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  • FIRST POST
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 17, 9:56 AM
    • 1,748Posts
    • 17,892Thanks
    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 182
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Aug 18, 9:06 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    TOPM would you not be best keeping the new study area for yourself? Working from home does require some space, the few time's hubby and I both work at home on the same day is usually a disaster as one of us has to work in the dining room, nothing is to hand, and nothing can be left out if a meal interrupts the flow of work.
    Originally posted by wishingthemortgaheaway
    I actually already have a study area planned in the extended downstairs space (our current dining room will adjoin the kitchen/diner, but be separate enough to work in I think, and will be a working/quieter area). I already work at home in the midst of the chaos, and I prefer it to being alone in a study, which i've had in previous houses.
    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 12th Aug 18, 9:10 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    Just been catching up. A few random thoughts from me, in no particular order:

    I mentioned a contingency budget for your build in an earlier post. Don't think you replied (apologies if I missed it) but do please factor this in before you commit to the project. We are about to build our own home, which I've been researching for years, and it's the number one piece of advice I see in magazines, books, seminars etc! I have a friend who is a director of a housebuilding company and even they factor in 2-3%, but he recommends at least 10% for a self build project. You should consider this a real cost, until proven otherwise; so you need to know where it's coming from.

    Do you pay yourself your salary at the start of the month? Just thinking that most "employees" get paid at the end of a month. In some ways it makes no difference as a true "employer" would have to pay you regardless of the other surprise bills they had, but perhaps it would make it easier to see whether you were truly covering costs each month?

    Online shopping - I've started doing this (we now live a long way from our nearest Sainsbugs) and they have 1 delivery slots if you plan it right. However I've found you do need to write a shopping list first . If I do end up at the dreaded Te$co I use the scan and shop which is actually great for controlling spend. I wish all supermarkets did it.

    Beauty products. I'm another who baulked at the cost. Have you tried Steam Cream? Comes in a tin, made in UK as far as I'm aware and is cheap as chips from Amaz0n. I would also strongly advocate vouchers for presents to put towards your beauty spends.

    Planning. That is very frustrating. We had to make some compromises with our plans too, but one thing that kept me going was reading that many of the best designs end up coming from compromises. The truth is, our house will look and work better than our original submission. Hopefully this ends up being the case for you too.

    I'm sure I had some other thoughts but I do want to say how well you are doing. I found it refreshing to see what you had posted about food - ie it should cost what it costs, and it should always be ethical and that poor quality, poor welfare stuff just shouldn't be sold. I feel this way too but I'm always worried that it is easy to say this from a position of "privilege". You have articulated it way better than I could have, and it felt very real, too. You have a huge debt mountain still to climb but I'm truly in awe of you sticking to your principles.

    Oh and I've also made a switch to a shampoo bar - for some reason I had procrastinated, but your posts encouraged me. For anyone hesitant, it works exactly like a bottle of shampoo, I have long, coloured hair, and you would have no idea I've changed products. I also think they seem pretty cheap in comparison to many brands.

    Must go and cook tea, but thanks again for your honest and articulate posting

    Edit - I remembered the other two things. If you end up with no car, how will this effect your own client facing business? The second thing was the garden - do you grow any veg at all, you said you have a big garden? Currently all I have is some rocket and salad leaves in pots, but this alone reduces my plastic use quite alarmingly. We have also found a friend who has a huge productive veg garden and gluts are coming our way . Keep your ear to the ground for this - maybe you could trade home baking for fresh fruit or veg, for example?
    Originally posted by mfmaybe
    Thanks for all your thoughts

    1) Contingency budget - the entire build is going to be borrowed money, and we have the ability to borrow our contingency, so as far as it goes, we have a contingency. The reduced cost of the build with the smaller dormer will increase our wiggle room here.

    2) Salary - yes, I pay myself. I had a big budget rejig a couple of months ago and now pay myself 700pm after tax.

    3) Online food shopping - yes, I am such a convert! I am much more inclined to wiggle the menu plan when I can see the final cost laid out in black and white.

    4) Beauty - steam cream makes me break out in major acne, annoyingly, but good idea re vouchers.

