“Debt is normal. Be weird.”

browneyed_girl

The last time I ventured onto this forum was nearly 17 months ago.  I started a diary in 2019 of the same name (now defunct somewhere and gathering dust) which really helped me focus on reducing our debt, whilst simultaneously being held accountable for even the smallest financial decision - there was nowhere to hide!  Unfortunately, COVID happened - schools shut, work stress escalated (as if we somehow needed a pandemic to realise that working for the NHS wasn’t all sunshine and daisies), lockdown took away social support and DH and I both slowly went mad in our little bubble.  Putting all this in writing every day seemed a pointless exercise and so the diary ceased to be.

Today marks a fresh start.  Rather shamefully, there has not been huge progress on the debt front since 17 months ago.  Although some debts were paid and small victories were celebrated, there were an equal number of minor disasters (the largest of which being DH buying a new car from a private seller that then cost us a fortune to restore to anything resembling functional).  I’m not going to discuss this at length now, but be warned that this is likely to feature heavily if you opt to read further! 

I’m going to post separately with details about the level of debt we’re currently tackling (spoiler alert: it’s a biggie!), so for now, a little bit about the family...

Current household consists of myself (early 30s, though reminded by DH on a regular basis that I should rephrase this as mid-30s after next birthday.  DH doesn’t seem to realise that I will forever be early 30s and that he is never to correct me on that point); DH (also early 30s and wonderful in many ways where sensitivity about age isn’t a requirement); DDs 1-3 (ages 10, 8 and 5) and DS (now 3 but the size of an average 5 year old. No joke. He’s enormous).  I work full-time with a pretty good salary (we could survive on this alone if needed and have done previously for many years whilst DH was a stay-at-home dad) and DH restarted working 30 hours a week a couple of months ago.  

My life goals haven’t really changed since my last diary.  Be debt-free, buy a house, be healthy, keep the kids alive into adulthood (hopefully with some manners instilled) and attempt to lead a simple, sustainable life that is rich in memories. Not too much to ask, right?! (Full disclosure - I just copied and pasted those goals from my previous diary. It still counts).

I feel as though that’s probably enough for now.  I’ll be back with the oh-so-interesting breakdown of figures once I’ve updated my spreadsheet, but the numbers in my signature should give you an idea of what dire straits look like! 

Thanks to anyone who made it through that rambling introduction!  I’ll try to make future posts more succinct, but no guarantees! 

CRANKY40

You appear to belong to the same school of parenting as me although I only have one not four. Good luck with it all....

browneyed_girl

So, I promised the next post would contain all the nitty-gritty financial details.  Hopefully the numbers will speak for themselves, but that’s not going to stop me from commenting on each debt at length! 

Here we go...

Current debts:

• Very 554.97 - This is on BNPL and we are due to pay 304.98 off this month, leaving 249.99 which was for a replacement dishwasher.  Even then, the money for the dishwasher was given to us as a gift by MIL and FIL when our old one kicked the bucket.  At the time, it made more sense to put this cash towards a CC that was accruing interest and to get the dishwasher interest-free (provided it gets paid off by Feb 2022, which shouldn’t be an issue).

• Barclaycard CC 2100.00 - This is DH’s CC and balance is predominantly due to aforementioned car purchase.  I’ve promised him I won’t say anything more about it - we’re clearly not at the point where we can laugh about it yet! 

• Natwest CC 1000.00 - My card which has seen the balance creeping up because of recent large expenses relating to work (I have to pay for exams relating to career progression), with a spend only last month of £370 for an exam later this year.  Seems unfair sometimes, but knowledge is power!  I like to think of it as positive debt 

• Amazon CC 850.00 - My card again.  I wish I could put this down to positive debt but this is really my naughty card for all those little purchases that soon add up.  Most of it is due to gifts for birthdays etc (we have a very large extended family) but I definitely sneak in an occasional treat for myself (most recently £29 on a new foundation powder).  I get points towards Amazon gift cards by using this card, but I used to clear the balance every month and somewhere I lost my way.  Note to self: must try harder!

• Natwest loan 18126.18 - In one form or another, we have had a loan since university (in addition to my student loan).  The overall outstanding amount has reduced, but at one point we consolidated our loans and CCs and this is the result.  I feel bad that the CCs have been creeping back up this past year - I don’t want to be put in the position of having to repeat this.  Monthly repayment is £335.67 - very manageable and I would love to pay this off early (current end date is March 2026).

