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Woke up, Smelt the coffee

mummymayhem
Posts: 13 Forumite
Hi All,
I have been lingering for far too long and need to sort this out now!
I have the following debt that I took out when I moved in with my partner to complete our house extension, I am managing to pay these back -
£3900 Bank Loan - £210 PM repayment for 3 years
£5000 parents £100 PM repayment
£1300 CC £60 PM - on interest free till July 2015
My partner had debts that he took on as part of his divorce settlement 6 years ago.
They stand at around £5000 each X 2 so £10,000 in total, that is being paid back at just £1 PM
His mortgage is interest free for the next 4 years and we pay £200 PM off of that.
My hope is that we can get totally debt free in the next 4 years so that we can get a good deal on the mortgage.
Mortgage is £115,000
I am about to do a SOA and use personal budget software.
Am I right in thinking starters would be to pay the bank loan and CC off that are in my name, to keep my credit rating up.
Then focus on tackling my partners debt, meanwhile keep paying my parents £100 per month to keep that debt going down?
I feel so positive, but so nervous at the same time!
Thank you for listening
I have been lingering for far too long and need to sort this out now!
I have the following debt that I took out when I moved in with my partner to complete our house extension, I am managing to pay these back -
£3900 Bank Loan - £210 PM repayment for 3 years
£5000 parents £100 PM repayment
£1300 CC £60 PM - on interest free till July 2015
My partner had debts that he took on as part of his divorce settlement 6 years ago.
They stand at around £5000 each X 2 so £10,000 in total, that is being paid back at just £1 PM
His mortgage is interest free for the next 4 years and we pay £200 PM off of that.
My hope is that we can get totally debt free in the next 4 years so that we can get a good deal on the mortgage.
Mortgage is £115,000
I am about to do a SOA and use personal budget software.
Am I right in thinking starters would be to pay the bank loan and CC off that are in my name, to keep my credit rating up.
Then focus on tackling my partners debt, meanwhile keep paying my parents £100 per month to keep that debt going down?
I feel so positive, but so nervous at the same time!
Thank you for listening
0
Comments
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Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 5
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 0
Benefits................................ 600
Other income............................ 0
Total monthly income.................... 2700
Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 0
Satellite/Cable TV...................... 42
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 250
Road tax................................ 30
Car Insurance........................... 70
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 120
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1427
Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 140000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(200)......0
Total secured & HP debts...... 115000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Old Credit Cards...............12000.....1.........0
Bank Loan......................3900......210.......0
Current Credit Card............1200......0.........0
Family Loan (Parents)..........5000......100.......0
Total unsecured debts..........22100.....311.......-
Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 1,427
Available for debt repayments........... 1,273
Monthly UNsecured debt repayments....... 311
Amount left after debt repayments....... 762
Personal Balance Sheet Summary
Total assets (things you own)........... 140,000
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -22,100
Net Assets.............................. 2,900
Here is my SOA, I am conscious that I have forgotton something!0 -
Hi,
Not sure your income is correct on that SOA, income is £1900 and £600 not sure if I have missed something but I make that £2500.
Is there any way you could cut down to just the 1 car?0 -
Ooops, yes that is wrong!
need 2 cars as my partner is a builder and needs a work van to transport tools and works 7-6 and children go to school opposite ends of town, and getting rid of car would incur 3 lots of bus fare per day and mean we cant go anywhere as a family...
I just don't know which debts to tackle first :-(0 -
Usually the advice would be to pay minimum on everything and then throw whats left at the debt with the highest interest rate.
Do you mean that your mortgage is interest only, rather than interest free? Also, you don't have anything down for TV licence.
0 -
Yes interest only!
Surplus money is £148 after bills and debts. I never really see this though as there is always something else cropping up that 'takes' this money - school uniforms, school shoes, new clothes for growing children, school trips, broken car.
We are managing payments on every debt, I think my goal is to tackle my bank loan, just checked and it is at £3600 now, as once that is paid off, that will allow another £210 to be towards another debt, if we just pay the £210 off that will take 17 months to pay off....0 -
You really feed 7 people on £300 a month? That's fantastic.0
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barbarawright wrote: »You really feed 7 people on £300 a month? That's fantastic.
3 of the children are only here 50% of the time, that probably helps!0 -
mummymayhem wrote: »Surplus money is £148 after bills and debts. I never really see this though as there is always something else cropping up that 'takes' this money - school uniforms, school shoes, new clothes for growing children, school trips, broken car.
You need to add these into your budget then. Even if you only allocate £10 per month for each category (and don't spend it!!), it soon adds up. I started doing that a few months ago and will actually have the money put aside to pay for my car tax at the end of this month, for what is probably the first time in 20 years :rotfl:
0 -
You need to add these into your budget then. Even if you only allocate £10 per month for each category (and don't spend it!!), it soon adds up. I started doing that a few months ago and will actually have the money put aside to pay for my car tax at the end of this month, for what is probably the first time in 20 years :rotfl:
Thank you - I think I will allow for an extra £50 per month miscellaneous, to cover things like new clothes, hair cuts, school uniform, school trips, the odd family swimming trip!
Bring on being debt free :-)0 -
hi, good luck with the debt busting
could you get a part time job?
I'd cut out the luxuries- satellite TV & holidays.
reduce the mobile phone costs, the entertainment costs and the amount on presents .
put something away in an emergency fund.
pay any spare money to highest charging debt until it's gone, then move onto the next-look up the snowball calculator-it'll tell you which debts to tackle first.
be aware you may get a penalty overpaying a loan?
wishing you well, you sound so positive, am sure you will get this all sortd.LIVE SIMPLY * GIVE MORE * EXPECT LESS * BE THANKFUL0
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