Reeling from the Reality Check

in_need_of_direction

Hb, lots of wise words here. Take time to think about them. Take care.

sweetpea26

Keep going HB. Its now time for the family to repay after all you have done so much for them.

I am finding this month ridiculous...money hand over fist.

take care

hohum

Historybuff wrote: »

That's what I'm thinking, Hohum. I try to put the money away for each pot, but something always seems to come up. My killer payment is the mortgage at £1126 each month. The other debt payments altogether come to £526. In theory I should have enough to last with what's left, but I hardly ever do. In Jan I am going to work the budget out properly and get back onto YNAB and put amounts religiously into each area. I think my big mistake was not building up a cash reserve at the start of the DMP. Two or three of the predators took big payments out at the start and I didn't start with token payments, just went straight into the plan. I need to win the lottery.
I'm taking some of the clothes back I bought the other week for the interviews. I didn't wear them and don't even really like them. So that will be £30 back to me. And DD is giving me back some of the money she owes me, so I won't actually be penniless. I need £85 for the work night out because I have to buy everyone a drink as well as pay for my meal and £300 to do Christmas - presents and food. Thats not including food between now and then. Thankfully I have enough fuel in the car to last.

Bloody hell I hadn't realised how much of a chunk the mortgage takes out of your income..Once again I'll just put it out there, can you allow your family (your husband) to contribute more to the household?

I will echo everyone here, the change that's evident in your journal is really inspiring. The true, powerful HB who clearly moves mountains seems to be coming out more . However, it could be that you need to find a better balance and to cushion yourself a bit. Keep pondering x

Historybuff

Thanks so much, all. I'm really flagging today. The mortgage situation is kind of my doing, tho. Five years ago I did the thing of trying to consolidate debts and used mortgage overpayments that came from OH redundancy/retirement money to fund paying off CCs, then got into a false state of security and built them all up again. That's how it all got uncontrollable and the mortgage repayments went up so high. It was only getting to the point of not actually being able to make the minimum payments every month that forced me to stop and do something about it. I will get things sorted. I just have to get through to the New Year. I'm in a much better financial place this year than I was last, though.

Whitefeather8

Hi Historybuff, you are doing great.

You have had your LBM now, and are leaving the mistakes of the past behind, which is what we are all trying to do too!

Sometimes when things are a real struggle for us to achieve we value them more, so although things might be tough for you at the moment, utilising all your creativity and imagination to get you through will do wonders for your self esteem long term.

Hang in there xx.

Historybuff

I've just been checking figures etc and found that December's payments will take all the debts apart from the mortgage into the single thousands. And January's payment will take the whole debt total, apart from mortgage, to under £50000. That's a massive psychological boost.
at the next reviews starting in Feb I am going to aim to get the payments reduced, so hopefully I will be able to manage the budgeting a lot better next year.
I've come a long way since this time last year. I'm a survivor!

DawnW

Well done HB

Historybuff

Been thinking over the last few days. The reason I'm trying to get things paid off as quickly as possible is because I'm on the verge of retirement. Without the debts I could have hung up my work keys in two and a half years time. Because of the debts I have to work another four years on top if I continue to pay them off at the same rate as I am now. If I reduce the payments I will have to start looking to do F and Fs out of my retirement lump sum and I don't think I want to do that. I've got plans for the lump sum and I want to see some benefit from it, not just pay the debts with it. That's why I'm trying so hard to get things paid off as quickly as I can.
Today's positives...new fireplace and fire being delivered today, OH has paid. OH is painting the walls in the lovely new colour we have finally decided on. I have a weekend to myself, OH is off to visit his mates for a pre-Christmas outing...I am catching up on domestic stuff, helping DD out a bit and I might write the Christmas cards. I intend to have a couple of days more or less to myself with as much relaxation thrown in as I can.

Brogden

Historybuff wrote: »

Been thinking over the last few days. The reason I'm trying to get things paid off as quickly as possible is because I'm on the verge of retirement. Without the debts I could have hung up my work keys in two and a half years time. Because of the debts I have to work another four years on top if I continue to pay them off at the same rate as I am now. If I reduce the payments I will have to start looking to do F and Fs out of my retirement lump sum and I don't think I want to do that. I've got plans for the lump sum and I want to see some benefit from it, not just pay the debts with it. That's why I'm trying so hard to get things paid off as quickly as I can.
Today's positives...new fireplace and fire being delivered today, OH has paid. OH is painting the walls in the lovely new colour we have finally decided on. I have a weekend to myself, OH is off to visit his mates for a pre-Christmas outing...I am catching up on domestic stuff, helping DD out a bit and I might write the Christmas cards. I intend to have a couple of days more or less to myself with as much relaxation thrown in as I can.

Go for the relaxation HB......yeah !!

You had mentioned before about the retirement scenario. I may be a little bit behind you but it does loom on my mind. I am trying to keep all retirement benefit to be just that !! My mind has been going round in circles as usual but I had an LBM caused by a long conversation with a lovely mature lady at a PDL company when discussing my repayment plan... can you believe such a person was there or such a thing is possible :rotfl:??

She as good as suggested if things were tight (yes - tick box) to arrange for very low repayments to be made to them and all other creditors and pay what I could pay into a savings account. Once I had accumulated a reasonable sum then use it to pay an F&F and reduce the debt mountain by thousands with this modest sum.......? At the same time I would have an emergency fund (hope it wouldn't be necessary to use it for a new boiler but it's there just in case.)

It would be a different way of looking at things.....being more tactical and less 'gung ho.' This maybe could bring retirement years closer for you? Please think about this when you revisit your repayments next year and please keep an eye on me !! I say that because I will have some funds end of February / March time and I will report back my F&F experiences. I almost don't want to say more at the moment as I must not preach about something that I have very little experience in and don't want to look like a complete dipstick !! I am hoping that I will be an experienced F&Fer (sounds a bit rude) early next year.

Have a lovely weekend .

Brogden x

in_need_of_direction

Yay to the weekend plans. I love when that happens and I get the run of the house. No one is saying not to try hard, we just don't want you under too much pressure. While I still have 20 years to go, in 2013, I faced a health issue that could have had a serious impact on earning capacity so I kinda know where your thinking is. This year I opened an isa with an unexpected windfall, started oping my mortgage, etc but I'm breaking it into mini steps. My first target was to get the mortgage to a three time multiplier of just OH's salary. Maybe if you set mini goals, it'd help. Take care