I am such an idiot! When will I learn?

judi24

Well just had a real world conversation about finances with DD1 - she got her first graduate job in a different part of the country - I wanted her to get a room in a house share to keep costs down cos i knew she would have less diposable income than she anticipated - but she knew better and went for a 1 bed flat. However she is now realising that a house share would of given her a fair bit of extra money in her pocket! Want to say 'I told you so!!' but resisted and suggested she contact the land lady and explain - to see if she can get out of her lease before the 6 months is up - no harm in asking the question!


Also told her that we were having a frugal Christmas and she was not to start spending money she doesn't have on presents etc and I wouldn't be either


Just need to have a money conversation with DD 2 now - she is arrives back from holiday tomorrow

judi24

Trying to work out what to do for the best with my CC's
I tried to apply of a balance transfer card today and was declined!!!! so all my CCs are about to start accruing interest this month!
I have an empty MBNA card but they are not offering a blance transfer rate, I have just over £1000 on my nationwide card and a credit limit of 8k but they aren't offering a blance transfer rate either. I have a 5.9% life of balance offer on my barclaycard at a 2.9% fee but can only transfer 1k onto it - I dont know whether to transfer the £1k on nationwide to that or just try to pay that off first (rate 12.9%)


Rest of Blarclaycard and tesco balances are 16.9% APR from this month!

ailz95

Hi Judi24, I'm late getting here but I hope you don't mind my chipping in

The phone that was shown earlier can be got on Sainsbury's Mobile for very, very little and if you put £10 per month on it you can get money off petrol for the month.

You'll get there. It took me several trials and errors before I finally got IT.

Ailz

Butti

She can ask and if the answer's no she can still do it in 6 months PROVIDED she doesn't accumulate extra 'stuff' in the meantime. I rent what was effectively the living room in a semi. I have enough room for shelves and a desk and I also rent a storage unit for my sofa, dining table, shelves etc. In total for inclusive rent and storage I pay £400 per month. I am 47 and after 2 years it is dragging but my credit cards are down to about £1.9k and I am reducing my debts by about £800 a month.

....And when I lived with my dad (aged 30 after my mum died) I paid half the direct debits which saved him money, left me paying my way and allowed me to save for a deposit (those were the days when a 3 bed house was £55k!!!!!)

longtermplanner

One small thing (sorry if someone else has already said it and I missed it):

Buildings insurance..................... 0 (included in below)

Do you mean this is included in your mortgage payment? If it is, then find out what you are paying because it can often be cheaper to get this seperately.

[Deleted User]

I believe (included in below) means, included with the Contents Insurance, in which case it's a very good deal.

judi24

You are correct Bedsit Bob - Buildings and contents are £15 combined - shopped around for the best deal!


Ailz - the more the merrier - thanks for your words of encouragement - still looking at phones fro my DD3 - not decided anything yet - but will look at the sainsburys mobile


As for DD1 - all she can do is ask the question - I guess its better realising now that she will struggle than getting herself into debt to prove a point!


She has also said she has a plan to come home after the year and work closer to home - to save for a deposit for a house and to go travelling! Guess I'd better wait to downsize the house! And I will be taking a decent rent off her!!!

dktreesea

Hi Judi,


Wow, being able to manage a mortgage and other debt, with 4 children, albeit two who are now earning, all on one income...to me you are doing great.


I've been like you in the past and spent a lot on presents and parties for my children, which sometimes went on a credit card. I've got a house full of things, but if we each packed up what we use on a day to day basis, I doubt if we would need more than a suitcase each.


Nowadays I tend to buy my children experiences - driving lessons for the eldest, go karting for the youngest, holidays, glamour photos, facials and nails, paintballing - rather than things, because over the years i've noticed these are the only presents people talk about. Even years later. As in "remember when you gave us tickets to go and see ..... That was amazing", and I'm smiling, nodding and thinking that was 9 years ago. Haven't I managed any memorable presents since then?


I used to reward myself when I got paid, with a couple of books, a CD or DVD, sometimes bits and pieces for the house. Nowadays, the thought of bringing any more stuff into the house puts me off. I'd rather spend money to go out with friends than buy stuff. Celebrating close friends birthdays are important. Don't short change yourself the things that really matter in life. Friends can keep you going in a way things can't.


Overdrafts can help to repair your creditworthiness, if you can just keep them all in the black, even if just for a few days a month, and even if you know you are going to need that money again at some point in the month. As long as the overall balance trends down, eventually the banks will start making you 0% balance transfer offers again.


The other thing that helps is paying a little bit more than the minimum balance every month on your credit cards. Even as low as £20 a month makes a difference to how they view you as a credit risk. it's all about looking like you can afford higher repayments, even if, during the month you need to use the money. Remember, you don't know if you'll need that money until you get to the day you need it. In the meantime that £20 a month extra you are parking on the card is having its effect, bringing your daily interest down.


My favourite debt buster of all though is spend free days. I've been in a kitchen where there was nothing to eat, literally, not even flour to make bread, and I know for sure that is not ever going to be my kitchen again. No chocolate? I crave sugar at night, and do things like make a bowl of instant porridge, or marmalade on toast rather than jump in the car to get my fix, like I used to. It's amazing how quickly the £5 here and there saved adds up.

tell_it_how_it_is

Hi

I notice you mentioned you're impatient and want everything yesterday. Are you one of those who just withdraws from the hole in the wall willy nilly?

If so, perhaps consider drawing a set amount out once a week, to cover what you need, and stick to it as much as possible (there will always be the odd emergency)?

I for example withdraw £180 each Friday, and this has to cover shopping, going out etc. I can run out, but by Weds or Thurs I don't really *need* anything more ahead of the weekend.

It could be a build-up of the odd 20, 30, 40 withdrawals for bits n bobs which is your killer. If you don't need it, don't get it.

Also, as many have mentioned, get the daughter paying more, however much she complains, especially as it sounds like she costs you much more than that! My personal suggestion would be to double it to 200. It'll soften the blow a tad when she moves out - it's only then she'll properly appreciate the cost of living.

You mentioned using the dryer less over the summer. Bit late for you now perhaps, but I was so sick of mine being overused I locked it in the garage and said it's not coming out till October. A couple of times of not being able to wear what they want with two hours notice will soon instill at least a smidgen of discipline.

Suziebabe

Hi, hope you don't mind me posting, have just read the thread and wanted to offer support - I completely agree with dktreesea, you're amazing handling 4 kids, a mortgage and work on your own!

I'm only a year into my debt free journey, and while it'll take me a few more years yet to get there, I find that focusing on that end goal (for me) of not being at the mercy of the latest round of redundancies a huge motivator to keep at it. You sound like you have a plan for moving to France, I'd recommend finding ways to focus on it, maybe set up a 'dream' board of pictures to inspire you? It helps to see beyond the day to day struggles I find! Also agree with the focus on no spend days - although I've been hit and miss on that I'm back on the bandwagon at the moment :T and finding it helps!

Plus, I agree present buying is a nightmare, especially for teenagers - do they ever want anything cheap?! It might be worth checking out what you can get for Tesco/nectar cards, I found the Odeon vouchers useful for my DS this summer holiday, and there's other vouchers that might be useful?

Good luck!