5 years to finally clear these debts

YORKSHIRELASS

Hi

So, where to start. I am nearly 47 years old, DH is the same age, our sons are 18 and 20. We have always been in debt, never planned or saved, lived on minimum payments and 0% shuffles.

DH went self employed 17 years ago and loves what he does but over the past few years it has got harder. There is more competition, he has to travel more, and the business doesnt make as much as it should. He has his head well and truly in the sand over this.

I have a good, secure job, but we have been relying on my overtime, which was cut last year following reorganisation at work.

We have helped our sons a lot financially. DS1 is doing an apprenticeship, and needed a car and equipment. DS2 is doing A Levels at a college 25 miles away and needed help with travel. They are good kids, work hard and never ask for anything .. more about them later.

We currently have:
£24k on a Mortgage Reserve to be cleared in 5 years
£21k on our Mortgage
£36k on credit card debt

And we are only just scraping by at the moment. Thanks to the lovely people on here (who I cant possibly thank enough) I have a plan to clear this debt in 5 years. This is hugely ambitious but is possible.

The challenge starts here. I am so determined, and just keep telling myself that our debt is never again going to be as high as it is right now.

System

Welcome YL I have been reading your thread on Debt Free Wannabe . Good luck with your plan . Will subscribe .

marcsshell

Good luck hun. Have read your previous thread.
Happy New diary, have subscribed xx

aimeemum

Good Luck!!!

enthusiasticsaver

Great to see you Yorkshire Mum and starting a diary is a great idea to help keep you on track.

One-step-at-a-time

Good luck! Subscribing

beanielou

Happy shiny new diary

GlendaSugarbean

Best of luck! You've got this

jwil

Good luck

YORKSHIRELASS

Thanks all, it means a lot. We didnt go anywhere yesterday, despite the fact that we were getting low on bread and milk. I dusted off the breadmaker and made bread, we might need milk today but will be careful not to buy anything else.

Worked out our February budget yesterday. DH's income varies so we have taken the total average net profit after tax from the last two years and divided this up to give an average monthly figure, then set up a standing order to transfer this into the joint account.

I have also set up a monthly standing order for things like heating oil, car repairs and a little bit extra for emergencies. This really stretches the budget at the moment, but its no good throwing money at the debts if I am not budgeting properly.

I really want to keep my gym membership as I go 3 or 4 times a week and it is really important to me. Its quite expensive and I didnt put this in my original calculations but I am hoping I can afford to keep it. Will see how the next few months go.

So today - want to get out for a walk, need to meal plan for next week, need to sort out DS1s RAC membership that was taken on my expired debit card even though it had been cancelled. Porridge first I think.

enthusiasticsaver

Sounds like you have a good plan. I think if you use your gym membership and can work it into your budget you should keep it. We have an expensive membership too but have reduced the cost by moving it to off peak. We can only do that though because we are retired so that may not be appropriate to you. Depends on your other commitments. Might help to source a cheaper option. We had the expensive leisure club membership when our kids were small as it was cheap entertainment as they could go swimming, use the play park, play tennis, badminton and skittles and use the soft play area as well as discounted food etc. As they grew older and did not use it so much as their friends were not members we cancelled and moved to a local council leisure centre which was half the price. Now it is just us we are back to off peak expensive leisure club as we use it lots, it is so much nicer than the council run gym and pool and we can get lots of discounted lunches out with our friends as we are retired.