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  • FIRST POST
    • JoJoC
    • By JoJoC 26th Jan 17, 12:20 PM
    • 1,234Posts
    • 3,931Thanks
    JoJoC
    Getting my shhh together
    • #1
    • 26th Jan 17, 12:20 PM
    Getting my shhh together 26th Jan 17 at 12:20 PM
    It's January 2017 and I want to make a stand against myself.

    I will let me sabotage myself no more and I will take control and make my finances better!

    Where to begin? Good question! Since my husband and I bought our first house together in 2009, we have bad financial decision after bad financial decision. Not through stupidity, but a combination of naivety, laziness and lack of foresight. We are very impulsive people and it's quite tricky to rein that in when it comes to finances but we've had endless talks over the last few months and 2017 is the year that we sort our sh!t out!

    A combination of astronomical childcare costs, unpaid maternity leave, paying the mortgage for our flat when it isn't let (second property) and a few other things has meant that the last 2.5 years have been really tight and we have built up some debt that I really want to reduce. I'll declare it below!

    Credit card 1: £6,000 (on 0% interest)
    Credit card 2: £3,800 (not yet on 0% interest)
    Overdraft: £600
    Owe to MIL: £120
    Owe to uncle: £700

    I CAN tackle this in 2017 because:

    - My eldest son is starting school in August, meaning i'll be saving on nursery fees
    - I have just started a new job and my earnings will increase by around £200 per month
    - My husband is busy with additional work in the form of 'homers' over the next couple of months

    Hurdles/ challenges/ costly things happening:
    - My sister's wedding in September
    - My sister's hen weekend in September
    - It's my mother in law's 60th and we are going away for a few nights to a cottage to celebrate
    - Husband is going on my brother-in-law's stag weekend to Prague
    - We need to save for spending money as my company is paying for myself and husband to go to Thailand for a week for work.

    As you can see, the opportunities to save, to rein in what we are spending and to pay off debts are there, but it's such a busy year of commitments so I know it's going to be hard going.

    How am I going to achieve this?

    Change the setup of our banking
    It's currently one big bank account for all income, bills and spending but that's not working for us at all, particularly because we have massive outgoings so I want to switch to having a bills account, a spending account and a savings account.

    Spend time weekly on budgeting
    I have set up a comprehensive spreadsheet detailing when money comes in, when it goes out, when money is transferred to savings and when money is transferred to spending accounts. I want to ensure that this is kept on target and we aren't left short so I want to spend time every Sunday night when my husband is at football going through our finances and the spreadsheet to make sure everything is running smoothly and tackle any adjustments that need to be made. I'm paid monthly and my husband is paid weekly so it's a tricky balance.

    Striking the balance
    I need to strike the balance between paying off debt that we have and saving up for the things that we've committed to this year - I know if I focus on debt alone, we'll end up further in debt to cover things. Vigilance is the key and I will need to keep on top of what we can and can't afford to do. Considered choices will work best and looking ahead to see what's coming up will help too. I want to tackle the family debt first, particularly as they are the smallest debts and the ones that I feel bad about the most.

    I appreciate that there's a lot of debt-free diaries on here and this one isn't solely about hammering debt, but I think it's important for me to be accountable and I want to make changes rather than plan then just bury my head in the sand.

    Any encouragement along the way would be appreciated!
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
Page 14
    • JoJoC
    • By JoJoC 7th Mar 17, 4:14 PM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    Remortgage and buy-out!
    I've just had word from our mortgage broker that the shared equity company from our home builder (from our flat that we still own and rent out) has FINALLY agreed to a settlement in order to pay back their interest in our property and get rid once and for all.

    We bought the flat for way more than it's worth, back in 2009 (due to some dodgy homebuilder-arranged survey!) and have been in negative equity ever since. They constantly provide barricades to us doing anything and tried to stop us from renting our flat out, then charge us £300 every year 'admin fee' for the privilege...

    ANYWAY! We decided to remortgage our house to free up equity to pay them off and make the consent to let process much easier. They homebuilder has agreed a settlement figure which is just a bit higher than the equity that we're releasing, and we've been saving for this ever since.

    So, as soon as the paperwork is drawn up, we'll have to pay out:
    • £750 to cover the rest of the settlement figure
    • £375 legal fees
    • £175 to the broker that's been dealing with all of this for us
    That's a total of: £1300 but also

    That'll leave us with £215 in our savings account and £X? in cash that hasn't yet been allocated.

