Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Mrs*Spendalot
    • By Mrs*Spendalot 21st Jun 16, 11:20 AM
    • 11Posts
    • 15Thanks
    Mrs*Spendalot
    Debt Free by 40, best Birthday present ever!?
    • #1
    • 21st Jun 16, 11:20 AM
    Debt Free by 40, best Birthday present ever!? 21st Jun 16 at 11:20 AM
    Good morning.

    I'm a long time user of this website and it's helped me so much over the last few years. Our original LBM was in 2006 and we've made good inroads into clearing our debts on our own using tips from this site and the snowball calculator. Our original debt was £41000 () and we've chipped away at it and it's now down to £21,500 despite moving house in that time.

    We have good incomes (approx £4500 total per month) but have had 5 children in the last 10 years and moved house twice.

    We are now in our forever home (although it's a doer upper!) with our family complete and we'd now like to concentrate on clearing our remaining debt and then start on our eye watering £250k mortgage and the home improvements we have planned too

    I'm on a tablet so can't post our SOA, I'll definitely do it at some point though as I'm open to constructive criticism.

    We have a car loan (£10k), a personal loan (£5300) and a 0% CC of £6200. The personal loan is set to finish Dec '17 as is the 0% rate on our CC so we'd love that to be our DFD

    Thanks for reading xx
Page 1
    • cmcavon
    • By cmcavon 21st Jun 16, 1:22 PM
    • 296 Posts
    • 640 Thanks
    cmcavon
    • #2
    • 21st Jun 16, 1:22 PM
    • #2
    • 21st Jun 16, 1:22 PM
    Just wanted to say "hello"

    I'm also on my second lightbulb moment, and more determined than ever to sort things out this time.

    Good luck with your debt-free journey. That's one mammoth mortgage you've got!
    December online income - £448.34
    • eraclea
    • By eraclea 21st Jun 16, 1:31 PM
    • 25 Posts
    • 52 Thanks
    eraclea
    • #3
    • 21st Jun 16, 1:31 PM
    • #3
    • 21st Jun 16, 1:31 PM
    Hi! just wanted to say good luck! I'm in a similar position debt and age-wise, except I'm single and I only have 1 child. My mortgage is £196K though, and debt £10K, no loans, and good-ish income. I like it that you are in your forever home... I don't think I am, mine's a flat. Hoping to find someone and buy together.
    • Mrs*Spendalot
    • By Mrs*Spendalot 21st Jun 16, 1:49 PM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    • #4
    • 21st Jun 16, 1:49 PM
    • #4
    • 21st Jun 16, 1:49 PM
    Ha, yes, mammoth mortgage. The joy of living in Berkshire! £500k for a 4 bed doer upper.... On the upside; it has a large garden and the garage and loft are both perfect for conversion. Means we can make it grow with us as the children get bigger..... Once we've paid this debt off of course ;-)
    • try harder
    • By try harder 21st Jun 16, 1:55 PM
    • 179 Posts
    • 456 Thanks
    try harder
    • #5
    • 21st Jun 16, 1:55 PM
    • #5
    • 21st Jun 16, 1:55 PM
    Welcome and good luck ,i shall be following your journey with interest.
    • chelseablue
    • By chelseablue 21st Jun 16, 4:26 PM
    • 1,850 Posts
    • 2,357 Thanks
    chelseablue
    • #6
    • 21st Jun 16, 4:26 PM
    • #6
    • 21st Jun 16, 4:26 PM
    I'm in Berkshire too and our mortgage is £228,900 so I feel your pain!
    Baby Boy born May 2014

    Mortgage starting balance 26.02.16 £231,294
    • Mrs*Spendalot
    • By Mrs*Spendalot 22nd Jun 16, 2:57 PM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    • #7
    • 22nd Jun 16, 2:57 PM
    • #7
    • 22nd Jun 16, 2:57 PM
    So, here it is, our SOA....

    A few points:

    -I only work 2.5 days a week which is why my income looks a little low
    -The £17 for phone is freeview, broadband and phone combined, all with Sky (I recently downgraded our huge package)
    -The £7 in TV is for Now TV
    -Buildings/Contents are joint
    -Our second car is owned outright and we both need cars for work

    Any constructive feedback gratefully received!!

