • 1,427 Posts
    • 8,254 Thanks
    Seasidegal58
    I hope you and your family have a fantastic New Yearís Eve Reality and a prosperous and happy 2018.

    SSG x
    Finally Debt Free! - July 2016
    Finished Emergency Fund- £10,000 April 2017

    Next Scrimpy Goal - Save for New Kitchen!
    Surveys: PA: £15.78/£20; One Poll: £15.40/£40: Opinium: £10.50/£25; Panelbase: £5/£10; You Gov: 1625/5000 points (£50)
    • reality_check
    • By reality_check 4th Jan 18, 10:46 AM
    • 714 Posts
    • 1,625 Thanks
    reality_check
    Thanks SSG, I was tucked up in bed well before midnight - wild! Hope you had a lovely time!

    New Year, New Me isn't going well....I am loaded with the cold so not quite started juicing or running as planned, life with feeling like this is bad enough without the above!

    Have binned all the sh!t in my house, not very MSE but the cheese and chocolate and crisps had to go!! No more takeaways either, I've actually ate far too many I am craving nice home cooked meals, but just as I've wrote this the thought of a chinese is now suddently appealing...but no!

    Low spend this week as plenty food in, just need some nappies, milk and fruit. Need to do a meal plan but have pretty stocked up cupboards and freezer that January shouldn't be too expesive. Zero plans too which I can't wait for!

    Waiting on a few returns going back onto the credit card/my bank and then I will update total amounts...As of pay day I am starting to make savings for all the annual expenses (I think).

    My household income has really changed since I started as we now have 2 incomes, we haven't actually got around to sorting everything into joint names now we are married. Mr Reality wants us to have completly joint accounts/savings which I did do with my ex husband, but this time I feel bad but I'm sure I will get over it! We have roughly the same annual income coming in (IF I get good commission that month, which I know it's a given, but it basically is). He does have far greater savings compared to my 0 but I do have a large amount of equity in my home....I also have debt, he doesn't. I am all for joint accounts though, espeically when living together and married. Not sure what the point in writing all that down is but suppose has made me realise I am not in that terrible a situation compared to him (because of the equity) xxx.
    Starting debt £18,675.63
    Current debt: £7,000
    • Cherryfudge
    • By Cherryfudge 4th Jan 18, 10:56 AM
    • 1,091 Posts
    • 5,211 Thanks
    Cherryfudge
    Just a thought but if anything happened to one of you, accounts in joint names could possibly get frozen? I don't know if that applies to all of them but it's worth checking. Even a relatively small independent account each would mean you had access to funds while legalities were sorted out, and of course could save giving away what you spend on presents for each other!

    If it worked better for you, independent accounts could be paid for by 'pocket money' DDs from joint accounts.

    There may be someone around with more up to date knowledge than I have, so get other advice. Also if you have had a negative experience in the past then that's good reason, for your peace of mind, not to hold all accounts in common unless/until you feel ready.
    • reality_check
    • By reality_check 4th Jan 18, 11:10 AM
    • 714 Posts
    • 1,625 Thanks
    reality_check
    My house is worth approx £275,000 with £62,000 mortgage left - so say £200,000 equity.
    OH has 2 rental properties, ex council bought from his Dad and Nan so owned outright and probably about £200,000 for both - so that makes us even.

    He has a better pension, salary, savings and no debt. I have a basic pension, lower salary overall plus £8,000(ish) debt.

    I own my parents house plus my ex husbands aunts house (again both ex council so bought outright and roughly £250,000 for both) but that is owend jointly with my ex husband and was for topping up our pension pot/giving kids a lump sum at some point.

    OH also has recently bought a 3rd buy to let property with approx £25,000 equity.

    Although I have always been stupid with money and lived way beyond my means, the only good thing I ever done was buy those properties and with my ex husband we would buy houses, renovate them, make some money and move on. We loved it at the time, wasn't easy with young kids but he done all the work and I would go out and buy stuff to decorate (no wonder I enjoyed it). There was good money to make at the time, but too risky in recent times. Doing that helped us build good equity in our homes, if only I had invested all the money spent on shoes, clothes and holidays into property I wouldn't be in this mess!
    Last edited by reality_check; 04-01-2018 at 11:13 AM.
    Starting debt £18,675.63
    Current debt: £7,000
    • enthusiasticsaver
    • By enthusiasticsaver 4th Jan 18, 11:13 AM
    • 5,215 Posts
    • 9,920 Thanks
    enthusiasticsaver
    Joint accounts are not frozen if anything happened to one of you. It is sole accounts which cannot be touched if either of you died (obviously in the one whose name it is). Safest thing I think and one we have always followed is income for both goes into joint account and joint bills comes out of there. Agreement on how much personal spends you each have and have a personal account each and savings accounts either linked to joint or personal accounts. That covers any disparity in income and as you have a child together that is important. You may want to sort out the house and equity by some sort of deed of trust as your DH now has a financial interest in it as he is living in it and presumably paying towards upkeep. At some point you may want to sort out the names on the deeds and mortgage in case anything happens to you. You also both need wills now you have a child and are married.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • reality_check
    • By reality_check 4th Jan 18, 11:33 AM
    • 714 Posts
    • 1,625 Thanks
    reality_check
    Just a thought but if anything happened to one of you, accounts in joint names could possibly get frozen? I don't know if that applies to all of them but it's worth checking. Even a relatively small independent account each would mean you had access to funds while legalities were sorted out, and of course could save giving away what you spend on presents for each other!

