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  • FIRST POST
    • boxofpaws
    • By boxofpaws 15th Jan 17, 1:26 PM
    • 443Posts
    • 1,864Thanks
    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 22
    • Suffolk lass
    • By Suffolk lass 14th Feb 18, 9:50 AM
    • 1,744 Posts
    • 19,277 Thanks
    Suffolk lass

    Print or write out that line about the home made soup and stick it to your fridge. And to your purse. And possibly to your computer screen as well although not if the canteen ladies might see it as next time you DO have to go and buy the rubbish soup from there they will then undoubtedly have spat in it...
    Originally posted by EssexHebridean
    Trust me, they would
    MFiT T4 #2 update 51.75% after Q8 £5,203 behind where I should be
    Save £12k in 2018 #53 - after Jan £634.93/£10,000
    OS Grocery Challenge 2018 spent £238.47/£3,500 including stores so far
    My DFD is here
    • Suffolk lass
    • By Suffolk lass 14th Feb 18, 9:54 AM
    • 1,744 Posts
    • 19,277 Thanks
    Suffolk lass

    Yep, sounds like one and the same. Did he leave an empty ice cube tray in the freezer last night in your house too?
    Originally posted by boxofpaws
    What makes you think he has the "putting an ice cube tray in the freezer" competency in his skill-set? Let alone an empty one
    MFiT T4 #2 update 51.75% after Q8 £5,203 behind where I should be
    Save £12k in 2018 #53 - after Jan £634.93/£10,000
    OS Grocery Challenge 2018 spent £238.47/£3,500 including stores so far
    My DFD is here
    • boxofpaws
    • By boxofpaws 15th Feb 18, 8:22 PM
    • 443 Posts
    • 1,864 Thanks
    boxofpaws
    Today and yesterday:-

    Good things
    • Managed to claim a kebab back through work - it was part of my return journey last week from NI but still pleasantly surprised it was accepted.
    • The husband got an extra 2 hours OT today and yesterday (£44)
    • Have called BT, and had a rant with a refund of £1.92. I might go on a spending spree with it.
    • Have run down the fridge efficiently, used up all leftovers and even ate the yellow stickered hake.
    • Today I am more leaning towards NOT consolidaiting. I might post more about this later to read back on.

    Bad things
    • Resisited joining our friends at the Italian for dinner last night (Valentines night)
    • Credit card payment came out, leaving us overdrawn. Cannot wait until payday now.
    • 2 coffees and soup from canteen today - complete disorganisation - £1.90


    Saintliness = 3/10
    Debt 03/01/17 = £42000
    Debt today = £27,819.22
    • Suffolk lass
    • By Suffolk lass 16th Feb 18, 11:22 AM
    • 1,744 Posts
    • 19,277 Thanks
    Suffolk lass
    Today and yesterday:-

    Good things
    • Managed to claim a kebab back through work - it was part of my return journey last week from NI but still pleasantly surprised it was accepted.
    • The husband got an extra 2 hours OT today and yesterday (£44)
    • Have called BT, and had a rant with a refund of £1.92. I might go on a spending spree with it.
    • Have run down the fridge efficiently, used up all leftovers and even ate the yellow stickered hake.
    • Today I am more leaning towards NOT consolidaiting. I might post more about this later to read back on. twinkle twinkle

    Bad things
    • Resisited joining our friends at the Italian for dinner last night (Valentines night)
    • Credit card payment came out, leaving us overdrawn. Cannot wait until payday now.
    • 2 coffees and soup from canteen today - complete disorganisation - £1.90


    Saintliness = 3/10
    Originally posted by boxofpaws
    I dispute 3/10 - at least 6/10, if only for the highlighted text
    MFiT T4 #2 update 51.75% after Q8 £5,203 behind where I should be
    Save £12k in 2018 #53 - after Jan £634.93/£10,000
    OS Grocery Challenge 2018 spent £238.47/£3,500 including stores so far
    My DFD is here
    • boxofpaws
    • By boxofpaws 17th Feb 18, 4:40 PM
    • 443 Posts
    • 1,864 Thanks
    boxofpaws
    I dispute 3/10 - at least 6/10, if only for the highlighted text
    Originally posted by Suffolk lass
    Ah, you're lovely! I'll take the 6!
    Debt 03/01/17 = £42000
    Debt today = £27,819.22
    • boxofpaws
    • By boxofpaws 17th Feb 18, 4:59 PM
    • 443 Posts
    • 1,864 Thanks
    boxofpaws
    Today and yesterday:-

