We Keep Changing Our Minds

tesuhoha

We had decided a month or so ago that we were going to save to do up the house and put the debts on semi hold. However, this month we have had a bit of a scare with regards to OH's job. Everything is ok but it has forced us to rethink and now the debt repayments are very much on. I have used the little we had saved (£860) towards our MBNA cc. One of the reasons behind this is that although we were trying to think about the house the debt kept nagging at us. It would just be such a wonderful thing to be debtfree. I just can't imagine it as we have been in debt for as long as I can remember. At least 15 years. Once one thing was paid off then something else would come along. As it is we have a tax bill of £5600 coming in January.

At the moment we owe £10,000 ish (have to update my figures when the cc bills come in so don't know for sure). I thought that we werent doing very well but when we moved in here just over a year ago we owed £17,000 in cc bills, £74,000 on the mortgage and Christmas cost us £3,000. Now the mortgage stands at £69,000 because we had it over 9 years. The payments are £1,000 a month. So I don't think we have done too badly. Somehow we have managed to pay £10,000 off the ccs and £5,000 off the mortgage. Also we no longer have an overdraft which was a hidden debt when we moved here. This year Christmas will be a much more modest affair budgeted for by money we have put aside.

So now we have to pay off £10,000 plus the £5,600 tax bill before we can even start saving for the house. It seems a massive task but I hope we can do it. My husband accuses me of obsessing about money but I just want to be free of this chain around our necks.

hypno06

Regardless of whether you keep changing your minds, isn't it fab to look back and realise just how far you have come!!

Keep THAT in your mind, and whichever way you go from now on, you are moving forward!

Gemmzie

It sounds like you've answered yourself. The debt is nagging at you, so full steam ahead to clear it. If you've managed to clear £15k in one year then you should have no problems clearing the rest of the cc's (£10k) in under a year and then you can start on the house

tesuhoha

Yes its definitely the only way forward.

postingalwaysposting

tes i know how your house was effecting your health and relationship, however i feel this is a good change of mind. Althouh savings good and giving yourself something to look forward to is good you are on the home straight now. In the grand scheme of things there isnt much time left and you shall be debt free... I know there are lots you want doing to the house but imagine what it will be like whan you can pay for repairs out of all the cash you are putting towards debt each month. If you carry on savings and paying debt you are leaving yourselves less and less to live on ~ that cant be good imo. Once your debts payed then you can start planning on living a life of luxuary debt free good luck hun, i am behind you 100%.

lynzpower

Well done Tes

I did suspect that you might have a change of heart, I know deep down you are a very committed DFW

Maybe say to Oh, the sooner we get this paid off the sooner I'll stop going on about it

thewayitis_2

I'd finance my debt first, and just do the essentials in the house. You can pay a professional to do the decorating with the interest you'll save by clearing that 10k a year or two early.

Its always a good idea to have a second high interest bank account and put the tax mans cut of income in there as it arrives. It helps get into the mindset that the money doesnt belong to you.

sammiboo

well you certainly have done great so far.

As you say i think paying your debts off should be a priorty - you have done so well so far then I think it will be such a huge weight off your shoulders when its done and dusted.

I desperately need a new car, but I dont want to take on other debt until this one is paid and at least save a bit for a car first.

I spend about half my wage paying off cards and loan so would be nice to get that half a wage back and going to something for me when its all paid off :T

HelzBelz

tesuhoha - obsess as much as you like about money, my OH takes the P**s out of me as I've got the stage whare I'm completely OTT about money and thin if there isn't at LEAST £100 in my account bt the end of the month then we're destitute, but at least you've got that oney there should you need/want it.:p :T

P.S. OH just spent my money obsessin on a £2K+ motorbike, so even if you pay everything off, the giant child you live with will ALAWYS fina a new toy to spend the "spare" cash on