Best approach to take?

QrizB

Why the judgement?

I'm not judging you adversely and I can't see anything to suggest I am. Please stop bringing me back into this thread.

RAS

We really need a full statement of affairs. There simply isn't enough information to advise. What are your salaries? How much are you actually paying for the mortgage? What are your offer essential spends? How much do you need to cover a few months of redundancy or ill-health? What is OH's job security like.

One comment though. Looks like you have buying large ticket items on credit, albeit 0%? It really is much better to save up and then buy.

On a pragmatic note, glad OH has got a job with benefits but it's going to be some time before he gains full protection. I'd make sure you've enough to cover three months essential spends at least before tackling anything else. I'd then target the card due to renew in Dec 26 and try and clear it completely rather than roll over to another 0% card.

ManyWays

Is he a higher rate tax payer?

When does your mortgage fix and and what rate are you paying at the moment? I suggest that as a minimum you want to plan to reduce the mortgage term to end when your husband retires. And aiming for earlier is good in case of heath problems.

Do either of you have a car on finance?

The problem with planning on stoozing 18k of cards is that when the offers dry up, it can all go bad fast. I would see clearing most of that as more important than a larger EF as yours seems decent and you have good sickness benefits. If you need to use some of the EF, then divert the card overpayments to that to top it up.

enthusiasticsaver

Personally if the debt is interest free I think I would prioritise the mortgage but make sure you have savings to pay off the deals as they fall due if you cannot get further 0% deals. I certainly would not ignore the debt but I would maximise paying the mortgage down although presumably you will have the option of downsizing when your husband retires? Will he get a pension lump sum to pay the mortgage down when he retires or can he delay retirement?

kezzygirl

https://forums.moneysavingexpert.com/discussion/comment/82043395#Comment_82043395

I am a higher rate tax payer, hubby is basic rate. My husband has a blood cancer since 2011 and we don't know the prognosis,it's under control though with weekly injections. Usually old people get it and pass through old age so we really don't know. He has had 2 heart attacks also, so ideally I'd like him to retire early as possible but maybe we've missed the boat? We plan to downsize to a 2 bed when the kids move out. I have good sickness benefits, his new employer pays something like one month sick when you've worked there a year. He did have some time off at points with previous employer as he has osteoarthritis in his back and herniated discs,with sciatic pain down his leg- awaiting steroid injections and nerve delination. Il do an soa. To be fair, I have a very good salary but as always, outgoings increase also.

kezzygirl

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 3[b]

Monthly Income Details[/b]
Monthly income after tax................ 3054
Partners monthly income after tax....... 1700
Benefits................................ 300
Other income............................ 320[b]
Total monthly income.................... 5374[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 1302
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 160
Electricity............................. 60
Gas..................................... 50
Oil..................................... 0
Water rates............................. 76
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 600
Clothing................................ 0
Petrol/diesel........................... 300
Road tax................................ 20
Car Insurance........................... 75
Car maintenance (including MOT)......... 75
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 36
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 110
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 200
Emergency fund.......................... 0[b]
Total monthly expenses.................. 3115[/b]
[b]

Assets[/b]
Cash.................................... 7000
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0[b]
Total Assets............................ 317000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 191927...(1302).....4.34<
Savings........................300......(0)........0<
Tesco deliver..................4........(0)........0<
Union..........................15.......(0)........0<
Vape...........................50.......(0)........0<
Gym............................79.......(0)........0<
LISA...........................100......(0)........0<
Bike tax.......................8........(0)........0<
Boiler service.................8........(0)........0<
Garden bin.....................6........(0)........0<
Dog groom......................26.......(0)........0<
Beauty.........................75.......(0)........0<
Wood...........................25.......(0)........0<
Nmc............................10.......(0)........0<
Driving lessons ds.............200......(0)........0[b]
Total secured & HP debts...... 192833....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Lloyds.........................1013......20........0
Virgin.........................4800......96........0
Natwest........................5080......51........0
Dfs............................3929......131.......0
Barclaycard ...................2400......24........0[b]
Total unsecured debts..........17222.....322.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 5,374
Expenses (including HP & secured debts). 3,115
Available for debt repayments........... 2,259
Monthly UNsecured debt repayments....... 322[b]
Amount left after debt repayments....... 1,937[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 317,000
Total HP & Secured debt................. -192,833
Total Unsecured debt.................... -17,222[b]
Net Assets.............................. 106,945[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

kezzygirl

I will add, I am estimating hubby's wage, he does not have pension taken yet, which will reduce his pay. He is also paid weekly and was emergency taxed week before last,resulting in a refund. I've worked it out by multiplying his hourly pay by 39 and times 52, divided by 12.

RAS

Hi, you've got a large number of monthly spends in under secured debt. And nil paid monthly for each of them. That wrecks the calculations. You don't have a £4 debt for which you pay nil. You have a monthly Tesco bill.

There's around £900 per month that needs adding to monthly spends and removing from secured debt.

Even so with all your discretionary spends you have about £1k left towards your debt, although I appreciate that this is OH first month working.

So clear the card that runs out in December. Then put another £5 per month on each of the other cards to make your credit record look better and as near to £1k per month into the mortgage

ManyWays

Ok so masses of useful background!

I am a higher rate tax payer, hubby is basic rate. My husband has a blood cancer since 2011 and we don't know the prognosis,it's under control though with weekly injections. Usually old people get it and pass through old age so we really don't know. He has had 2 heart attacks also, so ideally I'd like him to retire early as possible but maybe we've missed the boat?

So measuring more pension savings for him against the alternatives of paying more off debts or the mortgage, or more into alternative savings such as an ISA. the following is all very crude generalisations.

He should contribute the maximum amount he can to maximise the amount his employer will put it. No brainer.

For additional savings, pension savings win easily when someone is a higher rate tax payer, he isn't.

For someone with uncertain health, there is a lot to be said for investments (not cash savings) outside a pension in an ISA wrapper. He does not get the boost form tax back, but there is no tax to pay when money is taken out (and no restrictions on ages, although at 53 that shouldn't be a problem)

Overpaying the mortgage though depends on your house plans

We plan to downsize to a 2 bed when the kids move out

Any idea when that will be? Will that mean no mortgage or a much smaller one you can easily clear by the time you retire even if he has stopped work well before then?

Do you have any option to work an extra shift?

kezzygirl

https://forums.moneysavingexpert.com/discussion/comment/82044474#Comment_82044474

I can work extra shifts but I'm automatically deducted 40% tax. He plans to work extra shifts in his new job and we anticipate there will be plenty available. We are hoping to downsize in probably 10 years, by that time both kids will have moved out (currently 20 and 17) though I suspect a bungalow might cost as much as our house with house prices currently. I believe his employer contributes 5%to pension and will not go above this despite what he may pay in. I will look into an investment isa for him. We currently have the household savings wrapped up in a cash isa, s&s isa and my LISA