Fed up of being the family's Money Muppet

FalseEconomist

So it begins now - the drive to get a handle on our finances and stop being the family joke.

A bit of background - I am 31 (and a half!), happily married and with two lovely children. So far so good. But somehow (somehow!) ever since my husband and I got together 6 years ago we've been in debt. We've had credit cards, store cards, bank loans, family loans etc etc. The one thing we haven't had and really want is a mortgage.

Four years ago when pregnant with DS I was made redundant and this was catastrophic for a family only just keeping heads above water - to make matters worse, the evil employer (who ran off but was caught and made bankrupt) had refused to fill in my maternity pay forms, therefore maternity pay was only granted after a lengthy case and kicked in six months after I was entitled to it. Going from an income of 1700 a month to absolute zero for six months and only 500 a month thereafter, well - you can imagine the damage it did.

Anyway, that's the hard luck story but the rest of it? Well me and my husband just enjoyed spending, and what we wanted we wanted there and then. Saving up for something? not us!!

We have reduced our debt, thanks to hard work, loans from families and hand-outs from families - but not nearly as effectively as we could have done. Example? Last year we spent around £1000 in bank charges for going over overdrafts!!!!

I left everything to my husband, became money-phobic, refused to open post and spent without checking bank balances and then got arsey when the charges came in. I feel incredibly guilty about this. So no more, I have taken over all the finances, budgeted, got over enthusiastic with excel spreadsheets and basically am on a mission. Want to give my hubby (who works incredibly hard) a stress free year and a debt free future.

I really really want to buy a house - and I can feel opportunities slipping away as we get older. My sister bought her first house for £40k before the housing boom and is now sitting on about £250k equity. Me? I'm sitting on a Littlewoods storecard and a grubby sofa.

however, there is light at the end of the tunnel - my mum has said that when we clear our debts she will look at helping us with a deposit (we're likely to need around 30/40k:eek:). this won't mean give of course, it will be a loan - but it may be our only chance, so I want to kick debt's butt ASAP.

We've got around 15k in credit cards, loans and store cards, everything at 0% currently. My debt planner says if we snowball we can manage to be debt free by Jan 2015. Sounds good to me!:T

Will pop on later and update my exact statistics etc.
Right now I have a four year old determined to paint and a 10 month old determined to eat paintbrushes so had better go and referee:D

Apricot

Good luck! I have the same aim in mind as you, clear debts and buy a house. WIll be following with interest!

missty25

Good luck on your journey x

MrsSmith2013

Good Luck FalseEconomist! I'm sure you'll get loads of help and support for your debt free journey on here. I think if I had found this site when I was in my late teens / early twenties, I would have been in a much better position that I am now!

I also find keeping a diary helps to keep me sane!!

Welcome to the diary club, and looking forward to seeing you bust the debts.

Mrs S x

*Subscribes*

sammr85

Well done for being brave and facing the situation. Your story sounds similar to mine. Buy now, think later. No saving and our dream is to finally get on the property ladder but now we're married with 3 children we need a larger house with the larger price tag!

*subscribing x

pennywisepoundstupid

:wave: Hi just wanted to wish you good luck on your debt free journey.

Sounds as though you and your oH are determined to get rid of the debt and by working together I'm sure you will do it.

I have subscribed and will be reading with interest.

scottishspendaholic

Hello,

Welcome, you are a similar age to me & have a similar story (except we have a house, but it is too small for our family but we're stuck with it). I think we are real victims of our generation, that's not to say we're not to blame for our I-want-it-now attitude, of course we should be accountable too, but as a generation I feel we were adversely affected by the time we grew up in. I've not explained that well, but I hope you know what I mean!

Snowballing those debts with large monthly repayments sounds like the way to go, good luck!

Xxx

FalseEconomist

Thanks for the welcome guys. I really like this forum and already have picked up quite a few tips onit, i.e I have signed up to mystery shopper and survey things etc. I signed up to a few in the past but gotdiscouraged when I got screened out of the first few surveys so didn’t botherafter that, but if I can make even £10 or so a month giving my opinion andtalking about myself? Well that suits me fine!!

