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  • FIRST POST
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 17, 9:56 AM
    • 1,710Posts
    • 17,598Thanks
    Treadingonplaymobil
    67,031.92 is a frightening number indeed....
    • #1
    • 12th Feb 17, 9:56 AM
    67,031.92 is a frightening number indeed.... 12th Feb 17 at 9:56 AM
    67,031.92. Seriously. 67,031.92. That is a SCARY number. I can't believe our debt has peaked (and it is the peak, I am determined) at this level.

    Our light bulb moment actually happened a few months back, but it's taken since then of wrangling utilities and carefully watching out income/outgoings (using You Need a Budget) to really figure out where we were overspending and how the monthly shortfall of anything from 200-1,000+ was happening.

    We have literally nothing to show for this debt, it's just crept up over the past 8 years or so, and has always been at manageable levels, but back in October we realised we were spending more on credit cards each month than we were paying off.

    We committed that cardinal sin of taking out a consolidation loan, but alongside it we looked really carefully at our spending over the next couple of months, budgeted realistically for what we spend and have (I think) picked off all the easy 'low hanging fruit' of budget cuts and really identified why we were overspending.

    The main reason for the debt is, erm, me. Not that I'm the biggest spender (neither of us are amazing), but because I am self employed with a hugely variable income and basically worked out our budgets on the basis I would always earn my 'best' month's income. Which was, with hindsight, maybe a TINY bit deluded.

    The aim of this diary is to keep us on track with actually reducing our debt every single month, not doing it in a three steps forward, two (or four) steps back sort of way. Having sat down and put our numbers into the whatsthecost site, it appears that we are looking at 7 years and 1 month of repayments to clear the debt (and that's assuming we can get rid of the shortfall showing below). I REALLY want to reduce this term as that just seems bonkers.

    SOA below, with a couple of explanatory notes.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 250 (variable, but this is the minimum I have earned in any month in the last 5 years)
    Partners monthly income after tax....... 2711.86
    Benefits................................ 192
    Other income............................ 0
    Total monthly income.................... 3153.86


    Monthly Expense Details

    Mortgage................................ 698
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 174 (including overpayment for a period when we messed up during a house move 18 months ago and didn't restart the direct debit for the new property. Will drop by a little under 50 after either March or April, can't remember which)
    Electricity............................. 52 (gas and electricity are one combined DD, I haven't checked the exact split but the total is 104)
    Gas..................................... 52
    Oil..................................... 0
    Water rates............................. 104 (also including a debt from previous property, but I think this will be included for another 6 months or so. I'm not sure what our actual usage is)
    Telephone (land line)................... 18.5 (includes internet)
    Mobile phone............................ 85 (45 for my contract, which I use for work as well, 40 for DH)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0 (included in landline cost)
    Groceries etc. ......................... 520 (Includes 40 for one lot of school lunches. I am REALLY struggling to reduce this, but feel I could and should be able to!)
    Clothing................................ 100 (growing children, plus see notes below re clothes)
    Petrol/diesel........................... 225 (90% DH commuting costs)
    Road tax................................ 16.27
    Car Insurance........................... 25.22
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 50
    Childcare/nursery....................... 70 (this will disappear in April as child 3 gets free 15 hours)
    Other child related expenses............ 81.85 (music/swimming lessons x2, cubs and beavers, National Trust membership as they love visiting them)
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27.07
    Contents insurance...................... 0
    Life assurance ......................... 16.26
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 90
    Haircuts................................ 20
    Entertainment........................... 135
    Holiday................................. 75
    Emergency fund.......................... 25
    Total monthly expenses.................. 2707.29



    Assets

    Cash.................................... 0
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 800
    Other assets............................ 0
    Total Assets............................ 210800



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 173733...(698)......3.14
    Total secured & HP debts...... 173733....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................6880.21...156...... .0
    MBNA...........................9614.71...98....... .0
    Parental loan..................20000.....0.........0 (see notes below)
    Tesco loan.....................21000.....377.......10
    Total unsecured debts..........57494.92..631.......-



