Changing habits, wanting freedom

Honey_Bear

I can't offer advice on the loan either, but I know that if you're talking about increasing debt overall that should be waving red flags. I understand completely why you want a car that's big enough to manage the dogs, the camping gear and your OH's work journey without any trouble. I also realise that you feel a bit stir crazy. BUT - you'll be increasing your debt and at the moment you're not finding paying off the existing borrowing quick and easy, so I'd counsel caution caution caution.

There are other people on these boards that know how to navigate their way around all of the options that might be open to you and I'd see what advice they give and take it very, very seriously.

For those of us who paid off our debts quite a while ago, I don't feel smug about being debt-free, I feel real fear about going back into debt even now, twenty years later, after being in debt for twenty years. What I do remember, as well, is that every time I thought if I consolidated my debts that would be a good thing and I'd pay it back regularly - I didn't. It always ended up leaving me in a worse position a year later.

When we draw up a budget, whether it's for business or for our private lives, it's really, really easy to over-estimate our income and under-estimate our expenditure. It's absolutely normal to do so and it's why people end up digging themselves into a deeper hole when what they'd meant to do was quite the opposite.

It's tough, really tough, not being able to easily afford everything we want, and there will always be a reason to borrow money - that's the easy bit. Living with debt isn't easy, as you know.

I'm so, so sorry to put a dampner on your exciting idea of getting a second car, but I'd feel I were letting you down if I said anything else.

jvr

Hi guys and thanks for advice - ALWAYS appreciated.


At moment on course to pay off all debt by the end of the year ... looks slower at moment as its being put aside for car insurance/ home insurance/ pet insurance all to be paid for the year next month. We calculated what we would need to pay the debt and all those expenses for the year and divided my 12 and have managed to stick to it so far


I spoke to my dad as well as he is very good with money. First of all he said if I was to take this option I need to make sure I can get the decent car we want in that price range and pay off remaining debt so don't take the loan and still have cc and end up with worse of both worlds. Obviously also chop up all credit cards which I don't have issue with as no longer even keep in my purse and haven't spent anything on in about 8 months. Then also if took that option to set aside a standing order to my savings account (terrible interest) but it needs a book to access and he keeps that... it has the savings for OH's next visa in it. Then could pay in to that like another loan for all car expenses eg. insurance so I couldn't get into trouble with it. It would still leave us more money than we are putting aside for debt/ insurances etc.......
So having checked we would be eligible I know it is option but first comes mortgage and we will get 5 year fixed rate this time. Can also look at what cars we would get in our price range to make sure it will work. Checking insurance costs etc against various cars so we can have an idea about actual costs. Then come april can look at the loans and try get my head around them... it may end up not being feasible which I accept ... OH may have harder time with this!


If I went for this option all cc would be cut up and I would HAVE to set up standing order to the savings account which I don't access to without getting the book off my dad with a good explanation!


So in the mean time plodding on with debt repayment and savings, already found good insurance quotes for all things so just need to cancel the others skint till pay day 21st but nothing on till then and have plenty of food and enough money for extra veg and milk etc. Serious lack of wine but my team gave me a bottle as congratulations for passing driving test so that will have to do... or I end up resorting to the strange bottles of spirits at the back of the cupboard which I have no idea what they are

Florence_J

I just had a thought (and you've probably already done it) but I'm certain there is a Car section on here, maybe have a nosy around for good recommendations or set up a thread with what you are looking for.

Apologies if someone already said this!

jvr

Hi


Hadn't thought of that... will head over and have a look!


Also been thinking about what I wrote above and realised due to lots of payments out for yearly things and my sisters wedding debt repayments are going to be lower until the end of april but then all the money we have spent on the yearly things will be thrown at the debt... So if I waited until June our debt should hopefully be considerably smaller and I will have a better view of if it will be possible to pay it off alongside he loan or incorporate it in... means waiting longer but something you said Honey about red flags has obviously been bouncing about my brain and I think maybe waiting is not just about making financial sense but an important step in changing my attitude of I deserve this!


