worried its never going to happen :(

Jacko_amz

Ok so heres my situation:

Me 26 earning 25k no debt, my OH 34 earns 19k has around 15k of debt, has been on a DMP for a year paying 40 a month.

We currently rent, and are saving to have a baby - looking to get 5k which we are saving 500 a month for. ( i know people with say well the debt should go first, but for personal reasons we are struggling with the getting pregnant etc and age is worrying me)

My plan in my (fantasy) head is after baby its then on the save for deposit and getting rid of that debt! but i feel like its going to be such a long time that it will never happen. Obviously its going to be after 6 years due to OH defaults, and a single mortgage application won't get us very far where we live.

The finances at the mo aren't an issue, I now manage everything and have a spreadsheet and am very frugal.

I'm just looking for reassurance really or other peoples experiences?

A xx

frugalsmurf

We've had serious debt before and my advice (now we are debt free) is to throw money at the debts (starting with highest interest rate) to clear them.

I'm not going to say to put off children, but be aware that your wage will fall and outgoings increase once you start a family.
Your debt will impact what you can borrow on a mortgage too.

Is it cheaper to rent or buy? I ask as we rented for a while as it was cheaper than what a mortgage would cost (there were other reasons too) . But if this is the case, maybe it's worth clearing as much debt as you can before buying.

Personally I don think there's such a thing as a 'perfect time' to start a family. I had friends who waited until they'd cleared debts but then had other issues. I think a song as you don't get deeper and deeper into debt, that's the main thing. As its bloody hard to recover....been there done that.

Thrugelmir

Jacko_amz wrote: »

my OH 34 earns 19k has around 15k of debt, has been on a DMP for a year paying 40 a month.

How you deal with your personal finances is up to you. In life there's no such thing as a free lunch. So don't expect any favours when it comes to applying for a mortgage.

Slave_to_the_job

Thrugelmir wrote: »

How you deal with your personal finances is up to you. In life there's no such thing as a free lunch. So don't expect any favours when it comes to applying for a mortgage.

Good point 480 per year isn't exactly trying very hard to pay it back

Jacko_amz

It's not a lot paying it back no but it's a start, but on a low wage and having bills/child maintenece there's not much left xx

Thrugelmir

Jacko_amz wrote: »

It's not a lot paying it back no but it's a start, but on a low wage and having bills/child maintenece there's not much left xx

You are saving £500 per month and only paying £40 off the debt owed.

Jacko_amz

Because we are saving for a baby, surely that's better to save the money before having one and making sure no more debt occurs?

ACG

With regards to the Debt management plan, that will get taken into account for affordability when applying. There are lenders who will disregard it after 12 months for the purposes of "bad credit" but it will depend on the finer details. Realistically your not going to be getting high street rates for a good 4-5 years but reasonable rates should be available once the default registration dates are 2 years plus.

With regards to the kids, you have loads of time. Im 31 and have none yet, most of my my mates are 30-33 and I actually can not think of any close friends who have kids yet.

maz2702

I have been bankrupt (17 years ago.) 9 years ago I bought a house with a mortgage and NO deposit. (Yes I know mortgages have changed now.) Then had a DMP which finished recently. Over all that time I had children. Yes it is very sensible saving in preparation for a baby - however would (and the DMP people would also) question why only pay £40 off debts yet save £500? As a compromise why not save £270 and pay £270 off DMP and it would be all over a lot quicker.
If everyone waiting until they had 1000s in the bank before having children, most children would not be born. With friends/family/freecycle/learn to knit/etc babies stuff do not need to cost the earth. And they will not remember the £1000+ buggy they were wheeled around in.
Also after baby born I found the early years the more affordable, First two years they do not tell you what they want for Xmas. Once school starts (uniform/school trips/after school clubs/extras to compete with childs friends....) and you decide the child needs siblings - it all builds up.

maz2702

44K joint income is not a low wage for the majority of this country.

Jacko_amz

The dmp is in his name and not joint, the 500 comes from my wage, but I agree it's going to take forever paying it off at that rate!

I also agree that 44k is not a low wage but it's wasted at the moment as he's uncredit worthy.

I very much plan on being extremely frugal when having a child, 2nd hand stuff a lot of it, the 5k to save was more about covering the shortfall of bills when maternity pay hits.

Thank you for all your advice everyone, I sometimes feel we should be so much more ahead then we are but actually are in a lot better position than some so should not moan xx