The challenges begins....

elliewild

i awoke very depressed today but even though ive found out i now owe £981.76 in mortgage arrears i have spoken to my partner and we are positive we can clear the £12,000 in 4 years. we've even made a start (even though its small, its a start) first off i changed my gas/elect package to a more benficial one, i found out that i'd overpaid so a cheque for £350 is in the post! instead of paying £80.50 per month, i now pay £35.50 and its all online so i can see everything and have discounts on my rates.

we've also thought about the small things like switching off and using less water - ive labelled some coke bottles 'plant water' and emptied my dehumidifier into them - ive left signs about saying dont leave tap on and put a water bottle in the toilet to use less flush. (i have a dehumidifier because everywhere i live has damp! and as i dont have any kids, cant get any grants etc)

i've also written up an action plan (month by month) to show what i should have paid and what i have paid etc. so i'm actually feeling quite positive.

ive also been on asda and made a shopping list on all the essentials - normally i spend about £100 on food per month (with dog food) but my list is now £60 per month (with dog food) with better picked items to make a number of dishes with - it seems a bit weird but essentially ive saved myself £40 per month by doing a more constructive shop. (i like to do it online because then you know what your spending - and you seem to get more for your money)

i was hoping to get a loan (but everyone rejected me) i found out my current loan was 19.2% instead of the 7.9% i thought - so wanted to get a better deal and consolidate all other cards (rates are 14-19%) and Natwest offered a graduate loan for 9.4%. i thought i could save by consolidating and card tart with the last £2000 (as i have been doing-however noone will give me a card at the mo).

is it possible to clear a debt of £12,000 any quicker than 4 years? it would be nice - i'm gonna try!

savingholmes

Hi ellie - welcome to diary land.

i'll jump straight in if I may... Have you spoken to your mortgage company about the arrears and how you plan to address them? That is a top priority - that and council tax....

You are unlikely to have a good credit rating if you are in mortgage arrears so don't apply for any more cards for 6 months or so to allow some chance for your credit rating to improve....

You may find it helpful to post a statement of affairs showing all your income, outgoings, assets and liabilities http://www.makesenseofcards.co.uk/soacalc.html and the format it for mse and post it on here if you dare - I did a year ago and have made massive strides since!

If you want to know what to pay off first - use the snowball calculator on this website here to work it out: http://www.whatsthecost.com/login.aspx

Any if you are struggling to know where your money goes - you may want to try an on-line spending dairy http://www.spendingdiary.com/

Best of luck!

savingholmes

ps Congrats on your upcoming wedding!