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MJhami59 · 28 May 2018 at 11:01PM

£26,656.29 = total debt.

Loan 1 = £14,058.13 @ 3.0%
Loan 2 = £8,342.19 @ 8.9%
CC1 = £793.52 @ 0%
CC2 = £3122.45 @ 0%
CC3 = £340 @19.9%

Basically, moved house and borrowed a load of money from parents and grandparents to facilitate move. Had to pay them back so got loans out. Credit cards have appeared due to my wife being on maternity leave and her income being very low.

From August, she will be back to earning around £1400 a month after tax and I will be earning £2200 after tax.

In the meantime, I am planning on delaying a payment to my #1 loan and paying that off my 19.9% credit card. Hopefully, I will have cleared that debt by the start of August. I will then start snowballing my debts in order of size and not interest rate because, by the time the 0% rate ends, I want those debts gone!

£100.00 Gas and Electric (Monthly direct debit)
£237.85 halifax 2 (3% loan)
£73.52 barclaycard (0% £3,600)
£11.93 lv life (life insurance)
£35.00 British Gas Serv (Breakdown cover for boiler and radiators etc.)
£913.40 Natwest Bank (Mortgage payments fixed until March 2021)
£184.80 Halifax 1 (8.9% loan)
£25.75 Pet Plan Premium (Insurance)
£20.50 Benenden (Health insurance)
£151.00 Student Loan (Ends September 2019)
£12.37 TV license
£157.66 Council Tax
£75.15 BT (phone, broadband and 2X mobile phone contracts)
£7.04 Leg&Gen (Income protection for critical illness)
£50.00 Halifax (0% £790 CC)
£7.00 Natwest Gold (£340 19.9% CC)
£10.99 Healthy Pet Club (Covers injections, worming and fleas for cat!)
£10.92 RAC (Breakdown cover)
£13.50 NAHT (Union membership - I'm a teacher!)
£3.99 Now TV (Movies - cheaper than Sky!)
£12.25 Car tax (Wife's car)
£2,117.62

My income £2200
Wife's income £500 until July then £1400 oer month from August.

I am currently paying £551 a month off my debts with £150 being interest. Going forwards I want to be able to pay another £400 off these debts a month, taking my total payments a month to around £800. If we manage to stick to this we will be debt free in 33(.2) months.

Debt free target = May 2021!

pidge04 · 28 May 2018 at 11:49PM

Hello and welcome.

Curious - does the food shopping come out of the £500 from your wife?

pidge04 · 28 May 2018 at 11:51PM

Your wife's income in August is going to come as a relief, I am sure.
Will you have any childcare costs then?
Wishing you well.

pidge04 · 28 May 2018 at 11:55PM

Great to have an end date to work towards!

Do you have an Emergency Fund? I do not but I think some people here would always strongly recommend one.

pidge04 · 28 May 2018 at 11:59PM

Is there anything you could sell to pay off this one - Natwest Gold (£340 19.9% CC)?
At the start of the year, I had £250 on one store card and £250 on another. I made it my mission
to get rid of those. They went quite quickly and that really lifted my spirits.

pidge04 · 29 May 2018 at 12:06AM

One more thing - that is a hard job you have there but could you take on any exam marking or anything like that? I do not know how well or how badly that pays.

I think you will find it really helpful here and it will be really great to see your debt go down each month - best of luck to you!

wishingthemortgaheaway · 29 May 2018 at 6:39AM

£2200 a month doesn't seem right for a senior leader (assumption made based on NAHT membership) in a school, even a primary school.
I was on that at ups 2 plus the lowest, permanent tlr.
I paid tax & ni (obviously) and paid into the teacher pension scheme. The only deduction I didn't have (at the end) was student loan repayments.
It might be worth looking to ensure deductions are correct, but then start gathering evidence to be awarded a pay rise at your next appraisal review.

MJhami59 · 29 May 2018 at 7:54AM

I'll try and address each question 1 at a time.
1) My wife tutors on top of her monthly pay and this goes towards food shopping. We had a big expense on a car and that had to go on a credit card.
2) Child care cost will be £45 a week thanks to grandparents! Plus my wife is only going back 3 days a week (she's a teacher too!)
3) I've had a recent pay review and will be getting pay back dated to September at the end of June. This should be around £400 so will easily cover the Natwest card if I've not paid it off by then.
4) I've actually looked into exam marking for SATs this year but I had to be at my current school for 2 years. That will happen this September so next June I will be able to do some exam marking and put this towards debt and pass it off as CPD at school too!
5) I'm NAHT edge so UPS 2 (£37, 259 + a TLR of £2700) taking my pay to around £39,900 PA. I'll check one of my payslips and see what deductions are and get back to you! I had a recent pay review and managed to get it back-dated to September so that will be useful when it comes in!

I just want to say, thanks for all your advice, it really is useful. I will continue to update as I go.

Do you think I should have an emergency fund or just keep a credit card on the back burner just in case? I have a £9000 limit on one and a £12000 limit on another if needed in a desperate situation!

MJhami59 · 29 May 2018 at 8:03AM

I have just checked my payslips.

I am currently getting paid £2211.88 a month and this will increas by around £80 a month from the end of June so £2290 a month. Every little helps! :j

pidge04 · 29 May 2018 at 8:18AM

That is great about the £80 rise!

pidge04 · 29 May 2018 at 8:21AM

I do not have an emergency fund myself so hardly one to give advice but it would be preferable to have one rather than to spend on a credit card when an emergency arose. Are you aware of Dave Ramsay?

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