Ready To Own Up To Our Debt

Bestthingsinlifearefree

Identify your weak spots e.g is it take aways or gadgets or eating out or birthdays or clothes.

Have deliberate strategy to cut down on that type of spending e.g instead of one CD a week buy one a month etc etc

Best,

Paige

Welcome to the board. I feel you should keep your life insurance, IPPs, and critical illness cover. To me they are not a luxury. I would cut out the savings and cut out the charity donation for the moment. Also cutting the monthly shopping bill is where I found quite a bit of extra cash. I know this is difficult but could the guitar lessons go ? These things alone could give you about £200 per month. Paige X

Bestthingsinlifearefree

OK I make your total debt (excluding mortgage) £49,499.

Put it this way if you sold your house and paid of your debts you would have virtually nothing left and yet you have high earnings.

Yep, time to wake up and smell the coffee.

If you both take action now over the next days, weeks, months, years you can this turn round.

If you both carry on as before you are going to risk your families financial security and ultimately lose your house.

NOW IS THE TIME FOR A PERMANENT LIGHT BULB MOMENT !!

Don't wait for a redundancy,a big repair bill or fall in commissions or interest rate rises to put you over the edge.

You and your OH need a join, motivated strategy. The good news is that you can turn this around if you BOTH take sustained action now.

Keep posting, I'm gonna keep an eye on this thread and your progress.

I wish you all well.:beer:

Best,

Bestthingsinlifearefree

Blimey I am addicted to this thread, I should give some one else a turn to post !

You are paying £45 a month into childs savings, lets say you are getting 5% interest but you are paying 18% interest on your debts. So that "invesment" is costing you 13% in interest !, if you see what I mean.

It does not make financial sence though being a parent I can understand the emotional commitment to building up a separate pot for the children.

Similary the £9 charity donation I can understand the emotional commitment but why not cancel and WHEN you are debt free add up all the months you "missed" paying the £9 e.g 36 x £9 = £324 and WHEN you are debt free pay that amount in one go to the charity or do a monthly debit of £18 to "catch up".

Just a few ideas and thoughts.

Best,

tyllwyd

MRS-MT wrote:

Our caravan is our godsend, we get lovely cheap holidays away in it, as we don't go abroad.

Fair enough - but if you are keeping it so you can get your cheap holidays away in it, you need to be factoring the cost of those holidays into your budget. A cheap holiday would be say, £100 on petrol plus £200 spending? That's £25 per month that you should be allowing in your budget.

MRS-MT_2

Thanks Bestthingsinlife

Very valid points. i know what you mean with the kids savings accounts. we started them when they were born, and when they are 21, they get a lump sum. we did it, because, both myself and OH, left home without a penny, and had to start from the bottom, i guess we want to allow for things like University and to show that we have invested in their future. i would have been very grateful for this. Need to think more on this one.
thank for your support. Keep looking out for MRS-MT posts, because I WILL be updating.

MRS-MT_2

Yes tyllwyd you are right, I haven't allowed for that in my budget either. DOH
My husband doesn't pay for petrol, so thats good, but we do go away about 4 times a year, where's that going to come from ? now we have our new strict plan ! Me have to think on that one !

thanks for your reply

MRS-MT_2

ok guys,
update already.
Husband has just spoken to Virgin CC, and they have given us £8,747 0% for 6 months, we will clear Marbles for £5100, B/Card for £2,700 and the rest towards the £3671 with Egg. This will cost us £150 a month
thats made a positive start.
Just taken the sky package down to standard package.
More to come......

Bestthingsinlifearefree

MRS-MT wrote:

Thanks Bestthingsinlife

Very valid points. i know what you mean with the kids savings accounts. we started them when they were born, and when they are 21, they get a lump sum. we did it, because, both myself and OH, left home without a penny, and had to start from the bottom, i guess we want to allow for things like University and to show that we have invested in their future. i would have been very grateful for this. Need to think more on this one.
thank for your support. Keep looking out for MRS-MT posts, because I WILL be updating.

I can understand that. I left home with out a penny to and MrsBest had our first baby 2 month ago. So I feel the same way.

BUT....if you want to keep those "investments" going you need to make tough choices in other areas. You can not have your cake and eat it.

It's game on EVERY POUND counts.

I look forward to the update on the small positive steps taken in the next few days / weeks.:T

Best,:beer:

Smashing

How many holidays a year are we talking? Are you budgeting for the extra expense re: petrol, activities etc?

Your savings are costing you money if the interest gained is lower than the amount of interest on the debts. 9/10, it is.

Charity - can start again when you're in a better position. Right now, the charity starts at home.

Cut down sky to the most basic package, or ditch and get freeview.

How old are your children? It's difficult to say no, but getting out of debt needs to be a joint effort. You can get them to help by turning light off/ switching appliances off when not in use etc.