Fed up of being the family's Money Muppet

FalseEconomist

Thanks Steerpike.
I have finally done my signature (makes pretty scary reading!!) but am pleased to have come so far in a month. Not so much in terms of amount cleared, but also to have got the debts more organised and less scattered. I'm particularly pleased to have cleared the overdrafts, even if that was consolidation because I really resent the fees and charges that racked up every month.

FalseEconomist

Really getting confused with the snowball calculator. I worked out based on what we pay monthly, then these should finish in about 5 years. It is telling me 166 months. I think I've done something a bit wrong!

Anyway, plan is of course to nail to credit cards, then double payment to one of the loans (HSBC I think as has an APR of 15.9 compared to my mum's of 3) .

Currently paying ccs off at 250 a month, which we can comfortably afford (well, we'd be a lot more comfortable living on that money but you know what I mean!). SO if we kept that rate (managing to keep all on 0% which I think shouldnt be a problem) that's around 24 months.

However I should be able to up that to maybe £450 a month (going carefully week by week rather than paying extra off at once. so Takes it to around 13 months? (I'm just playing with rough time frames here)

So, For example loan will then be at 57 payments remaining, which doubled could halve (if not more, not sure how the interest works).

Anyway, the loans are due to finish in 6/7 years as it stands and the credit cards will definitely be done by then, so quite where the snowball thing gets over 13 years from I'm not sure.

I suspect the problem may be with me and my inability to fill in spreadsheets correctly.

Steerpike88

I think trying to stay out of your overdraft is the smartest thing to do. Esp since you're incurring all of those nasty overcharge fees, that probably eats into your 'extra' money the most.

Have you tried dividing up your savings into monthly payments? so with the car we set aside a little bit of money every pay day for like the car/emergency funds and that just sits in its own account until we need it. I find saving up for Xmas this way easier too.

Keep on doing what you're doing!

FalseEconomist

Hi, yes I have a few different e- savings accounts set alongside my current account so I can easily transfer money into them and see how much there is (not much at the mo!)

However I am aware that whilst it's easy to transfer money in its just as easy to pop it back across and spend it.... Considering maybe a credit union savings account....

It would be so nice to have a Christmas without credit or worry.

FalseEconomist

AHA! figured out the problem with the snowball calculator. I was putting in the loan amounts but I didn't realise that they were the total figures including interest (if that makes sense) so changed the interest rates down to 0 and it came back with 72 months which is much more what I was expecting. In reality, once we have paid off the ccs and start to pay down the loan we will save quite a lot in interest I think.


To be honest I prefer my own excel spreadsheet thingy.

Am a bit concerned because our fixed rate mortgage ends in June and our broker thinks we should be able to get a much better deal and free up some cash for a conservatory , but when we got our mortgage we didn't have most of this debt (well, we did, but it was an off the record consolidation and house deposit loan from my mum).

The mum loan, the 18k one won't be declarable but the rest of the debt will (good god that's a lot of debt to run up in two years).



We shall see what happens. Even if our bank just transfers us to their svr we'll still be about £100 better off a month so more to throw at the ccs.

Oh well, we live and learn

Trying to be thrifty this school holidays, having an outing tomorrow and meeting a friend but she's also struggling a bit with money so we're going to a big park and having a picnic.

It's quite a way away from me (halfway between our houses) so will need petrol but with bringing a picnic I think I can get away with just a tenner for an ice cream,park and ride and maybe a cuppa for me.

I think I'm quite lucky in that my children, though hard work in many many ways, haven't yet reached the stage of wanting to go bowling or to the cinema etc etc all the time, and they both love play parks. Also when my husband is off he can take the 6 year old to the rec to play football and I can take the little one to the country park and neither of us needs to spend much. Which is good. Because we haven't got much.

FalseEconomist

Well it's been a month since my "wage-snatch" by my bank.

Checking all accounts online today I have exactly what I was expecting to have in my accounts. No nasty surprises from the bank. All good.

FalseEconomist

So I have bitten the bullet and subscribed to YNAB.

Monthly subscription, cancellable (word?) at any time.

Today is the day in the month when most of our big bills go out (payday for OH used to be 5th so we set it as day after to try and make sure we didn't spend our mortgage payment lol).
Everything still on track, I still haven't got rid of the fear of the big payments going and then realising we have forgotten one like council tax etc and suddenly the money isn't there.

The money is there however, and all looks good.