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 5
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1250
    Partners monthly income after tax....... 3500
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 4750


    Monthly Expense Details

    Mortgage................................ 1250
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 200
    Electricity............................. 45
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 17
    Mobile phone............................ 20
    TV Licence.............................. 12.5
    Satellite/Cable TV...................... 7
    Internet Services....................... 0
    Groceries etc. ......................... 500
    Clothing................................ 100
    Petrol/diesel........................... 200
    Road tax................................ 15
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 180
    Other child related expenses............ 100
    Medical (prescriptions, dentist etc).... 30
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 35
    Contents insurance...................... 0
    Life assurance ......................... 25
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 200
    Haircuts................................ 30
    Entertainment........................... 100
    Holiday................................. 100
    Emergency fund.......................... 100
    Professional Fees....................... 20
    Total monthly expenses.................. 3416.5



    Assets

    Cash.................................... 0
    House value (Gross)..................... 550000
    Shares and bonds........................ 0
    Car(s).................................. 18000
    Other assets............................ 0
    Total Assets............................ 568000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 249000...(1250).....2.49
    Total secured & HP debts...... 249000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Car Loan.......................10000.....200.......6.9
    Loan...........................5300......300...... .4.9
    Virgin CC......................6200......65........0
    Total unsecured debts..........21500.....565.......-



    Monthly Budget Summary

    Total monthly income.................... 4,750
    Expenses (including HP & secured debts). 3,416.5
    Available for debt repayments........... 1,333.5
    Monthly UNsecured debt repayments....... 565
    Amount left after debt repayments....... 768.5


    Personal Balance Sheet Summary
    Total assets (things you own)........... 568,000
    Total HP & Secured debt................. -249,000
    Total Unsecured debt.................... -21,500
    Net Assets.............................. 297,500
    • Mrs*Spendalot
    • By Mrs*Spendalot 22nd Jun 16, 3:08 PM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    • #8
    • 22nd Jun 16, 3:08 PM
    • #8
    • 22nd Jun 16, 3:08 PM
    We've decided to concentrate on saving until we have enough to pay the smaller loan off and then concentrate on paying the credit card off before the 0% rate runs out.
    After that we'll save until we have enough to pay the other loan off. I probably should have put the car loan in the HP bit as we've got 2 more years of £200 a month and then the last £5k is a balloon payment at the end
    I've worked out that it's 18 paydays until our wished for DFD and my 40th is the month after that.... Means we have to pay off £1200 a month.... £565 is the minimum and in the budget anyway, but it means finding an extra £635 per month. Hmmmmm.
    • Mrs*Spendalot
    • By Mrs*Spendalot 28th Jun 16, 9:44 AM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    • #9
    • 28th Jun 16, 9:44 AM
    • #9
    • 28th Jun 16, 9:44 AM
    So payday 1 on this journey.

    Minimum payments into all 3 debts done, so £600 off our total. Unfortunately, we had nothing left over last month to pay any extra off. This is my last payday on maternity leave though, so hopefully next month will be a bit less tight.
    On the plus side, our Christmas fund is full and our planned August holiday (UK based) has been paid for outright. I'm hoping that the money we've budgeted for these in our SOA will be available for overpayments....
    I've sold a few baby items that my little one has outgrown, I'm finding it quite cathartic clearing baby clutter.....
    Debt June '16 - £21500
    Current debt - £15000 28.5% paid
    Car loan £10000/£9000 Loan £5300/£0 CC £6200/£6000
    DFD Aim - Dec '17
    • Mrs*Spendalot
    • By Mrs*Spendalot 11th Jul 16, 10:20 AM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    Nothing much occurring, we're being more mindful of what we're spending, so hopefully that will result in some money left over.

    I've been offered extra work, I'm weighing up the pros and cons. Obviously, the money would mean paying the debts off sooner, but would ,Evan less time with the children. Ho hum.

    My husband's interviewing for a promotion, perhaps the outcome of that will help us decide....
    Debt June '16 - £21500
    Current debt - £15000 28.5% paid
    Car loan £10000/£9000 Loan £5300/£0 CC £6200/£6000
    DFD Aim - Dec '17
    • Mrs*Spendalot
    • By Mrs*Spendalot 4th Aug 16, 2:03 PM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    So, an eventful month financially. My hubby got his promotion, he moves into the new role in September..... After tax, NI and pension he'll be getting an extra £650 per month, so we're really pleased.

