Re starting my journey to an eventual debt free and frugal life

SO this is the third time I have attempted to hold myself to account and do something about our debt:eek:. Also the last 12 mths have been pretty bad and have made me reassess things in my life.

Long story short, my mum passed away suddenly Dec 18, long delay for funeral late Jan 19, then I had her flat to sell (brother not much use with these things), then in May OH had a serious Heart Attack :(. He was finally back at work full time just before xmas but want to get some debt paid down so we can start living a bit more in a few yrs time.

We have been round the merry go round of interest free juggling, and loan to consolidate a few times but the debt just grows, and when we came to remortgage a few month ago this really affected our options. So next remortgage is in 2 yrs so time to pay a chunk off so we can get a great deal next time round.

So... here comes the hard part. Current debts are listed below, will add a sig later

Overdraft - £3,000 (it always stays around this by the end of the month and I have had it since I was a student so want it gone this year
Loan - £19,728 monthly payment £577 3.5 yrs left (I think - really need to check)
Virgin CC - £14,273 monthly payment £200 (more than the minimum) and only have to pay 1% of the balance each month (interest free for 20 more mths so last on the list)
Barclays CC - £10,056 - Part 0% monthly payment £250 (more than the monthly minimum)
Natwest CC - £3682.73 monthly payment £100 (over the minimum again)
Mortgage -£248,011.94 monthly payment £1,192.87 (reduced by £25 per mth when remortgaged in Nov 19). Now off to think of a plan of attack and will post my thoughts later.
Loan £19,728 £1,541 Virg £14,273.81 £8,228 @0% Barc £10,056 £0 NatW £3,682.73 £2,917 MBNA £9,624 £8,654 @0% Overdraft £3,500 £2,000Starting Jan 20 Total Debt £51,239 Mar 23 £23,341 DFD Jan 25 22mths to go Mortgage £248,011.94 £239,659 - MFD Nov 2047 Nov 2046 - LTV 66%EF £0/£300My diary{/URL}


  • So, first step made, I have set up a £25 per month OP on the mortgage as we were used to paying that extra so wont miss it, on the calculator this reduced the 27yr term by 1 whole yr.:money:

    Also looked at Direct Debits and have 3 that I need to ring up and cancel for things we no longer need.:eek:

    As it is Jan we as are most of the country, are trying to stay out of the pub. This is where we do most of our socialising with our friends so we have planned a night round at a friends in the village on Saturday so we can all save some money ;)

    Now off to plan some meals for this week so we aren't tempted by takeaways or the small expensive shop down the road:A
    Loan £19,728 £1,541 Virg £14,273.81 £8,228 @0% Barc £10,056 £0 NatW £3,682.73 £2,917 MBNA £9,624 £8,654 @0% Overdraft £3,500 £2,000Starting Jan 20 Total Debt £51,239 Mar 23 £23,341 DFD Jan 25 22mths to go Mortgage £248,011.94 £239,659 - MFD Nov 2047 Nov 2046 - LTV 66%EF £0/£300My diary{/URL}
  • So last nights dinner was very frugal, left over roast chicken and bubble and squeak made with the left over veg.;)

    We went to our 1st puppy class afterwards, our little pup is a bit of a wimp so we will be mainly working on her confidence, the other 2 puppies are absolutely bouncing, so none of them were properly introduced.

    Breakfast was porridge, lunch was a mushroom pasty someone had made for me at work (love free food), and dinner on plan, Malaysian beef curry in the slow cooker.

    No too spendy a day today, had to get some more chews for the pup as we will be leaving her with one a day now that I am back at work after Christmas, and some treats (the training means she is getting through them at a rate of knots) so £7.30 spent at the village petshop. Booked a hotel for me and DD in a few weeks to go and see my aunt for her birthday. It is cancellable so if my B & SIL have moved out of my aunts into their house then we can stay there instead, fingers crossed as that will save some pennies as I am taking her out for dinner. Feel that I need to make an effort as it was her 70th last yr but it fell right between mum passing and her funeral, my aunt is mums sister so she just kept it low key. DH will stay at home with the pup this time as we aren’t quite up to a 4hr car journey each way.

    Making PON prawn balls for lunch for me and DH tomorrow, and dinner will be mixed bean chilli, all ingredients in and on meal plan.

    I am off to investigate some survey and comp sites I have seen on the ‘Boost your income’ board to see what I can do in the evenings at home.:money:
    Loan £19,728 £1,541 Virg £14,273.81 £8,228 @0% Barc £10,056 £0 NatW £3,682.73 £2,917 MBNA £9,624 £8,654 @0% Overdraft £3,500 £2,000Starting Jan 20 Total Debt £51,239 Mar 23 £23,341 DFD Jan 25 22mths to go Mortgage £248,011.94 £239,659 - MFD Nov 2047 Nov 2046 - LTV 66%EF £0/£300My diary{/URL}
  • Have you looked at your monthly spending to see where your money goes each month? Are you saving anything? Are the credit card debts increasing or decreasing?
  • MrsLovely
    MrsLovely Posts: 104
    First Anniversary First Post Mortgage-free Glee! Name Dropper
    So sorry to hear of your recent events. It can't have been easy for you. Whilst overpaying on the mortgage is great, would focusing on your debt be the best option for now? with approx £50k of debt that would really be my focus for now. I had £30k of debt a few years back. Got rid of that, then got emergency fund in place then started overpayments.
    Dec 2010=£160k.
    Mortgage free date 9th Apr 22 😎
    E fund - £10,005/£20,000
  • Thanks for reading guys and for the feedback:)

    Yes we have been looking through our DD’d, and have recently remortgaged (tied in for next 2 yrs), changed energy suppliers (tied for a yr, cost slightly cheaper than we were paying), changed mobile deals, we have a couple to cancel but not much else other than managing our spending.

