Nice house in the country?

Harrietbaby

Hiya, just registered after being a long time lurker! I have a pretty good job and other half works full time as well. I am currently on maternity leave after having my second beautiful daughter and here's my quandary! I owe about 12000 including student loans (approx 9000) and am really getting to grips with tackling my debts - in credit on barclaycard by £1.89 (got statement today!). My problem is that I hate where I live, it's in a really rough area and I really want to move in about 3 or 4 years when eldest daughter will be 5 or six. After being rubbish with money, various career changes etc. financially we've never had it so good - even with the debts. I really want to be debt free, but the house needs sorting - we've not had any paper or carpet in the hall for three years, the kitchen's from the land time forgot and the garden's a jungle! Having looked at the mortgage board I see lots of people saving deposits - we are lucky we bought at the right time and have a mortgage/ loan of 48000 and a house worth (as it is) about 85000. I really REALLY want a nice house in a nice area for our children to grow up in (don't intend to move again)- what should I do first? Throw all spare money at the debts, save a deposit or do up the house for when we sell. OH is totally rubbish with money so everything's down to me. Is it better to approach a mortgage company with no debts so you can have a bigger mortgage or to have a bigger deposit saved? Aaaaarggghhhh - not sure what to do and am wearing hubby down with endless envelopes with my workings out and figures on them! Honestly he'd be happy living in a hovel!

Horace

Hi and welcome

It would be easier if you could chuck your spare money at your debts. Why not do a statement of affairs https://www.makesenseofcards.com/soacalc.html and paste it here. That way people can see your incomings, outgoings and the APRs on your debts and will be able to give advice on where to cut back.

Harrietbaby

Ok so here goes. Have lumped house insurance in with mortgage payments. Hubby andI both have between 40 and 60 pounds a week 'spends' - this includes the petrol I've listed - and I use mine mostly to pay off extra on my cc's. Have written what will be when back at work although will have HUGE childcare costs to factor in as well just not sure what these will be yet:A !

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 1000
Benefits................................ 225
Other income............................ 0
Total monthly income.................... 2725
Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 114
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 30
Mobile phone............................ 0
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 160
Road tax................................ 12.5
Car Insurance........................... 27
Car maintenance (including MOT)......... 5
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 2
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1148.5

Assets
Cash.................................... 500
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 88000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 35000....(320)......0
Secured Debt.................. 14000....(89).......0
Hire Purchase (HP) debt ...... 100......(25).......0
Total secured & HP debts...... 49100.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Smile cc.......................1920......40........16.8
Tesco..........................360.......0.........0
Student loans..................8800......240.......0
Mum for car....................2000......100.......0
Total unsecured debts..........13080.....380.......-

Monthly Budget Summary
Total monthly income.................... 2,725
Expenses (including HP & secured debts). 1,148.5
Available for debt repayments........... 1,576.5
Monthly UNsecured debt repayments....... 380
Amount left after debt repayments....... 1,196.5
Personal Balance Sheet Summary
Total assets (things you own)........... 88,000
Total HP & Secured debt................. -49,100
Total Unsecured debt.................... -13,080
Net Assets.............................. 25,920
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.[/font]

Trying_to_be_good

Is your student loan from the Student Loan Company (the government)? If so, it should be at a really low interest rate, so it's best NOT to overpay on that one, but pay off the other debts, and build a 'safety net' of savings - 3 to 6 months' worth of expenses is recommended.

Harrietbaby

Thanks - Trying to be good. Am not overpaying the student loan but they're still taking lots off me each month - they take 145 direct debit and then about 75.00 out of my wages. This is bad enough but I only get Statutory Maternity Pay in April about £450. They would let me defer if I have three months wage slips showing I'm earning less but by then I'll be back at work! Figured I'd just keep paying it and keep the old belt tightened (just had homemade sausage casserole for the 3rd night on the trot - my two year old's not best pleased!):A

homeaway

When you decide that the time is right to sell the house then you can make the house and garden presentable on a budget. You might not need to replace the whole kitchen you could either paint or replace the doors and you can even paint over tiles! If the paper in the hall is looking bad then you could paint over that as well. Carpets in the bathroom are a no no for me ( having lived abroad for a while) i would buy some vinyl. Cutting the lawn will make a big difference and tidying away kids toys as well. If you get some nice pots with plants in as well. We boxed a load of stuff up before we moved so there was not too much clutter. Hope this gives you some help.

Harrietbaby

Thanks Homeaway. Think you are right about leaving the home improvements for now - although we can't paint over the hall paper as I tried to take most of it off. We are rubbish at DIY - still have no door handles upstairs and have been here 8 years! Other half managed to crack window in two year old's room trying to put up a blind - which, I may add, still isn't up! Having said this we have done up our bedroom and dd's room. We even sanded the floors so at least 2 rooms are presentable (in fact, they are lovely!) - I think just being off work and in the house more makes me depressed by the state it's in - we've got horrible polystyrene tiles on the dining room ceiling, concrete walls you can't get a drill through and the bathroom is covered in tongue and groove. Add to that a hubby whose idea of sealing a bath is to get it all over the walls and leave it as wobbly as the yellow brick road. I know that we will need to get professionals in when it comes to it as I, at least, know my limitations but like you said I think I will leave this closer to when we move. I won't mention it to hubby as he will no doubt make a bad job even worse!!! Thanks for all your advice

RAS

Firstly, you could clear the Smile card in 7 months is necessary, so that is your priority.

Secondly, if you hate tongue and groove, you might try painting it one colour needs abit of sanding but you would be amazed how different it could look.

^!£$&

I agree I really think with the apr on the smile cc, you should make that your priority and use any spare ££ you have left after all other essential expenses towards clearing this debt!!