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  • FIRST POST
    • boxofpaws
    • By boxofpaws 15th Jan 17, 1:26 PM
    • 404Posts
    • 1,674Thanks
    boxofpaws
    Boxofpaws is keeping it simple
    • #1
    • 15th Jan 17, 1:26 PM
    Boxofpaws is keeping it simple 15th Jan 17 at 1:26 PM
    Hello lovely MSE-ers!,


    I have been a user of this site for many years but created a new username on 3rd Jan because I had doubled the debt and I was so embarrassed!


    So here I am, £40k+ in debt. The reasons (excuses) are many and varied, so I won't dwell on the past. However, our current situation is good, good income, happy marriage, nice home and we can really make good in-roads to this accumulated debt.


    In the past, we have failed at debt busting, and I think it was down to the plan being too punishing and too complicated. This time, I will set us achievable targets and make it easy to hit them.


    Thanks to anyone who has read so far, I will report back later with my plan.


    Boxofpaws x
Page 14
    • boxofpaws
    • By boxofpaws 15th Mar 17, 6:33 PM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    Sounds good Paws.

    You could've put a cat flap in the window? Lol I still have the image of him launching himself on you.

    Great bargain on the shoes.

    Good luck on the candle making too, very brave xx
    Originally posted by Purplemumof2
    I think I might be rubbish at candle making but it sounds kind of clarty and I love kind of clarty

    I really rate New Look for shoes - I tend to buy my party shoes there as they get so little use it seems mad to buy expensive ones.

    Sorry for being a bad candle influence . If it helps, I have one burning now and it's lovely!
    Originally posted by Treadingonplaymobil
    I was quite impressed with the new look shoes. I could be converted, I'll report back when I've worn them for a night. They're shiny silver, I'm excited about wearing them!

    I think those shoes should be celebrated under Good Things - it's a measure of how on board you are with all this!

    And the cat flap was a bit of an essential really, wasn't it!

    at "The Gardens" - you need to capitalise it as well, I reckon.
    Originally posted by EssexHebridean
    The Gardens it is!

    How have you all managed to make me feel better about buying new shoes?
    Debt 03/01/17 = £42000
    Debt today = £31900
    • boxofpaws
    • By boxofpaws 15th Mar 17, 6:37 PM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    That's very good news on your husband's job. Must be a weight off.
    Originally posted by Bobarella
    We won't know for sure for a while but I am less worried now. Thank you Bob

    The visuals of the big old cat bowling through the window crack me up every time.
    Originally posted by VelvetFreak
    He's a beast

    Good luck Boxofpaws you sound to be doing great I've subscribed and love the way you post good things and bad things. This made me chuckle though...

    'Have given in and ordered a new cat flap. £60. Could no longer cope with the big cat hurling himself onto me through the window in the early hours.'

    I originally read it as bought a flat cap and thought £60 is quite a lot for a flat cap unless you really love the farmer look
    Originally posted by kittykatneedscash
    We are quite Yorkshire and the husband did ask me recently if he should be wearing a flat cap.

    Thank you for reading and posting, I really appreciate it
    Debt 03/01/17 = £42000
    Debt today = £31900
    • boxofpaws
    • By boxofpaws 15th Mar 17, 7:06 PM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    Posting from the train, away with work again. Not many Good Things or Bad Things, in fact barely any things at all.

    I did however spend a happy hour last night reviewing my spending diary, credit card payments and thinking about my imminent bonus and My Plan. Here is what I did and thought
    • The contingency fund is looking quite low. This is because I'm paying for work expenses on my bank card to get cash back.
    • Need to add £700 to it when I get paid/expenses back
    • Sent extra payments to credit cards (apart from one) to get them to nice round numbers.
    • Changed payments to multiples of £100. It's all very pleasing.
    • Worked out we are spending Far Too Much. Still on the entertainment budget but a surprising amount on 'stuff for the house'. New ironing board, cat flap and paint for downstairs loo has soon added up!
    • The above probably means I need to assess if we can really make the payments I was hoping I could make (£900 credit card payments + £485 loan repayments).

    So we either

    1. Try harder to cut back (we aren't really trying very hard at the minute) and pay £1385 per month. Debt next Jul approx £15k. DFD June 2019.
    2. Accept that we will carry on spending like present and pay £1135 per month. Debt next July £20k. DFD December 2019. 6 months later.

