New Post Advanced Search

Debt free wife, happy life

21 replies 1.1K views
sonyaritasonyarita Forumite
22 posts
10 Posts Name Dropper
I have been lingering about on this forum for months and it has been invaluable for ideas on how to save money, but now I need to put the theories in to practice!

Having been inspired by the other diaries on here I have decided to keep track of my goals and progress in my own diary.

I have frittered money away on clothes, trying to get slim/fit 🙄, alcohol, hairdos... and don't have much to show for it in the end up!

A big change in circumstances last year meant I had to default on quite a few debts because I simply couldn't meet the payments- I now want to settle them with f &f if I can as I plan to take over the mortgage on our house (my mum owns the house but I pay the mortgage in  lieu of rent) as soon as it is likely I would be accepted.

I need to budget like mad as of now because I resigned from my job early. I have a couple of bank jobs in the pipeline but just waiting for my disclosure to come through before I start.

 I am also going to be a student nurse as of September and bursary doesn't start paying until the 7th September.

We need a new boiler so I want to put together a fund for that (roughly £2000) as well as clearing debt of about £10,000- those are my main goals for now.

I live with my partner who has been a  stay at home parent but has a trade and is planning to take some jobs later in the year or next year.

We have custody of a family member's child so their well being has been our primary concern recently and now I would like to improve the financial situation.

So here goes!!

«13

Replies

  • Suzanne54321BSuzanne54321B Forumite
    109 posts
    Fourth Anniversary 100 Posts Name Dropper Combo Breaker
    Good luck on your goals sonyarita. It might be good to start with an income and expenditure spreadsheet so people can jump in with any advice. 
  • ceremonyceremony Forumite
    104 posts
    100 Posts Name Dropper
    Best of luck to you! What sort of timeline are you looking at to achieve your goals?
    Start Debt Jun 2020 = £10,036 - Current £8,014 | #324 £1,000 Emergency Fund Member - £115
  • sonyaritasonyarita Forumite
    22 posts
    10 Posts Name Dropper

    Thanks for your comments @ceremony and @Suzanne54321B. I want to have the money for the boiler saved up for January - I am expecting a lump sum of £800 in September so that will be a big chunk of the cost at least. I can't really wait too much longer to get a new boiler; it is inefficient and has a water leak - this has been checked out and isn't dangerous but the boiler is on its last legs.


    As for the debts, I would really like to have them settled by June 2023. The fixed term for the current mortgage ends in December 2023 and I would like to take it over then. I will need to look around for advice on getting a mortgage when I have had a lot of defaults and how I can improve my chances of getting one. I suppose it wouldn't be the end of the world if I couldn't take it on then but it would be less complicated if it was in my name, especially if we decide that we would like to move in the future.


    I have been working on my soa, I am going to post it below. It looks bloody awful and I can't believe how reckless I have been.

  • Suzanne54321BSuzanne54321B Forumite
    109 posts
    Fourth Anniversary 100 Posts Name Dropper Combo Breaker
    It won’t look any more awful than the rest of us, you are in good company. I am hoping for july 2023 so you are already a month in front of me 😂
  • sonyaritasonyarita Forumite
    22 posts
    10 Posts Name Dropper

    As I am going to be working on a casual basis my income is going to vary month to month - until my course starts I am aiming to earn 1200 a month. On commencement of course I don't want to work more than 20 hours a week or 12 hours when on placement so roughly between 400-800 a month...I will post monthly budgets to keep me on track as income is going to vary.


    The below is aspirational ...we have been spending most of our money on food, alcohol, clothing, toys and DIY so I have already cut the budget for these.


    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details
    Monthly income after tax................ 1200
    Partners monthly income after tax....... 0
    Benefits................................ 96
    Other income............................ 500
    Total monthly income.................... 1796

    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 500 ( this includes mortgage, building and life insurance and loan from mother for essential work to house)
    Council tax............................. 100 
    Electricity............................. 64.88 (gas&elec)
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. inc in c. tax
    Telephone (land line)................... 0
    Mobile phone............................ 17.85
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 26
    Groceries  ......................... 275
    Petrol..................................50
    Clothing................................ 30
    Road tax................................ 12.68
    Car Insurance........................... 24.05
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 25
    Vet plan.........................................15.60
    Dog food.................................40
    Buildings insurance..................... 0
    Contents insurance...................... 9.35
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 22.50
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 25
    Garden/DIY..............................40


