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  • FIRST POST
    • Pauper1
    • By Pauper1 26th Oct 17, 7:52 AM
    • 289Posts
    • 2,363Thanks
    Pauper1
    Are we nearly there yet?
    • #1
    • 26th Oct 17, 7:52 AM
    Are we nearly there yet? 26th Oct 17 at 7:52 AM
    I've been on these forums for nine years (according to all the messages I got from MSE Badger when I signed back in after a few years break), so it's been nine years that I've struggled with money. DH and I entered our 'living together life' with £2k worth of debt, and I remember thinking we'd never get out of it. It massively snowballed after we bought our house in 2010, especially when I became ill, and at our highest we owed nearly £40k.

    After we had our son, we were living in a 2 bed flat, without a garden, and no prospect of moving for years despite the fact we wanted another baby. Our DMP wasn't due to end until 2030something, when we'd be in our 40s. We spent a year or so weighing up the various options - not having another baby yet, me going back to work to pay it all off sooner, having another baby and dealing with the smallness of the house, IVA. In the end we decided to sell our house as it had gone up in value so much.

    Unfortunately we didn't make enough to pay it all off outright, so we're currently going through the settlement process with StepChange. We're making about a 58% offer I believe, but with supporting evidence as to why our income won't change in the foreseeable, so they are better off accepting the offer. It works in our favour that rent is so much more expensive than our mortgage, as our DFD based on the new DMP is 2044! Our debt advisor says they probably won't want to wait that long. I'm just waiting for my MH counsellor to send a letter about my PND that I can pass on to StepChange, and then the ball will get rolling.

    In the meantime, as our disposable income has dropped, I am focusing on spending less and trying to build up some savings. Once the debt is all settled, it will be about 4 years before the partial settlements/defaults drop off our credit file and we can think about buying again. So I will be trying to get a deposit together in those 4 years.

    We are due our second baby now in April, and I am working through my PND with a local counselling service. I will probably go back on the meds once baby is born, and then when it's about 2 (or before, if I'm going mad) I will try to find work to build up the savings even more. I'm also keeping busy with the OU.
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
Page 3
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 9th Nov 17, 6:52 PM
    • 2,302 Posts
    • 11,211 Thanks
    HairyHandofDartmoor
    Annoying when events make you spend money. I'm having that trouble at the moment .

    At least you are keeping track of it all anyway
    My Diary http://forums.moneysavingexpert.com/showthread.php?t=5716867
    Debt in July 2017 = £58,766 DEBT FREE 31 October 2017
    NEW GOALS - Build an Emergency Fund & Loss of Income Fund
    Emergency Fund 1 = £818/Emergency Fund 2 = £203.76
    • Pauper1
    • By Pauper1 9th Nov 17, 8:16 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    It is very frustrating. I don't feel like it will stop until February at least!
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • DebtFreeDuo
    • By DebtFreeDuo 10th Nov 17, 9:56 AM
    • 633 Posts
    • 3,085 Thanks
    DebtFreeDuo
    You sound on top of everything at the moment which is great, you know where all your money is going and why its there, you are in control. You have had a couple of hiccups but you are getting right on top of them which is amazing, well done!
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • Pauper1
    • By Pauper1 22nd Nov 17, 2:11 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    Hubby had last week off and then DS and I got ill again, dammit. So things were really all over the place, house is a mess and we've been spending way too much. My mum has DS this afternoon so I've been doing some budget adjusting and sorting out the new bank accounts.

    In terms of savings:

    The new savings account has little pots you can set up, so I've used that for my "yearly spends". At the moment we have 72% of our spends (birthdays, Christmas, holiday, car insurance) saved up, and are paying £55.52 a month into that account, splitting it into the pots.

    Our "emergency funds" account (3 months of expenses) is down £380 due to the washing machine and I'd set up a standing order to pay £31 in there.

    Finally, our "buffer" account (any extra spends, end of month panics etc) is down £313.57. We completely spent it out last month, with the double birthdays and week off, so DH's bonus got swallowed up in to that, but didn't cover the whole deficit I've not set up anything to go into this, as I'm hoping that anything I make will go there.

    So, monthly budgets:

    I don't think I can really do anything major about income, so I have to focus on spending instead.

    Our bills are at £1215 and after my work in October, I don't think there's much else I can do to bring these down. Hopefully our settlements will go ahead soon and we'll be able to stop paying £50 a month to Stepchange.
    The monthly savings total £96.52. I'm setting groceries at £250 and petrol at £150, which leaves us with £99.36 a month. It's not much but I know we're lucky to be able to save what we do, so I just need to rein in my spending.

    Whew. Now I need to go and open the letters I've been avoiding this week.
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • DebtFreeDuo
    • By DebtFreeDuo 22nd Nov 17, 2:27 PM
    • 633 Posts
    • 3,085 Thanks
    DebtFreeDuo
    Sorry to hear you have been poorly, good that you are right back on top of your finances though, I think we need to allow ourselves a little slack when we aren't very well.

