Big plans, accountability needed

edited 1 December 2018 at 11:27PM in Debt Free Diaries
32 replies 2.1K views
chocolatepiggybankchocolatepiggybank Forumite
77 Posts
edited 1 December 2018 at 11:27PM in Debt Free Diaries
:j WE'RE GETTING MARRIED! :j
:j WE'RE BUYING A HOUSE! :j
:eek: WE'RE....gonna be in so much debt lol :eek:

I already have 3k on my credit card which I've never quite managed to shift after moving it to 0%, so that's going to have to go. All of our savings are needed for the house deposit, leaving nothing for the wedding which we're planning to do next year, which we're estimating at about 9k. He only has pennies on his credit card, thankfully.

As much as I don't want to begin married life by racking up loads of debt, life plans are getting in the way of postponing it any longer, and my large family is getting in the way of doing it any cheaper. 5k of the budget is for the food and venue, my mum wants to buy the dress and everything else is going to be as cheap or as DIY as we can make it (except the photographer - everyone I speak to says that's the one thing worth spending on)

So... here lies an attempt to use credit responsibly :rotfl:
What goes up must come down. Debt free by 2021!
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Replies

  • Step 1: convince hubs-to-be that it's possible to repay the cost of the wedding within a year of the big day. After asking him to calculate 9k over 24 months he only looks slightly dubious and agrees that we can try, although he did try to remind me that "we'll be paying interest on it as well"
    Excuse you mister, we're going 0% thank you very much! But now he's not totally resigned to carrying the debt around for a few years, so that's a start.

    Step 2: organise myself :eek:

    My credit card payments keep coming out of my overdraft by mistake, I can't remember all my passwords and pin numbers, debit cards are still in an unknown box after moving house 2 months ago and I can't seem to change my address on my bank accounts without finding missing cards and passwords. Thank goodness for royal mail redirections.

    Spending has been out of control this year too, not to make excuses but interviews and new job in early 2018 needed new work wardrobe (RIP uniform!) Life since then has been one unexpected stressful event after another, and I basically just stopped trying. Time to remember I don't actually need anything.
  • So much for a rush of motivation to kick things off with. I've spent most of this week full of cold and feeling sorry for myself, but the boxes that hopefully contain the bank stuff have been unearthed from under the clothes mountain. Small steps. I'm not sure if I can do big steps right now, the last few months have left me worn out. How I'm going find the energy for wedding planning and house buying I don't even know. I feel like all I do lately is try to make it through the day and wait until I feel better or less stressed :wall:

    Most recently H2B nearly lost his job, and we had to consider the possibility of getting by on my (smaller!) salary. It left me very aware of how unprepared our finances are for that sort of situation, so that's partly why I've started a new diary before we accumulate even more debt. I had a look at my old diary earlier and it was disheartening to see that I actually owe more now than I did then. I guess because I wasn't paying interest I fooled myself into thinking I didn't need to think about it. Dangerous, combined with a 4k spending limit. Still, it's not much compared to other diaries I've seen so this diary won't be any use to anyone looking for advice or anyone who has bigger debts, I'm just here to keep myself accountable and keep things manageable. The worst of the wedding spending won't be until much nearer the time, so we have a few months to pay off my card and pay for things upfront before then. I don't see any reason for the total debt to get above 6k between us. That's my target. When we buy a house we'll just have to live in it as it is for a while, no matter how hilariously outdated!

    My only money saving plan today is to dust off my Xmas jumper and go earn my £35 at my second job. I could call in sick with this cold but then I won't get paid. Hey ho, it's off to work I go :whistle:
  • Today's plan - find the bank stuff so I can login/update my address everywhere. If anyone wants me I'll be in the pile of boxes.

    H2B is studying for an assessment day for a new job. He's in the process of losing £3-5k a year at work, if he gets this job he'll regain maybe half of that. Once we know his salary we just have to wait for mine to be confirmed - main job have increased my hours from 21 to 28 temporarily until March, I'll find out if it's permanent some time in January and then I can decide if I need to keep my 2nd job- I probably should at least temporarily. So by the end of January we should know what our income actually is and be able to apply for a mortgage in principle. I'm disappointed with myself for not clearing the credit card debt before this point, but if we need to wait three months from him starting his new job (do we?) then I can make a bit of a dent in that time.

