Clear the Arrears

andrinaperry

Well perhaps tis is a bit of a digression form the norm but I am seriously needing some support here.

Ok current mortgage arrears are set on a court plan of £150 per month off the arrears and we are keeping to that but I have done some calculations last night and this will take us 4 years to clear at the present rate so need to give that some serious discussion when DH is home Monday.

I have joined the grocery challenge and this is really focusing me and am trying the NSD challenge too.

Now my question, would I be better saving the extra I can afford to pay off the mortgage until the discharge of the court arrangement or going for broke and paying extra off the arrears each month. That may sound like a no brainer but I am thinking that sticking to the arrangement will be good for future credit file.

Advice please, there is not a lot of spare cash in the pot

Andrina

ailuro2

andrina, you need to sit down and work out why you got to £7700 arrears on your mortgage in the first place, the thought of future credit should not really be to the forefront of your worries at the moment.

Yes, pay off your arrears quicker if you can, live on a shoestring budget and get into the habit of disciplining yourselves to spend a limited amount of pocket money each week.

Any scope for taking up a second job when your OH is away?

andrinaperry

I work 48 hrs a week on a four on four off basis for the police so fitting in another job would be difficult.

There is no excuse for the arrears we spent follishly and with no thought at all but we have now come torelise that it cant go on.

I am a true spendthrift who is in remission and trying hard to keep to the budget and I am doing it.

We have a huge house and now only one child at home, the house is not worth selling in the current climate so its a matter of getting on with it at the moment.

We should have a n excess of around £300 per month after everythingis paid but it never seems to be there ther is always something to absorb it.

In the last three months we have had two car MOT's and two lots of car insurance to deal with. Luckily we own both our cars so that is a good point.

I have joined quidco and pigsback and have started to earn on both, any other suggestions gratefully accepted.

Andrina

Optimisticpair

You are making progress reading this huge site I see with getting ever so thrifty and NSD's.

It seems a weight on your mind. So long as you have something in a rainy day fund for an emergency I would pay off the arrears.

I think if it is something you have discovered that you can do and want to try it will have more power for you, and you will stick to it more happily, even when it is difficult to do, than anything I could suggest but...

a) you say it's a big house but you don't want to try to downsize at current prices so could you take in a lodger? The info is on the net somewhere try Google-ing rent a room scheme.

b) can you make this years 'xmas' presents?

c) groceries down by cooking from scratch not eating out or buying expensive ready meal, and changing from 'Best of' to Own brands and Value brands.

d) cut down on your gas and electricity consumption, see Utilities board sub boards and Old style Thrift board for ideas.

e) have you had a declutter and sold things?

The reaching a target however small is a sign of progress that keeps you going. How about using the 'mortgage pig' idea and throwing your change in the piggy bank. I like a glass jar so I can see it filling up but some like to feed a sealed pot. There's a thread on a ' mortgage pig' - mine is a kitchen equipment pig yours would be an arrears pig that's all.

Yes, course you want to think about mending your credit rating if you come to sell you house and get a new mortgage or 'ulp have to borrow for something like a car suddenly because you have no savings to fall back on.

McKneff

if you have a big house have you room for a lodger or student who only stays weekdays

andrinaperry

thank you for your suggestions, I feel more focused just by posting. Its not an easy subject to talk to anyone about. My sister-in-law is a big fan of this site so I can chat to her for hours exchanging ideas.

A

gallygirl

Andrina, sign up with mystery shopping companies - you won't earn a fortune but it would fit in well with your work pattern. Also you get little treats like coffees and cocktails and there are a lot of PO ones about - I've got 3 in next few weeks. If they call for a £5 purchase I buy mixed stamps and use for posting ebay purchases so that's an extra bonus :j .

Also, start a spending diary then you'll see where the extra money goes.

I assume your arrears which you are paying off have no interest charged on them? If so save the money in a decent ISA - you should have a few months salary put away in case of emergencies.

Good luck!

andrinaperry

Thank you Ali007, I have started a spending diary and it is really making me think twice before opening my purse.

I have a 14 year old who is starting college one day a week and the expense for that seems huge, £65 for a kit, £20 for a tabard, what next.

The important thing is, as my DH pointed out we might feel skint but at least the bills are ALL paid which is a huge step forward for us as a couple.

So its lots of cleaning today to keep me away from the shops and dinner in the slow cooker, veg from the garden and meat from the freezer, another NSD please.

A
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andrinaperry

Our aim is to have cleared £1000 off the arrears this month (sept).

I feel committed to this now and it feels good, can make this committment everymonth but a bit of Bank hol working and some overtime has fallen right so pushing it all towards the mortgage.

A
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setmefree2

Good Luck:T:T:T

andrinaperry

Thank you setmefree I am finding this really useful I am finding this really gives me focus, I am going to set my self a target date for clearing these arrears I am really going for broke. well not broke but you know what I mean.

NSD today, really pelased.

A
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