Spend Nowt, Buy Nowt, Owe Nowt

enthusiasticsaver

What is the value of your house and the outstanding amount on the mortgage?

Suffolk_lass

Can you do a forward budget so you can see when the different elements will be paid? - if your interest-bearing CC clears this next month, chop it in half and stop using it completely.

You know the different techniques for grocery and household costs. Buy economy or YS products if you need to. Set your housekeeping, draw it in cash, split it between envelopes by week and do not add to them. Live on cupboard staples at the end of each week that you are short. A packet of dried soup or beans and egg omelette will just eke it out. I know you are gluten intolerant but you could just leave the (more expensive) substitutes out and make do for a month or two - maybe leek and potato soup (so cheap, filling and tasty) for lunches? You know this stuff, I regularly see you on old-style grocery challenge.

I think for me, the lightbulb clicked when instead of replenishing everything in my cupboards I began to use it all, and only replenish when I was going to cook with an item that I had run out of, rather than always having a spare already on the shelf. My whole month dropped to less than a hundred from over £500 that first month.

I think if you chunk it up and tackle one area in a dedicated way, you will surprise yourselves how much you can do. On the up-side your DH's salary looks better than the mortgage application last time. Rather than telling your DH you cannot stretch to that, try having the "we could lose the house if we don't..." and remind yourselves when you are tempted. I have seen you get so far before and then it is as though you get complacent and you really are in danger of repeating that cycle.

HairyHandofDartmoor

I agree with the others that you should exercise caution here.

Keeping your dream house is the most important thing, and if one of you were to lose your job or be unable to work through illness then you could be in real trouble.

XSpender

enthusiasticsaver wrote: »

What is the value of your house and the outstanding amount on the mortgage?

We bought the house for £320,000 and the mortgage balance in June will be £262,000. The house may have gone up a little bit as we have remodelled the very dated kitchen, laid wooden flooring and dragged the house into the 21st century

Suffolk_lass wrote: »

Can you do a forward budget so you can see when the different elements will be paid? - if your interest-bearing CC clears this next month, chop it in half and stop using it completely.

I have worked this out on an excel spreadsheet using the £250 and my bonuses and my DFD is quite a bit further away than I would like it to be which is before my 50th birthday. I haven't worked it out with DH bonuses

You know the different techniques for grocery and household costs. Buy economy or YS products if you need to. Set your housekeeping, draw it in cash, split it between envelopes by week and do not add to them. Live on cupboard staples at the end of each week that you are short. A packet of dried soup or beans and egg omelette will just eke it out. I know you are gluten intolerant but you could just leave the (more expensive) substitutes out and make do for a month or two - maybe leek and potato soup (so cheap, filling and tasty) for lunches? You know this stuff, I regularly see you on old-style grocery challenge.

I think for me, the lightbulb clicked when instead of replenishing everything in my cupboards I began to use it all, and only replenish when I was going to cook with an item that I had run out of, rather than always having a spare already on the shelf. My whole month dropped to less than a hundred from over £500 that first month.

I think if you chunk it up and tackle one area in a dedicated way, you will surprise yourselves how much you can do. On the up-side your DH's salary looks better than the mortgage application last time. Rather than telling your DH you cannot stretch to that, try having the "we could lose the house if we don't..." and remind yourselves when you are tempted. I have seen you get so far before and then it is as though you get complacent and you really are in danger of repeating that cycle.

Last year was really tough with DH work situation and his big drop in salary and how it impacted his self esteem and made him physically ill. We have got complacent and allowed lifestyle inflation to creep in with the new salary and some good things that have been happening at my job too. We seem to do better when money is tighter and we need to get back into this mindset as things are tight when we are in so much debt.

HairyHandofDartmoor wrote: »

I agree with the others that you should exercise caution here.

Keeping your dream house is the most important thing, and if one of you were to lose your job or be unable to work through illness then you could be in real trouble.

The house is very important to us HHoD, we pinch ourselves still that we get to live here nearly 2 years later. It is ridiculous that we risk it all by overspending.

XSpender

This is the list of work and planned purchases for the house that we want to complete with the costs of the items we need. I haven't a price for all of the items if I haven't sourced it yet. This is finishing the rooms we have started and not starting any new rooms.