    Will check and post actual account balances later today
  • edited 2 December 2018 at 8:19PM
    chocolatepiggybankchocolatepiggybank Forumite
    77 Posts
    edited 2 December 2018 at 8:19PM
    Passwords found, logged into the account I haven't been able to access and found £900 I didn't know I had. Paid £750 straight off the credit card.:T

    Current balances:
    Current accounts and cash = £404.50
    Credit card 1 - £2250.00
    Credit card 2 - £119.10 (paid off in full every month)
    Total = -£1964.60

    So I'm in slightly better shape going into this than I thought. This obviously doesn't include the savings account for the house deposit, or the £100 premium bonds I bought last year instead of lottery tickets ;)

    H2B has a compensation claim which he's been told should be about £2k for an accident, which should get settled in the next few months and is going towards the wedding. The £9k estimate is a deliberate overestimate, we're hoping to spend less. In theory that's going to cost us £200/month each to have it all paid off by the end of 2020, which we've both said we think we can do. After we buy the house we can either put the money we're currently putting aside for the deposit into a repairs/decorating fund, or put it towards the wedding and borrow less if nothing needs fixing urgently.

    It's nice to feel like there's a plan. Now we just need to plan the actual wedding. In less than a year 😂 I also need to know when the 0% period on my credit card ends.
  • NewMummy2018NewMummy2018 Forumite
    37 Posts
    10 Posts Second Anniversary
    Hi !! Following along for your journey! Recently engaged, saving for a house and have debt so anything you share ill be listening!! Please share any thrifty wedding planning tips you have and good luck !!
  • mark55manmark55man Forumite
    6.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper
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    good idea to get things under control before you start the roller coaster

    I agree with you that when you are looking to settle down then rent money is dead money, BUT at hte start of a mortgage you are mainly paying interest (ie the amount of dead money is not too big) so could you consider doing the new house thing when you have recovered from the wedding? There are incentives in the form of lower interest rates to reward being a bit more stable financial position


    PS well done and exciting times
    I think I saw you in an ice-cream parlour/Drinking milk shakes cold & long/Smiling & waving & looking so fine
    Weight 30/09/2021:97kg - YTD: +0.5kg, Trips to tip: 08/52 - Rooms Decluttered: 0.5/4 - Sep Steps (L:Av:H):(614:4862:21872)
    Debt 01/01/2021:£107.5K -- YTD:[email protected]%:£2.8k - Mortgage Neutral Pot:£16.8K/£90.6K - EF:£4.5K/£10K
    Debt Reduction 2018:£20K 2019:£16K 2020:£37.5K 2021 Reduction @30/09/21: £35.5K (£107.5K-Mortgage - CC3 + MN_pot + EF))
  • Hi New Mummy, sounds like you've had an exciting year, congratulations to you! The best wedding advice I've ever heard was from a friend planning her wedding a few years ago - as long as they had the guests, the venue and registrar, the rest of it was "just stuff". It obviously worked for her because I lived with her while she was organising the wedding and I didn't see her stressed once!
  • Thank you Mark88man for the advice, it does make some sense to wait a while from a financial perspective. What I hadn't mentioned in my original post is that one of our major reasons for wanting to buy now is a bit of security. We rent privately and we've been through 2 no fault evictions in the last 3 years. Logically there's no reason to believe it will happen again but prior to that I moved 12 times in 12 years, so this decision is more emotional than anything else!
  • SpekySquareheadSpekySquarehead Forumite
    3K Posts
    Photogenic Debt-free and Proud!
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    Hey,

    I've subscribed and I'll be on this journey with you. You seem to be on the right path and although it's early days, you've made giant steps.

    I'd make some calls about the 0% on the cards as the last thing you want is for more debt to be added on to them. Then you have peace of mind to know it's not spiralling out of control too.

    Have you any indication as to how much the wedding will cost?
  • edited 3 December 2018 at 12:22PM
    chocolatepiggybankchocolatepiggybank Forumite
    77 Posts
    edited 3 December 2018 at 12:22PM
    Thanks Speky, I'll definitely be asking about the 0% - I've worked out that the earliest it could be is March 2019 based on when I took out the card, I just can't remember if it was an 18month deal or 28/30?!?!!? I actually came back to MSE to check if I'd put it in my old diary, but no luck! But then that I decided to start a new one so here I am :D

    We've only had a quick look at wedding costs and we're looking at doing a lot of DIY and getting friends/family involved where we can, we came up with a budget of £6-7k to start with but increased that to £9k in case we need it. It's mainly the food for 80 people that's pushing it up! We think we've found a venue that fits our budget so we need to go have a look at it. I know someone who got married there and she loved the place so fingers crossed!

    I was looking through some of the DFW challenges late last night and I'm thinking of joining the 1% challenge to pay the card off. See if I can find a spare £22.50 anywhere. I'll also use my second job towards it, that way the money I'm taking from my main wages can just go towards the wedding. It might help motivate me not to walk out of 2nd job for a bit longer too.
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