    Let me remind myself why we are doing this, why this whole refocus started. It's because I am afraid of losing our lovely house. Next July our mortgage deal runs out and I am scared we won't get another if they look at our spending. Also, I want a good mortgage deal, where we can pay it off fast and then save for our retirement.

    I'm rambling on a bit but I need to get it all out of my head...
    Debt 03/01/17 = £42000
    Debt today = £31900
    • motivated
    • By motivated 15th Mar 17, 7:49 PM
    • 2,227 Posts
    • 3,139 Thanks
    motivated
    Hi BOP

    I tend to ramble too but it really does help. Rather than it all swimming around in your head.
    M
    Emptying my lake with a teaspoon
    Short term goal £535/£1796
    EF/1k
    • Bobarella
    • By Bobarella 15th Mar 17, 10:11 PM
    • 10,473 Posts
    • 69,438 Thanks
    Bobarella
    Just wondering if there is a way of rejigging your budget so your house pot gets more of your savings each month so there is money there for these things instead of it coming from cash flow for the month?
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • armchairexpert
    • By armchairexpert 15th Mar 17, 11:07 PM
    • 609 Posts
    • 3,880 Thanks
    armchairexpert
    We always fall down on the Things For The House part of the budget as well. While I'm very very grateful to be in the position of having a house to spend money on, rather than renting, I do think people don't understand how expensive houses are to maintain! Also, frankly, for-the-house purchases feels like being a responsible adult so we tend to justify it to ourselves no matter what: It's just paint! Nobody could object to some plants for the garden, surely! Buying a new washing line is the responsible thing to do! And so on.

    All of that said, if your mortgage deal goes until July 2018, and your spending has been cut back to the point where you're paying over a thousand a month on debts and getting the debt levels down, I don't think you'll struggle? What the bank cares about is that your income allows you to service the mortgage and the debts comfortably, and it absolutely does. You said that you've failed at debt busting before by being too punitive, so I'd go for Option B if it will help you stick to it.
    MFW diary here. 1 Feb 2017 $229,371 - MFD Feb 2043 aiming for May 2028
    14 August 2017 - Refinanced: $220,000
    September 2017 - $218,597.77
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 4:46 AM
    • 936 Posts
    • 7,964 Thanks
    Treadingonplaymobil
    Nobody can tell you the answer here. How tight is your budget now? Is that extra 250ish a month you're spending essential? Or bringing sufficient joy to your life that it's worth pushing your DFD day for? If so, then go for it.

    The other thing to remember is that the bank may not like to see huge debt repayments - I was advised (and I have NO IDEA if this is true) to reduce debt payments to the minimum for the 3 months before remortgaging, so we could prove we were comfortably meeting our essential expenditures.

    Could you split the difference, repayment-wise? So pay back maybe 1,200 per month, giving yourselves an extra £185 per month compared to the £1,385 you originally decided to pay?
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • Cumbria lass
    • By Cumbria lass 16th Mar 17, 6:41 AM
    • 486 Posts
    • 1,225 Thanks
    Cumbria lass
    Paws for what it's worth , would it help by asking advise now from your mortgage provider as to how you can make sure you are in the best financial position possible when you need to remortgage.

    House repairs etc are all needed , maybe don't do any more decorating until after the new mortgage is secure or after your DFD.

    I am sure you will work it out with a little help from your MSE friends
    Aug 2017 CC1 £3549 CC 2 £1000

    Debt Free Nov 2019: earlier if I have my way
    • EssexHebridean
    • By EssexHebridean 16th Mar 17, 10:39 AM
    • 7,778 Posts
    • 40,274 Thanks
    EssexHebridean
    What about a 50% compromise? Increase your "for the house" budget a bit, and review after 6 months to see if there is anything "spare" in there you can shift to debts? But at the same time clamp down a wee bit on other stuff maybe. That could potentially leave you in the position of debt next July being £17,500?

