Easing up the pinch

Cwtch22

After a few years of feeling like we've been hemorrhaging money we've finally settled - at the bottom :-(

Starting out with 2 good incomes and a reasonable amount of savings, the last few years has seen us move house, do extensive work on said house, and have another baby to fit into one of those new extra bedrooms.

The final nail in the coffin was when I had to leave work at short notice to care for one of my kids. I don't begrudge it at all but the situation is obviously tighter!

Most of the debt was from the building work on the house and a big holiday last year that was booked before knowing I would have to stop working but I know our day to day is what's slowing us down from paying it off.

Cwtch22

Current debt (not Inc mortgage):

- £18k loan
-£3500 on CC

Debt-free things we've recently put in place:

- Refinanced the loan on better terms (with the ability to overpay and reduce interest).
- Switched phone/broadband provider.
- Applied to switch utilities via a service at OH's work.
- Switched up grocery shopping routine to prevent mindless buying and/or waste.
- Dragged the slowcooker out of retirement.

I've also started working as an exam invigilator. It's only a few hours here and there so doesn't get in the way of my caring responsibilities but it's a bit extra to add to the pot.

Cwtch22

Ongoing actions to chip away at the debt:

- OH's income above a certain amount will be put aside and saved until the end of the month.
- A weekly food budget will be taken out and WON'T roll over. Any surplus gets saved.
- Any unexpected income (birthday money etc) is all gonna get saved.

If at the end of the month we're free and clear and don't need it we'll use it to pay down the debt.

in_need_of_direction

Someone sounds very determined. Can I suggest that you use even a small percentage of things like birthday money for a treat? Otherwise, you may get bored with it.