Basscadette and her Baby

basscadette

I will start this diary by saying I was first on the Mortgage Free Wannabe board, inspired by their diaries and determined to make a plan to pay off our mortgage ASAP.

Then I realised... actually we're in debt. I was obviously in complete denial because, when I went to calculate how long it would take to pay off all of our 0% credit cards, my face went white and my heart sank.

So I think before I decide to do a MFWB diary, I had better get to grips with our 'small' credit card problem.

So a little bit about where we are and where we need to be.

Cards:

1. 0.00% - £3386.36
2. 0.00% - £2343.33
3. 0.00% - £2249.16
4. 18.9% - £ 203.75
5. OH's overdraft £2000 :eek:

6. Npower - Approx £800

Total est debt = £10982.60

Imagine, I thought we only had £6k. When you just keep a random running total in your head it just doesn't reflect the reality when it's all down on paper. I'm horrified :-(

So, we got here because we bought a run down cottage for around £50k below the selling prices of other in the street. We depleted all of our savings and have put various items on 0% cards, such as a kitchen xoxo. As a result, and with little left to spend on doing it up (maybe another £5k to spend), we will have spent 10k in total but have around £40k equity (if the market doesn't drop any more).

5 days after we completed on the house, eroded our life savings and moved into a wreck and started a small business due to my contract ending, I found out I was pregnant. :rotfl:

As of 31st August, we no longer have my wage, only maternity pay and whatever I can muster from the business. This means I need to get my thinking cap in. Bubs is due in two months, we have 10k in debt and I want our mortgage paid of and an Audi A1 so I can get around town (joke about the car).

At least now I get why my OH has been a bit worried. I'm an 'Oh it's okay' sort of girl. He is a bit more with it. Now I know, at least, why he doesn';t want to buy me a diamond eternity ring when I give birth and why he visibly shudders when I show him the hotel I have picked for Cape Verde next Spring.

I think we need a rethink and these diaries are so inspiring, so join me on my journey to debt free wannabe then mortgage free wannabe.

I will update targets and strategies I have thought up shortly.

And special thanks to Earthgirl's diary on MFWB - that's what started me out thinking about the whole thing and opened my eyes to today's revelations.:T

basscadette

OK - I blitzed the bathroom and got my thinking cap on. How am I going to tackle these cards and OD when my income will plummet and a brand new, shiny expensive baby is due very soon.

Business - I have been very lazy in general with this pregnancy. I suffered from Hyperemesis up to week 22 and although I'm not at work I don't get a helluva lot done. I need to focus on bringing in extra income through the business and squirreling it away. I am not going ot pay off the cards straight away but put that money instead into savings accounts.

At present, due to me being lazy and heavily pregnant, I seem to be avoiding work. TOnight I am going to sit and really concentrate on what I need to do to get this business thriving. I have loads of revenue streams that just need my attention.

My maternity pay plus child benefit will be our day to day living budget. OH is on a good wage and will take over the mortgage payments and ctax once my income drops. Currently I am paying it as until last month we had a mortgage on another property too, which has now sold, and he took care of all of that. That property is where the Npower debt comes from.

Anything I make from the business will be put towards paying off the debt. It's all income over and above what we would bring in had I not started the business.

So - the outlook is that the more money I generate from business, the faster the debts will be paid off.

Not only that though - we need to cut our outgoings. I despair of some of the mundane things we pay for. So my other strategies are:

One of the biggest culprits is me wasting money at the shops. I tend to buy food for no reason rather than eating what we have in the house. Pork dips, crisps and chocolate definitely appeal to my senses more than cheese sandwiches. SO I am going ot do my best to have as many NSD's as possible which means not going ot the shops and splurging on expensive food and take-aways. That's a big challenge.

Lose weight (in combo with the above it should happen naturally hehe). I have bags full of beautiful, expensive clothes in size 10 and 12. By shedding Lbs, I will save £'s on new clothes as I really don't need any. Obviously the baby is stopping that one at the mo but I should start to control these things now so it will be easier when he gets here!

