Debt Clearing and Deposit Saving.......

Emzilla

Hi everyone

Starting a new diary so I can keep track of the debts I need to clear, and my OH and I are attempting to save for a house deposit. Brief details about me, for those that don't know, I'm 39, have been with my fiance for nearly 20 years, and we're only just looking to purchase a house together!! We have lived together for the past 8 years, and we were looking to move somewhere bigger next year, but we are getting sick of renting, and the amount we would have to pay is just a joke. We've decided to stay put for now, as the rent isn't too bad, and it will allow us to save up for a deposit to buy somewhere in a few years time.

We're lucky that OH has a really good job. I work part time, and that job is under threat as I work for M&S. I only work part-time because I've got Cystic Fibrosis (CF), but a new wonder drug is on the way in the next few weeks, so I'm hoping this will improve my health a great deal, so I can work more hours, or help me to get another job, if I can't stay at M&S. I'm still furloughed, as I've been shielding, and will be due to go back in November. So I'm just wondering if they will tell me not to bother going back, although I think they might be weary of doing that because I'm disabled etc. Will just have to wait and see I guess.

I'm always doing extra online to earn money, mainly from surveys, focus groups and writing articles. Most of the money for the debts and deposit saving will be from that, but I'll have to squirrel away some money from our wages too. Seeing as I just about squeeze into the age bracket, I've opened a lifetime ISA, meaning that if we can save £4k a year, we'll get an extra £1k on top from the government, and can use it for our deposit.

So my money goals are:

Clear my credit card - the balance currently stands at £1,741.84. Ideally I'd like that clear by the end of the year, but I don't know how realistic that is. I'd like to get it clear before putting big chunks in my ISA, as I'm paying interest on it, and it's not a cheap card. My credit isn't great (another thing I need to improve over the course of the next few years), so I can't do a balance transfer. 

Clear my Curry's account - I got a new iPhone recently (old one didn't work too well), so I need to pay it off by the end of the year, so that's another £354 I've got to clear, or I'll have to pay interest on that.

Save £4,000 a year in my ISA - I've started off by saving £25 a week, but want to increase that over the coming months. We're working out how to save money, and have changed energy suppliers, cut down on mobile bills etc, so once that all kicks in, I'll up the weekly amount. Will obviously be able to save more once the debts have gone.

Off to earn some money. Will come back each day to update my progress. It's going to be a difficult few years, but I hope this diary will keep me on track.

Emz xx

jwil

Happy new diary Emz

beanielou

Happy shiny new diary.
Does your CC or the Curry's card have the highest interest?
Keep plodding      xx

Sarahwithlove

Eeeek saving for a house is exciting. Let's hope this new drug works for you as then you can hopefully get a better paid job. In terms of the LISA when you go to a mortgage broker they may not  include it as part of the deposit as your solicitor requests it from government once your mortgage has been agreed in principle and sale process starts and it then comes off the total you pay to the solicitor (deposit and solicitor fees). So I would say more view it as the bonus coming off solicitor fees and build up the full deposit. 

Emzilla

beanielou said:

Happy shiny new diary.
Does your CC or the Curry's card have the highest interest?
Keep plodding      xx

Thanks Lou 

The Curry's account is interest free for 6 months, so I want to get it clear before I have to pay a whole load of interest.

Emz xx

Emzilla

Sarahwithlove said:

Eeeek saving for a house is exciting. Let's hope this new drug works for you as then you can hopefully get a better paid job. In terms of the LISA when you go to a mortgage broker they may not  include it as part of the deposit as your solicitor requests it from government once your mortgage has been agreed in principle and sale process starts and it then comes off the total you pay to the solicitor (deposit and solicitor fees). So I would say more view it as the bonus coming off solicitor fees and build up the full deposit.

Thank you, I really hope it works too.

So you're saying that I've got to save another deposit separately? Not sure we can do that as well as the LISA. 

Emz xx

Sarahwithlove

No the Lisa money can form the deposit just don't include the bonus itself I believe. Unless it's different to help to buy one? Do you get the bonus regularly or only when you buy house or retire? 

Sarahwithlove

Ok just ignore me you can use it for your deposit, that's handy! 

Emzilla

Sarahwithlove said:

No the Lisa money can form the deposit just don't include the bonus itself I believe. Unless it's different to help to buy one? Do you get the bonus regularly or only when you buy house or retire? 

Oh, I see. I think the bonus goes on monthly from what I understand, but I'm not sure.

Emz xx

ImpulseSpender

Emzilla said:

Sarahwithlove said:

No the Lisa money can form the deposit just don't include the bonus itself I believe. Unless it's different to help to buy one? Do you get the bonus regularly or only when you buy house or retire? 

Oh, I see. I think the bonus goes on monthly from what I understand, but I'm not sure.

Emz xx

Hi Emz,

You're right the money goes into the LISA each month based on what you've put in the previous month, obviously up to £1K per year. So last month I had £200 deposited into my LISA by the Gov as I'd put £800 in my LISA over the previous month or so. It is just added to the LISA total amount in there.

I'm also saving for a house deposit now almost all of my debts are paid off! I remember reading your old diary I think? Will be following this diary along wishing you all the luck!

Hope that helps!

Sarahwithlove

It's exciting times buying your own place. Although make sure you have a good house fund for repairs going forward! That's what's caught me out a few times