    Yay on the shampoo bar, so lovely to have persuaded someone else to make the leap! All you need is the vinegar rinse and you'll be a proper hippy like me .
    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 12th Aug 18, 9:12 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    Best of luck with that list...I had one with about 20 points on this week and got about 8 done. Enjoy the time away with your mum and the camping trip.
    Originally posted by Honeysucklelou2
    I will probably get about 8 done too. I know I'm setting myself up for disappointment, but it's a good motivator not to sit down for too long at any stage in the day!
    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
    • Suffolk lass
    • By Suffolk lass 12th Aug 18, 10:05 AM
    • 2,118 Posts
    • 22,111 Thanks
    Suffolk lass
    If you are building a list of sites to browse when you are further down the line, do check out Zev Bianchi - an Australian Industrial Designer who makes flat-store chairs, folding staircases, and innovative lighting designs (and loads of other things) - you can find videos of some of his stuff on facepage and youpipe.


    I'm just catching up on your diary now we have internet again on our hols. Your 422 overpayment is a bit like my light-bulb dimmer switch. I did something similar a couple of years ago and managed to go with the flow. It proved to me that I could manage on less than I always insisted I needed. Every now and then now, I have a store-cupboard and freezer month when I really pare back my grocery spending and it also ensures all my supplies get turned around without stock-piling.


    I am sorry to hear the planners baulked at your plans. I am sitting here wondering what your architect thinks he is doing. When we put in, our architect first went to the Local Authority and sat down with them in pre-planning to check what was, and what was not acceptable to them, ahead of drawing up detailed plans and submitting them (at my expense). I am having a WTF moment over here...
    MFiT T4 #2 update 94.29% after Q10 ahead of where I should be
    Save 12k in 2018 #53 - after August 78.83% 7,883.47/10,000
    OS Grocery Challenge 2018 spent 1,530.09/3,000 including stores 51% of my annual budget at the end of August.
    My DFD is here
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Aug 18, 5:31 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    I have to round up yesterday's epic list before I can think about today!

    Yesterday's list (with last week's list stuff left on too)
    1. DH to phone next handful of builders on the shortlist. We are going to re-engage with two today now we have a clearer idea on how we're moving forwards.
    2. Create full list of all the 'extra' jobs that we want done alongside the extension before the first builder visits on Thursday.
    3. Check in with the people servicing my Kenwood Chef whether it's ready/needs open heart surgery. DH is picking it up today.

    4. Order DCs' uniform. I will actually do this one day instead of just moving it onto the next week's list .
    5. DH research new 0% deal for the one expiring in September.
    6. Invite the other guest to DC1's party so we can book the campsite.
    7. Make a start on tax return.
    8. Menu plan for coming weekend/next week and update shopping delivery.
    9. Get a stock of social media posts ready for when we're away over the rest of the summer.
    10. Get some website content up.
    11. Write packing list.
    12. Pack for the next fortnight

    13. Finish contract work for the next fortnight. Done for the next week, will do the following week's worth of work at my mum's this week before camping.
    14. Pack orders for smaller business. Will do this morning before we leave.
    15. Get as much laundry done as possible in the rain - urgh to drying on airers again. Will have to take some dirty laundry to my mum's. As long as it's all clean before we go camping that's ok.
    16. make reusable wraps to take camping (in place of clingfilm).
    17. Order waterproofs for DC1.
    18. Life coaching update for last week.

    19. Patch my shorts (refuse to buy a new pair at this stage in the summer!). Will take repair stuff to my mum's.
    20. Refill our camping candles (for the tealight chandelier - we have little glass containers).
    21. Clear emails.
    22. Make big batch of curry to eat for lunch/freeze.
    23. Chase architect for updated plans.
    24. Update my smaller business to reflect the fact I won't be able to pack orders for a fortnight (I usually offer a small discount for the inconvenience of not posting for a while, but leave my shop open).
    25. Make flapjacks and freeze (will take frozen to my mum's for camping snacks).
    26. Spend 15 minutes doing a mad clean in each of the following rooms:
    (a) DCs' room
    (b) Our room
    (c) Hallway and stairs
    (d) Kitchen
    (e) Sitting room
    (f) Dining room
    (g) Utility room and back toilet
    (h) Bathroom
    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 13th Aug 18, 5:51 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    Week 79: Day 1

    Another Monday, another new week!