    Monthly Budget Summary

    Total monthly income.................... 3,153.86
    Expenses (including HP & secured debts). 2,707.29
    Available for debt repayments........... 446.57
    Monthly UNsecured debt repayments....... 631
    Amount short for making debt repayments. -184.43


    Personal Balance Sheet Summary
    Total assets (things you own)........... 210,800
    Total HP & Secured debt................. -173,733
    Total Unsecured debt.................... -57,494.92
    Net Assets.............................. -20,427.92


    Created using the SOA calculator at stoozing.
    Reproduced on Moneysavingexpert with permission, using other browser.


    Regarding the (relatively) high clothes expense, it is a combination of 3 growing children (8, 6 and 3), plus the fact that my job is in the fashion industry, and as a self employed person I need to have the right sort of 'look' in order to get work (think along the lines of a self employed personal shopper - people need to see you looking good in order to book with you).

    The parental loan was for a house deposit. The parent in question has no idea about our debts. She is not desperate for the money back and isn't charging us interest, but has asked us to save 150-200 every month into a savings account and then once we've saved a decent sum to either repay them or 'reborrow' it for work on the house (basically they want us to be able to make repayments if they suddenly need the extra income, but meanwhile are happy for us to benefit from it. I am not saving the money while our debt payments are so high - we are hoping to have paid enough off that if the parent ever needs it that we can reborrow it and pay them back). This isn't great, but realistically I think the best solutions is to treat it as the lowest priority for snowballing - once we have paid back the other debts we will throw the entire 630+ at this debt.

    So, there is a freaking enormous shortfall every month, which is somewhat depressing. Most months it is covered by the fact that I earn more than my 'bare minimum', but it is those months where it isn't covered that the debt creeps up again, and I am a total disaster for going 'oh well, we've spent on the credit card, we might as well keep going' and buying more clothes or something for the house - this is probably a significant proportion of our debt problem.

    We have managed to get rid of the balance on the one credit card we were spending on, so the remaining ones are both on 0% deals (although one expires in September). I have not cut up the remaining credit card, because we don't have an emergency fund in case of eg boiler repairs, but it has not been used for all of a month, and I hope to keep it that way.

    A DMP or similar isn't really on my horizon right now - I feel like we should be able to make the cuts to make our budgets balance, and I am optimistic that as my income goes up (when I can work more as child 3 starts school) that we will be able to make overpayments.

    My plan for now is:
    1) Try to wiggle those budget numbers around enough that we don't have a shortfall any more.
    2) Make a plan for any months where I make extra - do I use it for an emergency fund, as a fund to cover future months' shortfalls, to throw money at the debt to try to reduce minimum payments in case of future 'shortfall' months?
    3) Try to make more money. Not quite sure how this will work as I am largely limited to working around DH's working hours (I work evenings and weekends and the 5hrs childcare per week we are paying for for child 3).

    Now that's all down in black and white I am feeling a combination of relieved (to be clear on the numbers) and immensely stressed (by the semi-regular 180+ shortfall).

    Onwards and downwards (for the debt, not me)!

    edited to add: the original 67,031.92 figure was based on the total figure for the Tesco loan, which included all interest payable over the entire term of the loan. I have updated the debt figure in my signature and in all posts going forward as at 4th June 2017 to reflect that actual current debt balance rather than the balance plus interest over the lifetime of the loan. This has knocked 7,911.62 off the debt figure, but means that each monthly payment will have the interest for that month deducted from it, so it won't affect the DFD if I don't make overpayments.
    Last edited by Treadingonplaymobil; 04-06-2017 at 2:58 PM.
Page 151
    • enthusiasticsaver
    • By enthusiasticsaver 16th Apr 18, 8:17 AM
    • 7,097 Posts
    • 15,351 Thanks
    enthusiasticsaver
    Infuriating to have to pay out for alcohol you didn't drink but sometimes there is no way round it without making things awkward.