    Alternatively, cut back hard all round but pay that extra top the mortgage if you're allowed OP's, thus changing your LTV for the better? Have you looked to see where your LTV figure will be when the mortgage deal runs out? If you're nearing a threshold then that might be a route worth considering.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • boxofpaws
    • By boxofpaws 18th Mar 17, 8:06 AM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    Hi BOP

    I tend to ramble too but it really does help. Rather than it all swimming around in your head.
    M
    Originally posted by motivated
    Thank you

    Just wondering if there is a way of rejigging your budget so your house pot gets more of your savings each month so there is money there for these things instead of it coming from cash flow for the month?
    Originally posted by Bobarella
    I guess that's my problem. I don't have a budget as such. We just spend what we like and then I type it in into my spreadsheet. I am not sure I know how to budget. I guess everything I buy is stuff I need apart from the entertainment budget and stuff for the house. And right now I'm not really trying to cut those back.

    We always fall down on the Things For The House part of the budget as well. While I'm very very grateful to be in the position of having a house to spend money on, rather than renting, I do think people don't understand how expensive houses are to maintain! Also, frankly, for-the-house purchases feels like being a responsible adult so we tend to justify it to ourselves no matter what: It's just paint! Nobody could object to some plants for the garden, surely! Buying a new washing line is the responsible thing to do! And so on.

    All of that said, if your mortgage deal goes until July 2018, and your spending has been cut back to the point where you're paying over a thousand a month on debts and getting the debt levels down, I don't think you'll struggle? What the bank cares about is that your income allows you to service the mortgage and the debts comfortably, and it absolutely does. You said that you've failed at debt busting before by being too punitive, so I'd go for Option B if it will help you stick to it.
    Originally posted by armchairexpert
    Thank you! The husband and I said to each other at the start of year when I looked at our debt 'well we have everything now, and the house is how we want it (ish), all we need to do now is pay for it' but stuff keeps coming up!
    Debt 03/01/17 = £42000
    Debt today = £31900
    • boxofpaws
    • By boxofpaws 18th Mar 17, 8:34 AM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    Nobody can tell you the answer here. How tight is your budget now? Is that extra 250ish a month you're spending essential? Or bringing sufficient joy to your life that it's worth pushing your DFD day for? If so, then go for it.

    The other thing to remember is that the bank may not like to see huge debt repayments - I was advised (and I have NO IDEA if this is true) to reduce debt payments to the minimum for the 3 months before remortgaging, so we could prove we were comfortably meeting our essential expenditures.

    Could you split the difference, repayment-wise? So pay back maybe 1,200 per month, giving yourselves an extra £185 per month compared to the £1,385 you originally decided to pay?
    Originally posted by Treadingonplaymobil
    I thought paying minimum payments impacted your credit score. If minimum payments are recommended, we REALLY need to knuckle down from now until Christmas. Thank you for this, I will look into it.

    Paws for what it's worth , would it help by asking advise now from your mortgage provider as to how you can make sure you are in the best financial position possible when you need to remortgage.

    House repairs etc are all needed , maybe don't do any more decorating until after the new mortgage is secure or after your DFD.

    I am sure you will work it out with a little help from your MSE friends
    Originally posted by Cumbria lass
    It's not a bad shout. I might check with a mortgage advisor. Just worried they would talk me into a new mortgage and right now the redemption fee would be too much.

    What about a 50% compromise? Increase your "for the house" budget a bit, and review after 6 months to see if there is anything "spare" in there you can shift to debts? But at the same time clamp down a wee bit on other stuff maybe. That could potentially leave you in the position of debt next July being £17,500?

    Alternatively, cut back hard all round but pay that extra top the mortgage if you're allowed OP's, thus changing your LTV for the better? Have you looked to see where your LTV figure will be when the mortgage deal runs out? If you're nearing a threshold then that might be a route worth considering.
    Originally posted by EssexHebridean
    The overpayments rule on the mortgage is really odd on our mortgage. We can only overpay once a year I think. Needless to say, any extra money we've ever had, we've just spent wildly so it's never mattered before.

    I will be back soon on my thoughts on LTV
    Debt 03/01/17 = £42000
    Debt today = £31900
    • Treadingonplaymobil
    • By Treadingonplaymobil 18th Mar 17, 8:38 AM
    • 936 Posts
    • 7,964 Thanks
    Treadingonplaymobil
    It's really interesting reading all these mortgage musings. I can't wait to be in a position to overpay ours (in, erm, about 9 years' time )
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • boxofpaws
    • By boxofpaws 18th Mar 17, 1:11 PM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    Just dug out our mortgage stuff..