    We are having a lovely school holidays so far. The DCs are so much easier now that DC3 is that bit older and can manage days out etc without needing naps/a pushchair, and we can push bedtime a bit later if we're out doing something.

    THE SPENDING THOUGH. Not so much specifically because of the holidays (although that is bad too), but everyone seems to have shot up 3", needed various things and generally be costing me money! I have bought so much. Three pairs of shoes for DC3 (school shoes and trainers for PE, everyday shoes - all a size bigger than previous shoes), wellies for DC1 and 2, waterproof trousers for DC1, new swimwear all round, acres of new uniform, activity books for the summer, diesel driving around to visit people, it just goes on and on and on. I am clinging onto the fact that I can slightly rebalance things when the child benefit comes in next week, but some pots are going to be overspent by the end of the month whatever I do. Apart from balancing out the 422 crazy overpayment I am not juggling pots though, but leaving the balances negative in YNAB and seeing how they settle down over the next month or two - this will help me see whether the pots are actually working on average, or whether they are too low.

    I am feeling reasonably proud of having talked DH down from (a) a new camping stove (ours is absolutely terrible, but it's been terrible all year and we've survived so far, so I think we can make it through one last trip and replace it when the holiday pots have recovered a bit) and (b) a new school coat for DC3 because hers looks pretty scruffy (although it functions perfectly well - we made the mistake of buying a light colour for DC2 and now it's handed down it's definitely a bit rubbish looking). She can have a new one in October when there is hopefully some flex in the clothing budget pot again.


    To do this week
    1. Finish next week's contract work.
    2. Pack orders for smaller business before I go away.
    3. Patch my shorts.
    4. Phone the architect to follow up yesterday's email.
    5. Menu plan/food shopping/any cooking needed before we go camping on Friday.
    6. Start work on a revised budget for September using current SOA (need to increase pot for tutor, and add in a couple of other bits).
    7. Start compiling a list of things for DC1's birthday so I can give ideas when people ask, to avoid an influx of junk.
    8. DH to phone 3 more builders and arrange meetings for after holidays (when we should have revised plans set in stone).
    9. Confirm balance transfer has gone through from Barclaycard.
    10. Book car in for MOT in early Septmber (eek!).

    August money goals:
    - 15.04/31 August rounding down pot. Um. I might not add to this much more this month after the accidental 422 overpayment .
    - 3,657.20/5,000 2018 debt repayment goal.
    - 382/932 extension pre-build costs predicted shortfall.
    - 214/864 income needed for September .
    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
    • remote_control
    • By remote_control 13th Aug 18, 8:31 PM
    • 280 Posts
    • 1,057 Thanks
    remote_control
    Re point 7 - Can you ask for activity books? I don't think we've ever bought any for our children as they tend to get them for birthday and Christmas and then I hide them for rainy/slow days, car journeys, long waits etc. Would he want any clothes to help reduce clothing spend for the next year?
    • Treadingonplaymobil
    • By Treadingonplaymobil 15th Aug 18, 5:40 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    Week 79: Day 3

    Phew, managed to actually go 24 hours without spending any money yesterday! Feels like an actual achievement after recent days/weeks.

    I'm working today (which is actually why we're at my mum's - so she can do childcare), and will earn about 300 for today's work after expenses, which will be very welcome when it gets paid at the end of the month. I should have another day's work at this rate right at the end of the month, and enquiries have started to trickle in for September onwards. DH has also been doing lots of 1-2 hour overtime chunks in the evenings over the past week or two as well as a couple of Saturdays this holiday, which will be nice when it gets paid- some this month and some next. So September shouldn't be too horrendous, despite the challenges of this month.

