Headache's Five Year Plan to Debt Freedom ... est. Feb 15

headachesrus

I'm sure I have had a dabble with a diary before but circumstances have changed slightly so we are starting afresh.

Just before Christmas 2014 Mr and I had a good chat about our future and it seemed possible that with some planning we could be debt free in five years, and be ready to sell up and move on. We had a few ideas of what we needed to do.

Roll on to the beginning of February and out of the blue I received notification of a windfall in the region of £10,000. This made it seem a lot more achievable.

Started getting some facts and figures in to see what I need to do.

Mortgage 17183.00 due to finish in September 2020
Link 1615.00
Link 433.80
Lowell 1707.51
Overdraft 3500.00

I'm only paying interest on the mtg and overdraft, the other three are in a self managed dmp.

With my windfall I am paying off the overdraft and coming to an arrangement with the three debts so I can then concentrate on the mortgage. I need to look at going back into a fixed rate but I cant decide on a 3 or 5 yr fixed rate atm. Lowell have been brilliant, Link are a pita! We will also be having a new bathroom and I am giving the children 500 each.

I am very good at lists, plans and ideas but also very good at doing nothing about them. Hopefully putting it all in one place will help me focus. I have a list of ppm stuff I need to look at as well, and as soon as I pay the overdraft off I want to look at claiming against nat West for a pre packaged account that I have had for years and never used. I thought I had to have it for the overdraft but that appears not to be the case.

Also high on my list is sorting out new bldng ins.

So day one of my five year plans starts ... NOW!

headachesrus

Hello Diary

I've got a few things ticked off my list since last week.

1. Shopped around for b&c insurance. I have gone with one for £137 a year and as I can afford it atm have paid it in one go. Also dusted off my quid Co account and got £45 cash back on that! When that comes through it will be going into my mortgage over payments.

2. I made a decision on the fixed rate to go for. 2.99 for 3 years. No fees. I can overpay by no more than 10%. Brings my payments down to £276 a month from £300 although I am going to leave it at the higher payment and pay as much extra each month as I can. Also tried to speak to them about online banking so I can track it easily but I may have a problem as I don't have a current account with them. Tried ringing about this but was on the phone for ages and had to go out.

3. Rang Virgin. Currently paying £ 75 for tv bb and phone. I've been toying with getting one of those recordable hard drive thingies with just free view. The girlie said I can get the free view channels and keep my tivo box which I can still record on which will be £ 45 a month and at any time I want to add anything back on I can.

4. Got my eBay account up and running again so going to start listing things on there too.

5. I also have a franking machine here which I'm not using any more but still paying £12 a month. It's been on my list to sort for a year! Anyway, rang today and cancelled, they will collect Friday and that's off my mind then. Just need to find a box to put it in.

So, really pleased with today's efforts.

headachesrus

Morning Diary

Two more cancellations today. The postcode lottery, £10 a month. Very difficult to do, had to ring them in the end and a very very hard see from the girlie trying to get me to stay. And surprise surprise I won a tenner on Sunday! First win in a year. So that's on it's way to my account. Then onto amazon to cancel the unlimited. Why is it that to buy these things is just one or two clicks but to cancel them is like hunting for the Holy Grail?

Did just have a spend tho. Spent £27 on yarn but that is two birds with one stone. Everyone is having something handmade from me as pressies this year, and it's also my main entertainment. Also bought through £ Co so a pound or so back on that.

headachesrus

Hello Diary

Still haven't cancelled Virgin, being a bit selfish, I have things recorded I want to watch which will be deleted when I cancel.

Run out of yarn on my one project, was hoping my new order would turn up today but no such luck.

Have given the house a lick and a promise today. Will have a good clean through tomorrow hopefully ready for the weekend. Started to list a few things on ebay. Used to sell loads on there but am out of practice lately.

My to do today is get hold of barclays to see if I can have line banking with them to track my mortgage.

headachesrus

Windfall cheque arrived today.

Will be spent as follows
3500 overdraft
1137 monument
1362 link
1000 children's accounts
1200 new bathroom
350 for my shiny new tablet.

I appreciate I have been very fortunate in having this money. The test is to see if I can keep in credit now. I called into the bank today and asked to downgrade my gold account. Can't do it over the counter, have to see someone. Have made an app for next Tues.

The only debt this leaves me with is mbna via link. I hate Link. I'm undecided whether to pay this off quickly or keep it at the £20 a month. It is interest free.

beanielou

Remember that you will have to give Virgin notice so you will have notice period to watch things.

headachesrus

That's good thinking, thanks for that x

headachesrus

Morning Diary

Got a few lists on the go atm. Once I have had the appt at the bank tomorrow I'm going to make a start on tackling our ppi situation. Between us we have had 12 different loans credit cards etc, many of which I know we had insurance on. I've been reading some amazing diaries on here of what people have managed to do.

