Newbie saying hello...

Frugal_Fox

Original Post - "We used credit that I had managed to clear to enable us to get a new car."

Quote - "It always puzzles me when people decide that only a new car will be reliable enough to get them to work. Even one only 12 months old would offer a saving of perhaps 20%."


Ahh - when I said new, I just meant new to us!! It was 6 years old when we bought it!!! :rotfl:

ms_london

Frugal_Fox wrote:

Thanks for your reply - I love your signature, it really gives me hope that I'm not the only one doing this, and that it is possible...!

How long has it taken you to get this far - and are you planning on celebrating next month??!!

I have already reduced our debt from the 26K it was to 18k - so I'm aware of how hard you'll have worked to get this far.

Frugal
x

Hiya Frugal

If I were you, I wouldnt see your mortgage as a debt - just focus on the other type of debt (credit cards etc etc), that way it will seem more achievable. Then tackle the mortgage after.

Really, you are definately NOT the only one doing this, its scary as to how many people are actually in debt, and a lot of them dont acknowledge it, which is more worrying (pre-lightbulb ms_london for instance hehe!!).

Reducing £26K to £18K is fab, well done!!! You should be on a roll now.

Well, i will have paid off £10K this year (Jan-Nov), £4.5K last year (May-Dec) and the rest between the end of 2002 and May 2004........ - I had two jobs from 2003 til last month, so its been easier (but also harder work doing two jobs) clearing the debt........ I just made a NYR (new years resolution) this year that I wanted to clear the rest of the debt, and I will have - originally it wouldve been December, but i bought it forward by a month, at least then i'll have money for the festive period (not that i'll be spending it willy nilly on junk anyway!!).

Ramble, ramble, ramble, sorry!! :0)

Ms_London xx

skintchick

Selling your house is a drastic move, and I personally wouldn;t do it.

Could you post all your outgoings individually, rather than lumping things together? I noticed pet insurance for example - do you really need this? How much is it?

If you post everything we might be able to offer suggestions for cutting back.

Also, do you have a spare room? Could you have a lodger? I am about to do this )she moves in on Saturday) and it would help a lot.

Please, I know you've thought this through, but if you sell up you won't get the same thing for the money when you buy again. THere may be another way.

Frugal_Fox

Hi all -

To answer some questions, we have considered downsizing, but we are in a relatively small house now!! It seems that because I am not working, and my husband is new in his job we are unable to be considered for a mortgage. This means that we can not remortgage to reduce our interest, or to lengthen the term. Seriously, other than this, I can not see anyother way out. To stay could mean we risk becoming behind in our commitments - and possibly losing our home anyway. At least this way we get to remain in control, we can clear our debts and start afresh.

rprinter

Hi Frugal

Sorry haven't had much time to read every reply on this so apologies if someone's already suggested this.

Changing your repayment-type "short time" mortgage to a regular 25 year interest only could save you possibly £500 a month I reckon.

(I've an interest only mortgage of £170k which costs under £900 a month)

Use this to pay back the prioritised unsecured debt, then switch back to repayment mortgage in a few years.

OK you won't have paid back any capital on the house, but you'll still have your house!

rprinter

SORRY! Just read yr post about you not working & hubby in new job.

Try an independent mortgage broker. Basically if you have equity and a good repayment history with your current mortgage there are lenders who'll do it, and at reasonable interest if not quite high street.

Its that short-term mortgage with repayments thats causing you problems, not the relatively small amound of unsecured debt.

I agree with others that by renting that 18k will cost you a hell of a lot considering the cost of renting, the selling charges, and the future prices rises in your present property you won't be earning. Whatever happens in the short term it is common consensus that in 10 years time your house will be worth twice what it is now.

Shadowplay_2

Hello,

Just a couple of thoughts...

I noted that you have adopted, would you consider fostering a child as well? I believe you are paid for this (I may be wrong ). This would solve the problem of not being able to work away from home and bring in some cash.

me and my partner rent at the moment and I don’t believe its "dead money" in the strictest sense because, once we have paid the rent which IS cheaper than having a mortgage, we don’t have to pay for any repairs, building insurance etc. if the washing machine breaks, the landlord coughs up for it. This has helped me clear over 5K of debt in two years.

But (and their always is one...)

When you rent SOME Landlords are complete sh*t to the point of incompetence, this in itself can bring a lot of stress. Some landlords will not let you decorate, if your planning to stay a while this can get depressing... we have bottle green carpets throughout! Pets I have rented 5 different properties and not one allowed you to keep a pet, enforced on pain of death. Also with children, and I’m only commenting on a flat, any damage to walls etc comes out of your deposit. Children I believe sometimes draw on walls or play baseball in the living room, not that as a child I would ever have done this mind… cough…

ffs

I'm not an expert on DMP's (though I do have one) so I don't know whether your secured loan can become part of a DMP. If not, it shows just how unfortunate you have been in chosing to convert unsecured debt to secured debt.

I would imagine that you would be far better off on a DMP, staying where you are, without incurring the sale/moving costs, and without the uncertainly of being a tenant with no right to stay in your home past the end of the 6 or 12 month contract. I can cope with that uncertainty, but then I don't have kids.

Frugal_Fox

skintchick wrote:

Selling your house is a drastic move, and I personally wouldn;t do it.

Also, do you have a spare room? Could you have a lodger? I am about to do this )she moves in on Saturday) and it would help a lot.

Please, I know you've thought this through, but if you sell up you won't get the same thing for the money when you buy again. THere may be another way.

Hi SkintChick - we don't have a spare room, and as far as I can see, there are no other options for generating cash. As for outgoings, they are - I believe as paired down as they can be.

But anyway - as you asked!

House Bills = £292
Council Tax - £80
Charity Donation - £4 (very, very important to me)
Water Rates - £19
Gas - £30 (Failed DD means higher payments at the mo!)
Electricity - £25 (same as above!)
BT - £12
Internet - £15 (unlimited & ethical)
TV - £13
Home insurance - £26
Life Assurance - £10
Pet Insurance - £25 (NB - covers 1 dog & cat with Tesco, and 1 cat with Petplan, as has recurring illness, for which they cover for life)
Car Insurance - £33

Plus £832 on mortgage, and £290 on secured home loan.
Plus £100 personal reserve paying back (highest APR)
Plus £80 on credit card
Plus £50 on store card

With only an income of £1838, and outgoings of £1644 we only have £194 left each month for food and other items.

We are unable to get either a mortgage for another house (can't find any cheaper either in our area) or re-arrange our existing mortgage over a longer term. When we took the mortgage on we had an additional £23k annually, we anticipated our funds going down, however, we also anticipated that I would be able to return to at least part time work - something that we are unable to do. We do get £310 from social services each month towards the 'upkeep' of the children, plus my £40 from a cleaning job. However we are not prepared to foster anymore children just to get an increase in income, as ours are not ready for any further additions just yet!

Personnally, I can't see any other alternatives for us, but to sell the house and rent. We sold our second car a few years ago to clear some debt, and haven't missed it - but now we are literally down to brass tacks, I don't know where to cut anything else back from.

Frugal
x

southernscouser

Do you have just the one credit card as often shuffling the outstanding balances to cheaper cards can save a few quid?