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  • FIRST POST
    • Moguline
    • By Moguline 1st Jun 18, 2:04 PM
    • 415Posts
    • 1,156Thanks
    Moguline
    From debt mess to mortgage success in 5 years (hopefully!)
    • #1
    • 1st Jun 18, 2:04 PM
    From debt mess to mortgage success in 5 years (hopefully!) 1st Jun 18 at 2:04 PM
    Hi everyone,

    I've been lurking for a while and thought I'd start my own DFD to keep myself accountable.

    I'm 34, my husband is 35. We have a nearly 4-yr old son. We live in a rented house and have zero savings, and quite a lot of debt. It was years of me overspending obliviously (I blame my upbringing, my parents have always spent every single penny they've earned and I just sort of thought it was normal to always be skint). I started by getting a credit card, then shifting that to a 0% balance transfer card, then kept spending on the old card. Rinse and repeat for years and years. It just plodded along with me making minimum payments. Then, at the end of last year, all my 0% balance transfer windows ran out at the same time, and I wasn't eligible for any more 0% transfer cards. That's when I woke up and started looking into what I can do about it. I had resigned myself to the fact that I'll never have a mortgage and will be poor in retirement. I started looking around the internet for advice on how to handle debt, thinking I may be able to slowly reduce it a bit, and found an article called "News Flash: Your Debt is an Emergency!!" by Mr Money Mustache.

    It was a real reality check for me, but also gave me hope that even on a modest income, I could make massive changes to my lifestyle and thus become "well off".

    I owned up to my husband, who was unaware of the extent of my debt, and started properly reviewing our finances and budgeting.

    I started in January with a grand total of 23786 in unsecured debt. We have already been able to pay off quite a bit. I have consolidated my overdraft and most of my credit card debt into two loans. The interest rate on those is still quite high, as my credit rating is not amazing, but it's less than half the interest to what it was before, so it's a start. I also like the predictability of loan payments.

    Anyway, our goals are now:
    - Debt-free by end of 2019
    - Save a deposit and buy house by 2022
    - Mortgage-free by 2030
    - Retire before 60 (2044)

    Once the debt is cleared, we are planning on using our new-found frugality to learn how to live within 50% of our income, giving us leverage to save up a decent deposit quickly, then subsequently overpaying on our mortgage, then aggressively saving and investing with a view to early retirement. (we also have private pensions through our jobs which are both pretty decent and can be paid out from age 55).

    SOA and all other info in first comment below.

    Any criticism/advice gratefully received!
    Last edited by Moguline; 04-06-2018 at 9:22 PM. Reason: Moved SOA etc into first comment in thread so that the initial post isn't quite so long!
Page 18
    • Homegrown0
    • By Homegrown0 7th Mar 19, 7:28 AM
    • 781 Posts
    • 4,024 Thanks
    Homegrown0
    Morning! I just read your whole diary

    That's a good idea you have building up the childcare vouchers for school holidays. We try to do similar with our childcare funds to cover some holiday time.

    Don't see holiday clubs as 'dumping' your son - I bet he has a blast! My son loves his and they take the kids on loads of awesome trips! At 28 per day, I try to limit it to 1-2 days per week and split it up with other things that are cheaper ��
    Sealed Pot Challenge 075
    Pay off by Xmas 2019 #02 - target 10,000
    • Moguline
    • By Moguline 7th Mar 19, 7:07 PM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    4th NSD in a row. Must be a new record ha.
    I did bring my own snacks to the conference but luckily they weren't needed as the vegan food they provided was great - veggie curry, a huge salad bar, etc. Very pleased!
    Work paid for train tickets in advance so no need to pay for anything.
    I'm really getting into the frugal mindset now. I would have definitely bought something from a chippy/cornershop on the way home in the old days, but I wasn't even tempted today.
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • Moguline
    • By Moguline 7th Mar 19, 10:23 PM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Sorry Homegrown, only just saw your comment! Thanks for stopping by!
    I like the holiday club because it's only 5 minutes walk from my work and it's 8am until 6pm. All the other holiday clubs I've found that take 4 year olds are only ever 10-3 or something like that, and that's no good for me sadly.

