Getting out of this debt sharknado

EmmaMicawber

pidge04 wrote: »

Oh my goodness, I've just read your diary! You have done SO well!

Thanks, and thanks for dropping by!

EmmaMicawber

abba1772 wrote: »

No wonder you're excited go you, it's important to allow little treats during your debt free journey

Good luck with the car boot sale tomorrow xx

I definitely agree! I was quite restrained and only spent £12 on my little treat from the car boot sale. When you're in for the long haul it can get so monotonous can't it? The occasional bargains and different challenges make it all a bit more bearable I think.

EmmaMicawber

May is going to be a super-strict groceries month as April went a bit pear-shaped with so many mouths to feed. I'm going to try for £180 for three. DD has school dinners so doesn't really need a big meal in the evening. I'm also going to investigate our BT bill- it keeps creeping up and I'm not sure why. It's over £60 per month now!! I can't think of any "unexpected" expenses coming up, so will plan to stick rigorously to my YNAB budgeted pots this month.

Let's hope fate plays nicely.

EmmaMicawber

What an amazing weekend! We've had a fantastic time enjoying the sunshine and managed to sunbathe by a gorgeous river, eat outside, enjoy the garden and generally feel like we're on holiday and all for under a fiver- result! I hope you have all been enjoying a truly DFW bank holiday weekend too


After the excitement of bonustime in April, payments have slowed to their more normal pace, and the sort-of-downside of having fewer credit cards is we now have fewer payments going out at different times of the month so my total won't always shift downwards every week.

This week I had 2 payments go out so the updated totals are:
Paid off since last week: £472
Paid off in 2018: £31,572
Total credit card debt remaining £26,428

I'm going tp try taking out a fixed cash amount for groceries, though I'm not too sure how to square this in YNAB. I think I might be able to keep to my low food budget better this way.

Plus I read something about the dangers of a completely cashless society and want to make sure I spend something in cash.

https://www.theguardian.com/money/commentisfree/2016/mar/21/fear-cashless-world-contactless

I worked out that last month we spent less than 3% of our monthly budget as cash!

abba1772

I keep my weekly spending money in my purse helps me budget a bit better seeing how much cash I have left at the end of the day and all bills are paid online xx

EmmaMicawber

abba1772 wrote: »

I keep my weekly spending money in my purse helps me budget a bit better seeing how much cash I have left at the end of the day and all bills are paid online xx

Yes, it's working well so far thanks. I'm really enjoying having cash in my purse- it's quite a novelty and is definitely making me think more about what I spend as I don't want the embarrassment of not having enough cash at the supermarket checkout. I've only spent £10 on groceries so far this week (using up stuff from the freezer) and have left my card at home.

I'm going to pay cash for petrol as well- especially after Asda revealed they have started withholding £99 from your balance for up to 3 days if you do the pay at pump, even if you only buy £10 of fuel. It takes a bit more time to remember to go to the cashpoint but is worth it.

I have spent around £10 assembling and posting a "care package" to DD1 today- some little bits and bobs to keep her going through her uni exams. Mind you, I'm off for a very moneysaving trip to the theatre tonight- they hadn't sold many tickets so gave them away for a donation- £5 instead of £25!

EmmaMicawber

Here are my new totals:

Paid off in last 2 weeks: £378
Paid off in 2018: £31,950

Credit card debt remaining: £26,050

I've had to put some money aside for DD's student house for next year. She is currently looking with a group of friends and has managed to save a few hundred this term as she hasnt been going out but staying in and revising (it might make her realise how much she usually spends on going out!!) but the upfront fees using a letting agent are eye-watering.

Holding deposit (as soon as they want to reserve a house) £300 each
Contracts and referencing: £200 each
Damages deposit £1,020 each
One month's rent in advance £ 736 (less holding deposit)
Grand total needed by July 1st: £2000 each

This is for pretty grotty looking ex-council flats with no communal area (i.e. living room has been made into extra bedroom).

DD will get a Summer job to pay me back but will mean my debt won't go down as much until September.

The other money worry I've got at the moment is that DD wants us to be guarantors for her rent.

My gut instinct is 'of course, no problem' as we want to help her but I've looked into it further and it seems that a lot of parents have no idea what they are actually agreeing to.

Almost all private student lets are on a 'joint and several' basis so that means if I guarantee DD's rent and damages I would actually be guaranteeing the rent of EVERYONE in the house as well as any damage,even if caused by the other housemates not DD.
So we would be guaranteeing a 12 month contract of a flat costing £3500 per month
= £42,000 plus unlimited damages.

I have never met DD's prospective housemates and one has already been very flaky with money (not paying back what they owed to DD) and has previously used drugs so I am very very relucatant to sign what seems a very unfair deed of guarantee.

I assume most parents do and they must hope that if someone else's child drops out or causes damage, the parents are honourable enough to pay what they owe for the rest of the year, even though legally the landlord could come after whichever parent they choose.

I really sympathise with young people renting- the landlords currently seem to hold all the cards.

EmmaMicawber

On a brighter note my new cash habit for buying groceries and fuel is going well.
It's meant I've bought some really nice cheap veggies from the market this week, as of course they're cash only.

Next week is my last week without DD1 so after that my bills will rise due to food (she doesn't eat dairy) and fuel (taxi service as we're rural) but it will be lovely to have her back and we won't be paying the termly amount we usually give her.

System

Just been reading your diary for first time, amazing debt reduction well done. Being a guarantor for your daughter is a hard decision one I would not recommend. Plus I myself have just been looking at rental fees , but your daughters are eye watering. I hope you find a resolution to the situation.

Look forward to keeping up with your progress.

Honeysucklelou2

That does seem a huge amount of money. My DD has had to pay a £500 deposit ( as have each of her 3 flat mates) and her rent starts on 1st August so she'll be paying for 2 months that she's not even there. I think total cost before moving in is £1,500 but mercifully she has had a bursary this year so has saved and used that. Like your DD, mine is paying a huge amount of money for a tiny bedroom and the kitchen appears to be the only communal area.

I had no idea about the joint and several part of the contract. I must ask my DD to read through hers again. Thank for the info!