Getting worse before it gets better...

Claree__x · 18 February 2016 at 4:12PM

Hello everyone!

Bizarrely for DFW my current debt is around £2k but it's set to increase by around £10k in the next few months and I really need to get a grip on things before that happens so that I can prepare for it.

The £2k is on a credit card which we used to use for fuel and pay off and then used for some house repairs. It's interest free until June 2017 so not a huge concern at the moment, currently paying £25/month until our house sells. The house which is the cause of all of these problems.

In 2007 my husband bought a house with his cousin for £105k. In 2009 I moved in & cousin moved out. I never liked the house but after we had some issues with damage to the car outside and the mortgage going down a bit we decided we should rent out the house and then rent a flat. I know I probably should but I really don't regret this decision, I love our flat.

We rented it for a short period but long story short we've decided to sell it. It's been on the market since mid-January and have had quite a bit of interest but no offers yet. Unfortunately if it sells for what we anticipate we'll be left with around £10k debt (and my husband's cousin the same). Luckily my FIL has offered to lend us the money so there'll be no interest && no having to search around - but I still want this out of our life as soon as possible.

I think the idea currently is to pay him back at £200/month for just over 4 years. Shouldn't be an issue since we currently pay £350 towards the mortgage/insurances on the house, but obviously I'd like to get this paid off quicker and get saving for a deposit on our own place.

So yeah, DFW's, my debt is set to increase 5 fold in the next few months - eek!

Claree__x · 19 February 2016 at 10:02AM

Since the beginning of February I've been keeping a spending diary. Except over this weekend when I know we spent some money and now I'm freaking out to look at the bank account. I realise this isn't a healthy position haha! I'm off to do it now...wish me luck!

Claree__x · 19 February 2016 at 10:15AM

Money In..... 3385.29

Bills........... -429.85
Car............ -91.92
Cash......... -190
Me............. -65.03
Eating Out.. -208.87
Baby........... -106.42
Food.......... -149.28
House........ -735.79
OH............ -134.67
Presents..... -81.9
Savings...... -750
Thornton Street -350
Whisky...... -0.05

So this probably won't mean much to anyone but it's something I can look at anyway. I will break it down into a proper SOA once I have a few months data and I can see it in a meaningful way.

Jumping out to me, obviously, is £81 on presents but most of my big birthdays were this month; OH, my mum, my brother as well as my cousin and a coworker, and valentines day of course.

And then there's eating out...:eek:

Claree__x · 22 February 2016 at 9:41AM

Me, again.

In work this morning, caught up with various DFDs before I start and just about to sit down and do my banking for over the weekend. Spent a bit 'cause tiny tot needed new trainers (Sports Direct, though, £22 so I can't complain too much) but otherwise was a relatively non-spendy weekend. Did a small shop in M&S food but only 'cause we had vouchers left over from Christmas, only cost 5p in the end!

Today I'm aiming for a NSD. Shouldn't be too difficult since I'm in work and have a lunch meeting at a restaurant so the boss is paying. Plan is to go home for a run (day 1 of the 5k to 10k plan - my brother did it yesterday and text saying he's dying - eek!) and then have a small dinner before aforementioned tiny tot gets home from my mums.

Have to download some lectures for my exam in a couple of weeks so I can listen to them while running...better get started before everyone else gets into the office!

Claree__x · 22 February 2016 at 4:50PM

Spending diary done, really need to cut down on some areas next month. Discussed with OH at the weekend about how I've been fairly useless this month with my general depression & anxiety - or Social Paranoia as it's being described.

Had a productive (and yummy) lunch meeting with my boss which should keep me full and just have a small dinner. Not looking forward to my run, though :eek:

Is anyone out there? Feels a bit lonely in here...or maybe that's just my social paranoia, haha!

Scottishmummy · 22 February 2016 at 5:38PM

Social paranoia here too:rotfl:
If you are already putting £750 a month away for savings could you not add that to the £250 you would be paying back and be clear in ten months. Then everything could be thrown at the savings pot.

Maximum_Saving · 22 February 2016 at 5:45PM

Good luck with selling your house. Could you stop saving £750 a month and add it to the £250? Then it would be paid off in 10 months. So you could then begin saving again. I think you would feel miserable paying it off slowly. So paying it off in less than a year would make you feel happy.

Claree__x · 22 February 2016 at 8:26PM

The plan is to throw as much money at it as possible but the debt isn't actually there yet to pay - so we'll make a lump sum payment and hopefully have less to pay off, if that makes sense! The problem is that if we pay it to the mortgage now then OH's cousin feels obliged to match it.

Claree__x · 22 February 2016 at 8:27PM

Also - I should add that we don't normally save £750. That was a mixture of freelance work I did in January, a wage rise && no council tax to pay - but hopefully we can keep it up!

fieldend · 22 February 2016 at 9:23PM

Found you and subscribed x

I'm impressed how you only have £2K debt, that's so good - yes I know it will go up but it's good now!

Kitten868 · 22 February 2016 at 9:59PM

Yea, I'm sorry without the SOA I'm a bit confused. Is your flat rental just £350?
So are you looking to sell because the house doesn't pay for itself or because you're looking to buy elsewhere?
Sorry it's going to be a loss. Is there anyway you can Sarah Beeny that bad boy? But some paint? Bring the price up? Does the cousin not want it either?
Poor you getting a debt this unfairly

Anyway. £750 looks like a fantastic start! Well done you.
Best thing I ever did was hide my credit cards. Any payments just reduce the balance and I don't overspend anymore. Good luck xxx

Getting worse before it gets better...

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