    He did like it the last few times he's been so I'm trying not to feel too guilty.
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • mark88man
    • By mark88man 8th Mar 19, 8:55 AM
    • 3,793 Posts
    • 8,676 Thanks
    mark88man
    Our kids loved it - and they were never shy anout saying if they didnt like something
    Things happen for a reason. Often the reason is we are stupid & make bad decisions.
    Weight/Health - Fluctuating - better than I was worse than I should be
    End 18: CC:8K@0% - Car Loan:11K@2.8% - Mort:133K@2.1% = 152K
    Decrease in Total Debt 2016:13.4K 2017:8.3K 2018:20K

    • Moguline
    • By Moguline 9th Mar 19, 7:44 PM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Good evening!
    eBay buyer finally paid yesterday, hooray.
    We went food shopping today, husband paid for the stuff we bought in Asda, and then I paid for the stuff from Aldi.
    Now have around 60 left in the grocery budget which should suffice. Will probably spend 45 in Aldi next Saturday and then a little bit on a top up the following weekend to last until payday on the 26th.
    Not spent any other money today so that's good.
    Tomorrow, Spud has his drama lesson and I'll go to the Works to see if I can't grab a bargainous present for Spud's classmate's birthday next week.
    Not much else to report, just plodding along really. Hope everyone is having a good weekend!
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • Moguline
    • By Moguline 11th Mar 19, 8:49 AM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Good morning everyone! Mondays always come around too quick! Although Spud was elated that it's Monday - he loves going to Breakfast club so much ha, bless him.

    Didn't really spend any money at the weekend except for grocery shop and 8 for Spud's friend's birthday present and card.

    Not much to report really - just plodding along still.

    There are some things I need to buy - I need a pair of trousers and a pair of leggings (literally only have one wearable pair of jeggings left!), some trainers and some everyday shoes (that can take the walk to work), Spud needs a new lunchbox (the silicone seams on his old one started getting smelly ).
    The old me would have already bought these things, but the new me checked YNAB, saw it's not really in the budget this month and decided to buy these things after payday. Just plodding on with sandwich bags for Spud and old beaten up boots for me ha.

    I'm thinking of investing in a metal lunchbox for Spud - no silicone to get smelly! They are expensive though! Will mull over it and decide in a few days.
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • Moguline
    • By Moguline 11th Mar 19, 8:52 AM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Oh, and Spud also needs a car seat! He's outgrown his old one and we need one for the Wales trip. A decent one I've seen costs 40 - much cheaper than spending 6/day to rent one with the car rental! And it should last him several years. Also one for after payday!
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • beanielou
    • By beanielou 11th Mar 19, 10:38 AM
    • 61,787 Posts
    • 264,748 Thanks
    beanielou
    A metal lunchbox sounds good & will last for years.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • redofromstart
    • By redofromstart 11th Mar 19, 12:44 PM
    • 2,302 Posts
    • 14,637 Thanks
    redofromstart
    Try Home & Bargains for the metal lunch box. I have seen Star Wars metal lunchboxes there before, they were in the toy/character section rather then with cookware. Both my boys had metal ones that lasted for years.
    • Moguline
    • By Moguline 11th Mar 19, 2:54 PM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Thanks both, I'll have a look. I'd like a bento style one instead of one with just 1 compartment - Spud likes lots of bits ha. I see it as an investment though!

    Just got a reminder from the dentist through as well - need a checkup - so that's another 20 to find. I'll get 80% of it back through my health insurance though so it's not too bad.
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • Moguline
    • By Moguline 12th Mar 19, 8:58 AM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Another NSD yesterday. Well, I did put 20 deposit down for Spud's holiday club, but I paid that with existing childcare vouchers, so no physical money was spent. The price has gone up from 22 a day to 25 a day - but to be honest, they hadn't changed their prices since 2014 and that's still really good value. All comparable places that take 4 year olds around here are 45 a day, so I'm not complaining.
    Plus this one is so close to my work, it's just very convenient.

    Really happy with budgeting this month.

    Still have enough to cover all the bills still to come out (mobile, Netflix, pet insurance, internet), plus 62 for groceries, 30 for bus/taxi, 200 for the dog's vet appointment, 60 for meal out for husband's birthday and 13 "fun money".

    Plus have 100 in emergency fund, and 54 in April holiday spending fund!

    This kind of financial situation halfway through the month is unheard of!