    Our deal runs out in August 2018.
    We borrowed £193470 over 22 years
    5 years (59 payments) @ 4.59%. Then svr after that.

    This means that next August, we will owe £165000.
    House value on Zoopla is currently £259k.
    Current project LTV = 63%
    Anyone know how banks value when remortgaging?
    Debt 03/01/17 = £42000
    Debt today = £31900
    • ada-or-ardor
    • By ada-or-ardor 18th Mar 17, 2:15 PM
    • 131 Posts
    • 503 Thanks
    ada-or-ardor
    I think it depends on the lender. Ours (Sk1pton Building Society) use i think the Halifax index which is actually based on things like zoopla and a recent sales of similar properties in the area, if you just want the free valuation and you're happy with the result. But you can also pay £60 for a valuer to actually come round and do a proper inside and out valuation. It might be worth just giving them a ring and asking them their process :-)
    • Bobarella
    • By Bobarella 18th Mar 17, 6:08 PM
    • 10,473 Posts
    • 69,438 Thanks
    Bobarella
    Hi Paws

    Our recent remortgage was a farce. We told our broker how much we thought the place was worth, they cocked it up and told the surveyor the figure from the last remortgage they handled for us, which was a huge amount different.
    The mistake exposed we asked them to fix it, and the surveyor wouldn't, saying they just go off the paperwork supplied in the first instance!

    So annoyingly we are in the 60% LTV bracket instead of the 50s.

    On the budgeting thing, the way I'd do mine is look back over three months worth of spending diary entries and use that to set your budget. You can always improve on things like groceries if you want to. But it's a fairly accurate view on what you are spending month to month. Then I'd also make a list of all your annual coats and try and figure out how to save for them on a monthly basis.

    I am not a YNAB budget person but i do keep a spending diary and also reconcile all my reciepts as they go out of the account. Roughly works.

    Bob
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • armchairexpert
    • By armchairexpert 19th Mar 17, 4:37 AM
    • 609 Posts
    • 3,880 Thanks
    armchairexpert
    How To Budget 101:

    A budget is a statement of priorities, just as much for a household as for a government. The money is finite: the budget tells you what's important to you. Make the decision first, and then stick to it: if you've decided to send more money to debts and less to clothes it doesn't matter if that coat is on sale - you don't have the money. If that starts feeling too restrictive, change the priorities next month. But you set the priority ahead of the spending - what you've got right now is a spending record, which is different.

    You've already got a spreadsheet, so you've already got categories for things. Sort these into:

    Fixed/Have To Pay - this is mortgage, taxes, utilities, minimum debt repayments, anything else that is a set cost* and you can't get rid of.

    Variable/Nice to Have - this is the sub category of things that you do need if you're not to be miserable, but the amounts can be cut back on if your income went down: groceries, clothing, extra curriculars, things for the house

    Getting Ahead - for me this is annual expenses such as Christmas, plus savings pots for things like, my eldest DD will need some sort of tablet next year, plus both DDs will need orthodontics in the future, etc. In your case it will be debt overpayments, basically.

    If you already have a spending record via your spreadsheet, just change that to a forecast. Type in next month's income. Fill the first category first, then the second category, then look at what's left. Do you want to send all of that to CAT 3? Or add a bit more to clothing and home maintenance? Or split it between the two?

    *Note re set costs: utilities vary over the year but are necessities. If you have records for a year, this is the one area in a budget where that history will really help you: add them up, divide by 12.
    MFW diary here. 1 Feb 2017 $229,371 - MFD Feb 2043 aiming for May 2028
    14 August 2017 - Refinanced: $220,000
    September 2017 - $218,597.77
    • Purplemumof2
    • By Purplemumof2 19th Mar 17, 7:17 AM
    • 5,067 Posts
    • 16,645 Thanks
    Purplemumof2
    Great advice Armchair Expert
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £7400.00 Cap 1: £562.23 BC: £4577.81 Overdraft: £2750.00

    AFD 5/10 NSD 2/10 LTW 10/15

    20p Savers 2017 £2 Savers 2017 50p Savers 2017 SPC 10 2017 #003
    • Suffolk lass
    • By Suffolk lass 19th Mar 17, 6:06 PM
    • 1,476 Posts
    • 16,878 Thanks
    Suffolk lass
    My "budget" workbook divides things into monthly and annual lists. I started with just the obvious big things but now I have added things like "cattery" and "travel insurance" as well as an allowance for things like oil (no mains gas here).