Give up on the luxury holiday. I feel we both need a holiday but we are 5* all inclusive people normally. Much as we probably deserve it after this year (no life whatsoever due to the house and baby sickness) I think I need to rethink how we do the holiday. It has to be warm and sunny and it has to be in spring, so we will look out for last minute bargains but I am going to ditch the idea of the 5* Riu and find something else. Hopefully should save a couple of £000 on that (that we don't have:o)

So tonight, after dinner, rather than sit on my bum comatose in front of the TV I am going to spend a few hours devising a workable strategy for my business. I realise that it's going ot be hard with a baby on the way so I will start with baby steps then a plan to ramp it right up afetr christmas.

Ok - off to start dinner as hubs due home soon. Bolognese on boiled salad potatos in this house tonight (very frugal :-) I need to use those potatoes and I am sick to the eyeballs of spaghetti recently. Should be nice and filling and is certainly cheap :T

Cup_Cake

Hi Basscadette,

I was exactly the same as you I shopped all the time despite not needing anything as the house was full of food. On top of that we were having takeaways most nights

Good luck with the debt busting!

Cup Cake x

basscadette

Thanks Cup_Cake. I see you are on a similar mission to myself.

I think spending is a compulsion, over and above enjoying nice food. Yet another addiction to tackle but one that will reap fantastic rewards if it is nailed.

Good luck to you too :-)

Hovel_lady

Hello and welcome to diaryland
If you don't already keep a spending diary - list every penny you spend. You'll be suprised where it goes.
And do check out the OS (old style) board - really good info on making the pennies stretch.
Good luck with your debt free journey xx

basscadette

Thanks Hovel Lady.

I don't have a spending diary as such but I have created a quite extensive spreadsheet system (one of my sad, sad hobbies) which tracks everything we spend.

I have kept this going for a couple of months and it makes for scary reading, but at least we can see where the money is going and it gives us a birds eye view of what needs to be whittled down or ommitted.

Just had to part with £236 for chipboard flooring, joists and plywood :mad: Feels like a waste of money as it's all structural - wouldn't be so bad if it was glossy flooring or a nice new three peice!!

Also been looking into my maternity pay. As my contract ends on 31st August, there was a hint from work that my SMP might be paid in a lump sum. Sounds great, but unfortunately I have a student loan (income contingent) which means that I will pay over £400 in student loan repayments that I wouldn't have to pay if it was paid monthly. Will try and fight them on this but they are a large organisation. I am speaking to the payroll lady tomorrow but don't see how we can get round that SL deduction as it is based on the income in that pay period rather than accross the year. It would make things more tight than they already are.

So, as you can see, I didn't get much business planning done this evening but have at least been doing some financial planning.

Love the OS board, just can't keep up with them

basscadette

Morning all,

Busy day for me today. Have some work in for the business and trying to build a bank of work for my main client for when I give birth. Think the last thing on my mind will be producing work for the business when I have a new baby in my hands, so building the bank so my OH can just log on and send the work at the right times. Only problem, it's hard to complete work that you don't need to submit right now, so need some motivation :-) I have another two peices of paid work to do this morning, then I need to look at a couple of my websites which are in desperate need of attention.

Should really get to the library today too. One, it gets me out of this house and two, I can't get to sleep without a book in my hand dince I got pregnant. I spent a fortune at the charity shop over the past seven months buying multiple books for a pound or two each. Must be £100 languishing on my bookshelf as I'm going through novels at an alarming rate. OH finally agreed to let me rejoin the library (I'm not too reliable with returning books and build up huge fines :-P) providing I only take one out at a time. Fine by me - an excuse to get out, exercise and get a free book that I don't have to store forever once I'm finished with it.

Also going to do some washing and drying clothes so fingers crossed with the weather!

Lunch today will be HM bolognese on toast left over from last night's dinner. Normally I would say we have nothing in but I am trying to be creative. Usually I would go to the shops and buy a sandwich, crisps and a cake (usually around £4 altogether, plus any other munchies I'm temptedd by) so that is a considerable saving.