    If it worked better for you, independent accounts could be paid for by 'pocket money' DDs from joint accounts.

    There may be someone around with more up to date knowledge than I have, so get other advice. Also if you have had a negative experience in the past then that's good reason, for your peace of mind, not to hold all accounts in common unless/until you feel ready.
    Originally posted by Cherryfudge
    We will go and get legal advice, just need to hurry up and sort it out. I never knew about freezing bank accounts!! Will def look into it, thanks Yeah maybe the pocket money thing is a good idea, all incomings into the joint account and an agreed amount transfered each month to spend on whatever we each want....I am hoping having someone elses money will help me control my spending (not that it did with my ex husband, but I wasn't a debt free wannabe then!) xx
    Starting debt £18,675.63
    Current debt: £7,000
    • reality_check
    • By reality_check 4th Jan 18, 11:42 AM
    • 714 Posts
    • 1,625 Thanks
    reality_check
    Joint accounts are not frozen if anything happened to one of you. It is sole accounts which cannot be touched if either of you died (obviously in the one whose name it is). Safest thing I think and one we have always followed is income for both goes into joint account and joint bills comes out of there. Agreement on how much personal spends you each have and have a personal account each and savings accounts either linked to joint or personal accounts. That covers any disparity in income and as you have a child together that is important. You may want to sort out the house and equity by some sort of deed of trust as your DH now has a financial interest in it as he is living in it and presumably paying towards upkeep. At some point you may want to sort out the names on the deeds and mortgage in case anything happens to you. You also both need wills now you have a child and are married.
    Originally posted by enthusiasticsaver
    Thanks I think joint account with a set amount is the way to go...will say to OH. He is very good at saving, but when he does spend he likes expensive things! I really do need to update my will, has been on my to do list for years, will get this done asap!! I think all property owned (other than with my ex husband) will go into joint names.

    One month into the joint spending and Mr Reality will probably look at my spending and want a pre-nump! Well post-nump now. Of course he won't really....new year new me after all! xx
    Starting debt £18,675.63
    Current debt: £7,000
    • Cherryfudge
    • By Cherryfudge 4th Jan 18, 3:26 PM
    • 1,091 Posts
    • 5,211 Thanks
    Cherryfudge
    Glad you read all the posts - I think enthusiastic saver is probably better informed than I am!

    Big decisions to make. Take a long hard look at everything before you make decisions.
    • Seasidegal58
    • By Seasidegal58 4th Jan 18, 10:10 PM
    • 1,427 Posts
    • 8,254 Thanks
    Seasidegal58
    Although I have always been stupid with money and lived way beyond my means, the only good thing I ever done was buy those properties and with my ex husband we would buy houses, renovate them, make some money and move on. We loved it at the time, wasn't easy with young kids but he done all the work and I would go out and buy stuff to decorate (no wonder I enjoyed it). There was good money to make at the time, but too risky in recent times. Doing that helped us build good equity in our homes, if only I had invested all the money spent on shoes, clothes and holidays into property I wouldn't be in this mess!
    Originally posted by reality_check
    Re your last sentence I think that was also me to a tee! But we know better now donít we Reality.........:

    But youíve both got a nice little portfolio of property there. Hard to beat bricks and mortar sometimes.
    Finally Debt Free! - July 2016
    Finished Emergency Fund- £10,000 April 2017

    Next Scrimpy Goal - Save for New Kitchen!
    Surveys: PA: £15.78/£20; One Poll: £15.40/£40: Opinium: £10.50/£25; Panelbase: £5/£10; You Gov: 1625/5000 points (£50)
    • reality_check
    • By reality_check 11th Jan 18, 1:31 PM
    • 714 Posts
    • 1,625 Thanks
    reality_check
    Finally had a look at my bank statements and credit cards…not as bad as I thought!