    I've agreed to take on some extra work from September to December (I agreed before we found out he had got the promotion, otherwise I'd have turned it down. Still, it'll be £650 per month for 4 months so should make a nice dent in the debts....

    We paid all the minimums off this month, plus had £500 left over to put in the savings pot to pay off the loan early.

    With the summer holidays and 5 children to entertain, I think it'll be harder this month, but I'm definitely spending less than I have in previous years!
    Debt June '16 - £21500
    Current debt - £15000 28.5% paid
    Car loan £10000/£9000 Loan £5300/£0 CC £6200/£6000
    DFD Aim - Dec '17
    • ash302
    • By ash302 4th Aug 16, 4:32 PM
    • 11 Posts
    • 26 Thanks
    ash302
    Yay to Hubby's promotion and the extra you will be working. You'll be able to pay some nice chunks of those debts!!


    I hope you find some MSE activity's to do with the children.


    Wishing you lots of luck on your debt busting mission! Ash x
    • Mrs*Spendalot
    • By Mrs*Spendalot 25th Aug 16, 9:16 AM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    So, pay day 3 and all minimums paid again, so another £600 off the debt. Takes us under £20K which is a bit of a landmark....

    We've been on holiday and it's also been the school holidays. We had £200 left in the account, which I was pleased with. It's gone straight in the savings account towards paying the loan off.

    Next month's pay should be more generous for both Hubby and I, so we're hoping to start making better progress...
    Debt June '16 - £21500
    Current debt - £15000 28.5% paid
    Car loan £10000/£9000 Loan £5300/£0 CC £6200/£6000
    DFD Aim - Dec '17
    • hazeldreams
    • By hazeldreams 25th Aug 16, 9:27 AM
    • 155 Posts
    • 342 Thanks
    hazeldreams
    Hi there!

    Your situation is ever so similar to ours so I'll be subscribing and wishing you tons of luck on your journey! I'm on LBM no 3 I think?! Also trying to be debt free by 40 (you're absolutely right it would be the best birthday present ever!)

    Best of luck and well done on your achievements so far!

    Hazel x
    £2638.55 to clear by 24/2/2017 when 0% ends
    £28,012.91/£74146.41(start 1/9/14) 37.7% paid off
    Current balance: £46,133.50
    DFD target February 2018
    Dec Challenges: NSDs 2/10; Groceries £98.94/£500
    Nov Challenges NSDs 9/10; Groceries £326.82/£300
    • Mrs*Spendalot
    • By Mrs*Spendalot 11th Oct 16, 9:39 PM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    I've missed a couple of updates, but we've been doing really well the last 2 pay days. We've managed to pay off the personal loan and have saved £2.5k towards paying off the 0% credit card... we're very pleased!
    I need to update signature.... we're planning on paying off the 0% credit month off either this month or next...
    Debt June '16 - £21500
    Current debt - £15000 28.5% paid
    Car loan £10000/£9000 Loan £5300/£0 CC £6200/£6000
    DFD Aim - Dec '17
    • Mrs*Spendalot
    • By Mrs*Spendalot 6th Dec 16, 10:57 AM
    • 11 Posts
    • 15 Thanks
    Mrs*Spendalot
    Payday 6..... I messed up my sums last time, not sure how. Still, we've been making slow progress.... The loan is cleared and we're saving towards paying off the 0% credit card. £2k saved, £4K to go....

    Had a really expensive month or two, so we've only really managed the minimums. Been covering my parents mortgage and other outgoings while my dad has been ill in hospital which has cost us £3k. Luckily our extra salary has covered it, but it's been a bit painful. Still, my dad is on the mend now, so should only be another month or two.

    Had car and boiler services and all passed, thank god!

    Christmas shopping all done and money set aside for the inevitable massive food bills!!
    Debt June '16 - £21500
    Current debt - £15000 28.5% paid
    Car loan £10000/£9000 Loan £5300/£0 CC £6200/£6000
    DFD Aim - Dec '17
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

5,334Posts Today

7,654Users online

Martin's Twitter