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  • FIRST POST
    • Unicorn cottage
    • By Unicorn cottage 25th Apr 17, 8:11 AM
    • 17Posts
    • 18Thanks
    Unicorn cottage
    Debt busters!
    • #1
    • 25th Apr 17, 8:11 AM
    Debt busters! 25th Apr 17 at 8:11 AM
    Hi all

    It’s a long one!

    Gah! 2016 was really touch and go for us financially. We were regularly within a few pounds of maxing out my partner’s £2k overdraft, we had used the full £3k of a 0% credit card to furnish the house we had bought in 2015 and we also had another large loan. In addition to this I was also temping so my wage was not guaranteed.

    BUT we clung on and by using all of our money saving techniques and a few sprinkles of good luck, by the end of the year, we had paid off the overdraft and credit card.

    Here’s what we did:

    Sold everything we did not need – 2 cars, a huge Ikea wardrobe left by the previous owners (£200 ker-ching!), massage table, dish washer (which we picked up free off gumtree but needed a few repairs and a good clean), bike panniers, someone even gave us £20 for some old tonne bags!, the list goes on.

    Changed current accounts in order to benefit from cash incentives for switching. Got a much appreciated £150 in December from the Co-operative Bank.

    Kept an eye out for freebies off Gumtree and Freecycle which meant we were able to landscape our garden for a relatively low cost. We picked up sand, cement, shingle, breeze blocks etc which saved us about £1k.

    Things were starting to look much more promising for the New Year…then the big ‘ole bite on the bottom.

    My OH’s work contract was not extended following a fall at her workplace, (sustaining a very nasty knee injury), which meant she was not able to work. This meant we were down to 1 wage only and in addition to this I was on a fixed term contract until late 2017. The pressure was on! On top of this we desperately needed work doing on the house as the kitchen roof was leaking and the bathroom was extremely old, unhygienic & stinky! We had lived with this for over a year and it just had to get done.

    So here we are in April 2017. We got the work done on the house by borrowing from the bank of Mum & Dad and getting a 0% APR/low cost money transfer credit card. We are back up there again with the debts but we are not resting on our laurels. We are due to take on our very first lodger this month which will bring in £450 a month, I managed to secure a permanent job with a higher salary and my partner has taken on a part time job. Her knee will probably require an operation but what can you do? I also switched to the M&S current account for the £100 incentive which will be great for pressies for birthdays and Christmas etc.

    Debts – state of play

    Bank of Mum & Dad (Start date: January 2017, 0% APR!)
    £6,000

    Loan (Start date: October 2016, length: 5 years, 3.9% APR)
    >£10k

    Credit card (Start date: January 2017, 0% APR until 2019)
    £2770

    Overdraft (Ongoing!, ? APR)
    Hovering around £2k

    Mortgage (Start date: October 2015, length: 5 years fixed term, 2.68% APR)
    £144k – Total remaining at March 2017

    My partner also has a student loan but crikey we don’t even think about this one!

    Phew!

    So the point of this exercise is to get it all down on paper and make sure we use this opportunity, (increase in salary and rent money), to hammer the debt down. The priority at the moment is the overdraft and the bank of mum and dad. I’m always looking to the future too and want to make sure we are in good shape when we come to re-mortgage but that is thankfully a way off yet.

    Thanks for reading this and I’ll be back to update with repayments and the like. I have a lot to thank Martin Lewis for!
    Last edited by Unicorn cottage; 18-06-2017 at 9:44 AM.
Page 1
    • Unicorn cottage
    • By Unicorn cottage 28th Apr 17, 1:10 PM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    • #2
    • 28th Apr 17, 1:10 PM
    • #2
    • 28th Apr 17, 1:10 PM
    Got paid today and using the rent money I made a start on smashing the debt with a big chunk off what we owe the BoM&D! Minimum payment has come out from the credit card too so at least going in the right direction. Looking to ebay some clothing this weekend so hoping this brings in the odd £ here and there!

