Working Hard Debt Diary - Here goes

WorkingHardDFW

It is so frustrating - this is the second time that this has happened to me this year already. You are just left hanging which isn't good. I would rather they turned around and said no than this. I've written it off now but even so I would still rather have closure so that I can move on.

For me I guess getting a new job would solve a lot of money issues and mean we could pay off our debts so much quicker. No doubt going from part time to full time would bring a lot of other headaches as well but.........

My other option is too start up on my own. This would keep the WL balance and family life in tact and I could run my current pt job and my business together until the business was well established and generating enough income.....

I keep talking about, procrastinating, debating it, going round in circles etc etc.

The logical part of me says to do the later and give setting up on my own a try but the DFW knows that getting a new FT better paid job will bring our DFW closer so much quicker.

In truth I know what I should do - start up on my own - keep the WF balance, and go for the longer term investment rather than the quick fix. Not one to ponder at this time of night but no doubt I'll post a lot more on the topic in coming weeks.

WorkingHardDFW

Well 2.5 weeks after the second interview I got the news I'd been expecting - a great big no. I just wish that people could deliver the message in person and not leave it too an anonymous business unit to send out a bog standard letter. End result is that its probably done me a favour since the whole job hunting process has made me evaluation what we are trying to achieve.

Going to sit down tonight when all the kids are in from various activities - no restful relaxed friday night for us.:D and discuss the whole situation with my OH.

More posts will be the result I fear:D

WorkingHardDFW

Right well after some discussion over the weekend we have decided to:

Take a four month mortgage holiday wef from April. This will allow us to pay off completely another cc in the four months. By doing this we will be in a stronger position when we renegotiate our mortgage at the end of the year (3 year fix coming to an end) and we'll have two free cc's to enable us to move the remaining debt around and get better interest rates.

I've decided to set up on my own in parallel with working part time. This feels like the right decision and althought scarey and very challenging it will be a great opportunity.

Paid another £92 (insurance back on OH's car) of the target CC this am which is now down to £842 so we may achieve our clear a debt by April challenge.

Sold another few things on ebay so another £50 in. Plus sold another book on green metrolpolis. Slowly £1 by £1 the debts are reducing.

WorkingHardDFW

Good day off today.

Listed another load of books on green metrolpolis. I've got £12 in my account there now which isn't a lot but its building up slowing

Investigated setting up on my own. Got some free info from the internet and got the business banking stuff from some high street banks. Unfortunately with work and the Easter holidays I'm not going to be able to do much more in the day time until early next month. But lots of reading to do in the meantime.

Booked DS's birthday party.

Bought a new printer the MSE way. Decided that replacing the existing cartridge in the old laser printer £40 was not worth it. After managing without a printer for 8 months with by new venture I need to be able to print!

Had an interesting conversation with the bank. I just wanted to confirm the rate on the OD (15.8% :eek: ) and was tried to be sold a consolidation loan. A year ago I would have fallen for it but now I was talking about targetting our debts, snowballing etc and the lady on the other end seemed impressed.

Played around with our debt calculator to determine what the next target debt will be once the first one (now about £600:T ) and the second one (being cleared by the 4 month mortgage holiday :T ) will be. They are all confusing since the remaining CC's all have different bits of balances on. IE there might be an amount at one rate (LOB offer) and the rest on bog standard APR. OH might get a bonus as well. I'm not clear at present which to aim at but I need to have a plan - I like planning.........

Still on track to have managed to clear a debt by April........counting the days.

WorkingHardDFW

Yes we have done it.....thanks to an unexpected bonus that OH got we can pay the last bit of the Target CC and have achieved clear a debt by April challenge. The debt currently stands at £840 so the bonus will go straight off that this month!!!:beer:
One down.........seven :eek: to go.

The next one still called Target 2 CC (soon to be renamed target 1 CC) will be cleared in three months from April to June with the mortgage holiday. The morgage holiday is for four months therefore one month will be spare to throw at the target 3 CC debt. By the end of the mortgage holiday the overall debt will be £38,500 (still huge) but reduced from £52,00 at this worst.

