DFSD's five year plan... and all it brings along the way

debtfreesomeday

Urgh, tonight has been another financial brain storming evening. Over the past few days, I have been looking into ways to cut our term of debt and make life easier for ourselves once maternity leave is up and I have to go back to work.

We have a savings plan in place to save approx £6K before I go back to work around this time next year. Of course, we will then have the costs of childcare and a part time wage to consider but we have worked this all out to the best of our abilities, and, although it will be tight until the debts are paid off, it's perfectly do-able.

I have been looking at our outstanding loans this week to see if there's any way we can repay them more quickly.

As it stands, we have on with Lloyds with £7.5K left on it at 9.8% APR which runs until 5/2015 and one with Santander which has around £6.5K on it at 8.9% APR and runs until 9/2013. Total - £14K ish. So, once I am back at work, money will be very tight until the whole lot is paid off in 2015.
Now, I am fully aware of the pitfalls of consolidation loans, but we have looked into this idea with a fine toothed comb and it makes sense. Sainsbury's are currently offering loans of up to 15K with 7.7% APR. IF (and it's a big 'if') we can get them to offer us a loan at that rate, of 14k over 3 years, we will only be paying £55 a month extra (which we have worked out that we can afford with a bit of alteration to the savings plan) and will cut our debt free date by nearly two years and save us X amount in interest - thus, we will be completely debt free by Christmas 2013.

We have applied for this tonight, but I am not holding my breath as to whether we'll actually be accepted as you know what these loan companies are like! Wish us luck though, as this could be our early ticket out of this mess.

DFSD

Chocforever

Oh that sounds great, DFD in Dec 2013. I have my fingers and toes crossed for you .

debtfreesomeday

Thanks Chocs. I've woken up early this morning though, realising our chances of getting accepted are less than slim - it's occured to me that I've applied in my name only but listed our bills as the full amounts which obviously hubby's wages go towards too - which obviously isn't going to look good. No idea why I did it that way, I was just too tired to be doing things like that late at night I guess. What an idiot. I should've done it as a joint application rather than a single one. Grrr.

So, I've been lying awake for the past hour or so and have now got up and come downstairs as I could feel a 'too-much-thinking-too -early' headache coming on. I hope today gets better!

debtfreesomeday

Sainsbury's said yes at the rate of 7.7% - we've just cut 2 years off our debt free date! Woo hoo! :j:j:j
(The free £50 giftcard will come in handy too!).

Chocforever

Fab, fab, fab. That was a good evening's work :T

debtfreesomeday

Thanks Chocs, I was convinced they'd say no!

I know it's usually a very bad idea to consolidate debts, but in this case I think it's definitely the right decision - we don't owe any more, the APR is reduced and we have shortened the term of the loans by nearly two years. I'm so glad I looked into it!

saorsie

That's fabulous DFSD - a good bit of number crunching there :j

-s-

debtfreesomeday

Thanks Saorsie, it definitely gave me a headache trying to work it all out last night, but it seems to have been worth it!

DFSD
x

wantabetterlife

Congrats DFSD :j, 2013 seems so much closer than 2015 to be debt free. You are doing really well and at least you nearly have everything you need for the baby. How many weeks pregnant are you? I am 35 weeks now and finish work this week, cannot wait! When i was on maternity leave the last time i found i had so much more time to shop about for bargains and get good deals and was also able to meal plan better, so hopefully you will be the same . Goodluck

debtfreesomeday

Thanks WABL. Yes, we have nearly everything we need now - just little bits and bobs that can be worked in with the grocery shopping now I think, and a crib mattress, but nothing urgent or expensive.
I'm 25 weeks today, so 10 weeks behind you. I can't wait until I leave work but I like to keep busy, and don't have family around us so am worried about getting bored/a bit lonely at home stuck in the house. I do intend on meal planning and doing a lot of batch cooking for the freezer though, and am quite looking forward to having the time to walk to our local village to get meat from the butchers and veg from the veg shop rather than relying on the supermarket.

Enjoy your maternity leave and I hope little one doesn't keep you waiting longer than he or she should!

DFSD
X