    I love the sound of that savings account, might have to look in to that for next year.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • Pauper1
    • By Pauper1 22nd Nov 17, 2:34 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    I'm liking it so far - it's the new online-only B bank. We only joined because of the £250 cashback but I do like the pots, and the current account also has little helping hands like keeping track of categories of spending. Our switch only went through 2 days ago so there is definitely still time for things to go wrong!
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • DebtFreeDuo
    • By DebtFreeDuo 22nd Nov 17, 4:01 PM
    • 633 Posts
    • 3,085 Thanks
    DebtFreeDuo
    I've just googled it and it looks really good, I think this could really help with my pots as I'm really struggling with it at the moment and just feel like pots aren't for me.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • Pauper1
    • By Pauper1 27th Nov 17, 7:41 AM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    A little update from me. (I've got so off track lately but I know there's not much I could have done about it. I don't know if I'd previously mentioned the car accident but it's affected me a lot the last few weeks, and I need to be kind to myself.)

    Our savings standing orders will come out on the 1st, and will take our 'emergency fund' up to 91% of where I'd like it and the 'yearly spends' up to 74%.

    I used all of our 'buffer' account to pay off what was left on our credit cards. It seemed silly to be paying 30% interest on a debt when the money was sitting in a savings account only earning like 0.05%. I'm going to get my online food shopping on my credit card and move money across to the 'credit card account' as soon as I've spent it, so it's there to pay off when the statement comes. DH will do the same on his card, but for petrol. Hopefully this will gradually improve our credit rating.

    Our final settlements are erm, sort of moving along a bit. We've had an outright no (from a debt of £54! *is there a rolls eyes emoji?!*), a no but with a counter offer of 80% and a yes. So we're one debt down (one of the smaller ones unfortunately), and waiting for six replies. Even if all the rest of them say no, we'd have reduced our current debt from £27k to £11k, which is much more manageable. I'd be annoyed though, because we sold our house to become debt free.
    Last edited by Pauper1; 27-11-2017 at 7:56 AM.
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • Pauper1
    • By Pauper1 27th Nov 17, 8:15 AM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    It looks like the weekend credit card spends aren't showing up yet but I've guessed to the best of my memory and moved money across to the 'credit card' account and will check later in the week. I need to start writing down all my spending as it happens, it'll also allow me to see where I can cut back, because I need to.

    I think I need to move some money from the Christmas pot of the savings across to the main accounts, which is a bit annoying but the presents cost more than our spare money this month and it is what that's supposed to be for after all!

    We've only got £68 left in our 'groceries' account which is a bit weird. It gets confused because all the spending comes out of the same account. After adding it up it looks like we've spent £120.80 already this month (7 DAYS!!) but we did have our shopping for the week delivered yesterday, so hopefully won't need anything until next weekend. It should have left us with £129.20 in our account though so I guess we've been taking out of there for other things. I think that moving all the grocery spending over to my credit card will help with this confusion as well. I'll need about two weeks worth of shopping to get through this month, so I need to find £31.43 from somewhere.

    I'll probably only need another £20 of diesel this month, and DH will need about £80 of petrol, so that means we're on track in that account at least.
    Last edited by Pauper1; 28-11-2017 at 2:28 PM.
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • Pauper1
    • By Pauper1 28th Nov 17, 2:32 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    I've had two NSDs this week as DS and I have only gone to pre-paid activities so far (swimming and 'Wild Tots', which I pay for in batches/direct debit)

    I've also been focusing on uni work in the afternoons as I have an assignment due next Friday and I'm a couple of weeks behind. It does mean that DS is spending a lot of time in front of the tv unfortunately. My mum will have him for a bit tomorrow so I will feel less guilty as she'll do something fun with him no doubt.

    I'm gradually working my way through the tidying as well, so the house is feeling a bit more back to normal. I really want to sort through DS's toys at some point as he got SO much for his birthday and I'm sure it'll be the same at Christmas!
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • Pauper1
    • By Pauper1 29th Nov 17, 10:56 AM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    So I underestimated our credit card spends by £22, which really shows me that I need to start keeping track a bit better, especially of weekend spends. A £22 underestimate each weekend is at least £100 a month so that's where our spare money goes!

    Today is going to be my 3rd NSD in a row, but it wasn't supposed to be! I got DS and I out of the house by half 8 so we could go in to the big town near us to get the last bits for his advent calendar. It was a good 40 minute drive in pretty miserable weather and traffic. Got to the underground carpark, took a token thingy, went to put it in my purse.... and I'd forgotten it! So we just drove straight back home. What a waste of fuel. DS had fallen asleep though and was super miserable before that so maybe worth the aggro!

    I've come to my parents and they've taken DS out for lunch so I can crack on with my uni work. As per usual though, I'm on here instead! Haha.

    Have a lovely day all
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • DebtFreeDuo
    • By DebtFreeDuo 29th Nov 17, 10:59 AM
    • 633 Posts
    • 3,085 Thanks
    DebtFreeDuo
    The little spends really do add up, especially when you don't keep track of them or just think 'oh I'll write it down later'.