    I've also been working on a revised budget for September onwards, which will include a couple of wiggles:
    (a) I'm going to stop taking my clothes budget as a percentage of income, but instead have upped my salary slightly and will give myself a flat budget. It's pathetically small at the moment (60 for everything), but my plan, once work picks up a bit in the autumn, is to have only a month or two on that very low budget while I build up a bit of a buffer in my business account, then to increase my salary slightly further and make it a little larger. I am finding having no buffer very unrelaxing.
    (b) I also need to budget more for the tutor, so I need to increase that from 20pm to 78pm.
    (c) I want to start saving for school holidays, maybe a tenner a month, so an extra 40 for easter and 80 for summer - those always seem to be the really tricky two.
    (d) I want to start saving maybe 5pm towards annual insurances for next year so we can start working towards paying life/car/building and contents etc annually if it's cheaper. I had hoped to be able to start it this autumn, but unless DH's overtime is significantly more than I'm expecting I don't think that's realistic.

    I think I can manage all of that without too much sacrifice elsewhere, based on my initial play with Stoozing, but I'll do it properly at some point and post it here for comments.

    To do this week
    1. Finish next week's contract work.
    2. Pack orders for smaller business before I go away.

    3. Patch my shorts.
    4. Phone the architect to follow up yesterday's email.
    5. Menu plan/food shopping/any cooking needed before we go camping on Friday. Menu plan and shopping list done, just need to go food shopping tomorrow morning.
    6. Start work on a revised budget for September using current SOA (need to increase pot for tutor, and add in a couple of other bits).
    7. Start compiling a list of things for DC1's birthday so I can give ideas when people ask, to avoid an influx of junk.
    8. DH to phone 3 more builders and arrange meetings for after holidays (when we should have revised plans set in stone).
    9. Confirm balance transfer has gone through from Barclaycard.
    10. Book car in for MOT in early Septmber (eek!).

    August money goals:
    - 15.04/31 August rounding down pot. Um. I might not add to this much more this month after the accidental 422 overpayment .
    - 3,657.20/5,000 2018 debt repayment goal.
    - 382/932 extension pre-build costs predicted shortfall.
    - 214/864 income needed for September .
    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
    • Moreplease
    • By Moreplease 15th Aug 18, 9:59 PM
    • 2 Posts
    • 24 Thanks
    Moreplease
    So inspired to get our butts into gear reading your diary. You!!!8217;re doing a great job TOPM.
    I don!!!8217;t understand the rounding down pot though - how does that work? X
    • Treadingonplaymobil
    • By Treadingonplaymobil 17th Aug 18, 5:57 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    Week 79: Day 3

    Probably won't be around much for the next 10 days or so, so thought I'd take the opportunity for a quick update now (while the DC are asleep!). Off camping with friends this morning, then switching campsites on Monday and having a week with my parents. Fingers crossed the weather holds at a semi-reasonable level.

    No word yet on Santander card for the balance transfer, will get DH to phone them on the drive to the campsite this morning. He has booked the car in for its MOT on the 3rd, which will be the big decider for us regarding being carless or not.

    The horrifying spending continues, but only on food and diesel. The budget hasn't got away from me quite as epically as it did in June, but it's definitely not under tight control this month. DH will get a decent chunk of overtime at the end of the month, and a little more paid at the end of September, which will help, but I've deliberately not worked out what it is, as I know that as soon as I think 'oh, we're ok for money really' I'll start spending even more. I'm nothing if not predictable! I know it's more than 100, but I'm not sure how much more as I haven't really been there to see what time he's been finishing work over the last few weeks.

    I'm trying to keep things vaguely sensible on the food spending, but it's so hard to judge for camping I find - I have made bolognese sauce for camping tonight to avoid a massive meat spend for a barbecue, and baked a load of snacks and treats to avoid buying them, as well as making pasties, humous and a couple of other things for lunches. I suspect we have over- rathe than under-catered, as always, but hopefully not with anything perishable, so we can at least take the whole lot on to the next camping trip on Monday!

    Right, need to go and do grown-up-Tetris - also known as packing the car for camping.

    To do this week
    1. Finish next week's contract work.
    2. Pack orders for smaller business before I go away.

