Tessiesmummy pre mortgage debt clearout

Legacy_user

Hi!! I'm starting the diary in the hope of getting a mortgage sometime in the next 12-18 months!

After reading many threads in here I've decided my best option is to clear my debts / old defaults prior to applying for a mortgage. I've done myself a little spreadsheet and am hoping to pay off £50+ weekly to clear it all by July!
I have
£231 h&m (defaulted 9/12/12) pay on 29/6/18
£345 Orange (defaulted 22/12/12) pay on 25/4/18
£1797 Very Ccj (defaulted 27/8/13) pay on 25/4/18 (paying £20 monthly now)
£361 bursary overpayment. pay by 1/6/18 (paying £5 weekly now)
£167 jcp overpayment pay by 11/5/18 (paying £15 fortnightly now)
£100 water pay by 16/3/18
total £2995

brief income
£268 tax credit and chb weekly
£120 weekly wage (£360 from april)
one off payment student loan 25/4/18 £3400

weekly outgoings
£100 rent
£28 council tax
£45 gas and electricity
£60 shopping
£11 water
£45 car/ travel

it's gonna be hard going as well as saving £100 a week from April but i am hoping that the settled rather than defaulted accounts will improve my chances of getting a mortgage.

beanielou

Wishing you well on your journey

UK_Ozzy

Good luck on your debt free journey.

System

Thankyou!!

I am still figuring out the best plan! I have decided to reprioritise the bills and pay the defaults and ccj first as the others that I am upto date with dont even show on my credit report. I'm hoping 3 settled will look better than 3 defaults.

I've not made a great start as had a night out with Tessiesdaddy on Wednesday to a comedy club (first night out together in almost 10 years)! The tickets were free but the drinks were £11 a round so that turned into £100 wasted when you bring in taxis and food too. It was worth it though and I've still got my £50 to pay off a debt.

I was looking at mortgage brokers and stuff and it is a lot of expense with little chance of me getting one so I am going to try in July with nationwide and if that doesn't happen then ill get a broker next year!

I'm studying a Msc in public health and have passed my first 3 modules which im buzzing about. Also got interviewed for uni magazine which made me sound very professional and intelligent which was another little boost for my ego! The 3rd instalment of my student loan in April will be used to pay off any remaining bills hopefully if all goes to plan!

I am trying my best to save. got £2700 upto now but 3 kids are so extremely expensive. They need stuff every single day!!! Going to uni also costs me £10-£20 a day too with parking coffees and lunch then £18 on wrap around for the kids!

Hoping writing it all on a public forum will motivate me to do a little better and cut down on as much waste spending as possible!

System

well last night I decided to add a page to my spreadsheet so now I have normal bills, creditfixing Bills and a daily ins and outs page.

my ins and outs for Friday and Saturday were not good but I'm keeping my fingers crossed that updating it daily will mean ill become more conscious of my spends.

We spend a silly amount of money in the local shop and on takeaways. If we were to cut these out then as a family we would not only have more money but also be healthier so that's what I want to target this week.

it is half term too so with 3 kids to entertain i expect to spend more this week than normal. However a few years ago i was on benefits and managed a whole summer holiday of lots of days out on minimal money so it can be done

System

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 0
Benefits................................ 986.48
Other income............................ 0
Total monthly income.................... 2336.48

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 404
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 80
Gas..................................... 70
Oil..................................... 0
Water rates............................. 44
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 34
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 28
Car Insurance........................... 105
Car maintenance (including MOT)......... 30
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 24
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1526


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,336.48
Expenses (including HP & secured debts). 1,526
Available for debt repayments........... 810.48
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 810.48

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 3,000

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/font]

MeenaM

HI and good luck

your best bet is to clear your debts and have in place savings that equal at least 3-6 months of your expenses otherwise you will get a house and end up in more debt , you want to be able to enjoy your home and have enough money to afford to maintain it etc , so that is the best way of going about it, i would suggest having a budget that you both sit down and agree on at the beginning of the month when you get paid and stick to it , the more you do that the quicker you will get out of debt

System

Thankyou for the reply MeenaM. Yes I completely agree with you. Fortunately our outgoings arent massive. We are just really good at disposing of the disposable income or should I say Tessiesdaddy and the kids are!! They spend money every minute of the day if its there. I am going to be cutting back as of today though and hopefully as well as clearing the debts increasing the savings.

Does this mean when I eventually do apply for a mortgage I should be keeping back a few grand as savings rather than deposit? I'm hoping to buy the house I'm in now. It's a housing association Right to Acquire purchase so luckily I know the ins and outs of it and fingers crossed all the basics (gch, boiler and electrics) are all well maintained. Also Dp is a handyman so we are able to do most jobs ourselves.

MeenaM

tessiesmummy wrote: »

Thankyou for the reply MeenaM. Yes I completely agree with you. Fortunately our outgoings arent massive. We are just really good at disposing of the disposable income or should I say Tessiesdaddy and the kids are!! They spend money every minute of the day if its there. I am going to be cutting back as of today though and hopefully as well as clearing the debts increasing the savings.

Does this mean when I eventually do apply for a mortgage I should be keeping back a few grand as savings rather than deposit? I'm hoping to buy the house I'm in now. It's a housing association Right to Acquire purchase so luckily I know the ins and outs of it and fingers crossed all the basics (gch, boiler and electrics) are all well maintained. Also Dp is a handyman so we are able to do most jobs ourselves.

I know that feeling about the husband/partner and the kids spending the money like its going out of fashion, its not easy that's for sure , it helps if you are all on board and focused on the same dream , ie debt free and the house etc

yes i would say have some additional in savings in addition to the deposit , that would be the best , its good to hear you should be able to do all the jobs yourselves as well that will def be a bonus

System

They are on board as far as they want to buy the house to gain an extra bedroom (loft conversion) they don't seem like they want to sacrifice anything to get it though.

Had a good day yesterday and only spent £11 in aldi which was a lot less than we usually spend. Didn't got the shop or to a takeaway!!

Today is the first proper day of half term. Kids r killing each other and my 6 year old dd is in a super bad mood!! I'm thinking of taking them to the beach park for an hour and the dog.

I'm in uni tomorrow and wednesday so will then need to find stuff to do Thursday and Friday. we have done the museums and art galleries 3/4 times a year for 9 years. we know them all inside out. It's getting harder to find stuff to do especially for m eldest she's 9.

System

dear diary...

well today was tax credits day and spent £79.94 today although £53 of that was direct debits so not as bad as it looks!! I took my spare 2 wallpaper rolls back to b&m and exchanged them for tinned food so that was £13 saved.

my in and out spreadsheet is doing well. I'm gonna run it friday to thursday because fridays is when I spend any leftovers paying off debts and it's wages day.

really struggling with the kids behaviour this week. I neat had a breakdown in the shop because they were carrying on and my throulats hurting from telling them off all day. fingers crossed it passes.

as for days out.. yesterday we went to the beach park with the dog. that was actually really refreshing to get some winter sun and I just spent £2.60 on a coffee to keep warm. today dd2 had a swimming lesson so dd1 went in the pool too so that was a little hour out for free!!!

I'm in uni 9-11 tomoz and dp is under strict orders to fix my bike so I can go out with the kids in the afternoon!!! if he does as he's told then thats 3 days out done and dusted for free!!!