Divorce debt be gone!

biggerpickle

Good news is I have a 6 month contract extension agreed, not sorted the fte part yet but that should be debt slayed and then some, will breath out properly when I have the contract signed.

beanielou

https://forums.moneysavingexpert.com/discussion/comment/82136221#Comment_82136221

Good news.

biggerpickle

After midnight and pay has gone in so cards that can be paid now have been and I am now UNDER £5K!!!!!!!!!!

Did have to put dinner money for teenmonster#1 on credit card earlier in the week though so hoping this next month not quite as horrific spending as last month (fingers crossed for the MOT!).

ohdearhowdidthathappen

That’s a nice landmark to reach ☺️

biggerpickle

Am in that impatient mid-paymonth period where am waiting for statements to arrive to show interest and the min payment direct debits to go out (one seems to always go even if I overpay in between times, the other seems to be intermittent going out when I overpay, can't fathom it out!). Worked out on my H card, I've paid off the best part of £40k over the last 7 years, quite terrifying really. But I will be paying that card once and for all in 15 days time (payday!) and closing it.

My new "overseas" spend card is with Nwide and 0% purchases til next summer so using it for cc protection payments on hols and flights upcoming over next few months - wintersports and our usual visting family overseas flights in the summer. The last few years, I've landed really good deals in early Jan, booking in the early hours of the morning for peak holiday flights - clearly jinxed that now! The work contract isn't signed yet though (HR in that job is atrocious) but not massively concerned. I've taken the opportunity of the contract extension to increase my pension contributions from 5% to 7.5% too.

Have added a bit to my BNPL balance pushing me back just over £5k as aswell as fighting £ am fighting lb doing jabs - pen running out was out of sync with my pay but can clear that this coming payday.

Big fear though is MOT booked in for Monday so this my blow up all my financial planning 😬

beanielou

Hope MOT goes well

biggerpickle

thank you @beanielou for the MOT good luck!

I've realised that I will be underpaying tax as contract extension beyond December is going to push me well into the 40% tax bracket and it's looking like a hefty 4 figure tax bill will be coming my way. Upping pension contributions to try and mitigate some of it reduces take home which reduces my current debt repayment plan. ARGGGH my head is spinning, lob life on top of that and my debt free date is now looking like end of 2028 not this year.

biggerpickle

MOT sorted, some advisories quoted at £350 to repair but as MOT was done at not my "usual" garage I might give them a call to quote too. Good news in that I don't have to get them done immediately but soon. I'll aim for before Christmas.

Am going to attempt to update HMRC with new work information before the tax year end which might help and hold back making massive pension overpayments. I got working all this out realising student finance will be looking at 26/27 income for Sept 2028 uni for teenmonster#1 but then discovered if my income is >15% drop I can do an "in year" assessment so not that worried about student finance now, aside from the actual debt aspect for kids.

biggerpickle

I am now the proud owner of K tax code - this should mitigate future tax debt, reduces take home now by ~200 quid but I've got the money now so would rather that then have a debt and no extra contract. The reduced take home is really no different as 0.4FTE is now 0.5FTE so its just that difference really, plus have decided to up my pension contribution too.

ohdearhowdidthathappen

Good to get the tax sorted for peace of mind ☺️