    And I've done a preliminary budget for next month which includes 155 for Spud's drama sessions, 200 holiday spends, 40 for a posh lunchbox for Spud, 40 for a car seat, and 70 for trousers/shoes for myself - and will still be able to pay nearly 650 off the debt too!

    Who knew I have that much money? Haha!
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • hugglemonster
    • By hugglemonster 12th Mar 19, 9:02 AM
    • 545 Posts
    • 2,431 Thanks
    hugglemonster
    Brilliant budgeting well done, 25 a day for holiday club is really good plus makes it better when you can pay with vouchers.

    I do think we have several lightbulb moments along the way, this is the first time I'm saving for the annual bills and yet I've read it hundreds of times over the years and never acted on it. It will be a revelation when I can pay the first one outright!

    H x
    Last edited by hugglemonster; 12-03-2019 at 9:27 AM.
    Debt:Overdraft 2 2400 now 2200 Credit card 2200 now 1940 Car - Purchased 11,518.40 now 5749.20 Barclays loan 3000 now 2462.88 Dad 300 now 200
    PAID - Computer 646.52, Overdraft 1 2200
    Emergency fund: 25 General savings: 25
    • Purplemumof2
    • By Purplemumof2 12th Mar 19, 9:20 AM
    • 6,928 Posts
    • 26,481 Thanks
    Purplemumof2
    I do think we have several lightbulb moments along the way, this is the first time I'm saving for the annual bills and yet I've read it hundreds of times over the years and never acted on it. I will be a revelation when I can pay the first one outright!
    Originally posted by hugglemonster
    I'm the same Huggle.

    Well done Moguline on the budgeting, you're doing really well.
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: 4900.00 Lloyds: 9240.00 BC: 870.00 Cap One: GONE
    Mar LTW 6/18 - Mar NSD 0/5
    PAYDBX 2019 #041 PD 2020.33/5604.30
    Savings for Christmas 150.23/500
    20p Savers 2019 2 Savers 2019 50p Savers 2019 SPC 12 2019 #003
    • Moguline
    • By Moguline 12th Mar 19, 11:01 AM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Thanks both! I agree Hugglemonster - it's like each lightbulb moment is another step out of the Matrix haha! I'm really enjoying having this new financial awareness - foregoing extra spending has been really easy the last couple of weeks, just because I have clarity on what is what.
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • beanielou
    • By beanielou 12th Mar 19, 2:57 PM
    • 61,787 Posts
    • 264,748 Thanks
    beanielou
    Looking good
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • Homegrown0
    • By Homegrown0 12th Mar 19, 5:05 PM
    • 781 Posts
    • 4,024 Thanks
    Homegrown0
    Hi!

    Sounds like you're right on track for this month and next month, even taking into account the things you need to replace. Good for you for waiting until next month too - I usually have a problem with patience when I realise I 'need' something but I'm working on it.

    25 per day is great for holiday club - ours is 28 per day from 8-6 and my son loves it. It'd be painful if he had to be in there for the whole summer but a couple of days per week over the summer is worth it.
    Sealed Pot Challenge 075
    Pay off by Xmas 2019 #02 - target 10,000
    • Moguline
    • By Moguline 13th Mar 19, 11:37 AM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Thanks Homegrown! I think Spud will have to do 2.5 weeks in there over the summer, but I'll probably split those up so he has a week of something else in between each holiday club period.
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
    • Moguline
    • By Moguline 19th Mar 19, 11:40 AM
    • 415 Posts
    • 1,156 Thanks
    Moguline
    Hello MSE world!

    Got my new council tax bill yesterday - prices are going up by 11 next month, and then 6 a month afterwards.

    Also, our hoover broke.
    Rather than buying yet another cheap one, I have forked out for a more expensive (and hopefully more durable) model. It was 189 instead of 269, and I went through topcashback as well so hoping for something back from that (I think it said up to 8%). I have paid with the credit card for now as I'll get paid next Tuesday and will deal with it then. I'm currently debating how to jiggle around all the different pots to accommodate this, but it will be fine.

    Hope everyone is doing alright!
    Current debt (01/03/2019): 21,180 Total reduction so far: -5,258 (19.9% paid) DFD of my dreams: 31/12/2020
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