Looking to clear debt by 2020

Willing2Learn

MNM2903 wrote: »

After i posted this i really got my self in to a place where i wanted rid of debt so i sat down with the missus and went through everything and looked at where we could cut down, the fact we pay each month for xmas vouchers means xmas time is always sorted and we dont have to worry so hopefully we can now go in to the new year in a much better financial state

The way you are budgeting for Christmas is the way you want to budget for everything. Start a spending diary (for both of you) to confirm exactly where your combined income is going, and then set realistic monthly budgets from the data collected, using the monthly budget categories you have used in your SOA.

It is good that your other half has agreed to this, as it is a combined problem that needs addressing

enthusiasticsaver

Don't take out a further loan. You can clear this if you address it in the correct way which is what you seem to be doing. Ideally before you take on a larger mortgage you should aim to clear this unsecured debt. When are the two large loans due to be repaid?

The positives are that the credit cards are at 0% so I would let those run over the term and just make sure they are clear by the time the deal finishes. If you are planning on moving I would focus on saving emergency savings and new home savings and maybe overpaying on the loans depending on interest rates and whether there are penalties for early repayment.

The key to staying out of debt is budgeting, saving and living within your means. Before you buy on a credit card just think about whether it is really needed.

Potbellypig

fatrab wrote: »

I was frittering £600/month on take aways and going to the pub up until about a year ago

Frittering?! FRITTERING?!?!

ReadingTim

Potbellypig wrote: »

Frittering?! FRITTERING?!?!

Or, as the late George Best put it "I spent a lot of money on booze, birds and fast cars. The rest I just squandered."

Fireflyaway

I'd stop buying clothes for you and your partner. The odd supermarket outfit or shoes for your growing child might be £20-40 a month.
Phones are expensive but maybe you are stuck in a contract? Have you shopped about for car insurance? I just went from £37 a month to £23 by using a comparison site.
When my daughter was a similar age to your little one we had a similar income to you. It was a struggle so my tip is remember things will improve. At some point you won't have child care costs and your income can go up if you make a plan to develop yourself.