    Good luck on two week food shop. I used to do a monthly shop of meat/groceries/staples and just weekly top ups of fresh stuff when our kids were small. Took a lot of adjusting to but it did get us used to doing without when things ran out until next month and making do with what was in cupboards. Some strange meals though My DH once made spaghetti bolognese with orange and tomato soup as we had no tinned tomatoes left. Tasted ok.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • warby68
    • By warby68 16th Apr 18, 8:48 AM
    • 1,015 Posts
    • 9,887 Thanks
    warby68
    I think changing the shopping routine is good occasionally if only to relieve the monotony of the task.

    I have Tesco Delivery Saver for most things but do vary where I do fresh meat, fruit and veg, treat and top up shops.

    I don't think you buy many of these but remember to hide/ration out the treat type stuff - I think that's the main danger of bulk shopping, the good stuff just goes faster because its there. It seems to trigger 'eat faster' rather than 'last longer' if there are plentiful supplies, or at least it does with competitive teenagers and husband who does think he deserves the best/first pick sometimes. You should fare better as you have some pretty good eating principles in place.

    PS Sorry the lunch was a little painful budgetwise but I think you were half expecting it. I assume the plan to ask siblings to be kind with the bill didn't work out.
    • Silver Queen
    • By Silver Queen 16th Apr 18, 9:50 AM
    • 469 Posts
    • 2,139 Thanks
    Silver Queen
    I'm fortunate that in my OH's (large) family, there's three other siblings who will always insist on paying for what they themselves ate/drank, even if it costs them more than splitting the bill equally, so I can avoid the awkwardness of being the first to suggest it. I always found it a bit infuriating when expected to split the bill and subsidise the cost of someone's 5 cocktails when I only had tap water and a reasonably priced main.

    Hope you have a good day and your next three days aren't so painful!
    Debt Totals September 2018::
    350 Natwest Credit Card / Now 0 (paid off and closed 04/2017) 15,500 postgrad loan from parents/ Now 9,250 500 train ticket loan from parents / Now 0 (paid off 16/02/18) 2,000 Overdraft Now 0 (paid off 09/03/18)
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Apr 18, 11:44 AM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    Yes, my plan to pay my own way went completely wrong because I wanted to discuss with my siblings before my dad arrived, but my brother and his wife had ordered a 150 magnum of champagne (yes, he is a bit of a show off, although generous) for us all to share before we even arrived, and he breezily announced between champagne bar and restaurant that splitting the restaurant bill seemed fair, and since he'd covered the huge bottle of champagne it seemed a bit churlish to say 'actually, I only have 98p to my name and don't want to do that'.

    Re food shopping: we don't really buy treat stuff, because I make it rather than buying it, so fortunately as long as I don't bake it all in one go we're ok!
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Apr 18, 12:27 PM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    In other news, we have established that DC1's wellies and school shoes will both last a little bit longer - although they are both a 2 and he is a 3, there is plenty of room in them still.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
    • mfmaybe
    • By mfmaybe 16th Apr 18, 1:34 PM
    • 1,142 Posts
    • 3,700 Thanks
    mfmaybe
    In other news, we have established that DC1's wellies and school shoes will both last a little bit longer - although they are both a 2 and he is a 3, there is plenty of room in them still.
    Originally posted by Treadingonplaymobil
    You could set up a search on fleabay for the replacements, now you have some time? Sometimes stuff can be no cheaper, but you might manage to get barely used wellies in particular.

    It is annoying about the drinks (I guess that's the downside of not sharing the debt problems with the family). In my group of friends/family though, we always try to split the bill into drinkers and non drinkers, unless it ends up being one in each couple that's driving. I think I'd be smarting a little more than you are!
    0% card was 1126.91 / Now 1101.51

    AFD June 8/15 NSD June 5/11

    Other debts paid since 1/1/14: 17,005
    • JoJoC
    • By JoJoC 16th Apr 18, 2:49 PM
    • 1,128 Posts
    • 6,894 Thanks
    JoJoC
    Wow - that's an expensive lunch indeed! I understand you not wanting to question it after the 150 magnum of champagne, but it does totally infuriate me when others have no consideration for other peoples' financial situations. Aside from the fact that you may/ may not be up to your eyeballs in debt (they of course don't know that) but what if you just DIDN'T WANT TO spend that much money on a lunch? Surely that's your right? I'm glad that my husband and I each have one sibling and they both are fairly modest in their means and open about affordability (i.e. "No, I can't afford to go for dinner so let's stay in and make pizza") which makes life a lot easier when you need to say it back.