    Have a good weekend everyone

    Bank of Mum & Dad (Start date: January 2017, 0% APR!)
    £6,000 - 750 = £5250

    Credit card (Start date: January 2017, 0% APR until 2019)
    £2771.82 - 27.71 = £2744.11
    • zenshi
    • By zenshi 28th Apr 17, 2:25 PM
    • 932 Posts
    • 1,938 Thanks
    zenshi
    • #3
    • 28th Apr 17, 2:25 PM
    • #3
    • 28th Apr 17, 2:25 PM
    UN,ess mum and dad need their money back asap, then whack your spare money off your OD. You have t said the APR or fees but it will be costing you!

    Wife's student loan is irrelevant at the mo whilst she's not earning enough to have payments taken
    LBM.....sometime in 2013 £27,056. 10 creditors
    Mar 17......£18,308.....7 creditors left 32% paid

    £26,200 on interest only part of mortgage (July 16)...will chip away £24,010
    £49,200 repayment mortgage ( July 16) £46,230
    • Unicorn cottage
    • By Unicorn cottage 28th Apr 17, 6:50 PM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    • #4
    • 28th Apr 17, 6:50 PM
    • #4
    • 28th Apr 17, 6:50 PM
    You are right of course Zenshi but owing money to the in-laws just doesn't seem right. The overdraft should be much reduced in the next couple of months fingers crossed
    • Unicorn cottage
    • By Unicorn cottage 2nd May 17, 7:13 AM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    • #5
    • 2nd May 17, 7:13 AM
    • #5
    • 2nd May 17, 7:13 AM
    Listed a load of branded clothes on Ebay on Sunday so hopefully we might get £50 or so for that. The clothes are from my partner's brother who is a right menace! Buys £80 t-shirts only to wear them once! Am jealous - hee hee
    • Unicorn cottage
    • By Unicorn cottage 10th May 17, 3:09 PM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    • #6
    • 10th May 17, 3:09 PM
    • #6
    • 10th May 17, 3:09 PM
    Made over £100 from Ebay so over the moon - it got eaten up by the overdraft so that is now going in the right direction. Roll on pay day Oh and got someone coming to look at my old bike tonight which I put on Gumtree for £50 so hoping for £40...fingers crossed!

    Also the remaining amount on the loan is £9525.88 but that just has to run it's course at £200 a month...
    Last edited by Unicorn cottage; 10-05-2017 at 5:13 PM.
    • Unicorn cottage
    • By Unicorn cottage 24th May 17, 6:23 PM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    • #7
    • 24th May 17, 6:23 PM
    • #7
    • 24th May 17, 6:23 PM
    Quick update! Say hello if you are reading Got the £40 for the bike after a haggle - the guy wanted to pay £30. Have paid a tiny bit off the credit card just to get it under £700 - it helps the motivation - so it's £2699.11. It's payday tomorrow so looking forward to paying off a big chunk of the mum & dad debt. Oh and my phone was due for a renewal so rang them up and got a sim only deal for £8.99 a month which will start working from midnight tonight. Saving me the extra 6 weeks or so at about £32 a month - woo hoo. It all helps
    • Silver Queen
    • By Silver Queen 24th May 17, 6:31 PM
    • 136 Posts
    • 674 Thanks
    Silver Queen
    • #8
    • 24th May 17, 6:31 PM
    • #8
    • 24th May 17, 6:31 PM
    Just a thought - was the fall at her work her fault? If it wasn't her fault or if she didn't get adequate training she may be able to get a settlement from her work. It might be worthwhile to speak to a no win no fee personal injury lawyer. Sorry to sound like an advert but I work in law (not this area of law) so it springs to mind
    • Tahlullah
    • By Tahlullah 24th May 17, 10:57 PM
    • 759 Posts
    • 4,576 Thanks
    Tahlullah
    • #9
    • 24th May 17, 10:57 PM
    • #9
    • 24th May 17, 10:57 PM
    Reading and saying hello!

    I agree regarding the accident at work. Employers have to carry insurance to cover accidents at work and if the injury affected her ability to earn, then she should look into this further, is she feels up to it.

    Plus, she has the advantage of not working there any more so no pressure from them making her feel guilty about pursuing that avenue.
    Striving to be mortgage free.
    • Unicorn cottage
    • By Unicorn cottage 25th May 17, 9:43 AM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    Hello Silver Queen & Tahlullah!

