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  • FIRST POST
    • rjwr
    • By rjwr 29th Apr 17, 8:48 PM
    • 235Posts
    • 152Thanks
    rjwr
    My sense check!
    • #1
    • 29th Apr 17, 8:48 PM
    My sense check! 29th Apr 17 at 8:48 PM
    So if those have seen other posts ive mine, im an ex bankrupt. It was a failed business but I had personal debt also.

    A few years ago i got a barclaycard. I needed my own credit card for business expenses with my employer. Amazingly the temptation of 0% kicked in an all sorts of things ive purchased, paid off but wow is it easy just to buy something and then think i can pay for it over a few months.

    I recently paid for my windows to be replaced on my barclaycard. They cost £4000. I applied for a new credit card to transfer the balance to a 0% card and the card arrives next week. My wife and I have felt awful so we cancelled the windows and got a refund from the company.

    I now have two credit cards, both with £0 balance but £9500 available credit between them!!!!
    I am concerned that an "emergency" will come in and i will use them. So im hoping to use this DFD to sense check myself.

    Now lets get down to debt:

    Mortgage: 32 years remaining £115,732
    Car PCP: £11,995 - 28 months remaining - PCP so amount payable before the contract end date is: £4712.96
    Fender Stratocaster: bloody interest free! doh! £917- paying £42/month

    The car is my wifes as i have a company car, but i am the only source of income so it is as good as my debt.

    Mortgage is both of ours and the guitar, well i already have 3 so why i needed another one only musicians may understand.

    My wife and I have decided that having cloudy windows is much more fun than worrying about loosing disposable income every month. I pay £250 into a S&S ISA on a monthly basis and still have a few hundred spare.

    I dont want to overpay on the mortgage. I can, but i would rather put the money into a deposit account and reduce in chunks if my situation allows.

    The plan is as follows:

    Clear the debt on the Guitar. £250/month so 4 months. (August this year done.)
    We dont need the car, but the situation is it will cost a few thousand to send it back, so it unfortunately is staying until August 2019. I am going to increase our payments to £200/month to clear the PCP roughly 4 months early. (that will give 4 months to save to buy a car outright)

    Try our very best to leave all debt alone. Unfortunately i need a mortgage, but touch nothing else. If i think about it i can shame myself in my DFD and hopefully talk me out of doing anything stupid.

    thanks for reading and thanks to Martin for this forum.
Page 1
    • rjwr
    • By rjwr 29th Apr 17, 10:33 PM
    • 235 Posts
    • 152 Thanks
    rjwr
    • #2
    • 29th Apr 17, 10:33 PM
    • #2
    • 29th Apr 17, 10:33 PM
    So ive asked BMW to increase the pcp payments to £200/month and the guitar to £100/month. I'll call up and pay the extra £150 off the guitar each month.
    I hope the BMW will allow the overpayment on a monthly basis.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • Poor_Single_lady
    • By Poor_Single_lady 29th Apr 17, 10:54 PM
    • 910 Posts
    • 3,297 Thanks
    Poor_Single_lady
    • #3
    • 29th Apr 17, 10:54 PM
    • #3
    • 29th Apr 17, 10:54 PM
    Didn't want to read and run. Hello and welcome.
    2017- 5 credit cards plus loan
    Overdraft And 1 credit card paid off.

    2018 plans - reduce debt
    • rjwr
    • By rjwr 30th Apr 17, 3:20 PM
    • 235 Posts
    • 152 Thanks
    rjwr
    • #4
    • 30th Apr 17, 3:20 PM
    • #4
    • 30th Apr 17, 3:20 PM
    There's not much anyone can say really so I guess its common to have a nose and leg it

    So ive had a chat with mrs rjwr and we have worked out a plan to fund most of the things we need to do personally and for our house.

    I am really encouraged by all the positive DFD I am looking at and hope I can keep this up.

    Thanks to all so far.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • charlies tribe
    • By charlies tribe 30th Apr 17, 10:22 PM
    • 339 Posts
    • 3,125 Thanks
    charlies tribe
    • #5
    • 30th Apr 17, 10:22 PM
    • #5
    • 30th Apr 17, 10:22 PM
    Just dropping by to say thank you for taking the time to read and post on my diary.
    Good luck with your debt free journey.
    LBM-March 17 £2129/£33554 (6.3%) paid
    • Lumanous
    • By Lumanous 1st May 17, 12:09 AM
    • 107 Posts
    • 258 Thanks
    Lumanous
    • #6
    • 1st May 17, 12:09 AM
    • #6
    • 1st May 17, 12:09 AM
    Good luck with your plan. Sounds like you have made sensible decisions to take a handle on things and where you want to be. Hopefully once you have some things paid off you can save and then get your windows sorted 'worry-free' Will feel so much better that way!

    Good to have a check in place too, hopefully keep you on track, good luck

    No, my username is not a typo
    • Tahlullah
    • By Tahlullah 1st May 17, 10:44 AM
    • 748 Posts
    • 4,540 Thanks
    Tahlullah
    • #7
    • 1st May 17, 10:44 AM
    • #7
    • 1st May 17, 10:44 AM
    Hello. Read your diary and laughed at the 3 guitars! Definitely a musician thing. 3 drumkits! Can you imagine what that does for space?

    Wishing you good luck on your debt free journey.

    Tx
    Striving to be mortgage free.
    • enjoyyourshoes
    • By enjoyyourshoes 1st May 17, 10:51 AM
    • 718 Posts
    • 904 Thanks
    enjoyyourshoes
    • #8
    • 1st May 17, 10:51 AM
    • #8
    • 1st May 17, 10:51 AM
    Pay off debt then reinstate the s&S ?

    Many lenders will allow early repayments often with no ERP so check that out.