    This is the first time that we've been able to cover something like this without going with a begging bowl to family to borrow (never expect it to be just given to us, always a loan) or pay with a credit card to cover costs. NOT ANY MORE!

    I'm so pleased that we've saved this money and paying for it without it setting us back

    Now I just want it done and dusted so that we can get on with the next step and put this whole sorry mess behind us.

    The good thing about this is, once we're clear of the shared equity our mortgage is around £75k and the property is work about £85-90k so we have £10-15k equity in the flat now if we need to sell it, rather than being stuck in negative equity forever.

    In case you couldn't tell, I'm delighted.
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • GeorgianaCavendish
    • By GeorgianaCavendish 7th Mar 17, 4:38 PM
    • 513 Posts
    • 2,350 Thanks
    GeorgianaCavendish
    Congratulations! I'm really glad you are seeing light at the end of the tunnel with this saga, those homebuilders sound like absolute swindlers!

    Knowing that you are able to pay for something like that from savings rather than having to turn to credit or loans from family must be such a great feeling
    Georgiana, Duchess of Debt-shire's July 2017 Debt Totals: HSBC Loan £11,362.14 / MBNA £3318.34 / Barclaycard £6360.70 / Lloyds £3560 / Tesco £972.50/ Dreams £259

    And don't forget the Student Loan! £10,765.93 (April 2017)
    • angelpye
    • By angelpye 7th Mar 17, 5:33 PM
    • 988 Posts
    • 3,706 Thanks
    angelpye
    Congratulations! What a huge relief it must be!
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • doingitanyway
    • By doingitanyway 7th Mar 17, 5:43 PM
    • 1,996 Posts
    • 9,135 Thanks
    doingitanyway
    Great news. You must feel so proud that you could deal with this within your own family unit without having to ask anyone else
    JANUARY 2016/SECURED DEBT=24,822/September 2017=5,250
    MORTGAGE FREE 25/07/16
    • boxofpaws
    • By boxofpaws 7th Mar 17, 7:18 PM
    • 404 Posts
    • 1,719 Thanks
    boxofpaws
    Great news, that must be a relief
    Debt 03/01/17 = £42000
    Debt today = £31900
    • JoJoC
    • By JoJoC 8th Mar 17, 9:48 AM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    Thanks all!

    Yes, it is a relief and I'm really proud that we've managed to sort this ourselves with a bit of forward planning and budgeting.

    I'm not going to lie, it does sting a little that our account is just going to be wiped of this hard-earned cash, particularly because it's going to (as GC called them) swindlers who already have enough of our money, but I need to bury my bitterness and remember that this is a positive step.

    Today, I've already had to fork out £10 for my colleague's new baby fund! Expensive! But you know what it's like, i've only been in the job two months and everyone is putting in £10, so feel like I have to. The funny thing is, I haven't even met this guy yet! Anyway, I've been lucky enough to be on the receiving end of two really kind maternity gifts from my old colleagues, so I shouldn't complain.

    Today is a bright and sunny day where I am - I'm hoping that inspires positivity!

    Last night, my husband was busy quoting for some jobs, so I spent two hours cooking - two lasagnes and a cottage pie!
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • Macey1510
    • By Macey1510 8th Mar 17, 10:39 AM
    • 82 Posts
    • 297 Thanks
    Macey1510
    Great news!
    • angelpye
    • By angelpye 8th Mar 17, 11:05 AM
    • 988 Posts
    • 3,706 Thanks
    angelpye
    Closing the chapter on a bad experience will leave more energy and focus for the future. I imagine it does sting though so well down for just getting on with it!
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • JoJoC
    • By JoJoC 8th Mar 17, 11:59 AM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    You're so right, angelpye. Always a wise word from you Thanks!

    I also forgot to mention, someone left their £1 in the trolley at Aldi on Sunday so after looking around to check for anyone running back to claim it, it went into my purse with only a teeny amount of guilt.

    It went straight into my pot when I got home!

    My mortgage broker is so slow at getting back to me. I just wanted to ask her one simple question before giving her the green light to proceed and she still hasn't got back to me. It'd just be a yes/no answer on email and then we'd be able to get on with it. Annoying!