    Good things
    • Been to see the mortgage advisor.
    • said mortgage advisor has already given me a tiny piece of advice which will save us money. He told me it double check with bank of Ireland when my deal runs out, and what they will offer. Turns out it runs out at the end of may not end of August. I wouldn't have applied until July, paying 3 month's extra high interest £600 in total
    • MA says we will have no problem getting whatever mortgage we want, talked through the debt options and he had some suggestions.
    • The husband got an extra 5 hours OT tomorrow (£55)
    • fridge is now bare for tomorrow's shopping to arrive
    • flex day on Friday - got loads of chores done. Vacced behind the couch
    • the allysum seeds i planted last weekend are sprouting away! Am now thinking I will grow all bedding plants from seeds if it's this easy and rewarding, it'll save me loads of money in spring. Begonias and petunias, do you reckon?

    Bad things
    • Im delighted that the mortgage finishes soon but I don't feel the bank statements are brilliant over the last 3 months. We had my 40 th birthday in rejkavik and Christmas
    • We are £40 off our overdraft limit (£500) til payday and nothing in the EF
    • Had my quarterly fight with the husband. It was about remortgaging and commitment to paying debt. I might post more about this later because it was an eye opener

    Spends - £10 on kitchen sink strainer things which are RUBBISH

    Saintliness = 6/10
    Debt 03/01/17 = £42000
    Debt today = £27,819.22
    • Cumbria lass
    • By Cumbria lass 17th Feb 18, 5:57 PM
    • 1,372 Posts
    • 7,851 Thanks
    Cumbria lass
    Paws , I am so pleased you are back posting more regularly. The MA sounds very hopeful that you will get a good deal which surely had to be good. You have paid off so much debt already and still enjoyed your holidays.

    When I first saw your comment about allysum seeds I misread it as asylum seeds . My mum grows all her own bedding plants from seed , I have pots outside my door as I don't have my own garden. Things are flowering in them not sure what they are but the mother ship will know.

    Look forward to hearing about DH version of paying debt .
    Jan 2018 CC1 £3099 CC2 £220

    Debt Free Nov 2019: earlier if I have my way
    • boxofpaws
    • By boxofpaws 17th Feb 18, 6:52 PM
    • 443 Posts
    • 1,864 Thanks
    boxofpaws
    Thoughts on consolidation
    Thoughts on consolidation
    • Remortgage amount £167000
    • Debt approx £25k
    • House value £250-270k
    • Current monthly mortgage payment £1165 (4.69% fixed)

    For consolidation
    My initial thoughts were 'why don't we borrow 75% LTV, which will virtually pay off all debt and mortgage, then pay the new payment of ~£1050 per month to keep the same term (17 years) but then pay a regular overpayment of £1000 to pay the whole lot off in 10 years. Also, the debt, although it's at 0%, I pay 3% fees, so actually a mortgage rate is lower.'

    Against consolidation
    Then on Wednesday I had another thought, we have ALREADY paid the 3% fee. It's gone. I should try to use the 0% as long as I can. I checked how much it would cost us per month for £167k and it would be £950 per month max. Over £200 more to chuck at the debts than right now.

    In 2005, we consolidated his £15k loan (taken it before we met to buy a motorbike) into our mortgage. I was so naive, I didn't really understand what we were really doing, that we would pay much much more back. We ran up loans and credit cards again, we just didn't really earn enough to service this debt.

    I am fully committed to paying this debt down, whether it's in the mortgage or not, however the husband last night said he would be worried we'd run up credit card debt again, especially if I create a punishing overpayment plan if we consolidate.

    We haven't really changed how we live, we just earn more. I want the debt gone but repayable in the most efficient way possible please

    I can't believe we have to make this decision so suddenly too.
    Debt 03/01/17 = £42000
    Debt today = £27,819.22
    • redofromstart
    • By redofromstart 17th Feb 18, 7:58 PM
    • 1,122 Posts
    • 6,838 Thanks
    redofromstart
    I always think consolidation as a last resort, but thats just me. I get your logic both ways.