    Thanks for commenting Tahlullah - hope the striving to be mortgage free is going well! We are actively pursuing a claim and the solicitors we have engaged seem very good and proactive. Fingers crossed it comes to a positive conclusion.

    State of play today after paying a big ole chunk of the BoM&D debt. Get in!

    Bank of Mum & Dad (Start date: January 2017, 0% APR!)
    £6,000 - 750 - 1250 = £4000 (33% paid off)

    Credit card (Start date: January 2017, 0% APR until 2019)
    £2771.82 - 27.71 - 27.44 - 16.68 = £2699.99 (2.6% paid off)

    I hate debt. It eats away at me so just best to get it paid off and be done with it!
    • Unicorn cottage
    • By Unicorn cottage 1st Jun 17, 8:04 AM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    Here we are in June 2017...this months challenges are:
    Getting our food shopping down as we spend an outrageous amount.
    I need to keep on with my gym classes - I started about 3 weeks ago and feel so much better - definitely affects my mood positively.
    And erm diet - have turned into a pie over the last couple of years!

    Am feeling much more hopeful though as things are falling into place - just need to keep hitting the debt in case any other disasters bite us on the bum!
    • tori.k
    • By tori.k 1st Jun 17, 8:26 AM
    • 2,784 Posts
    • 6,131 Thanks
    tori.k
    Worth putting a little away for worse case scenario, sound like a good system you have going on, it's a drag at times but your soon be there
    Debit to Credit (stage 1) 3652.34 completed 15/10/16
    Debit to Credit (stage 2) 6299.09 completed 25/06/17
    Last Castle 150,000/ 24000
    • Unicorn cottage
    • By Unicorn cottage 13th Jun 17, 2:46 PM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    Ok after a bit of whinging I am getting the hang of YNAB and I am liking it. I've done some classes & listened to lots of the podcasts.

    I've been doing some gardening at the weekends to earn some extra cash so looking forward to that coming into my account next month.
    • Unicorn cottage
    • By Unicorn cottage 28th Jun 17, 2:19 PM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    Slowly slowly!

    Made a £800 payment into my partner's overdraft as need to get on top of this. My partner is having a scan on their knee soon so hopefully we will find out what the damage is. Anticipating that they may need surgery so a maxxxxed out overdraft will not be an option with no wages coming in.

    Paid £100 each to the below because it makes me feel better:

    Bank of Mum & Dad (Start date: January 2017, 0% APR!)
    £6,000 - 750 - 1250 - 100 = £3900 (35% paid off)

    Credit card (Start date: January 2017, 0% APR until 2019)
    £2771.82 - 27.71 - 27.44 - 16.68 - 26.99 - 100 = £2573.00 (7.2% paid off)

    Make £410 from working weekends in June so pleased with that. Am a bit kn*ckered but grateful for the opportunity!
    • Unicorn cottage
    • By Unicorn cottage 27th Jul 17, 8:06 AM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    Getting there - update for July so far...

    Bank of Mum & Dad (Start date: January 2017, 0% APR!)
    £6,000 - 750 - 1250 - 100 - 500 = £3400 (43% paid off)

    Credit card (Start date: January 2017, 0% APR until 2019)
    £2771.82 - 27.71 - 27.44 - 16.68 - 26.99 - 100 - 25.73 - 47.28 = £2499.99 (9.8% paid off)

    Gonna make about £300 from working some weekends so all good.

    Am expecting a cheque for £450 shortly so that will go toward the Mum & Dad debt too - so will be over 50% then - GET IN!

    Also got a job interview on Tuesday!

    Keep on plugging away everyone - we can do it!
    • Unicorn cottage
    • By Unicorn cottage 7th Aug 17, 8:26 AM
    • 17 Posts
    • 18 Thanks
    Unicorn cottage
    Cheque cleared so now owe the rellies £2950. Am absolutely over the moon that I am over half way!

    Bank of Mum & Dad (Start date: January 2017, 0% APR!)
    £6,000 - 750 - 1250 - 100 - 500 - 450 = £2950 (50.8% paid off)

    Didn't get the job but have another one in the pipeline fingers crossed.

    Need to smash this debt!
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