    As I've said many times, impatience is my middle name. Hence why I'm in this mess, but at least I can recognise it now and try to stifle it/ focus on something else.

    We are super-underprepared for lunches this week but my husband made me a sandwich to take to lunch and i found a tin of soup in the cupboard so I'm not spending a penny on lunch today! I also have loads of fruit to snack on, so all good.
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • boxofpaws
    • By boxofpaws 8th Mar 17, 10:33 PM
    • 404 Posts
    • 1,719 Thanks
    boxofpaws
    V resourceful for the lunch.

    I can see why you're impatient to get this all sorted but it won't be long now.
    Debt 03/01/17 = £42000
    Debt today = £31900
    • JoJoC
    • By JoJoC 9th Mar 17, 10:23 AM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    Yes, it won't be long. I got the paperwork in yesterday - I just need to sign for the mortgage, get the funds, sign the release paperwork and transfer the funds then that should be us FREE of the homebuilder. I can't wait.

    This morning, I spent £4.29 on two mother's day cards, a 5th birthday card (party on Saturday) and a new baby card (friend just had a little boy) so I started my day with a big spend.

    On the plus side, I have cottage pie leftovers for lunch and the lasagne I made on Tuesday night is being cooked tonight for tea. There'll be loads left so that should do both my husband and I for lunch tomorrow and maybe a couple of portions frozen for the kids. I just need to pick up a garlic bread from the shop, should be about 50p.

    My husband just had to spend £170 from our spending account on materials again!! Gah! I know he needs to do it and I know we're in this situation again because I haven't yet found a solution (read: it's too hard so i've been avoiding it) so right now, there's £91 left in the spending account for fuel, groceries and spending until the end of the month. He'll get paid from this job on Saturday and then we need to work out where all this cash is going. He has a wad of cash - some is owed to the bills account, some can go into the savings and some is now owed to the spending account.

    I know i'll feel much better once that's all sorted.
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • Treadingonplaymobil
    • By Treadingonplaymobil 9th Mar 17, 8:32 PM
    • 1,014 Posts
    • 9,425 Thanks
    Treadingonplaymobil
    Yes, it won't be long. I got the paperwork in yesterday - I just need to sign for the mortgage, get the funds, sign the release paperwork and transfer the funds then that should be us FREE of the homebuilder. I can't wait.

    This morning, I spent £4.29 on two mother's day cards, a 5th birthday card (party on Saturday) and a new baby card (friend just had a little boy) so I started my day with a big spend.

    On the plus side, I have cottage pie leftovers for lunch and the lasagne I made on Tuesday night is being cooked tonight for tea. There'll be loads left so that should do both my husband and I for lunch tomorrow and maybe a couple of portions frozen for the kids. I just need to pick up a garlic bread from the shop, should be about 50p.

    My husband just had to spend £170 from our spending account on materials again!! Gah! I know he needs to do it and I know we're in this situation again because I haven't yet found a solution (read: it's too hard so i've been avoiding it) so right now, there's £91 left in the spending account for fuel, groceries and spending until the end of the month. He'll get paid from this job on Saturday and then we need to work out where all this cash is going. He has a wad of cash - some is owed to the bills account, some can go into the savings and some is now owed to the spending account.

    I know i'll feel much better once that's all sorted.
    Originally posted by JoJoC
    Can you set him up a separate account and for the next few jobs just leave the profit in there, so there's some money for when he needs materials for the job after that?
    £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
    • doingitanyway
    • By doingitanyway 9th Mar 17, 9:08 PM
    • 1,996 Posts
    • 9,135 Thanks
    doingitanyway
    We are super-underprepared for lunches this week but my husband made me a sandwich to take to lunch and i found a tin of soup in the cupboard so I'm not spending a penny on lunch today! I also have loads of fruit to snack on, so all good.
    Originally posted by JoJoC
    I spent £10 on breakfast and lunch today despite having food at home. I'm gutted You do so well with this and with 2 little ones too. I will do better...
    JANUARY 2016/SECURED DEBT=24,822/September 2017=5,250
    MORTGAGE FREE 25/07/16
    • JoJoC
    • By JoJoC 9th Mar 17, 9:34 PM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    I was tempted to do that but he already moaned and moaned about me setting up a spending account last month separate from the bills and all the 'admin' that went with it like typing a new number in for a purchase. I know...hard work, right?