    I suppose you need to draw a line and leave it in the past but I'd struggle for it not to grate on me. I hope you are better at letting things go than i! On a positive note, you had saved for most of it and managed to cover the whole cost without firing it onto a credit card so that's brilliant!

    Also good news on the footwear - both of mine just got new trainers x2 and I'm seriously trying to avoid buying new school shoes with 9 weeks to go until summer holidays...
    CC1: 4481.14/ 5031.14 (12% paid off, 600) | CC2:3307/ 3807 (14.4% paid off, 550) | Loan: 10,528.20/ 15,792.30((33% paid off, 5,264))

    July debt total: 24,630.44 | New debt total: 18,316.34 | Total debt paid: 6,414.10 (26%)
    *My debt busting and savings diary*
    • Treadingonplaymobil
    • By Treadingonplaymobil 17th Apr 18, 5:57 AM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    Week 62: Day 2

    Urgh, have woken up at friends' house with the worst allergy symptoms - I have a 'dust' allergy, but it also gets set off by things like chemical cleaners, fumes from new carpets/sofas/wood glue/expanding foam etc (I am going to be living on anti-histamines when we have the extension done, it occurs to me), which I think is the culprit here - they have just built a house. Have not stopped sneezing for an hour.

    Yesterday's food shop wasn't as expensive as I expected for two weeks' worth, which makes me think I've missed something when planning two weeks' worth of food. I know I'll need to top up fruit and veg at some stage, but even so. We'll see how it goes.

    No useful guidance from the architect about the budget of our favourite design in his email yesterday, he is going to have a meeting with DH on Wednesday where we need to get some useful information or we'll need to halt the process with him until we can get some builders to look at it and give an estimate.

    Two days work today and tomorrow which will be horribly busy but I will be pleased with at the end of the month when I invoice for them. I earned another little bit of money yesterday so was able to make some little payments to my savings pots as I decided on earlier this month - 10% goes to each pot, so my 'extra' this month stands at:
    7 debt overpayments
    7 extension savings
    7 house stuff (urgent need for new pillows as my cheap replacements bought a year or two ago give me terrible neck ache, a saucepan, a couple of other smallish things that really have reached the end of their lives)
    7 biz account emergency savings
    7 food/household supplies
    7 annual insurances
    7 supplies for sister's wedding cake
    7 saving towards 4 months' buffer in biz account
    7 DC1 tutor (starting in Sept)
    7 emergency fund

    We're actually running really tight in things like food and family entertainment pots this month, but I didn't want to just 'give up' and put the extra money in there, as it would be sucked up so quickly, and I figure if I'd never earned that money we'd have to eke out what's there, so we should now too.

    Debt repayment:
    - 29.95/30 April rounding down pot.
    - 1,922.49/5,000 2018 debt repayment goal.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
    • mfmaybe
    • By mfmaybe 17th Apr 18, 1:05 PM
    • 1,142 Posts
    • 3,700 Thanks
    mfmaybe
    Week 62: Day 2


    We're actually running really tight in things like food and family entertainment pots this month, but I didn't want to just 'give up' and put the extra money in there, as it would be sucked up so quickly, and I figure if I'd never earned that money we'd have to eke out what's there, so we should now too.
    Originally posted by Treadingonplaymobil
    That's an interesting and very important point. I was dwelling on my financial priorities yesterday and had 3 main areas I wanted to focus on. With a tiny TCB payout on the way over I was debating what to do with it; but realised that if I never had that money I would still have had to pay off the monthly credit card; and still have had to top up my annual bills pots. So I'm going to put it all to my mortgage. (It's my only ongoing debt, so for me that's the priority). I have read on here repeatedly that you should make your debt payments at the start of the month with whatever your budget determines, not the end with whatever is left; and I guess it's the same principle. Obviously that requires a balanced budget in the first place, but it's all too easy to let things slide otherwise.
    0% card was 1126.91 / Now 1101.51

