Debt to First Time Buyer

soozg14

Good Afternoon All

Hope you are all well.


Just to give you a bit of background my husband and i have been together for 10 years now ( we are both late 20's early 30's). While dating we didnt start off well with money - we went out for dinner every night, cinema etc , we had a great time but maybe didnt think about the future. We just spent our wages, never really saved.

As time went on and things got more serious we moved in to our rented accomodation with the ideal to save for our first time buyer mortgage and home.

Come the time to speak with a mortgage adviser .... reality check !!! We were definitely not spending well. We weren't in debt but we were spending on things we could have saved for.

We started to save and got married. Used money saving expert of course to cut costs However there was on snag. My husbands family had some inheritance due to them and said they would give us some towards our honeymoon. The inheritance payment kept getting delayed but we were assured it would come and were advised to put our honeymoon on a Credit Card, plus a few things like bridesmaid dresses which we were being paid back for. So 5k later, we have a great honeymoon turns out the auntie to sort it all out has gone abroad and embezzled it, there now an ongoing case !! And we have a 5k CC.

We were also stuck in our Overdraft at around - £700 on a monthly basis from overspend at the wedding .

And of course things like water and tv liscence started to creep on to the CC - its the only way we could pay them.

So here we are with a 7k Credit Card

We sat down and come up with a plan to try and pay of the CC. First things first overdraft. We came up with a plan and we no longer have an overdraft as of this month !!! Pay next week will be the first month we have a 0 balance. No plus sadly, but no minus ... just zero.

So going forward have planned to put £1000 on the CC each month ( i know this seems a lot and trust me its gonna be tight!!)

We should have the majority paid of by February then our work bonus can clear the rest ( i am guaranteed this, has been confirmed)

We aim and will be debt free by February and then the £1000 a month will go towards our deposit for our first mortgage

If anyone has any tips or hints please feel free We are trying so hard to resolve our mistakes.

mistergolo

Good Luck - that is all!

ShirePiskie

Adding my luck and my tuppence worth, don't make it too tight so you've got nowhere to go if you need some money for emergencies and, as things do crop up, keep on with it if things change... Roll with the punches!

Seems like you have really got focus, that's brilliant.

We all look forward to your housewarming!!!

optimistic-mummy

have subscribed good luck on your journey.

i agree with above. id build up an emergancy fund first (if you dont already have one) you never know when unexpected expenses could occur and it could be a large amount of money to have to find in one go.