Tidying up the mess

BabyStepper

Thanks for the tip adg89, that's saved me a job, I'll go and pick one up on the way this weekend. Brilliant.

adg89

You're welcome! I hope she likes it - just FYI, you will need 3 x AA batteries for it as they don't come with the tree.

Moneywhizz

I think it would be a good idea to post your SOA. Get some others perspectives on your budget and whether you are really overstretched or if your situation isn't quite as bad as you think. Sometimes our anxiety over debt can make us panic when actually it is really not so bad. Also there might be something that you haven't noticed that you could cut down or cut out. Only a thought.

Lydia42

Hi
Just thought i would pop in and wish you both well for the weekend. Sad times, but it's good you are getting to see your OH's aunt while she is well enough to appreciate your visits. Hope it goes OK.

Kitten868

Hello,

I've been reading through your diary and just wanted to say something regarding the mortgage as you'd piqued my interest and I can feel the stress through the screen. You can compare mortgages with different lenders on money supermarket- just Google compare mortgages. I have also just looked at TSBs mortgage rates on their site and they look good to me. In your position I would stick with TSB and then not have to worry about being credit checked or your self employed status. Have a look your self and you'll see for the stress a new mortgage would cause I don't think you would save much. Checking this will put your mind at ease I'm sure. We've rolled over with our lender 3 times and it's all been super easy and quick. It's not the same lender but thought it's worth saying.

I'm really sorry about your OHs aunt. It's never easy losing some one special and getting time together is so important so you're definitely doing the right thing making room in the budget for it.

What about if you listed your debts in their bits (ie Barclaycard 1, Barclaycard 2) yes there's more of them but they'll be smaller and maybe easier to tackle and to see where you should be snowballing. It's what I do. And then you can say Barclaycard 1 paid into Lloyds 1 or whatever it is. You're doing great. Bringing in more and more work on every page. You can smash this. Xxxxx

BabyStepper

Here's the new list of debts, broken down depending on 0% deals ending. Thanks for the tip, Kitten868. This will definitely help me keep track, even though it looks worse than before.

Barclaycard (1) £2,008.71 16.9%
Lloyds (1) cc £337.75 17.9%
Barclaycard (2) £517.12 0% March 2019
Santander cc £3,232.29 0% Dec 2019
MBNA cc £5,422.27 0% Feb 2020
Barclaycard (3) £1,250 0% Feb 2020
Hitachi loan £675.20 0% March 2020
Overdraft £2,000 0% Sept 2020
Halifax cc £3,100 0% Oct 2020
Lloyds (2) £907.57 0% Nov 2020

Total £19,450.91

BabyStepper

Here is our SOA, listed in order the DDs come out of our account.

Mortgage 765.20
Gas and elec. 223 (paying down a large bill from last year)
Joint life ins. 35.78
TV License 12.37
Food 200
Bus fares 16.80
Clothes/haircuts 100
Going out 80
Council tax 170
Spotify 14.99
Mobile 1 31 (both locked in until Nov 2019)
Mobile 2 37
Netflix 6
TV/internet/landline 40
B&C ins. 14.65

TOTAL 1,746.79

Debt minimum payments Rounded up to nearest tenner
MBNA 60
Barclaycard 90
Santander 35
Lloyds 20
Hitachi 42.20
Halifax 35
TOTAL 282.20

Income
OH £1,900
Me £1,300 (this month, but this is recent and might still vary massively)
Total incoming £3,200

Total outgoings £2,028.99
Amount left over for debt overpayments £1,171.01

Please do not anyone ask me if we actually have this amount left at the end of the month. My increased wage is very recent and we have struggled through the period of getting my self-employment off the ground. So I just don't know how it will work now.

Netflix and Spotify are not an option to cancel.

We will shift gas and electricity suppliers once we have paid down the outstanding amount.

We will sort out cheaper mobile deals at the end of the contract.

The going out, haircuts and clothes part is new and might be too much or too little.

If I can keep my wage coming in then we are in a good position.

Kitten868

Thank you for trying out what I suggested. For me that reads easier and seems less insurmountable! Only £2300 ish being charged interest. The £337 can be the first to go - it's the smallest and most expensive. Then you'll have one bit all done if it doesn't work for you fine but I didn't want to not say.

Hope the mortgage advice gave you a better sleep. Xxxx

enthusiasticsaver

That does not look unsurmountable as Kitten says and having only around £2300 charging interest is good. You have a healthy surplus but as you say that has only recently been the case so I would focus on putting as much towards the Barclaycard and Lloyds 1 as possible whilst maintaining a decent emergency fund which I think you have don't you?

Moneywhizz

Looking at your SOA it seems you are in a fairly good position to pay back your debt. It could be that there are some things unaccounted for - presents, transport - do you really have no other expense apart from the very small amount for bus fares? It might be good exercise to build a budget that covers absolutely everything. If you include an amount for an emergency fund, spending money for you both, house maintenance, presents and anything else you can think of, then you can see how much realistically you can overpay your debt. There isn't any point in putting all your extra money to the debt and then feeling anxious about your lack of money and worried about not being able to pay your mortgage. It may take a little longer to pay off your debt but it will be more realistic and more enjoyable for you both.