• Tax credit overpayment 3528.95 - I actually forgot to include this in my previous diary.  It’s a bit of a sore point because it’s from years ago when we actually qualified for tax credits.  I would like to point out that we always gave accurate information on our annual forms, but HMRC seems to process things so slowly that they continued to pay us when we weren’t eligible and only noticed this almost a year later!  We made an arrangement at the time to pay back £30 a month (which means it won’t be paid until 2031!!) and it’s a matter of principal that I make them wait for their money!  It’s definitely the last thing to consider paying off (except maybe student loan).

• Student loan 20890.64 - Not an urgent concern, but as it takes £200+ from my monthly pay, I’d quite like to have that back as disposable income (would look better on the mortgage application for a start).  As I have a high level of job security, it seems inevitable that I’m going to have to pay it all back and I’d rather it wasn’t hanging over my head for the next 10+ years.

So, that’s all of it.  A grand total of £47050.74.  But that number is going to go down and go down hard.  No mercy!!

browneyed_girl

I realise that I have so many more things to write about in order to put across the full situation - monthly income and outgoings, debt-busting goals, steps we’ve taken so far to tackle that very scary figure of £47k etc. 

However, after that previous post, I feel myself in need of a cup of tea and a biscuit just to calm down and replenish my energy!  For future reference, most of my posts will be timed to coincide with cups of tea.  I will also find it difficult not to share my opinions on the biscuit of the day.  Today’s is of the chocolate hobnob variety (other biscuits are available), which to me is a champion amongst biscuits.  If you take issue with that, then this may not be the diary for you! 

BlueJ94

Welcome back!
Hopefully with things becoming "normal" and I emphasise normal again hopefully you'll stick to keeping us all update so we can cheer you along the debt free journey! I've favourited your diary so I can get motivated to kick my debts bum aswell!

Good luck on the journey ahead! 

BlueJ94

Also, choccy hobnobs are the best!! 

anjyeah

The life goals sound solid to me. It's simple, necessary things in life that gets us by. I agree with taking a break before showering us with your plans, addressing the debt sometimes can be overwhelming so we'll wait for your next post. 

With regards to your Natwest debt, I like that you classified that as a positive debt. You had a career progression out of it and then now in a better position to pay it back. I never thought of it that way before but now I do thanks to you. 

mumtoomany

Hi, @browneyed_girl. Reading this and your previous diary, I think you have the same job as my DD1. Shan't say what as I don't wish to out either of us. DD1 tells me that most people in her (and maybe your) field do not know they can claim tax back on their exam fees and any other fees to professional bodies. Worth it if you don't already claim. Must agree on the choice of biscuit. Are you aware they are on offer at Farmfoods at the moment, two twin packs for £3. Cheering you an, mumtoomany.

mumtoomany

Hi, me again. Just read the rest of your previous diary, our rubbish internet only lets me read a few pages before the hamster on a wheel that runs it, gets tired. At least I think it's run by a hamster, no other reason it should be so bad. Anyway it seems you already claim your tax back, so please ignore me. Mumtoomany.

browneyed_girl

jadewest94 said:

Welcome back!
Hopefully with things becoming "normal" and I emphasise normal again hopefully you'll stick to keeping us all update so we can cheer you along the debt free journey! I've favourited your diary so I can get motivated to kick my debts bum aswell!

Good luck on the journey ahead! 

Aww, thanks Jade!  It’s nice to be back!  I’ve just had a look at your diary and it looks as though you’ve made good progress.  I’ll be cheering you on too!   

browneyed_girl

anjyeah said:

The life goals sound solid to me. It's simple, necessary things in life that gets us by. I agree with taking a break before showering us with your plans, addressing the debt sometimes can be overwhelming so we'll wait for your next post. 

With regards to your Natwest debt, I like that you classified that as a positive debt. You had a career progression out of it and then now in a better position to pay it back. I never thought of it that way before but now I do thanks to you. 

Thanks anjyeah - I’m all for the simple life!  I would live a very minimalist existence if it wasn’t for DH and the kids.  Unfortunately, one is a lover of gadget and cars, and the rest manage to acquire more toys than I think is morally acceptable!!