A fresh start

Seaxwyn

I don't think I could get it much cheaper - I shopped around when I got it and this was the best deal at the time. Still undecided what to do.

hypno06

If you pay that amount off your overdraft, for example, is it really going to reduce the debt permanently or is it just going to free up that bit of the overdraft again to be used later in the month.....

If it is properly reducing debt, then fair enough, but if it is just going to get "lost" in the overdraft, then you won't actually be any better off either now or if OH died.

If that is the case, and you are still minded to cancel the insurance, then I would suggest setting up a standing order for exactly the same amount to a savings account that you can then pay off the full overdraft or a loan once you have saved up the full amount, thereby cancelling that borrowing for ever.

It is, however, sadly one of those s*ds law things - if you keep it going, he may live until 90 and you will be thinking of all those premiums you have paid unecessarily.....cancel it, and he could have a heart attack 3 months later, and you will be cursing yourself for having cancelled it. That is why you need to make sure that if you DO cancel it, the premium is not just getting "lost" in day to day stuff.

Seaxwyn

Hi Hypno - I keep turning those two possibilities over in my head, if only one had a crystal ball!

Seaxwyn

1st of September and my debt now stands at £28,329.13. That's £628.41 less than last month. :beer: Largely thanks to a tax rebate I received.

However my hopes of a big pay rise have faded away. I spoke to the Finance Manager yesterday and learned that the two other 'managers' get paid barely any more than my present salary (though they do have a smaller management load so I can still argue). She thought I would be lucky to get a rise of more than a couple of grand. So there go my hopes of an easily balancing SOA and money to spare. Oh well... it was a nice respite from reality.

She also suggested that I ask to stay on my present salary but go down to four days a week, which is what she plans to do herself.

On the life insurance front, I decided to get a quote for the same level of cover for me but only £50k in the event of OH dying. The best quote was £50.41/month, that might be a better option than canceling his altogether, thoughts welcome.

hypno06

shame about the salary, but a free day once a week would give you the opportunity to take some freelance work if it came up.

The life assurance - well that looks like a reasonable compromise to me and still a good saving month to month to help balance the books. I would be tempted to go along with that.

I hope that September is good to you and well done on getting the debt figure down :T

Seaxwyn

Salary confirmed: £32k. A far cry from the 50k that was dangled before me. I had been planning to settle for 38..... Oh well, it will mean another £100 or so in my bank each month and I am not ungrateful.

hypno06

Well, a rise is a rise, and in this economy we have to be happy enough with that.

It is a shame that the bigger numbers were dangled in front of you though, my mind/calculator/snowballs would have been going frantic with excitement and planning!!!

Seaxwyn

Yes I was getting very excited thinking that my paycheque would actually cover all my outgoings. But according to an online calculator, my new take-home pay should be £1,936.30, which is £234 more than it was before. And I am about to cut the life insurance premium by £50/month, so we are edging nearer to that elusive state called solvency. The jury is still out on whether to scrap or keep the car.

hypno06

well, that is a good amount of difference each month, so although not the numbers you were hoping to see, it is certainly a lot better than before, so a definite step in the right direction.

Did OH hear any more about teaching work, or is it just on an ad-hoc basis? Does he have anything else in the pipeline that can help you get to that solvent state?

And on another matter - are the girls off to 6th form next week, and are they looking forward to it? DD can't wait to get started!

Seaxwyn

Tantalisingly, OH had a missed call on his phone from the college, and rang back, but they haven't returned his call! He is going to ring again today. It was only for ad-hoc teaching, all the same, they must have done the timetables for next term at least so it would be good to know he was on there. He doesn't have anything else in the pipeline apart from gardening and delivering newspapers.

Yes the girls start college next week. They have interviews this morning at which they will confirm their A level choices. DD1 is still undecided! They are excited too, the sixth form college has a good reputation both academically and for fun, they are going up with all their friends from school and are looking forward to the expanded social opportunities! Lucky things, it is a lovely time of life. What is your DD studying?