    Not so good on using the fuel but at least it will save you spending anything and you can get on with some uni work. Go and do 20 minutes and then reward yourself with 5 minutes on here and then repeat. I find little bursts really helps me.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • Pauper1
    • By Pauper1 30th Nov 17, 2:19 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    I got lots of uni work done yesterday, thanks for your motivation DFD! And this morning we attempted shopping again, which (mostly) went to plan. I've rejigged the accounts and updated the standing orders as I moved money from the Christmas savings to cover the advent bits.

    We've had three more responses on the settlement, and we're still at a 33% uptake. The second largest amount has agreed though, so that's a positive.

    I'm obsessed with the idea of us owning our own house again. Everything I do is aiming for that.

    It's started snowing again so I might take DS out for his first ever taste of snow! We need to pick up a parcel from the post office anyway, so will head there before it gets dark.
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • Pauper1
    • By Pauper1 30th Nov 17, 2:24 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    Snow literally turned to rain as I was typing

    So instead I updated our total debts, taking off the two that have agreed to the settlement, and worked out that we've paid 58% of our debts in 3 years. Hopefully that will be 100% by Christmas!
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • Pauper1
    • By Pauper1 30th Nov 17, 4:27 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    I've depressed myself this afternoon. Seeing as we are close to being debt free now I started looking at the future.

    Once things are settled next year it looks like we'd be able to save about £3500 a year, which I appreciate is a lot of money and we are lucky to be able to do that. By our target of 2021 we'd hopefully have about £19k, which would be enough for a 10% deposit on a house of the right sort of size for us. Perfect, right?!

    Except the most we seem to be able to borrow is £118k, which is a shortfall of about £50k. If I look at houses around here for £137k (which is the mortgage + £19k savings), we could buy a 2 bed park home, a 1 bed flat or a 2 bed terrace in a bad part of town. (We will be 2 adults, 2 kids and 3 cats so ideally need a 3 bed anyway, and we sold our 2 bed flat to aim towards a house with a garden) WAA

    I suppose we just have to keep plodding and hope that something changes - house prices drop, big change in income, some old great aunt that no one has ever heard of leaves us a farm etc
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • Pauper1
    • By Pauper1 30th Nov 17, 4:30 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    (I mean, we could live with my parents, save an extra £700 a month and have £52k in savings by 2021, but we don't talk about that)
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • Pauper1
    • By Pauper1 30th Nov 17, 4:46 PM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    Okay, so 5th post from me today (I know..!)

    BUT
    • I changed the mortgage term to 30 years, as we'd be 31 and 33 when we took it out so they'd probably accept that (and we could figure out overpayments I'm sure),
    • and worked out a 1% per year increase in DH's salary (as that seems to be his average - although I am expecting/hoping for a promotion because he seems to be given more and more responsibility at the moment)
    • plus added me in working part time again (as I hopefully would be)

    AND it said we could borrow £161k which is a much nicer figure. Phew
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
    • redofromstart
    • By redofromstart 30th Nov 17, 5:28 PM
    • 632 Posts
    • 3,590 Thanks
    redofromstart
    I think longer borrowing periods seem to be normal now, and the calculations vary so widely between the banks. Is it worth looking at those government scheme things too?
    • DebtFreeDuo
    • By DebtFreeDuo 30th Nov 17, 6:51 PM
    • 633 Posts
    • 3,085 Thanks
    DebtFreeDuo
    Save as much as you can in a help to buy ISA which will help boost your savings by 25% (if you don't already), you will also earn some interest on your savings, hopefully the rate increases soon but a help to buy ISA offers a rate of 3.5%. As redo says longer borrowing terms are becoming the norm and that's not to say that you can't pay it back more quickly and then when/if you remortgage you can look at the term again. All you can do is save save save and try and work on increasing your income, do this and then see where you are in 2021.

    Also I know £700 would be a huge amount to add to your savings by moving in with your parents and if its possible then great but for me I wouldn't like to move back home, I love my own space too much, add in a partner and another child and it could become very stressful.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • Pauper1
    • By Pauper1 1st Dec 17, 6:26 AM
    • 289 Posts
    • 2,363 Thanks
    Pauper1
    redofromstart thank you, I did have a little look yesterday but the new builds that are big enough round here start from £255k which is just unobtainable, and the other one is just about a 5% instead of 10% deposit, which shouldn't be an issue for us.

    DebtFreeDuo so many good ideas! I might be wrong but I thought the ISAs were for first time buyers? You're right about moving home and DS thinks the same. I wouldn't be going back to work until at least 2019 but that's two years of increased income I guess, which will definitely help with a higher mortgage offer.

    I sent DH loads of numbers and figures yesterday and he hasn't even bothered to read it. He's really doing my head in at the moment. Hopefully that passes soon...
    Last edited by Pauper1; 05-12-2017 at 2:56 AM.
    DMP start 1st May 2014 - £22,850 £39,349.41 Original DFD from Stepchange 6th Sept 2039... Aiming for 1st Nov 2026
    Priorities changed, sold our house, going through the settlement process and hope to be debt free by Christmas 2017
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