Will talk to OH tonight and see what he thinks but I think delaying till June might help our position a lot. Whatever we do to get a second car it will be on finance or a loan as we want one we can keep as long as possible and at the end of the day I am only looking at waiting four months and I will be able to use OH's car sometimes.

SpekySquarehead

Morning JVR,

How's things? I've been a bit absent lately, sorry.

Just on the car thing. Yesterday my eyes were openned to leasing. My understanding is you lease a brand new car for 2 years and then hand it back at the end, for another new one! The best thing about it is that it seems dirt cheap! Might be worth looking into and saves the big expenditure.

JWPopps

Hello JVR!

I don't drive (I say 'yet' but I'm not sure I ever will, I think I'd be a nervous driver which might make me unsafe) so well done for handling that scary first moment so well! Thank goodness for kind people all around.

I've considered the options of a car so many times, I currently get a bus to work which takes an hour while driving would take half that; my OH lives a 2 hour train journey away which is too expensive for spontaneous trips but a car might make that easier; he also wouldn't have to do all the driving for our holidays etc if I drove...

...in my case, I simply feel I can't afford to get lessons, let alone a car right now. For me the cost of it hugely outweighs the disadvantages of public transport. However, in your case you've already got past the learning part of the cost... the smaller car might be a good car for you to be getting confident in? Would it really reduce the cost of the new car to sell the old one? If not, and if as you say the new car will really make a difference to your quality of life (with the dogs etc) then you're probably going to end up buying one anyway... I feel like that sentence got away from me there.

What I'm trying to say is:
- You're likely to get the new car regardless, since the old one isn't suitable, right?
- Is the old car worth enough to be worth selling?
- If not, and if you're confident you can manage the costs, it might even be a good thing to have the smaller car for you to develop your driving confidence, even if you end up selling it later.

After all, with a big new car - how often are you likely to drive it?

I hope this ramble makes sense!!

jvr

Sorry its been ages again RL keeps interrupting! My pay day was earlier in the week but waiting for OH's at the end of the month to update signature, will be minimum payment though as putting plenty aside to pay for car insurance (about £600) and have someone coming to look at boiler as shower goes hot and cold and do a service at same time (min £120) plus £100 admin fee for re-mortgaging. Fingers crossed if all goes through fine will be on 2.3% for the next five years, we have 28 years left but reducing that to 22 at only £50 more a month def seems worth it as all our debt is 0%, also adding OH to the mortgage as he hadn't lived in UK long enough when he was hear before. We now both have income protection (having a dad end up off work living on income protection due to mental health problems its a must for me) and life insurance but managed to get it all for £10 less a month than was paying before. Re-did pet insurance, paying monthly but is only slightly more over the year so worth it and same with home insurance which has halved in price so adding all together will be the same monthly bills as I have been paying just the £50 extra for mortgage. Plodding along with money although still tends to get away from me in the last week which I must work on!
With regards to the car think we will wait till the summer and then I will keep the little older one and OH will get a bigger car which can be used for camping trips etc. too! Will work out when based on how the debt goes down after car insurance is paid

SpekySquarehead

Morning!

Can't remember if I've said this before. My mum was paying for pet insurance and she paid for 7 years and didn't use it. She's now just put money away into a saving's account, say £20 a month to cover any vet bills. Benefit is if she never has to use it then it can be used for something else whereas with pet insurance it's lost. Might be one to consider.

jvr

Hi Speky


I hadn't really thought about that, especially paying for three pets (highly unlikely something would happen to all three at once) might start putting some aside now and would wait to have some built up to stop paying - I just worry as I know would pay thousands if needed for the crazy things! Pets are def not cheap!!!!


Had a few spendy days of things needed and juggling money to cover the mortgage admin fee and the plummer (red wine was needed) but should scrape through this month!

Frudd

We try and keep an unused 0% spending card for that kind of emergency. In part this is because I hate insurance companies with a passion and will go out of my way to avoid dealing with the slippery !!!!!!!s!