    In terms of timescales on the remortgage we also did ours recently, ours took 21st October to 18th December. Paper valuation, with the bank OH banks with, month for offer and then the legal bit. Hope this helps.
    • sashybo
    • By sashybo 17th Feb 18, 9:26 PM
    • 2,605 Posts
    • 19,768 Thanks
    sashybo
    Hi paws, looking good on the re-mortgage front.

    You could try growing sweet peas from seed, they are very easy to grow & smell lovely. You can also collect the seeds from the plants when they start releasing them to use for next year as well.

    Lobelia is also quite easy to grow but when I grew it from seed it seemed to take ages. I also love verbena but have never tried growing it from seed, I usually buy the reduced ones from the garden centre due to laziness.
    Success is not final, failure is not fatal: it is the courage to continue that counts.

    PAD started 27/01/09 - £9717 extra paid off debt. Total Debt paid off £48,737.28
    Loan £3294.75, CC 0% BT £820, Car loans £23,789

    Have a Debt Free Diary to try & keep spending in check.
    • Eager_Elephant
    • By Eager_Elephant 18th Feb 18, 7:00 AM
    • 4,204 Posts
    • 23,802 Thanks
    Eager_Elephant
    I am against consolidation generally - I work as a Debt Adviser and have seen no end of people consolidate on to mortgages and then run the debt up again but worst of all I have seen severe financial difficulty (job loss/divorce) when a debt has been consolidated and you cant really ask a mortgage company to accept token offers while you get back on your feet. ( I appreciate some lenders allow payment holidays for 3 months). Whereas a credit card and loan repayment can be lowered right down to £1 per month freeing up the money needed for the mortgage.

    Also although the Government help cover some mortgage cost after 39 weeks they only allow for the initial mortgage and any remortgage must have been for renovation which affected heating and lighting (say if the heating system had to be replaced) so people are often in the position of not being given enough help with the mortgage. (This help is now in the form of a secured loan from April)
    Ninja Saving Turtle No. 24 for January
    NSD - 16/18
    (up to 27/01/18)
    My Diary is here - http://forums.moneysavingexpert.com/showthread.php?t=2175629 (Eager Elephants Effective Everyday Excursion)
    • Suffolk lass
    • By Suffolk lass 18th Feb 18, 3:22 PM
    • 1,744 Posts
    • 19,277 Thanks
    Suffolk lass
    You have reduced your debt by £17k in a year. Why would you even consider extending that remaining £25k repayment to 17 years? You will have it done in two years and can then start seriously overpaying your mortgage. I wish we had done this. With over £75k on our mortgage and less than 18 months until we both stop work...
    MFiT T4 #2 update 51.75% after Q8 £5,203 behind where I should be
    Save £12k in 2018 #53 - after Jan £634.93/£10,000
    OS Grocery Challenge 2018 spent £238.47/£3,500 including stores so far
    My DFD is here
    • Honeybug
    • By Honeybug 18th Feb 18, 4:20 PM
    • 8 Posts
    • 83 Thanks
    Honeybug
    Mr Paws may have a good point. It sounds like he knows himself (and you?) Well.

    Consolidation might be a short term fix but create a long term problem??
    • enthusiasticsaver
    • By enthusiasticsaver 18th Feb 18, 5:46 PM
    • 5,701 Posts
    • 11,264 Thanks
    enthusiasticsaver
    I think your OH has a point. You have a history between you of running up debts and overspending and I would hazard a guess that holidays may be your bugbear. Just think of how much you can spend on them though once the debt is gone - not on a credit card.

    You are on a high interest rate on your mortgage. Was this taken out quite a while ago? When it gets a bit closer to your remortgage date and you see what rate you are offered you will know then what position you will be in.

    Converting unsecured debt to secured debt though is almost always a bad idea. You take longer to pay it off. The temptation to run up debt again is there because you think you have cleared the old debt which you most definitely have not.

    You are obviously struggling with this so I would ask why do you want to move the debt because as I understand it much of yours is on 0%? You reduced your debt last year so if you do the same again this year that debt may well be nearer £17 or £18k rather than £27k.
    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
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