I know with YNAB the goal is to be living off last month's paycheck rather than this month's, but my goal at the moment is still to make it to the end of the month without using overdrafts or savings (savings a grand word for the £50 I have squirrelled away into Christmas and emergency pots).

the Credit cards will be overpaid but no huge overpayments until I'm comfortable with us managing our day to day spends. I just don't want to experience that dreadful feeling in your stomach when you realise there is no more money.

My OH has been invited to a golf's works thing in July,

He asked if he could go and started to justify it, I stopped him. He doesn't need to justify it, if he wants it then it will go in the budget fine. We have money to enjoy ourselves and I certainly don't mind planned treats (it's only £30 for god's sake), it's the unplanned 'just because' spending that got us into this mess, and he's been really good at stopping that and checking with me about using the accounts.

Had a laugh (not a laugh)

found bank statements from that fantastic but financially diasasterous holiday last summer ( you know the one? Where we both got texts about 3 days into our 14 day holiday that were both over our overdraft limits already!).

The spending was unbelievable. Each item on the statment is a shop, £60 in Waterstones!!! £90 in Primark, meal out after coffee after treat.

The real test will come this June when we go away again (admittedly only for 1 week). We will have a budget and I'm determined to spend it on experiences rather than goods from a shop.

It's such a shame, the holiday we had was really lovely, but I think the memory of the panic and shame about money was the one that will endure.

FalseEconomist

Hoping I've done something MSE Today,

OH wanted to put a bet on the grand national, and then I got an email from quidco with a Ladbrokes offer, register and bet 10 for 20 cash back.

So I've done it, really hoping it tracks as I'm pretty new to quidco.
If it doesn't track then I've been duped, as we would only have out a 5 pound bet on normally. Still, might win..........

Steerpike88

You're doing so well! You're right to enjoy yourself once in a while. I often find old bank statements too and cringe when I look at them, what was I thinking!?

Now nights out are budgeted for in my monthly spreadsheet, and I use Groupon whenever we go anywhere, got 4 cocktails and some nachos for 13 squid last week! Couldn't believe it. We try and go out for something once every two weeks. If we have any money left over it goes into the holiday fund, which is looking pretty healthy atm. I never used to go on holidays, as I never had money, spending it on too much crap. And it's the one thing I really want to do.

Good luck!

FalseEconomist

I'm not very good at updating am I?!

Not doing too badly, but certainly not as good as I could be.

GOOD habits which I'm keeping up: Checking all accounts regularly, making sure they are kept in credit and have enough to cover Dds. Slightly overpaying two credit cards (for example, paying 50 when minimum is 38) and putting a bit more towards the one with the 0% ending soonest. I have contacted my phone company, and have finally finished my repayment contract!! I have taken out a sim only contract with them for £14 a month down from £38.


BAD habits which I'm slipping back in to. There seem to be rather more of these. We have had a couple of meals out. I have visited the charity shop and co op on more than one occasion and have bought new clothes which weren't needed and wine and expensive ready meals! We have had takeaway!
Skipping a weekly shop which has meant daily trips to convenience store. Bought some books on amazon. Haven't kept up with YNAB this month.


Clearly slipping, but the good news is that, like you want to return to a diet after a couple of weeks binging, I miss my more frugal habits and the feeling of control this gave me. Will keep spending v low for next week and then it's OH payday next Friday and we can start again with the budget!.

What's really nice is that father in law has said he will give us a bit of spending money for our week's holiday so, even though we are away for a week next month it shouldn't throw things out too far at all (will also help that fuel will be covered by OH's fuel card!!)

Sadly my bike was stolen this month. It was a very expensive one that I got from a friend at a bargainous price, and I discovered too late that it wasn't covered by my home and contents insurance. We decided to replace it with a similar one that was in a sale on a zero percent finance. More credit, I know I know!! But, the monthly cost will be covered by the change in phone bill (and I know that could be going off a credit card!) and it seemed like a sensible thing to do. I struggle quite badly with depression, and we have found that cycling really alleviates that and reduces my stress levels.
So, it's a decision we made. However this time I have bought a more substantial lock and added it to home insurance!!

Talking of which, mortgage and home insurance are due for a change beginning of July, so I need to start looking through cash back websites to get best deal, particularly on insurance. We have a fab mortgage broker and I'm really hopeful that our rate will come down (certainly couldn't get much higher than 5.19%!)

So today, spends will be bread, milk and petrol, £15 all in.

oh, and babysitter fees of £15. We seem to use a lot of babysitters at the moment.

Meal will be a lovely homemade bolognaise defrosted and entertainment will be a playdate round at our house.

Off to try and update my signature. Happy Debt-busting everyone