    Sell BM and buy low emission low tax little car ?

    Good luck with the journey.
    Debt is a symptom, solve the problem.
    • rjwr
    • By rjwr 6th May 17, 6:40 PM
    • 235 Posts
    • 152 Thanks
    rjwr
    • #9
    • 6th May 17, 6:40 PM
    • #9
    • 6th May 17, 6:40 PM
    Hello. Read your diary and laughed at the 3 guitars! Definitely a musician thing. 3 drumkits! Can you imagine what that does for space?

    Wishing you good luck on your debt free journey.

    Tx
    Originally posted by Tahlullah
    Wow, we only have one drum kit in our band and our drummer complains about the space that takes!

    its four guitars now,..... hence the bit in my signature.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • rjwr
    • By rjwr 6th May 17, 6:44 PM
    • 235 Posts
    • 152 Thanks
    rjwr
    Pay off debt then reinstate the s&S ?

    Many lenders will allow early repayments often with no ERP so check that out.

    Sell BM and buy low emission low tax little car ?

    Good luck with the journey.
    Originally posted by enjoyyourshoes
    Thank you for your suggestion. It is probably the most sensible way to move forward.

    The car unfortunately is not worth even 80% of the outstanding PCP, so it will remain.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • rjwr
    • By rjwr 6th May 17, 6:46 PM
    • 235 Posts
    • 152 Thanks
    rjwr
    update:
    So V12 finance can not change the DD amount for the guitar but I can make over payments.

    BMW finance haven't responded yet to my request to increase the amounts.

    I'm battling with my credit cards, they have no balance, but not sure what to do so ill ask in the CC forum.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • Tahlullah
    • By Tahlullah 6th May 17, 6:51 PM
    • 748 Posts
    • 4,540 Thanks
    Tahlullah
    Wow, we only have one drum kit in our band and our drummer complains about the space that takes!

    its four guitars now,..... hence the bit in my signature.
    Originally posted by rjwr
    To be fair, guitarists can change guitars half way through a gig to get a different sound etc. Never seen a drummer swap kits part way through. Would need an intermission, like at the theatre!

    Enjoy it and don't feel guilty about it. If your guilt gets that heavy so you can't overcome it, you can sell all your guitars and go a good way towards paying for the windows... NOT!
    Striving to be mortgage free.
    • m_c
    • By m_c 6th May 17, 7:51 PM
    • 51 Posts
    • 28 Thanks
    m_c
    If the guitar is interest free, is there really any point in paying it of early?
    I think I'd put the extra money somewhere that earns some interest, so you do have the option to pay it off if the need arises, but the money at least earns you a few pounds interest in the interim. Plus you've already paid for the interest on that loan when you bought the guitar, so you may as well get the value out of it.


    Also, I know sending a car back early is horrendously expensive, but the other way to look at it, is how much will it cost you to keep it for the next few years? Insurance, servicing, tax etc.




    PS. I get the guitar thing. I'm hankering over something acoustic, but I'm making do with my Strat and PRS SE Tremonti for now.
    • pennystretcher
    • By pennystretcher 8th May 17, 6:27 PM
    • 285 Posts
    • 1,306 Thanks
    pennystretcher
    For the credit cards, why not get the available credit reduced so that you aren't tempted to rack them up or cancel one of them?

    Also not really getting why you wouldn't want to pay extra off mortgage? Have a look in the MSE OP calculator how much e.g. £50 extra per month could save you in long run. Maybe that'll inspire you?
    MFW June 2017 £890 (almost there!!!)
    • rjwr
    • By rjwr 28th May 17, 9:11 AM
    • 235 Posts
    • 152 Thanks
    rjwr
    Art this stage putting money into the mortgage means loosing access to it. I am aware of the benefits of overpaying on a mortgage but i feel you need to be at the right place in life to do so.

    Thanks all for the comments, as for the guitar being interest free, yes, but its a monthly direct debit that isn't necessary.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • rjwr
    • By rjwr 28th May 17, 9:13 AM
    • 235 Posts
    • 152 Thanks
    rjwr
    If the guitar is interest free, is there really any point in paying it of early?
    I think I'd put the extra money somewhere that earns some interest, so you do have the option to pay it off if the need arises, but the money at least earns you a few pounds interest in the interim. Plus you've already paid for the interest on that loan when you bought the guitar, so you may as well get the value out of it.


    Also, I know sending a car back early is horrendously expensive, but the other way to look at it, is how much will it cost you to keep it for the next few years? Insurance, servicing, tax etc.




    PS. I get the guitar thing. I'm hankering over something acoustic, but I'm making do with my Strat and PRS SE Tremonti for now.
    Originally posted by m_c
    To send the car back it will cost the next two years worth of monthly payments, so yes there is tax and insurance, but at least its something that could be used.

    Lots of new six strings to tempt!
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • rjwr
    • By rjwr 23rd Jun 17, 9:43 PM
    • 235 Posts
    • 152 Thanks
    rjwr
    bit of light.... local mini dealer is considering buying the vehicle. According to them, the mini cooper coupe is in demand. i might be able to get rid
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • rjwr
    • By rjwr 10th Jul 17, 7:38 PM
    • 235 Posts
    • 152 Thanks
    rjwr
    ok so super, the mini was sold to the dealer today! all thats left now is a mortgage

    time to put a plan in place for that!
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • rjwr
    • By rjwr 18th Jul 17, 10:04 AM
    • 235 Posts
    • 152 Thanks
    rjwr
    So ive started putting £500 a month into a S&S isa, first payment Friday just gone at that level. Another £100 into a bonds account. I'll then make the decision towards how much to pay off the mortgage with a view to clearing it as soon as i can.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
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