Chasing the debt free daydream...

Winnie_in_Pooh

Good point Ted - they're both about 4 years old, 4 years interest on £2k at 8% is.....maths I can't do :rotfl:

If we got the £2k it would make such an enormous difference. Big time fingers crossed!

Got the plasterer coming to fix the former fireplace tomorrow afternoon so I'm ridiculously excited it also sounds like fab step-dad is coming to replace the doors at the weekend I might actually get my house back before the baby arrives at this rate

This is shaping up to be a good week!

DebtFree2012

How fantastic - it's lovely when it all starts coming together - really pleased for you
xxx

Winnie_in_Pooh

Well its a horrible day down here! Scuppers my plans of doing the washing and getting it nicely dry on the line! Hopefully tomorrow - I really need to get the beds changed but I hate doing that unless I can get it dry on the same day....another silly OCD I guess!

So, I'm stuck on the sofa today and haven't got a lot to do so I think I'm going to give the budget a bit of a going over and check the gas and electricity tariff I'm on because I've had a letter to say my current deal is ending soon. We also need to start saving for the potential holiday (£1000), for passports (£300), for the big plastering job we need doing (£750), for DS's termly swimming (£56) and keyboard (£26) lessons and for the baby equipment we'll need as DS2 grows (£??)...not to mention we want to get a proper emergency fund set up (thinking at least 3 months income) which we'd like to have before I go to university next September! That's before we even mention saving up to settle debts!

Have also just spoken to the DCA about the HSBC overdraft and they've said we can't pay the settlement figure they offered us in installments which is pants but by keeping the payments at the current level, we're still nearly a year off clearing it so I'm not sure what to do. It's our lowest balance account and I would dearly love to get rid of it, but then I'd dearly love to get rid of all of them...oh I don't know.

I know I'm technically supposed to treat all my creditors the same, pro-rata payments etc etc and on the whole I do but I really want to start seeing results! I mean the balances are going down, which is fab, but it really would be nice to see an end....

I know the advice is not to save while you're in debt, which makes perfect sense when you're paying interest on the debts. Well I'm not paying any interest so does that rule apply in my situation?

My gut instinct is to keep paying the smallish monthly amounts to the debts just to keep them at bay but to make a really conscious effort to save with a view to clearing them. But is that right?

Sorry for the brain fart

DebtFree2012

My opinion for the day (given that I may change my mind as per my diary lol) is that I would clear the debts frist. Have emergency pocket money - as in small amount to get groceries for a fe days or put a tenner in the car but that be it for now. Anything else is a case of they can't take what you don't have and if it's a repair to the house or something then you have insurance I presume.

Other things can be dealt with on an ad hoc basis but if it were me, I'd go for the overdraft first and then pick the payment for the rest - ie £50 to all and stick to that til OD cleared. Emtionally it's the best way forward. It's such a nice feeling to clear something and close it- makes you feel like there is an end after all.

x x x

Skint_but_Optimistic

Yeah I am clearing a debt with Vodafone then its one more off my back, but I will be creating an emergency fund of 500, even though I have debts. All to often the car will break and I have the guilt of putting this on the credit card, or something happens and the credit card picks up the slack. If I have a small emergency fund I can use that, and replace it, but I need to build it up first. We are going to have 250 in cash in the house, and 250 in a savings account. I have allocated the first hundred towards this from the Lloyds money. then its back to debt busting.

Winnie_in_Pooh

Thats the feeling I'm after DF - the satisfaction of clearing and closing!

I think I probably agree with you. I really want to make a decision on this and to stick to it so I want it to be the right one.

I don't think we have the self discipline to save for full and finals if I'm completely honest. When we have money sat in the ISA, we always find *something* around the house that needs fixing or replacing - we never seem to be able to just leave it there. I find it incredibly frustrating.

It's also really hard to budget right now, without knowing how much the baby is going to add to our costs. I mean we can take an educated guess but until we've had him with us for a few months we're not going to be able to work out the actual costs. Maybe I should just keep running things as they are for the moment and then maybe do a big reassess after Christmas?

Skint_but_Optimistic

Depends what works for you, I just want a little bit cash, nothing too drastic, just in case.

Winnie_in_Pooh

Skint_but_Optimistic wrote: »

Depends what works for you, I just want a little bit cash, nothing too drastic, just in case.

Exactly how I feel. Especially because we don't have a credit card to fall back on even in the biggest emergency.

Mmmm so much to think about!

DebtFree2012

I have no will power most of the time - anything I have I need to put to debt straight away as it's like water through my hands otherwise.

xxx

Winnie_in_Pooh

DebtFree2012 wrote: »

I have no will power most of the time - anything I have I need to put to debt straight away as it's like water through my hands otherwise.

xxx

I think this is what I'm going to have to do if I'm going to make any real headway. It's not too much of a problem considering these days most places have internet banking, just need to get it all set up with the poxy card reader thing that the bank insists I use!

Going to have a good natter to DH about it when he gets home tonight. He has a rather long shopping list, including my bubble bath , but hopefully that won't keep him too long. I need to talk about this while it's all fresh in my mind!