    I can officially say I am CREDIT CARD FREE!!

    All that is left is the outstanding debt to my dad of: £7,000, which is interest free with no immediate time to be paid back.

    This time last year my debt was £9,700 so last year I only paid of £2,700 but I did have a baby, went a few holidays, had a debt free Christmas and I am also on maternity leave, so I will happily take that!!

    We have also decided that I am going to be taking a full year maternity leave. Currently I am on 6 months full pay, then goes onto 3 months half pay and 3 months zero. During the zero pay I will actually have practically 2 full time wages for 2 months as I am using holidays for these.

    The 2018 plan is…save, save, save!

    I plan to save £500 per month, £100 towards debt and £100 towards Christmas. I am not budgeting pots for car MOT, insurance etc…this is all just going to be coming from the £500 fund pot, next year when I am back on full time wages I will start doing that. This still leaves me a very realistic amount of money for food shopping, petrol and personal spending that I really feel I can comfortably live with. I could tighten my belt even further, but right now I don’t want to. I want to enjoy my time off with our little baby but I certainly won’t be living an extravagant lifestyle.

    I also have £500 aside for my daughters 21st and hoping to top this up to £1000 over my next 3 wages. I have already paid for a weekend away in Barcelona for my friends hen over her birthday weekend and she is more than happy by being there and didn’t want a party (thankfully!)

    Pay day is on Monday and time to start saving!!

    xxx
    Starting debt £18,675.63
    Current debt: £7,000
    • Seasidegal58
    • By Seasidegal58 13th Jan 18, 8:42 PM
    • 1,427 Posts
    • 8,254 Thanks
    Seasidegal58
    Big congrats on the CC debt clearing!

    Well done! When you look back at your starting debt figure of over £18,000 you should be really proud. And youíve done it whilst still enjoying yourself plus two major life events!

    It will be lovely to have a full year off with the little one. I went back to work a month after DD was born (needed the money) and have never had a proper break since. She was in excellent hands (my mum) but it would have been good to have spent more time with her. You donít ever get that time back.

    Great news on the savings pot plans too! Youíve got it all worked out - including a nice Barcelona break to look forward to as well!
    Finally Debt Free! - July 2016
    Finished Emergency Fund- £10,000 April 2017

    Next Scrimpy Goal - Save for New Kitchen!
    Surveys: PA: £15.78/£20; One Poll: £15.40/£40: Opinium: £10.50/£25; Panelbase: £5/£10; You Gov: 1625/5000 points (£50)
    • Cherryfudge
    • By Cherryfudge 14th Jan 18, 1:28 AM
    • 1,091 Posts
    • 5,211 Thanks
    Cherryfudge
    Brilliant to hear the CCs are gone - and you have a full year off with the baby (and nearly full wages)! It's looking good.
    • Rachel24
    • By Rachel24 14th Jan 18, 9:57 AM
    • 119 Posts
    • 419 Thanks
    Rachel24
    Reality that is amazing! You also got married too in New York too. I’ve loved reading your journey xx
    • reality_check
    • By reality_check 18th Jan 18, 9:30 AM
    • 714 Posts
    • 1,625 Thanks
    reality_check
    I know, I do feel lucky that with my job I get such a good maternity package compared to some places or it wouldn’t really be an option.

    I have signed up to some baby Rhythm Time at my local library, it is free and a good way to meet some mum friends, that is on every Tuesday morning. I’ve taken out 6 library books, far too ambitious but I told myself in 2018 I would go to bed earlier, put my phone down and read every night, so far I have achieved this….0 nights and it’s now the 18th!

    Spent £55 on a skirt the other day, probably shouldn’t have but it was within my personal spending budget so at least it was guilt (ish) free. Food budget is completely under control and can probably get to Sunday without spending, will need to buy a chicken on Sunday for a roast but have been good this week and eating out the freezer/cupboards. Bonus of the bad weather makes you just want to stay at home.

    My gas direct debit has tripled! It was very low and I have had my heating on constantly since November but I think my deal has ended so should get around to getting my usage and shopping about for a better deal.

    xxx
    Starting debt £18,675.63
    Current debt: £7,000
    • Cherryfudge
    • By Cherryfudge 18th Jan 18, 1:11 PM
    • 1,091 Posts
    • 5,211 Thanks
    Cherryfudge
    My gas direct debit has tripled! It was very low and I have had my heating on constantly since November but I think my deal has ended so should get around to getting my usage and shopping about for a better deal.
    Originally posted by reality_check
    That's scary. You could end up on Martin's news letter with one of those 'I saved a fortune' stories.

    Mind you I'd have the heating on more with a baby around.

    P.S. Meant to say that's really good going about the food bills.
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