    The only other option I can think of is paying cash when he collects but I haven't put any real time into thinking about this so I will. When my brain is working.
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • JoJoC
    • By JoJoC 9th Mar 17, 9:36 PM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    Ah DIA, it's not like that every day! We really try but some days it falls through the cracks and we spend.

    Turn the gutted feeling into determination for tomorrow!
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • JoJoC
    • By JoJoC 10th Mar 17, 1:17 PM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    Today is a completely 'meh' sort of day...not much going on at all.

    I didn't spend money on lunch - brought leftover lasagne that I made during the week. We all had it for dinner last night, i had it for lunch today and there's another two adult portions to be frozen which will do the kids for two meals, so I'm quite pleased about that.

    Spends
    I did spend money today... £45.30... for tickets to see Steps. My friend and I will be going later in the year - it was a huge part of our childhood and it's her 30th this year so I thought the nostalgia would do us good! I don't regret it but I do feel guilty at spending so much. When did gig tickets get so expensive?

    Other than that, I'm not planning any spends today.

    The weekend
    My eldest starts his swimming lessons tomorrow - £23.50 per month for a lesson every Saturday, but it also gets him into the swimming for free, so i'll need to try to maximise that as much as possible providing he's enjoying it. I'll probably take my youngest while he's in his lesson so will need to pay for that too. We have a birthday party in the afternoon and card and present are purchased, so no additional spends for that. We'll then have a quiet afternoon at home and no plans yet for Sunday.

    20 days until pay day... that seems a lifetime away! The bank is looking as it should and nothing much is happening.

    I must get my husband to go through the cash and allocate it to the bank, savings and what he owes his boss for materials (when his boss confirms the total!). I want it all allocated and put in its rightful place so that I know where we truly stand. Right now, we're sitting with a £200 deficit in our spending account
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • JoJoC
    • By JoJoC 11th Mar 17, 4:26 PM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    Hi all, hope you're having lovely weekends. Mine is good so far but going in far too quickly!

    Positives

    Because we started swimming lessons mid month, this month's payment was £16.33 instead of £23.

    I went into the bank today with my marriage certificate to close down an old account thst I haven't used since I was about 17! I had £32.33 in it so withdrew that and closed the account. Score!

    Deposited £860 in cash into the bank today - £320 is repaying the spending account for materials my husband bought and the rest is going into the savings account.

    My husband is out working again today which is a shame for him (he's knackered) but good for us money wise.

    My husband is off tomorrow so we can have a much needed family day

    Spends

    I bought some flash mop refill pads which I've been looking for for AGES and boughy my son a packet of smarties because he's been such a good wee soul this week! Also £1 for parking so £6 spent.

    Hoping tomorrow will be a low spend day...
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
    • angelpye
    • By angelpye 11th Mar 17, 4:54 PM
    • 988 Posts
    • 3,706 Thanks
    angelpye
    Great money saving today! Always nice to come across little pots of money
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • Treadingonplaymobil
    • By Treadingonplaymobil 11th Mar 17, 7:12 PM
    • 1,014 Posts
    • 9,425 Thanks
    Treadingonplaymobil
    I read the flash mops bit as coming under the 'positives' heading, and was thinking you were really scraping the barrel for positives if new mop heads was in the list!

    That's a great chunk of money into savings, well done.
    £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
    • JoJoC
    • By JoJoC 11th Mar 17, 8:36 PM
    • 1,234 Posts
    • 3,931 Thanks
    JoJoC
    Well I suppose I could look at it as a positive because ice been trying to get some for weeks but no supermarkets had them and they were £8 on eBay and £12 on amazon so getting them for £4.60 today was a positive! Ha

    Yes, I'm really pleased with the savings, there's £2,055 in there now and £1400 is allocated to the remortgage (although we may need a wee bit more depending on legal fees) so I'm pleased with how it's going.

    My husband brought in another £200 today so not sure how it'll be allocated yet. We'll see.

    No, for some gin!
    CC1: £3804.52 / £3704.32 £100.20 paid | CC2:£5027.53 / £4927.48 £100.05 paid | Loan: £15,000 / £13,932.24 (£1067.76 paid)

    July debt total: £23,832.05 | New debt total: £22,564.04 | Total debt paid: £1,268.01 (5.3%)
    *My debt busting and savings diary*
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