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  • FIRST POST
    • Antonio101
    • By Antonio101 14th Aug 19, 8:44 AM
    • 9Posts
    • 2Thanks
    Antonio101
    Need perspective, help and advice
    • #1
    • 14th Aug 19, 8:44 AM
    Need perspective, help and advice 14th Aug 19 at 8:44 AM
    Hi everyone
    I am new to this forum but having been lurking and following for sometime and found it extremely helpful and insightful. Apologies if I am posting this in the correct thread.

    Basically I am 30years old and really feel behind the curve in terms of debt/saving and investment. However this also feels like a turning point for the better for me.

    My situation is I am married and have a 3year old son. My wife brings home 5-10k part time and myself 60-70k so we earn well. However over the years, largely due to silly decisions made in my 20's and an expensive wedding I am in 35k of debt spread across credit cards with repayments amounting to 1000 a month. Embarrassingly but thankfully by dad has lent me money to ease my cashflow for 6-12months. I have a house (needs decorating thanks to the little one) and mortgage on help to buy but really feel I should have a bigger place by now. Everyone else is moving to larger houses. I really feel I have set myself behind by 5+ years due to my financial stupidity. from 24-30. Don't get me wrong I enjoyed the cars and holidays etc but have nothing to show for it.

    Due to this windfall from my dad I really want to turn things around. My aim is to build up an emergency fund (5k), currently on 1700 and begin to invest. Any money lumped over the 5k I will offset off against the debt.

    As it stands I have 1700 in an ISA and hoping to add 500 to this each month
    Pay 200 a month into moneybox (general investment)
    50 into my LISA (1200 current balance)
    30 into a SIPP (3000 current balance)
    600 into my nhs pension with 700 controibutions from employer (9100 current balance).

    Once the 6-12months is up I will need to take out a low interest loan (once credit score is repaired) to repay my dad.

    Can I ask what everyone thinks of the above plan my current standing is? Have I really messed up and set my family behind massively?. I know my debt should be my priority however having no savings is a massive source of insecurity for me as the main bread winner. I want us to have financial cushioning and would like to be able to decorate etc. I have cut up all credit cards
Page 1
    • savingwannabe
    • By savingwannabe 14th Aug 19, 11:36 AM
    • 14,143 Posts
    • 47,613 Thanks
    savingwannabe
    • #2
    • 14th Aug 19, 11:36 AM
    • #2
    • 14th Aug 19, 11:36 AM
    Welcome antionio, hello do you know what? it's not that bad. You haven't let anyone down but you need to tell your partner so she understands why you will be cutting back to sort it out.

    The great part is that you earn a great income. I would cancel or curtail all unnecessary spending ( don't have holidays, avoid eating out, avoid takeaways) and focus on paying off the debts as these must be costing a lot in interest.

    I would continue to pay into your pension and have a 5000 emergency fund and put everything else into debt repayment and carry on with your SIPP, LISA etc after but I am not an expert.

    Leave the decorating, fancy holidays till later you can get yourself out of this if you hit the debt hard and your wages should allow this fairly quickly providing you focus all of your energy on it.
    Christmas Fund 208 No spend month?
    • Antonio101
    • By Antonio101 14th Aug 19, 11:45 AM
    • 9 Posts
    • 2 Thanks
    Antonio101
    • #3
    • 14th Aug 19, 11:45 AM
    • #3
    • 14th Aug 19, 11:45 AM
    Hi
    Thankyou for your kind words. Thankfully they are all on 0% interest.
    This is exactly what we are planning to do. I have managed to reduce my monthly outgoings by 180 already.

    I will do. My goal is to be debt free within 3 years.
    • Skint yet Again
    • By Skint yet Again 14th Aug 19, 7:13 PM
    • 3,663 Posts
    • 19,321 Thanks
    Skint yet Again
    • #4
    • 14th Aug 19, 7:13 PM
    • #4
    • 14th Aug 19, 7:13 PM
    Hi Antonio well done on posting and taking the first steps to paying off you debt. I'm no expert at savings or paying off debt your size but you may get more great advice if you post your SOA on the debt free wannabe board. You will get lots of advice there bon cutting back & the best way to pay down your debt. Good luck !
    Balance 0% credit card 1360 748
    0% Car Loan 7500 balance to pay 1/10/19 160 1/11/19 160 1/12/19 160 finishes 1/1/2020 140.
    Emergency fund 200
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