I feel delighted that we've cleared one but am very aware that when clearing the remaining one's we won't have the benefit of any lump sums. It will be down to hard work. However by now having a target to clear we throw all available money at the target and pay just above the minimum on the rest. Already we can pay £330 at the second target. This results in us feeling like we are achieving something rather than just getting lost in the debt.

Feel like a bit of a bore rattling on but it does take over.

WorkingHardDFW

Some good news...........

I've got the opportunity to work some extra hours at work. Yes this is good news since it increases my hours by 40% and therefore my income by 40%. Taking out additional costs (childcare and holiday care) and allowing for OH pay rise this shoud bring us in an additional £400 per month.

I've just done some forecasts and with the debt reduction we're making this year by the end of the year (if we stay on track) we'll have reduced our debts by £25K - quite an achievement if I say so myself. By December when our mortgage fix ends we'll have cleared 3 cc's :T

Spurred on by this I did my own snowball. I've used the Whats the cost one but since some of our Cc's are on different rates I'm not sure it works. Mine is based on the interest payments as now. Using this forecase we'll be debt free by.........November 2009...........:j :j . I think it would be before that but as I've allowed for interest payments as now and I've not reduced them month by month. Thats an incredible two years ahead of my original forecast. Equally thats not allowed for any extra income from my business venture or any of my OH bonuses.

There is signigficant light at the end of the tunnel.

This has really spurred me on to realise that if we can clear £52K of debt in two years the mortage must be next on the list. Back of envelope calculations must make that four years to clear the mortage.........

firesidemaid

well done you!

like you say, it does show that once you find this mind-set, it will never leave you.

when your debts are paid off you may want a bit of breathing space, but you will have realised that there is a subtantial amount of 'spare' money in the budget. a way off i know, but you could eventually reduce the term of the mortgage (thereby increasing payment per month).

good luck x

WorkingHardDFW

Thanks for the post firesidemaid.

You're right in saying that when the debts are cleared we should have above £2k pm 'free'. Using a mortgage calculator yesterday throwing £1k pm extra at the mortgage will reduce the term from 16 as it is now to 6 years.

My OH did comment that he can't continue living 'like this' for another 4 years! He is still not happy that we've reduced the Sky to bare bones!

Mortgage reduction is a long way off though. We need to get through to 11/2009. I'm sure we'll have set backs on the way but already it feels like we've more breathing space than we've had for a long long time.

We'll take one month at a time and keep on going like everyone else.:cool:

ltm07

WorkingHardDFW wrote: »

Thanks for the post firesidemaid.

You're right in saying that when the debts are cleared we should have above £2k pm 'free'. Using a mortgage calculator yesterday throwing £1k pm extra at the mortgage will reduce the term from 16 as it is now to 6 years.

My OH did comment that he can't continue living 'like this' for another 4 years! He is still not happy that we've reduced the Sky to bare bones!

Mortgage reduction is a long way off though. We need to get through to 11/2009. I'm sure we'll have set backs on the way but already it feels like we've more breathing space than we've had for a long long time.

We'll take one month at a time and keep on going like everyone else.:cool:

You seem to have made fantastic progress. I take it your OH is missing his Sky Sports? We have cancelled Sky completely until we clear our debts & even then we may never bother with it again. I felt exactly the same way as your OH the other week & nearly consolidated everything. Glad we didn't as life is getting a little easier through all the non essential cutbacks we have made. Do you & OH have any 'spending money' to yourselves? OH & I allow ourselves £20 each & if the footy team i support are on Sky,i use my spending money to go to the pub & watch them or take a 4 pack round to my brothers! Maybe you could compromise by him doing this. Sorry if i'm off the mark & he doesn't like footy, just an idea to suggest to him if he does!

ltm07

Sorry,i didn't mean he could come round to my brother's?! Maybe one of his mates' or relatives?