£121K debt payoff - challenge accepted

db2016

just read from start and will sub with my good luck!

maybe you could post an SOA up and people can offer and tips they think may help?

savvysarah

Working_Mum wrote: »

I have read your diary and I want to say a big well done for juggling everything and making inroads into your debts!! Great Result!

I repaid £90k of debt ten years ago when my (now ex) husband left me - I was self employed and had 2 young children to support. I cut back on everything and made every single penny work for me.

My children are now 18 & 21 and are fiscally savvy and understand the power of their frugal childhood as we worked hard to have experiences and open communication rather than "things"

I became a fan of Dave Ramsey, gratitude for everything I already had, frugal tips from this site saved my life on more than one occasion and becoming mindful of my spending every single day meant I can now focus on my mortgage - am now 53 and need to put some effort into getting that millstone removed from round my neck.

I read a great book called The Millionaire Next Door and took life lessons from Warren Buffet (richest man in the world but SO frugal!!).

Good luck with you journey, as Georgiana Cavendish (a fellow poster) said repaying her debts felt like emptying a lake with a teaspoon! But she is getting there and so will you with a focussed, dedicated approach.

Thanks so much for your reply, and WOW what a pay off you completed!! :beer: That's amazing! How long did it take you? I too have found Dave Ramsey, and we are following his Baby Steps 1-3. We've completed BS1 approx. 4 times in the last year, but it keeps getting destroyed by problems with our rental! DR really does help to simplify everything though doesn't it? I'm a member of a few DR fb groups too which I try to immerse myself in to give me the motivation to continue with all this. And YES to The Millionaire Next Door! I'm super interested in all the personal finance stuff that's around, its like I know so much of the theory but I'm just struggling to get started on the action!!

I also full agree with practising gratitude (despite appearances, with my previous ranty post ) and make space to reflect on this every day, which I've found game changing.

Thank you so much for your positive words, your story makes me so hopeful for our future :)

savvysarah

db2016 wrote: »

just read from start and will sub with my good luck!

maybe you could post an SOA up and people can offer and tips they think may help?

I'M SO SCARED to put an SOA up!! I'm partly embarrassed because our income is decent, and I'm also not sure I'm ready to be shouted at :rotfl:

savvysarah

OK I've spent the last couple of days on the brink of tears but I feel a lot calmer today. Half the rent has been paid (2.5 weeks late), and I've booked a valuation in for next week. I'm not looking forward to seeing the tenant but then I'm pretty sure she's not that keen on seeing me either. I've also been super brave and messaged the neighbour about the garden wall, but no reply yet.

So for now, we use as little fuel as possible, use up the cupboards as much as possible, and start to try to put away any spare cash (hahahaha) in case we put the house on the market. We're going to need cash to return the deposit, to cover the fact she might leave, or not pay, and for any legal fees for ending the tenancy if it gets to that.

Phew! 2020 is off to quite the start here. On the positive side all returns to school/nursery have gone well and I successfully bashed a few tiles off our downstairs bathroom wall - it was gross but VERY satisfying

Elisheba

Hey Savvysarah,

I've just caught up with your diary, and can I say I think it's wonderful you are tackling this head on.

I know you are worried to post an SOA on here, but do you at least have one? Do you have all your outgoings listed, amounts of debts owed and the cost of each debt monthly, annually and in interest? I have found that very useful indeed. Having the written budget means I am able to play around with the figures and see where I can tweak things and save a bit here and there.

A wonderful tip I got on this site was to work out my debt free date, so I have something to try and beat! Also, setting mini targets - each 1k of debt paid off, or 1%, all are pretty strong motivators I'm finding 😁.

FootyFanDan

Hey,

I have just read your diary and want to say i think considering everything you are juggling i think you are doing a superb job. I think it would be worth doing the SOA (even just for your own benefit), it will give you a clearer picture of what is going where.

I know it is so easier said than done but i think you need to figure out in your mind where you would be comfortable getting this debt gone, i know the thing most do is hit it head on and want it gone like yesterday! sometimes that isn't possible to pay of so quick. If you can get yourself into a place where you know its coming down without causing you massive shortfalls in the budget your stress level may decrease too. As some say its not a sprint, allow yourself some time to try enjoy living too.

Grr to the crappy tenants i don't know how some tenants push as far as they do, we rent and i would dread to think we would pay late (unless very very extreme circumstances). I think you do right in looking to sell especially considering this is putting a strain on you mentally and financially.

I have subscribed to see you progress and cheer you on! You are doing really amazing even if some days it may not feel like it.

april_hunt

Morning


I've just caught up with your diary
What a great start you've had knocking off your debt! Sorry that your tenants are still being a pain in the !!!!! it's a shame your having to look into selling it as it could be a goldmine with the right tenant in which I think is what you could do with. As for your estate agent I hope there not the ones doing your valuation on it and I'd definitely be writing a strong letter/email to the branch about how they've not really dealt with the payments over the past god knows how long they get there cut and that's there job not yours to chase for money!


I hope you feel positive about tomorrow and are happy you've achieved even a little so far it's only the 10th day in plenty of time to pull back.


Look forward to seeing your updates soon x

Buffythedebtslayer

Sarah, I have a decent income been here over 10 years and never really posted an SOA, I think it was mainly because I have been very lucky really and shouldn't have been such a disaster re money. I always had one worked out. In your case your issue is the rental and in any case people really don't judge here. It isn't that type of place.

XXX

QueenJess

Hey, it might be unconventional, but you could just post a small excerpt from your SOA relating to expenses you would like comments on to see if there were any good ideas on what you could cut back on. Eg, your standard expenses maybe excluding the rental house.

Bizzywizard

Hi,
I have just read your diary.
I was a letting agent for a couple of years. I hated it, so left! Some tenants would always pay late and my boss was never concerned (she was also a tenant). I always was on the side of the Landlord (my parents were Landlords to had a good insight)! I had one lady, who I made come to the office to explain why she kept paying late, she said she could not afford a 2 bed, but needed it for all her stuff! I showed her one beds she could afford and explained that not all Landlords are well off and that no one knows other peoples circumstances, she started to cry...my boss was not pleased with me. The tenant gave notice a week later and downsized. The landlord was so pleased with me as he was worried the payments would completely stop and have to go down the expensive eviction route along with paying two mortgages! If your tenants are paying late, the agents will have a running record of this . It sounds like the tenants are on housing benefit and know how to play the system. What most tenants do not know is if they keep paying late the agents can get in touch with the local housing department and request the rent be sent to the landlord direct, just like it used to be! Proof of late payment needs to be sent and the tenant may need to agree it, but the local authority will apply pressure to the tenant, as they want them housed not evicted.

If you give notice (2 months) or a section 21 notice please note the tenant may not pay for the last few months, so might be worth getting the rent direct first and then giving notice. Request you are copied in on all emails to the local authority from your agent.

Clearly I am assuming your tenants are on Housing benefit or some sort of top up.

Hope this helps in a small way.

Bizzy