Long for the day of no minimum payment!!

enthusiasticsaver

You have made a great start. I would also question the need for such an expensive car but I doubt if you would get £18k back for it so not sure selling it immediately is such a good idea. The monthly payments on that must be astronomical. What term have you gone for and what interest rate did you get? The only plus about it really is that it is not PCP so at least the car is yours at the end.

You have not put the monthly loan repayment on your debts list for September.

Ladyonamission

Thanks for popping in ratrace. The loan is a new loan me and by partner have just taken out to get a safe car for the new baby. The car itself isn’t 18k infact only 11k but the rest is consolidated debt from before. My car broke just as I was going on maternity leave so we did the sensible thing and brought a cheaper 3k car run around which was gifted from my dad. Low and behold that broke after 4 months which then put me off wasting anymore money on an older car, it’s £303 a month which now doesn’t start untill 27th Nov , it does sound a lot but bearing in mind we don’t have to pay anything car related for my partners eg insurance/fuel as it’s all included through work so I think it evens itself out. So really excluding the debt from before we are paying 11K for a 16 plate car with 15000 miles on which is reliable and we will have for years , also included is free MOTs for life which is a saving. I know some people may not see it the same but as a new nervous wreck Mother to me it’s worth the payments

enthusiasticsaver

What interest rate are you paying on that loan? Has the new debt built up again since the debt consolidation? Personally I am not a fan of buying cheap cars either due to the fact you often need to keep paying out on them so I think you did the right thing there. Debt consolidation however is not recommended due to the likelihood of debt building up again as you appear to have done unless you did not clear it all with the loan?

Ladyonamission

Ladyonamission wrote: »

So whilst drinking my tea I had realised I had additional money for the bills this month only £23 so iv divides £11 between my cc and the emergency money

Feels nice to have a little dent.

Car Loan - £18291.29
Overdraft - £1500
CC1 - £800
CC 2 - £700/ £689
CC 3 - £323
Store Account 1 - £652.99
Store Account 2 - £49.98
Savings - ££180
Total - £ 22317.26

enthusiasticsaver wrote: »

You have made a great start. I would also question the need for such an expensive car but I doubt if you would get £18k back for it so not sure selling it immediately is such a good idea. The monthly payments on that must be astronomical. What term have you gone for and what interest rate did you get? The only plus about it really is that it is not PCP so at least the car is yours at the end.

You have not put the monthly loan repayment on your debts list for September.

Hi thanks for stopping in, my car isn’t worth 18k but only 11k it’s got additional consolidated debt on from before. I tried the cheaper car root to start with but after it breaking down on me with a 4 month old in the car for my own sanity I had to get a newer one. I get a lot of people will say it could easily be sold and a cheaper one but this is my first baby and I’m a worrier so for peace of mind me and my partner decided a newer car with all the warranty/free MOT/ low mileage and it’s 4x4 was deifnately worth it. It’s a 16 plate and we plan on having it for years so we will get the worth out of it. I’ll have to fish the paperwork out but I know the total is 18000, the car was 11000 and I had around 6000 consolidated before hand so interest over 5 years of maybe 1000?

It’s not on September as payments don’t start untill Nov 27th. OH is due to get a lot of commission this month and from everything iv budgeted we should really still have around £500 spare but don’t want to rely on it yet as haven’t worked out the math of the tax man, but hopefully anything left will be added to our savings so when the payment does start we will already have 1/2 payments saved

Ladyonamission

Enthusiasticsaver - I can’t quite get this whole quote thing when replying :mad:

The consolidated debt was mine and OH credit cards which we put togeather when we moved out so it was all paid by 1 payment and that was it. Unfortunately the additional is because my partner went through a really hard time with depression when we had some personal issues with illness and fertility etc. So his way of dealing with it was spending. He had kept this from me untill I found the statements. I wasn’t even aware of his overdraft as I’m a tad control freak and wouldn’t of let t happen. His dad helped us out and paid a big chunk but I had to put a stop to it. As hard as it was for him he has to learn the hard way that he can’t just do that with a home and family to support. He’s on the up now , I have control of everything and I make him sit down with me and go through it so he understands budgeting more and the amount of money we owe. I know people will think I’m mad for not taking the easy route and having his dad pay it all but he is the breadwinner in the family if he doesn’t learn the skills now he will never and I’ll spend my life worrying whether he will get us in the same situation. Sorry I rambled I think iv covered everything you asked :rotfl:

ratrace

Ladyonamission wrote: »