So our current debt, in the order that we’re snowballing is

HSBC Loan: £2004

Barclaycard: £3214.85

Virgin: £1810

Mum: £4512.47

Dad: £3557

Littlewoods: £129

Argos: £430



These loans are all at 0% and we’re planning to put around £900 a month towards it. With this paying off the principle, as I saywe’re hopeful that Jan 15 will give us a clean slate. We wouldn’t have the virgin one but Itransferred my overdraft from Lloyds which was costing me over £30 a month infees to an interest free card. Seemed tomake sense, and I have reduced my overdraft to £50 which is now interest andfee free. NB I Hate Lloyds!!!

Now 900 a month will leave us quite tight on the rest ofthings. I’ve decided not to post a SOAas I’ve been through the figures myself and tightened up where I can. The main thing that I think we spend too muchmoney on are groceries – I budgeted £400 a month and thought that was tight,but according to everyone here that’s loads, so will clearly have to learn howto manage my kitchen better. I’m aterrible cook – really have no interest in it. My husband’s a chef so you’d think ‘well, she doesn’t need to’ butanyone who has ever been out with a chef knows that actually, they’re rarelyhome!!!



Petrol too is a nightmare for us, we constantly seem to beputting it into our two cars, ones a two litre Volvo so you can imagine. This month, although its about starting andcareful budgeting will also be a time to really look at our spending habits, soI’m putting a jar in the kitchen and I’ve asked my husband get a receipt forevery single thing he buys – and I will too – and into the jar they will go sothat at the end of the month we can get an idea of what’s what.
Re the house dream - I'm in a similar situation in that we're now a family of four and rent in a really nice area in the South West of England. A three bed round here will cost circa 200k. Should be fun trying to get a deposit together before I exchange my car for a zimmer frame!!:rotfl:

I’m really enthusiastic, but I’m worried about the slumpthat will come. Payday will arrive (5thof the month for main earner) and I will go through and pay the bills, and thenfour weeks will drag by where I feel skint and miserable. I’m also worried about how my OH will feelwith me policing the money – don’t want to emasculate him, but if I’m going toattempt to sort everything out I’m going to need to know exactly where everypenny goes and when. How does everyoneelse handle this with their partners?

Another focus for me is to lose weight and get fit. I was a member of a weight loss forum, butfound myself getting a bit obsessed and then when I had a complete pig out(regular occurrence) sort of slunk off with my tail between my legs.

Anyway, what a boring ramble- feels quite therapeutic to getit all down.

Thanks again for your welcome guys…..I’m off to change astinky nappy (glamorous life!) then will have a mooch round the forum and seeif I can pick up some more tips and inspiration.

FalseEconomist

btw - I do normally favour the traditional writing method of putting gaps between my words. Not sure where half of them have gone!?!

Poppy_Jane_Parka

Hi there am in same position- I could weep when I think of the depodit I could have rather than cc debts, would love our own house and family but when we cab barely manage our rented flat it just looks a distant dream........ but! We're here and making steps!

MrsSmith2013

FalseEconomist wrote: »

Anyway, what a boring ramble- feels quite therapeutic to getit all down.

Definately not a boring ramble, and definately therapeutic to get it all down in writing - I usually always feel better once I've written on here. Everyone is in the same boat and supportive, it definately helps!

Your shopping budget does seem generous! How many are you shopping for and where are you shopping? We budget £70 per week for 2 adults and 2 little people. I've recently started shopping in Aldi, as there is a new one close by, and their Aldi challenge advert made me want to try it.

I have to say so far, I've found nothing of any lesser quality than Asda and I am totally converted! I did our meal plan for 1 week last night and did the shop for £53, that included nappies, wipes etc. Definately worth a try if you're trying to cut back - I am completely converted!!

Hope you've found loads more inspiration on the forum,
Have a great weekend,
Mrs S x