    AFD June 8/15 NSD June 5/11

    Other debts paid since 1/1/14: 17,005
    • Treadingonplaymobil
    • By Treadingonplaymobil 17th Apr 18, 5:42 PM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    That's an interesting and very important point. I was dwelling on my financial priorities yesterday and had 3 main areas I wanted to focus on. With a tiny TCB payout on the way over I was debating what to do with it; but realised that if I never had that money I would still have had to pay off the monthly credit card; and still have had to top up my annual bills pots. So I'm going to put it all to my mortgage. (It's my only ongoing debt, so for me that's the priority). I have read on here repeatedly that you should make your debt payments at the start of the month with whatever your budget determines, not the end with whatever is left; and I guess it's the same principle. Obviously that requires a balanced budget in the first place, but it's all too easy to let things slide otherwise.
    Originally posted by mfmaybe
    Wait, does this mean I did something right? Hold the front page!
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
    • Chrystal
    • By Chrystal 17th Apr 18, 7:42 PM
    • 411 Posts
    • 2,643 Thanks
    Chrystal
    Wait, does this mean I did something right? Hold the front page!
    Originally posted by Treadingonplaymobil

    I Believe.....
    That it isn't always enough, to be forgiven by others.
    Sometimes, you have to learn to forgive yourself.
    • Treadingonplaymobil
    • By Treadingonplaymobil 18th Apr 18, 6:04 AM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    Week 62: Day 2

    Morning! Still away from home but looking forward to getting back late tonight.

    The architect sent through some information about build costs yesterday, and we're at the stage where we really need to set a firm budget in order to proceed any further, so the next few days is going to be about some serious number crunching. Expect me on here a lot as I try to work things out! Have contacted the mortgage broker to find out what the best course of action is with funding it - suspect that with our high LTV there's no further borrowing to be done on the mortgage until the build is complete, but confirming that is the first step, then we can look at alternative financing options. I have two long train journeys today so hopefully will be able to make progress on the numbers.

    Nothing else wildly exciting to report, my brain is in work mode. Ooh, except look, my 'rounding down' pot has passed the 30 in April goal. That's pleasing.

    Debt repayment:
    - 31.82/30 April rounding down pot.
    - 1,925.16/5,000 2018 debt repayment goal.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
    • Busy Mee1
    • By Busy Mee1 18th Apr 18, 6:34 AM
    • 690 Posts
    • 3,182 Thanks
    Busy Mee1
    Don't forget you will need a contingency pot - 5-10% of your build cost for any unexpected costs ( cracked sewer pipes, asbestos, old electrical wiring etc ). We have done both a large extension and built our own house and cannot stress enough how important this is. Do not embark on a build without some contingency funding ( on a 50k build you will need an extra 5-10k ). Even if you don't come across any of the horrors above, you will find yourself doing extra things will the builders are there and will be presented will an invoice marked "extras" at the end of the build.
    • warby68
    • By warby68 18th Apr 18, 6:56 AM
    • 1,015 Posts
    • 9,887 Thanks
    warby68
    Seconded with great emphasis.

    I occasionally fund construction projects as part of my day job and actually look for 10-20% contingency.

    I've also NEVER had anyone report a project as completed on time and under budget - one or both has ALWAYS been stretched.

    It seems to be the nature of the beast and something that has never really changed no matter how fancy spreadsheets and project management have become.
    • Savertobe
    • By Savertobe 18th Apr 18, 7:18 AM
    • 34 Posts
    • 244 Thanks
    Savertobe
    For all new kitchen wannabes
    TOPM

    Have you seen this company they recycle used and ex display kitchens and it looks like they deal in high end stuff. Would be worth considering, if its any consolation I was 42 before I had a new kitchen!