I need to get a move on with sorting the house out so will be having a blitz for an hour or so shortly. Once I get on with it its a breeze but I am very good at not starting things.

I finished the baby blanket for my friend's new granddaughter at the weekend. A couple of months before the baby is due too! It cost £23.50 to make in total and has taken about 5 weeks to do. I've also started MILs birthday present blanket too, I'm estimating it's going to cost about £30. I'm not loving it atm, not too keen on the colour and it's very simple so I'm hoping I don't get bored with it. Usually I would just buy something else instead but I'm not wasting the money so will persevere. Hmm I was going to add a picture of it but I can't see how. Ok, might come back in a bit with a photo. And might not lol.

Posting rules say I can't post attachments. Does that mean pics?

headachesrus

Had the appt with the bank yesterday. Paid off my overdraft yippee! Also reduced it to £200. Downgraded the account to a non paying one. Was very honest with the bank and she said I seem to have my head screwed on financially now which I believe I have finally.

Had a good chat with my daughter last night. She admitted she had a £600 overdraft. Same old trap, she gets near her limit and the bank writes to her increasing it. I have loaned her the money and she has closed the overdraft facility. She wants to save to buy her own house but it's so hard with a debt hanging over her.

I say she wants to buy, she is desperate for her own place which I can totally understand. Her dad and I have persuaded her to save for a deposit and buy rather than rent. I did go with her to see some rentals and they were dives for the money she had. However her boyfriend is also desperate to move out of his home, he doesn't get on with his mother, but he is pushing her to rent. She appreciates that once she starts renting it will be nigh on impossible to save for a deposit.

So, busy day today. Took dd to work as she can only take her car to work on certain days. Had to have a bit of a spend today, dd's best friends 21st birthday tomorrow so have put £21 on a gift card and am making a birthday cake for her. Bought some yellow stickered items in Asd@, a chicken, for £2.50 and 2 steak pies for dd for 9th each. Will have to take the stickers off because dd won't be too impressed if he sees them lol. Going to make a chilli and a spag bol from one 500g portion of mince padding them both out with veg. Go me!

headachesrus

Afternoon Diary

I have today joined the hallowed group of mortgage over payers. My £10 postcode lottery arrived, into my PayPal account, so they were talking rubbish about needing my bank details. So I've overpaid by the huuuugggeee sum of a tenner! Off to the bank in the morning to do our id checks for to fix the mortgage so will have to monitor the over payments after that. Also applied for a vanquis credit card last night, just for the £30 cash back. I will cut it up as soon as it arrives, I don't need a credit card. Also need to sort out life insurance for dh now he has gone 50 as they don't then need a medical.

I keep adding to my to do list but I'm not crossing much off!

headachesrus

Morning Diary

Been ignoring you a bit. Now I have done the big things I'm a bit stuck now. Posting on here can only help.

Mortgage is now fixed for three years. Monthly payment is £286.

Have a busy but not expensive week planned. Cousin's 60th birthday party on Friday. It's in a local pub so providing dh doesn't decide to pay for the 9 of us who are going it shouldn't be too expensive. Then MIL's 80th birthday on Saturday. I am making her a blanket which I've nearly finished. Also supposed to be taking her for a meal as well but she is a little poorly atm so don't know how that is going to pan out. Will also make her a birthday cake, just need to decide which one.

Actually, just had a thought about cousin's birthday pressie. I do plate and glass painting, I could do him a pint glass decorated with his name age etc! All I need is a nice pint glass for that. Sorted!

So, today. Have a mountain of ironing to do. Both kids tidied their bedrooms at the weekend so I ended up with a double pile of washing/ironing. DS' so is all done so time to tackle DD's. She is home until Saturday and I've warned her I'm not going shopping with her as I end up buying both her and me stuff!

Tuesday nights are usually takeaway night for us, at a cost of about £35 for 4/5 of us. I have recently discovered Iceland (my new favourite shop along with Aldi and Home Bargains). They do a curry range that DH and DS like, and they also now do a range of slimming world meals so DD and I have one of those, so Tuesday night now costs less than a tenner! And we stick to our diets!

Cooked a big spag bol last night as I had mince that needed using up, and froze 3 portions, and also made a lamb curry with leftover lamb from Sunday's roast, and froze a portion of that! Go me!!!

Right, this ironing doesn't appear to be doing itself.