Refresh: My 6 year journey from -5 figures to +5 figures (it was 4 years, but I messed up)

ellipticalorbit

Just a quick update while I grab lunch, just spoke to the hiring manager for the job I interviewed for

....AND I GOT THE JOB!!!!

I'm so bloody relieved and glad. This is a huge weight lifted as it means my income will be preserved and I'll still get occupational mat leave when the time comes all going well. A huge win in my favour to help enable staying afloat and clearing the debt. What welcome news!

dawnybabes

Whoop, that’s brilliant news 🍾🍾🍾

mcpitman

ellipticalorbit said:

Just a quick update while I grab lunch, just spoke to the hiring manager for the job I interviewed for

....AND I GOT THE JOB!!!!

I'm so bloody relieved and glad. This is a huge weight lifted as it means my income will be preserved and I'll still get occupational mat leave when the time comes all going well. A huge win in my favour to help enable staying afloat and clearing the debt. What welcome news!

Great news, what a relief for you.

enthusiasticsaver

It sounds like you  have been through a bit of a scary time and it just reinforces the message I always say to people, even those on high incomes that none of us know what is around the corner so thinking the status quo will always be as it is can lead to  disaster.  In your case it has been averted for now so congratulations on getting the job.  However you will have two young children and as I know (having only 17 months between my two daughters) this will be an expensive time.  You have the bonus for now of using your husbands inheritance and selling something but I would caution against remortgaging and just focus on paying off the debt and learning to live within the new budget with presumably reduced pay while you are on maternity leave and then fairly high childcare costs until the oldest is three and you get some free hours. Look at the tax free childcare scheme to see if that will help you. I also would not recommend moving as the costs of moving, setting up a new house etc will easily outweigh any savings you  may make from downsizing and as you will have two young children that may not be a great idea anyway.  If I would you I would just knuckle down, chip away at the debt, cut out all non essential spending.  Increasing your mortgage to pay off unsecured debt is an awful idea.  

Whilst overspending is a thing I am sceptical counselling will help and you certainly cannot afford to  be throwing money around so I would put things in place to stop you spending.  That means moving away from credit cards altogether. 

enthusiasticsaver

Also I know some treat inheritances as different to family money but it makes no sense to borrow money on your mortgage to repay an inheritance which in law is 50% yours anyway? Surely if you borrowed money on cards for holidays and wedding is this not partly your husbands responsibility to repay anyway? 

savingholmes

Fab news on the job. So pleased for you

ellipticalorbit

Hello,

It didn't feel right to finish the year without posting an update. I think I'm hopefully starting 2022 on the right footing.

A lot has changed in the last couple of months. The job I landed didn't work out - the expectations were insane on very short 24-48 hour deadlines and I seemed to be getting delegated everything from my director with no team to support me and after a few weeks of trying to make it work and daily tears based on the latest demand, I decided to call it and go back into the redundancy pool. A big risk being 6 months pregnant with potential not to have another job but baby and I came first. Thankfully I interviewed a week later for another role, one which I can see myself in longer term and I got the job so everything on the job front is all sorted now, thank goodness!

After a lot of thought we decided not to move house. I swallowed my pride and decided to borrow from my husband and sibling to clear the majority of the debt to allow us to remortgage in the spring (and take a little equity out of the house to pay them both back so my sibling isn't out of pocket and so we have some actual savings in the pot rather than all our equity tied up in property). Between this and just over £30k of sales going through successfully at the end of the year I should be down to one credit card and a loan only from February, with whats left paid off within the next year. I know it's not for everyone to take equity out of their property but by doing so I'm saving about £1300 a month and by end of next year it'll be £2k a month - without losing our home and having to move house so it was a no brainer after doing the sums. I'm just incredibly grateful to have been able to borrow from family to allow us to do so.

So here is to a new chapter and progress in 2022!

Debt free by Feb 2023 ~ 1y 1m to freedom

**Current debt = £53,838 / £82,500 total credit. 35% down, 65% to go**

Credit card debt £37,802 / £52,500. Loan debt £20,618 / £30,000

EF £1,000 / £1,000. Savings £0 / £10,000 (5 year goal)

Mortgage £306,788 to clear

Pension £24,684 saved

“If you save me today, I’ll save you tomorrow”, Money

"Successful people make decisions based on where they want to be"

"Someone is sitting in the shade today because someone planted a tree a long time ago"

savingholmes

Glad you reached out to family to help and they came through. Glad you ended up in a better role for you too. 

Happy New Year

ellipticalorbit

Hello,

Just a bit of an update following on from my last update. That's 5 credit cards paid off in full now and the business pretty much paid off as well as all personal tax. Feels very freeing to have a fresh start this year and only the loan and final card to go. I'm hoping to be able to clear them within the next year all going well so fingers crossed.

I'll keep updating until I reach zero to keep tabs on things, then once I reach zero the mortgage will be the next challenge given we'll be remortgaging for a little more later this year. It feels like the end is in sight and I'm sure once the cards paid off hit my credit report I would be eligible to move the loan and remaining card to much lower interest rates but will wait until remortgage is through before applying to move any products. Hopefully the lower interest rates allow me to speed up the pay off.

Debt free by Feb 2023 ~ 11m to freedom

**Current debt = £26,478 / £82,500 total credit. 68% down, 32% to go**

Credit card debt £7,469 / £52,500. Loan debt £19,009 / £30,000

EF £1,000 / £1,000. Savings £0 / £10,000 (5 year goal)

Mortgage £306,126 to clear

Pension £27,438 saved

“If you save me today, I’ll save you tomorrow”, Money

"Successful people make decisions based on where they want to be"

"Someone is sitting in the shade today because someone planted a tree a long time ago"

flyingscotsman67

Hi, juat found your diary and following- sounds like you are doing great