    Take a look https://www.usedkitchenexchange.co.uk/about-us/
    • Treadingonplaymobil
    • By Treadingonplaymobil 18th Apr 18, 2:12 PM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    Having crunched and crunched the numbers I have concluded that we absolutely unequivocally can't do the most expensive option (small two storey bit/overhanging dormer and large single storey). We might be able to do it if we wait four years and don't do any improvements/redecorating before then, but I'm not sure we're prepared to live in a bit of a grotty house (kitchen and bathroom really need doing) for that long.

    That's as far as I've got right now, and I'm really blue about that decision, but trying to be pragmatic and accept it.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
    • PositiveBalance
    • By PositiveBalance 18th Apr 18, 2:31 PM
    • 808 Posts
    • 4,125 Thanks
    PositiveBalance
    So what are your other options, then?

    Absolutely about the contingency fund: something ALWAYS comes up!
    Original debt to source: 11,640.02; debt repaid: 6771.01 (58%); remaining debt: 5069.01
    0% CC balance: 4999.67 now
    2914.55 (42% repaid)
    Emergency Fund (#187): 0/500
    Terrimundi: fleeced!
    • Treadingonplaymobil
    • By Treadingonplaymobil 18th Apr 18, 3:39 PM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    There are a few options:

    1. The most budget option, rear dormer within the footprint of the house and (possibly) a single storey extension - it makes much more sense to do these at the same time rather than as separate projects because of access issues adding costs, but the rear dormer alone is a possibility and would be the cheapest possible project.
    2. Saving for a few years and doing the most expensive option (small two storey and large single storey bit) - I have all but discounted this entirely as I don't think we can manage our space for another four+ years without doing any improvements at all, and improvements would erode our savings, which makes extending further away, and so on.
    3. Try to find an in between option - keeping the dormer within the footprint of the house but making sure every square inch is utilised more effectively than in the current sketches produced, and doing a single storey extension downstairs. I am going to measure some ideas out this evening but suspect there isn't much to be done here to improve on the basic rear dormer option initially proposed by the architect, but it may still be the 'best of both worlds' option, even if the design doesn't sing to us in the same way.
    4. Do up the house, sell it and attempt to move up the ladder. I really don't want to do this - I love our house, and moving will wipe us out - but we could borrow more as it's not our affordability that's the problem (according to the broker), but the upper LTV of the property when it comes to borrowing on the mortgage to extend. If we took out a small loan to increase our deposit for a new house we could look at a 290k property (ours is worth about 225k). I don't think this is going to solve anything though, as 290k is still going to buy us a property that needs work, and moving costs add up, so we're going to end up poorer and still needing to do work.

    I guess option 3 is the next one to explore, at least playing with a measuring tape and a plan of the house!
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
    • mfmaybe
    • By mfmaybe 18th Apr 18, 4:25 PM
    • 1,142 Posts
    • 3,700 Thanks
    mfmaybe
    Maybe an off the wall suggestion (pun sort of intended) but could you rent out your current home for a few years, and rent yourself something a bit more family friendly? If the price differential wasn't too great, you could then save for the extension you really want.
    0% card was 1126.91 / Now 1101.51

    AFD June 8/15 NSD June 5/11

    Other debts paid since 1/1/14: 17,005
    • Treadingonplaymobil
    • By Treadingonplaymobil 18th Apr 18, 5:18 PM
    • 1,710 Posts
    • 17,598 Thanks
    Treadingonplaymobil
    Rental prices round us outstrip mortgage payments - we'd be looking at 1,100pm+ to rent somewhere with 3 decent or 4 small bedrooms, and could rent our place for perhaps 800pm.
    Last edited by Treadingonplaymobil; 18-04-2018 at 5:22 PM.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017: 38,608 unsecured debt/20,000 parental loan/173,282 mortgage = 231,890
    debt on 1st Sept 2018: 12,221.27 unsecured debt/19,940 parental loan/191,003.72 mortgage = 223,165
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