Update from themaccas trying to keep debtfree!!!!

themaccas

Just thought I would post an update, we paid off all debts in June this year and are now coming up to our 6 month birthday!!!:beer:

I have to say it is very hard staying debt free and becoming more difficult however our financial situation has changed a fair bit. In May we sold our house we were renting out and bought another house which is our dream family home and we love it. We have more than doubled our mortgage payments in doing so:eek: and all of a sudden our good income levels have started to be swallowed up. It has taken a bit of getting used to and are now having to make payments for things we never have done in the past ie:

- oil for heating recently cost £483 to top up our oil tank plus cost of firewood
- paying for DS1 university accommodation costs £363 per month (7 months of the year)
- council tax gone from £120 to £195 per month
- repair of sewage pump - £435
- school fees around £700 per month ok this is not new and includes afterschool childcare but it still costs a lot!

The good news is that I was successful in getting a promotion and start my new job in Jan so from the end of Jan our joint income will be 5K per month

AT the moment it is so difficult to not add a few extra things onto a credit card and recently OH and I were talking about something we would like to get. We talked about where we were going to buy it from and when he would go to buy it. Then OH asked how we would pay for it.....and that's the problem....at the moment we have absolutely no savings not even £1. I can't even see when we might be able to at the moment either, every month there is 'something'...car tax, servicing, boiler servicing...the list goes on. I haven't done an SOA for my own information or neither do I look at our online accounts a fraction of what I used to. I think it is getting to the point where unless I take a firm hold of our finances we will be going down the ol' slippery slope again and I do not want to be there! I wish we had held back on doing the home improvements when we moved in here as there is a lot to be said for having some savings and security for the unknown.

hampsterpoo

Well done on 6 months and thanks for the update , you've already posted what you need to do (SOA)to check so I'm sure your'll be okay

Verbatim

Hi there,

Always good to hear from you. Glad you're enjoying the new home and congrats on the promotion.

At least you're OH has secure employment, (I don't know what you do). Atm I feel we should cut back as we're not sure how things will pan out after the current work comes to an end but then I think guiltily that that sort of thinking adds to the recession and while we can afford to we should carry on as normal. But I want to build up our savings even though I know now is not the time given the low interest rates out there. I agree with you that a savings buffer is essential though. I'm sure you'll take "firm control" as you put it now you've recognized the danger.

Are you in an area without gas, hence the need for heating oil?

mummum2

Wow! thanks for the six months update. I would certainly concur, I would also be weary about building up debt again if I managed to shift that amount in such a small space of time. Good luck with whatever you decide to do.

MM2

themaccas

No unfortunately we do not have a gas supply to our village other wise we would have changed right back! I know I need to do an SOA even if I do not post it here. I just can't believe we can't seem to save each month, I mean nothing except money for school fees. OH has 13 more years of stable employment (HM forces) and I work for the NHS so we have good stable jobs with lots of career opportunities even in this current climate.

The 'purchase' (well actually a brand new plasma TV ) has been put on hold indefinately. It was a wake up call when OH asked how we were going to pay for it - he thought I was going to say put it on the credit card:p . If we have to ask that then we can't afford it. I did feel it would 'only be one thing on credit' but we've been there before!! So it's a big fat no at the mo!! I have now told him we try something novel and do something called SAVE!:rotfl: And fortunately he is fine with that. £100 per month for a year...we could have one for next xmas:T

natsplatnat

Many congrats on your 6 month anniversary! I look forward to the day when I have one!

I can understand how easy it would be to start using the CC again. I took out a consolidation loan a few years ago with the mindset that "that was it" and that would be paid off and I would be free (doh!!). I now have an addition £6500 of debt!! All because I thought a little here and there wouldn't matter! But it does!!

I hope you get a tight grip on your finances and manage to maintain your DF status!

schoolrunmum

Know what you mean about oil! Our tank is about £650 per fill, and we have a Calor one too which is about £500 a pop.No mains here either..fortunately we have a log burner which has been a great investment...

themaccas

natsplatnat wrote: »

All because I thought a little here and there wouldn't matter! But it does!!

So true, we have consolidated before - twice it never works!

Verbatim

And school fees..............We have only one dd and school fees for us finished last year and we really notice the difference! Helping out with uni is a lot easier.