Statement of Affairs

Spirit_2

wyebird wrote: »

Well done for everything so far!
Just wanted to say that Student loan, whilst still a debt, is a low interest debt. You could always pay it back for her when you were clear of your other debts, if that's what you wanted.
My DD gets the non income assessed loan, works part time and we help out to the tune of around £175 per month during term time as the loan doesn't cover her rent . ( She pays it all in the holidays - two jobs this summer!)

This is really helpful - I have been thinking about this after the posts yesterday. DD has worked most of this holiday, has done a weeks voluntary work and has a couple of weeks camping with friends, so feel she has got a sense of balance about this. She has to do a year abroad as an undergraduate and we know this will be an expensive time so we would like her to have saved money for then

Spirit_2

blackangeluk wrote: »

Wow, well done you :T I bet you slept well last night too

You are doing brilliantly and once you do these things they do eventually become a way of life.

Good luck x

I did sleep well last night but as you can see having a late peek at MSE. Can you get addicted to encouragement? I feel amazingly grateful. I have been reading the board for a while and have felt upto my eyes in debt, unable to reign in OH spending and our compulsion to support 'the family' (I have an overdeveloped sense of responsibility - obviously for family, not financial matters) and now I feel liberated.

I am sure it is some form of 'high' and it has had a beneficial effect on how I feel. On the other hand I cannot quite picture trying to convince OH and DD of how good it feels to know what food is in our cupboards and to work out how we can eat well on it but without unlimited choice (and waste)!

Even writing this has helped - I am inspired to use the 'green' argument with them.

tallyhoh

Can I ask you if OH and DD are in this with you? I think it may be less painful if everyone pulls together and knows that the goals are.

Looking at your list I think you have done really well!!!:T

Spirit_2

tallyhoh wrote: »

Can I ask you if OH and DD are in this with you? I think it may be less painful if everyone pulls together and knows that the goals are.

Looking at your list I think you have done really well!!!:T

Thanks for the kind words and advice yesterday. Your post has made me think about sharing this with my family.
Spoke to OH this evening (he is working abroad) mentioned it lightly, Daughter camping. After some very tricky events OH & I have been clinically depressed and it has recently caught up with DD, so timing and choice of phrasing is going to be important.

Sharing the total picture is likely to be a burden for her ( I am in my 40's and I have been hiding from it)Also just because I am now able to face a real LBM does that mean OH has to?

tooties

Hello Spirit,

Well done you, you have achieved so very much in such a short time, i think you can become addicted to the support and encouragement on theses boards from what are strangers. None of my friends and family know the true picture of the level of debt we are in. I feel it is my burden as i am the one who has managed all the finances in my marriage for the last 19 years, however, i will be the first to tell everyone of just how i managed to become debt free when that time does come.
Keep up the great work Spirit.
Kind Regards
Tooties

the_cat

Hi again Spirit

WOW!! Well done for all you have done so far, you have already made fantastic progress!

Re the family - I would personally go through all of this in full with OH. Although it will be possible for you to make progress without him having his LBM, it will be far easier if he is onboard.

As you have found, sharing this with all of us has given you a different perspective on some of your spending habits. Perhaps it would help your OH to see it too? Whilst there is no guarantee it will prompt him into a LBM, he will be able to see the effect this has been having on you and at least give him an insight into how you feel about it. After all, you BOTH had a hand in the spending habits that led to this....

Even more importantly, if he is also worried about the money situation, any depression he has will be hightened by the stress. Tackling it seems to have lifted your mood, it may help him too.

Maybe leave DD for a bit longer, baby steps remember!.........
Good luck with whatever you decide

the_cat

hi, me again! Was thinking a bit more about the student loan and have a suggestion.

Use the money in the savings account to pay off your most expensive debts NOW. Do this with any further amounts your daughter receives too. The interest you are receiving will by miniscule compared to what you pay on the loans and cards.

Then when the time finally comes for her to start paying it back, one of the following will happen.

1. She is employed and living at home. Simply reduce her board/lodgings to reflect the loan repayment - in effect paying it for her.
2. She is employed and living elsewhere. If you still really want to (and I do understand, I am saving myself at present to help my sons when the time comes) you will be able to make the repayments for her much more easily then as your expenses will have drastically reduced.

This will give you some breathing space (and save lots of money!) and no decisions as to the amount of help need to be made at all until she has left uni and is established in a career.

HTH Cat

Spirit_2

We have held a Standard Life endowment for 24 years (1983) it is due to mature in May 2008. We pay 47 per month premium.

In 2003 times were hard and we borrowed 26000 against the policy (with SL). The interest on this is 150 per month. LBM in the last few days and so I do need advice.

I have checked on-line with SL this morning.

• Surrender value today (incl final bonus) 35473 - repay 26000 = 9473 net

At maturity (May 08) projections are - 36800, 37500, 37800 if they achieve growth of 3.75%,5.5% or 7.25%.

To achieve any of this I have to pay 150 x 9months and of course 47x 9 months, about 1800 in total.

• The middle projection 37300-1800 = 35500 - 26000 = 9500.

Should we give this up now? You will see from my signature that this would make a very big dent in the debts.

I originally sought advice from Mortgages and Endowments board. Really speedy responses, and helpful guide to my understanding but I feel paralysed by indecision. Has any DFW had a recent SL endowment mature and got more than had been predicted?

tallyhoh

What I was thinking is that if you wait till next year to cash in , you will also have more interest on your current debts. If you cashed in now and paid some off your debts= less interest. If you see what I mean?

the_cat

tallyhoh wrote: »

What I was thinking is that if you wait till next year to cash in , you will also have more interest on your current debts. If you cashed in now and paid some off your debts= less interest. If you see what I mean?

On an interest rate of approx 15% these debts will cost you a further £1000 approx in interest on the loans outstanding in the next 9 months, meaning that you would be better off cashing in now (I think?). I wouldn't imagine that given the bad results of all endowments over the past few years, that you could realistically expect more than the average prediction.

Obviously it's a gamble, but hey, a bird in the hand and all that...........