    3. Patch my shorts. This never happened. Holey shorts it is then.
    4. Phone the architect to follow up yesterday's email.
    5. Menu plan/food shopping/any cooking needed before we go camping on Friday.
    6. Start work on a revised budget for September using current SOA (need to increase pot for tutor, and add in a couple of other bits).
    7. Start compiling a list of things for DC1's birthday so I can give ideas when people ask, to avoid an influx of junk.
    8. DH to phone 3 more builders and arrange meetings for after holidays (when we should have revised plans set in stone).
    9. Confirm balance transfer has gone through from Barclaycard. DH phoning today.
    10. Book car in for MOT in early Septmber (eek!).

    August money goals:
    - 15.04/31 August rounding down pot. Um. I might not add to this much more this month after the accidental 422 overpayment .
    - 3,657.20/5,000 2018 debt repayment goal.
    - 382/932 extension pre-build costs predicted shortfall.
    - 214/864 income needed for September .
    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 17th Aug 18, 6:06 AM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    This is the new budget we are considering, if anyone wants to cast a critical eye over it. A couple of comments in pink. Most things are unchanged from the current budget, but I've noted the updates.

    Proposed new budget

    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................ 2892.88
    Partners monthly income after tax....... 800 I always put myself as the partner here! Inferiority issues, clearly
    Benefits................................ 192
    Other income............................ 0
    Total monthly income.................... 3884.88


    Monthly Expense Details

    Mortgage................................ 708
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 147
    Electricity............................. 80 This isn't really enough, it's what our DD is at but will leave us short by the end of next winter if it's another cold one and goes on for ages. Could do with being 90, and is for gas and electricity.
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 75
    Telephone (land line)................... 18.99 covers internet too.
    Mobile phone............................ 70.94 my income above includes 25 from my business account towards my mobile bill
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 460
    Household/bulk supplies................. 40 (things like bulk buying laundry powder etc)
    Petrol/diesel........................... 240
    Road tax................................ 16.62
    Car Insurance........................... 32.74
    Car maintenance (including MOT)......... 95
    Car parking............................. 0
    Other travel............................ 57
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 31.84 building and contents
    Contents insurance...................... 0
    Life assurance ......................... 16.26
    Haircuts................................ 28
    Entertainment........................... 150
    Holiday................................. 90
    Emergency fund.......................... 50
    cubs.................................... 30
    swimming................................ 34
    netflix................................. 5.99
    icloud storage.......................... 2.49
    My kitty................................. 60
    DH kitty................................. 60 (I have upped DH's to match mine, not that he cares whether it does)
    children's clothes...................... 110
    school trips/activities................. 10
    pocket money............................ 10
    annual insurances....................... 5 this is new, I would like to get into paying some things annually.
    school holiday kitty.................... 10 Also new.
    music lessons........................... 15 Not sure whether DC2 will continue these.
    birthdays............................... 110
    ynab.................................... 3
    extension............................... 460
    tutor................................... 78 This has increased to cover the full cost. We are not starting until late September but means we will have spare money for any supplies needed
    christmas............................... 100
    national trust.......................... 10
    house stuff............................. 25
    house maintenance....................... 30
    Total monthly expenses.................. 3593.24



    Assets

    Cash.................................... 1000 held in premium bonds
    House value (Gross)..................... 225000
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 226500



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 191712...(708)......2.25
    Total secured & HP debts...... 191712....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    virgin.........................2698......28....... .0
    barclaycard....................9550.22...230...... .0
    mummy..........................19970.....30....... .0
    Total unsecured debts..........32218.22..288.......-



    Monthly Budget Summary

    Total monthly income.................... 3,884.88
    Expenses (including HP & secured debts). 3,593.24
    Available for debt repayments........... 291.64
    Monthly UNsecured debt repayments....... 288
    Amount left after debt repayments....... 3.64


    Personal Balance Sheet Summary
    Total assets (things you own)........... 226,500
    Total HP & Secured debt................. -191,712
    Total Unsecured debt.................... -32,218.22
    Net Assets.............................. 2,569.78