Guest Room

Plastering (£140)
Wall Paint (£40)
Ceiling paint and gloss (already have)
Bed and Mattress (already have - bought for cash)
Bedside tables (using our old ones)
Blind and 2 cushions
Ceiling light
Bedside lights
Chest of drawers (£80-£100 Ikea)
Light switch (£7)
Door handle (£10)
Wall mirror
Mattress and pillow protectors (£30)
Sheets, pillowcases and duvet cover (£50)
Loo roll holder for en-suite (£10)

Our Bedroom

Full length curtains for a large bay window
Curtain pole for a large bay window
Wall mirror (£55)
Full length mirror
Bedding x 2

Dining Room

Paint for walls and ceiling (£100)

DH is very keen to reinstate the wall between the living room and dining room which will not be a huge cost nor will it add to the cost of the paint but it will mean the living room needs decorating and once we start on that room it will be a lot of money. This is why we have haven't started it yet. The wall will mean new flooring in both rooms too. The only positive is that it will cost a lot less to heat!

Garden

Garden tidy and tree trimming
Turf 2 small areas
Removal of some garden waste

Hall

New door for cupboard under the stairs
New handles (£10)

enthusiasticsaver

If you haven’t cut the credit cards up you should now to stop you being tempted any further. Whilst the planned work is wanted it is not necessary to do this at this particular moment and as you will need a good deal in June to avoid going on to SVR it might be better to concentrate on paying down the debt. Your mortgage will still be more than 80% even without any consolidation and affordability will be an issue as they may not take bonuses into account. Decoration has no affect on valuation. They will just take a house price index valuation with a remortgage

XSpender

enthusiasticsaver wrote: »

If you haven’t cut the credit cards up you should now to stop you being tempted any further. Whilst the planned work is wanted it is not necessary to do this at this particular moment and as you will need a good deal in June to avoid going on to SVR it might be better to concentrate on paying down the debt. Your mortgage will still be more than 80% even without any consolidation and affordability will be an issue as they may not take bonuses into account. Decoration has no affect on valuation. They will just take a house price index valuation with a remortgage

All cards are cut up except one which I use as a back up to my corporate card.

XSpender

I was up late last night crunching the numbers and have a plan of sorts.

By May

1) Clear the new furniture spending on the Lloyds card (asap)
2) Clear the whole of the Virgin card
3) Start making OPs to the Lloyds Card to reduce balance

I need another £1000 from DH bonuses to achieve this. I am focussing on the CCs to improve our affordability.

By Dec

1) Re-mortgage (no consolidation)
2) BT DH Virgin card to a new 0% deal
3) Clear Lloyds card in full

I need another £1000 from DH bonuses to achieve this

2019

1) Make OPs to older Lloyds loan and SIF by Dec
2) Creation and Hitachi will complete this year
3) Reduce balance on 2nd Lloyds loam to £5000

Again this is using DH bonuses for number 3.

Treadingonplaymobil

I love reading your diary, as I think you're as honest and open as I am about your less-than-perfect spends, but also open to people suggesting things that don't need to be spent on.

I would agree that every single item on your house list is a want rather than a need - absolutely none of them are needed to make/keep your house habitable. Our house also hasn't been updated at all since the late eighties - the kitchen is revolting, every single last wall is papered in vile textured wallpaper and the hideous artex ceiling plastering is flaking off due to (now resolved) damp, so I feel your pain in holding off doing work that would make home life infinitely more enjoyable. But over the past 12 months I have really had to get my head round the idea that I don't have a right to any of those lovely things I would like. They are extras, not necessary for our health and safety. It really grates, especially when I visit friends who have been able to do all the things on their properties that I would have done to ours were it not for LBM and DF journey. And knowing how lovely our house will be when it finishes. All of it. But none of it is worth making our financial position even more vulnerable than it already is.

enthusiasticsaver

Firstly I like your plan. You have the option now to turn the debt train round before it cripples you. You must be spending in the region now of around £800 a month in repayment of unsecured debt on top of a substantial mortgage. Without wanting to labour the point you are fairly close to 50 so presumably only 15 or so years from retirement so this is really a last chance saloon to get your finances in order. Do it now while your income is high enough to do this. That £800 is needed in your pocket to do the things you want to do. Get your OH on board with this if he is the spends one encouraging you to overcommit.

I agree with TOPM completely.