    Other than the £25 mortgage over payment each month everything else will be going on the debt, starting with the highest interest (about half is on interest free at the moment luckily)

    On that not it is pay day on Friday so we have been really good on meal planning so we are buying what we are going to eat and not wasting food. We have also not been out much and had planned for this weekends spends (hotel for aunts birthday and meal out).

    The CC debt is now going down :j Usually at this point in the month, we would be at the end of the vast overdraft and would have spent a few hundred pounds on the credit cards, going out, extra food bits etc. I am proud to say we have not spent on the credit cards this month:D, and all have fixed payments set up (so slight overpayments), and after yesterdays food shop for the week and fuel in the car we have £130 left of the overdraft that we shouldn’t touch between now and Friday :). I will fill in my new signature once I get paid as that is when I effectively finish the month in my mind.

    My main focus over the next few months is to do the same, no cc spending, meal plan and know what we are planning to spend any extra money on. With the changes to overdrafts by the end of March I am looking at paying 39.9% :mad: on the approx. -£3400 we are overdrawn by the end of the month, so that is the first debt to reduce to prepare for that.
    Loan £19,728 £1,541 Virg £14,273.81 £8,228 @0% Barc £10,056 £0 NatW £3,682.73 £2,917 MBNA £9,624 £8,654 @0% Overdraft £3,500 £2,000Starting Jan 20 Total Debt £51,239 Mar 23 £23,341 DFD Jan 25 22mths to go Mortgage £248,011.94 £239,659 - MFD Nov 2047 Nov 2046 - LTV 66%EF £0/£300My diary{/URL}
  • So I have just updated my signature and compared it to my debt in 2012, and am embarrassed :o it has got this bad, but DH and I are joined up and committed to sort this out this time
    Loan £19,728 £1,541 Virg £14,273.81 £8,228 @0% Barc £10,056 £0 NatW £3,682.73 £2,917 MBNA £9,624 £8,654 @0% Overdraft £3,500 £2,000Starting Jan 20 Total Debt £51,239 Mar 23 £23,341 DFD Jan 25 22mths to go Mortgage £248,011.94 £239,659 - MFD Nov 2047 Nov 2046 - LTV 66%EF £0/£300My diary{/URL}
  • Elisheba
    Elisheba Posts: 1,507
    First Post Name Dropper Photogenic First Anniversary
    Hi Yummymummy,
    I also have gone round in circles with debt over the years. However what's happened has happened, and we can't change it now no matter how hard we kick ourselves. Just got to let it go and do it properly this time!
    I'm looking forward to hearing more of your journey to being debt free!
    Live the good life where you have been planted.
    Fashion on the Ration Challenge 2022 - 15 carried over. Fashion on the Ration Challenge 2023 - 6 carried over. Fashion on the Ration Challenge 2024 - 67 remaining out of 72 My Frugal, Thrifty Moneysaving Diary
  • Best wishes in paying off your debts/mortgage... My cc debt has risen last year due to renovations and also a new to me car!
    You've had a tough time in your personal life, getting through all that intact is an achievement in itself.
    Mortgage restart June 2018 £119950Re mortgage August 19 £110470, … Mortgage November 22 £85600 final 0% CC 3300Home renovations - £65000, mid 2018 - mid 2022
  • So month one is in the bag as it was pay day on Friday, and nothing was spent on the cc’s for the first time in I cant remember when. Non mortgage debt came down by £1,068 in 1 month. I am so happy and it proves that we can do it!!!

    Now on to month 2, we have a friends 50th at the end of the month just before pay day to plan for, we are staying at theirs so no hotel cost, just fuel and drinks, and DD’s swimming lessons to pay for. I should have enough childcare vouchers to cover the childminder for half term so, another frugal month planned as from end of March its DD birthday, then DH bday then a significant bday for me, all within 12 days so need to make dents in the overdraft before then !

    The weekend went OK, we went to Halfords to order my bday present (DH had budgeted for this), then to Pr!mark where DD spend her vouchers on some running clothes, then lunch at P!zza Expre55 where thanks to clubcard vouchers only £8.70 was spent on 2 courses for the grown ups and kids meal. Sunday DD and I went to jnr park run, free exercise, then I treated her to a maccys hash brown after, but we’ve agreed we will take healthy snacks next week. Instead of popping to the pub we invited our friends round for Sunday lunch at ours so we can all save some pennies. Lovely weekend all round
    Loan £19,728 £1,541 Virg £14,273.81 £8,228 @0% Barc £10,056 £0 NatW £3,682.73 £2,917 MBNA £9,624 £8,654 @0% Overdraft £3,500 £2,000Starting Jan 20 Total Debt £51,239 Mar 23 £23,341 DFD Jan 25 22mths to go Mortgage £248,011.94 £239,659 - MFD Nov 2047 Nov 2046 - LTV 66%EF £0/£300My diary{/URL}
  • themadvix
    themadvix Posts: 7,732
    Mortgage-free Glee! Photogenic First Anniversary Name Dropper
    Good luck Yummymummy. £1068 in one month is a great start. However, I'd have to agree with MrsLovely that you'd be best throwing everything at the most expensive debt (or perhaps the looming most-expensive debt of the overdraft) before paying anything off the mortgage - it is presumably at a very low rate compared to the loan? Either way, you definitely need to be safely out of the overdraft before the end of March!

    As you've done, I find thinking ahead for the month and identifying where there will be spends to be a real help - it also helps me stay stronger (I don't need xxx, I'm going to have a nice time/meal out etc. next week/at the weekend etc.).
    Mortgage free 16/06/2023! £132,500 cleared in 11 years, 3 months and 7 days

    'Now is no time to think of what you do not have. Think of what you can do with what there is.' Ernest Hemingway

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