Thanks for popping in ratrace. The loan is a new loan me and by partner have just taken out to get a safe car for the new baby. The car itself isn’t 18k infact only 11k but the rest is consolidated debt from before. My car broke just as I was going on maternity leave so we did the sensible thing and brought a cheaper 3k car run around which was gifted from my dad. Low and behold that broke after 4 months which then put me off wasting anymore money on an older car, it’s £303 a month which now doesn’t start untill 27th Nov , it does sound a lot but bearing in mind we don’t have to pay anything car related for my partners eg insurance/fuel as it’s all included through work so I think it evens itself out. So really excluding the debt from before we are paying 11K for a 16 plate car with 15000 miles on which is reliable and we will have for years , also included is free MOTs for life which is a saving. I know some people may not see it the same but as a new nervous wreck Mother to me it’s worth the payments

Thanks for explaining the situation, personally i still think its unnecessary to have such an expensive car 11k is still high as now you are on a reduced income due to baby, to be honest i am a mechanic (part time) and i can tell you that all modern post 2000 cars are very safe, sometimes when we really want something we justify the purchase so we can have it

You are paying £303 a month in payments 303 x 12 = £3,600 per year thats an awful lot and no car will require that much spending on it, the mot's are no free only the test fee part of it (£40) is free if the car still needs work to pass you will have to pay that separately so really you are only saving the £40 fee

its upto you after all its your money but the reason im being a little harsh is because you want to buy a house asap and having all the expenses every month is delaying that

your rent is really high if you was paying that as a mortgage payment you would be in a very nice £200.000 + house, so the quicker you can get on the ladder the quicker you can stop making landlord rich and start to build postive equity in your own house

again i am sorry if i come across tough but if someone had been strict with me i would not have wasted all the money i did making others rich

hope this helps

Ladyonamission

thanks for your input, I do agree with what you are saying and if was just myself I wouldn’t of gone the root I did. I agree with the amount spent on the car wouldn’t total the same but it’s the reliability with me. The car I brought 4 months ago was a 2011 Ford Focus low mileage etc I can’t remember what was wrong with it my dad dealt with it but it was more then the car was worth to repair hence going for a newer model. Im in no rush to buy a home I hate the thought of paying the landlord all that money but the reality is we’re I live in the country I’m going to need 30 - 40 k just as a deposit for a mortgage, I’d never find a 2 bed for 200000 down here would be lovely!! :j

ratrace

Ladyonamission wrote: »

thanks for your input, I do agree with what you are saying and if was just myself I wouldn’t of gone the root I did. I agree with the amount spent on the car wouldn’t total the same but it’s the reliability with me. The car I brought 4 months ago was a 2011 Ford Focus low mileage etc I can’t remember what was wrong with it my dad dealt with it but it was more then the car was worth to repair hence going for a newer model. Im in no rush to buy a home I hate the thought of paying the landlord all that money but the reality is we’re I live in the country I’m going to need 30 - 40 k just as a deposit for a mortgage, I’d never find a 2 bed for 200000 down here would be lovely!! :j

I feel your pain with the ridiculous house prices lol

all the best with it all,ill try to chip as and when i can, just out of interest what is the new car you have bought as a mechanic i love my cars

stripeyfox

Hi. Just wanted to say well done and keep going. In the overall scheme of things your financial position isn't disastrous but I know exactly what you mean by wanting to be rid of minimum payments. It's hard, a long slog, so anything you can do to help yourself by getting some motivation on here will help.

All the best x

Ladyonamission

Thanks, it’s a Nissan quashqai so not strictly a 4x4 but higher and it my opinion safer then the focus and my old 1 series.