Was aiming for an NSD today but I think if my two cats have to look at yet another plate of James Wellbeloved they are going to pack their bags and leave home. Luckily there is a bargain shop round the corner. So instead of a NSD, my challenge is to go into that bargain shop and only purchase cat food!

basscadette

Right, had a discussion with OH last night about the state of our finances and was telling him how well people are doing on here when they focus. We have agreed that the first debt to tackle is his overdraft. I never go into mine and in fact cancelled it some months back. I was a bit over-zealous as a student and was bitten by the overdraft bug. Unfortunately, that just means I won't have one. If we want something, it comes out of OH's.

So we end the month (let's call it Aug/Sep) at -£2200. Pay less immediate expenses brings it down to -£800. Our target then, it to end next month at -£1500 by a reduction of cutting uneccessary spending, trying to control the shopping budget (target £200 which we should easily manage) and living on my pay this month where possible. WHere it comes out of my account, as I have considerably less coming in, we will definitaly question every spend from it. So, hopefully I can come on here on 15th Sept and say we are down by £500!

The current SOA shows my reduced maternity income. Our actual aim is (especially if it is a lump sum) to live only on OH's wages. We cannot do that unless wer make some significant savings. As you will see from the current SOA, we really over do it. Problem is that my OH smokes and drinks expensive beer, so that's most of our entertainment accounted for.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 600 Currently more than this but looking to worst case scenario here which will kick in after this month.
Partners monthly income after tax....... 1843.84 Currently no chance of overtime or increasing this at present
Benefits................................ 0These will be saved for my son when he gets here or used for child things so not counted in income.
Other income............................ 0 The business has income but as said, currently it's not a lot and this is all saved for tax, business expenses and savings. It has only ever been touched in an emergency and will not be counted as income. WHatever is left afetr tax is our strategy for paying down cards then mortgage.
Total monthly income.................... 2443.84

Monthly Expense Details
Mortgage................................ 421.2
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 111
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 12.88
Satellite/Cable TV...................... 38.5
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 250
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 10
Entertainment........................... 500
Holiday................................. 150
Emergency fund.......................... 0
Total monthly expenses.................. 2177.58


Assets
Cash.................................... 1200
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 1500
Total Assets............................ 129700


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 66500....(421.2)....5.79
Total secured & HP debts...... 66500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
1..............................3386......35........0
2..............................2343......35........0
3..............................2249.16...25........0
4..............................203.75....5.........18.9
Total unsecured debts..........8181.91...100.......-


Monthly Budget Summary
Total monthly income.................... 2,443.84
Expenses (including HP & secured debts). 2,177.58
Available for debt repayments........... 266.26
Monthly UNsecured debt repayments....... 100
Amount left after debt repayments....... 166.26

Personal Balance Sheet Summary
Total assets (things you own)........... 129,700
Total HP & Secured debt................. -66,500
Total Unsecured debt.................... -8,181.91
Net Assets.............................. 55,018.09
Makes for pretty shocking reading to be honest :-(

Sassers

Good luck - I'm sure you'll be debt free soon - it just takes quite a lot of focus. Perhaps you might like to join the Payment a Day thread - it's been working for me :wave:

Jules28

Hi Basscadette,

Happy New Diary! I've been reading your posts, well done for taking the first step to do something about the situation. Just from reading your first few posts, you sound very determined so I am sure you will manage, and there are loads of knowledgeable and supportive people on here to help.

I look forward to reading more from you

Jules x

basscadette

Thank you all so much for the support and kind words of encouragement - we certainly needit at the moment.

I'm sure it will be pivotal as it has for many others who use diarying as a focus to target a problem. I'm starting to feel very determined indeed.

Some happy news today - Npower debt is actualy only £639 instead of £800 so we are relived. Going to sort out a payment plan as obviously it's 0% interest free credit but that's £160 off the total debt after just one day!
Am also going to try to pay that last credit card off when I get paid on Friday if there's anything left after bills. £200 should be a quick win and I hate paying interest on anything.