    Assets[/b]
    Cash.................................... 0
    Car(s).................................. 1500 
    Other assets............................ 0[b]
    Total Assets............................ 1500


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Tesco Card........................2100...50.....0 ( interest free until March 2022)
    o2 phone loan...................350.....13.91.....0 ( finishes July 2021)
    Total unsecured debts..........2450.......63.91

    Defaulted Debts
    BT...............................85
    SSE...........................168
    Barclaycard...............1061
    Capital One................2894
    Santander...................179
    MyJar.........................300
    AvantCredit...............3792
    Creation....................651
    Lowell.......................257
    Lowell.....................2350
    Next........................613
    Total Defaulted debts.......12350


    Monthly Budget Summary
    Total monthly income.................... 1796
    Expenses .................................. 1387.91
    Available for debt repayments........... 408.09
    Monthly UNsecured debt repayments....... 63.91
    Amount left after debt repayments....... 344.18

    Personal Balance Sheet Summary
    Total assets (things you own)........... 1500
    Total HP & Secured debt................. 0
    Total Unsecured debt.................... -14800
    Net Assets.............................. -13300
  • edited 10 July at 8:45PM
    ceremonyceremony Forumite
    104 posts
    100 Posts Name Dropper
    edited 10 July at 8:45PM
    How long have the debts been defaulted for? Will some of them have dropped off your file by the time you need to sort out the mortgage?
    I see one is with MyJar - if that's a payday loan have you tried making a complaint about that? You may be able to get some of the money back if the loan was given without them doing proper affordability checks.
    If any of the debts have been defaulted a while, offering full and final settlements on them could save you some money. A lot of DCAs seem to be accepting them fairly easily at the moment because of the coronavirus and people's incomes not being great.
    If you're wanting a mortgage, I can understand you wanting to have the defaults marked as being paid off in full whenever possible. With that said, F&F settlements on anything that will be dropped off your credit file by then could help free up money in the longer term to put to the other debts.
    How big is your emergency fund? I think you're on the right track and can do this :)
    Start Debt Jun 2020 = £10,036 - Current £8,014 | #324 £1,000 Emergency Fund Member - £115
  • CreditCardJunkieCreditCardJunkie Forumite
    380 posts
    Third Anniversary 100 Posts Name Dropper
    ✭✭
    Take a look and see if you are eligible for a boiler grant - we got £500 towards ours! Depends on where you are, have a look on Google.
  • sonyaritasonyarita Forumite
    22 posts
    10 Posts Name Dropper
    @ceremony my defaults are from 2019/2020 and I am looking to take over the mortgage late 2023 so unfortunately they won't have dropped off by then.

    However, I have been looking at old threads on the mortgage board and apparently it is still possible to get a mortgage with 3-4 year defaults even if they haven't been settled.

    I feel a bit better about my situation now but will still try and pay off the debts.

    I am going to start throwing everything I can at the SSE payments as I just noticed they haven't defaulted yet.
  • sonyaritasonyarita Forumite
    22 posts
    10 Posts Name Dropper
    @CreditCardJunkie I just had a look to see if I would be eligible for the boiler grant but in my area you to be the homeowner and claiming a benefit- my mum owns the house and doesn't claim any benefits so that counts me out!

    Was worth a look though so thanks for the suggestion because I didn't know such a thing existed.

  • sonyaritasonyarita Forumite
    22 posts
    10 Posts Name Dropper
    My disclosure came through for one of my bank jobs so got a start date of 27th July. I am so relieved because funds are low. 

    I am expecting an extra kinship payment this month on the 29th as I get paid fortnightly and there are 5 Weds this month so that should cover the bills at end of the month.

    I also get CB due on the 23rd, until then I think I have about 20 quid to do me until then.

    I went to Lidl today and spent 45. I was amazed because I filled the trolley and was expecting it to be about 65. I also managed to walk straight by the bakery, that's an achievement in itself 🤪

    I have loads of dried goods and also meats in the freezer so plan to get creative and see if I can go until the 23rd without needing to go to supermarket.

    I am on a weight loss mission as well so dinner tonight was tandoori chicken with green lentils- I always buy the microwave sachets of stuff like lentils, rice, quinoa etc out of pure convenience- I should probably start buying the big bags instead to make more savings.


Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support