    I like Armchair Expert's suggested categories but I just look critically at each entry to work out how to reduce it a bit. The only thing I can't reduce is Council Tax so far...
    MFiT T4 #2 update 31.2% after Q6
    Save £12k in 2017 #64 - £8112.39 saved (73.74%) after August - my annual target is £11,000
    OS Grocery Challenge 2017 budget of £3,600 £3000 (reduced from Apr) - 61.61/66.66% including stores after July
    My DFD is http://forums.moneysavingexpert.com/showthread.php?t=5593594
    • boxofpaws
    • By boxofpaws 19th Mar 17, 8:28 PM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    I think it depends on the lender. Ours (Sk1pton Building Society) use i think the Halifax index which is actually based on things like zoopla and a recent sales of similar properties in the area, if you just want the free valuation and you're happy with the result. But you can also pay £60 for a valuer to actually come round and do a proper inside and out valuation. It might be worth just giving them a ring and asking them their process :-)
    Originally posted by ada-or-ardor
    The house right in the corner exchanged hands at Christmas fir less than half the market value. It wasn't marketed so it must have been a family deal. I hope it doesn't bring the value of ours down.

    Not sure who we will mortgage with yet.

    Hi Paws

    Our recent remortgage was a farce. We told our broker how much we thought the place was worth, they cocked it up and told the surveyor the figure from the last remortgage they handled for us, which was a huge amount different.
    The mistake exposed we asked them to fix it, and the surveyor wouldn't, saying they just go off the paperwork supplied in the first instance!

    So annoyingly we are in the 60% LTV bracket instead of the 50s.

    On the budgeting thing, the way I'd do mine is look back over three months worth of spending diary entries and use that to set your budget. You can always improve on things like groceries if you want to. But it's a fairly accurate view on what you are spending month to month. Then I'd also make a list of all your annual coats and try and figure out how to save for them on a monthly basis.

    I am not a YNAB budget person but i do keep a spending diary and also reconcile all my reciepts as they go out of the account. Roughly works.

    Bob
    Originally posted by Bobarella
    I want to get at least into the 75% LTV ideally. What an annoying thing to happen to you - with the potential to lose you money
    Debt 03/01/17 = £42000
    Debt today = £31900
    • boxofpaws
    • By boxofpaws 19th Mar 17, 8:33 PM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    How To Budget 101:

    A budget is a statement of priorities, just as much for a household as for a government. The money is finite: the budget tells you what's important to you. Make the decision first, and then stick to it: if you've decided to send more money to debts and less to clothes it doesn't matter if that coat is on sale - you don't have the money. If that starts feeling too restrictive, change the priorities next month. But you set the priority ahead of the spending - what you've got right now is a spending record, which is different.

    You've already got a spreadsheet, so you've already got categories for things. Sort these into:

    Fixed/Have To Pay - this is mortgage, taxes, utilities, minimum debt repayments, anything else that is a set cost* and you can't get rid of.

    Variable/Nice to Have - this is the sub category of things that you do need if you're not to be miserable, but the amounts can be cut back on if your income went down: groceries, clothing, extra curriculars, things for the house

    Getting Ahead - for me this is annual expenses such as Christmas, plus savings pots for things like, my eldest DD will need some sort of tablet next year, plus both DDs will need orthodontics in the future, etc. In your case it will be debt overpayments, basically.

    If you already have a spending record via your spreadsheet, just change that to a forecast. Type in next month's income. Fill the first category first, then the second category, then look at what's left. Do you want to send all of that to CAT 3? Or add a bit more to clothing and home maintenance? Or split it between the two?

    *Note re set costs: utilities vary over the year but are necessities. If you have records for a year, this is the one area in a budget where that history will really help you: add them up, divide by 12.
    Originally posted by armchairexpert
    Thanks for this . You are exactly right, all I have is a spending record, not a budget.

    I am putting £300 aside a month for the annual bills, however I keep dipping into it

    I need to change my mindset. At the minute, I would buy the coat.

    Clearly the entertainment spends are out of control. What I will do is sit down with the husband and agree what we will spend on that for the month, and once that money is gone, we stay in.
    Debt 03/01/17 = £42000
    Debt today = £31900
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