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    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
    • Honeysucklelou2
    • By Honeysucklelou2 17th Aug 18, 10:05 AM
    • 1,142 Posts
    • 5,318 Thanks
    Honeysucklelou2
    The insurances and school holiday pots are useful, something I need to address in my budget too.
    paydbx #93 899.50/8,000.
    Loan 17k - paid off in Aug 2017. Home improvement loans 3342 March 2017. 2994 in Aug 18
    • enthusiasticsaver
    • By enthusiasticsaver 17th Aug 18, 7:01 PM
    • 7,182 Posts
    • 15,605 Thanks
    enthusiasticsaver
    Looks fairly thorough. The challenge will be the car won't it as that has a mot soon?
    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
    • CathT
    • By CathT 18th Aug 18, 7:36 AM
    • 5,742 Posts
    • 40,209 Thanks
    CathT
    Hi TOPM, I've been reading your diary over the last few weeks (you had a mention over on MFW) so looked you up. I originally planned to read the first few and last few pages, then skim read some of the other stuff but I have actually read the whole thing!!

    You have made such significant progress since starting this diary. We completed our extension last year and found the stage you are at to be quite stressful. It was much more straightforward once the build started. In terms of contingency, when we were requesting the additional borrowing from our mortgage lender they pretty much grilled us about where this contingency fund was coming from. Definitely get a few quotes and don't write the best builders off as being most expensive. In our experience, the most highly recommended builder gave us the best quote and did an amazing job.

    Enjoy your camping trip this week.

    Will continue to follow your debt free/extension journey.
    Oct 2018 -
    part 1 - 75,530
    part 2 - 44,799
    Total - 120,329
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Aug 18, 4:30 PM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    Week 80: Day 1

    Hello! Thought I'd have a quick check in while I'm sat in the Sainsbury's cafe - we are midway between camping holiday 1 and camping holiday 2, and DH and the DC2 are doing the food shopping.

    Spending on camping holiday 1 wasn't too appalling, with the notable exception of a pricey pub lunch. Really I knew the lunch was coming - we always do one lunch out when we camp with these particular friends, and I knew we would do so again. It's left budgets tight but not unmanageable for the rest of the month, which isn't ideal when we're heading into another week of camping. Ho hum.

    The Santander card didn't come with enough of a credit limit to transfer the entire Barclaycard balance, but we have requested to move a little over 6k of it onto the Santander card. Hopefully we'll then be able to move the remaining balance onto the Virgin card, which I know has some space on it. Not sure whether we should close the barclaycard when it's at zero - we have an MBNA card with a 16k limit and a 0 balance if we suddenly had a huge emergency expense, but equally I'm wondering whether we should be keeping as many cards open as possible for next year's extension hell!

    Right, best get on and get myself into gear for the next epic adventure!

    To do this week
    1. Confirm balance transfer to Santander.
    2. Attempt balance transfer to Virgin of remainder of Barclaycard balance (this might have to be next week if we need details we don't have with us).
    3. Phone a couple more builders to arrange meetings/quotes.
    4. Finish next week's contract work.
    5. Check on the planning portal to ensure revised drawings are up. Just done this and they're not, so must email architect to get an update.

    August money goals:
    - 15.04/31 August rounding down pot. Um. I might not add to this much more this month after the accidental 422 overpayment .
    - 3,657.20/5,000 2018 debt repayment goal.
    - 382/932 extension pre-build costs predicted shortfall.
    - 214/864 income needed for September .
    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
    • Suffolk lass
    • By Suffolk lass 21st Aug 18, 7:54 AM
    • 2,118 Posts
    • 22,111 Thanks
    Suffolk lass
    Well done!

    That Barclaycard? Personally I would keep it, lock it away (even cut it in half but don't close it; you can always ask for a replacement card on the existing account), and check what impact it would have on your credit rating if you were to

    a) leave it open but unused
    b) use it occasionally, but clear the balance in full, the following month.

    Then you have the option to use it (for Christmas, emergencies, or planned for the extension), and its presence enhances your credit rating (that is my b reference - do you have to use it for it to enhance your credit rating?) - it might also help with your remortgage application.

    Don't you still have your JLP card too?

    Enjoy your hols, we just got back
    MFiT T4 #2 update 94.29% after Q10 ahead of where I should be
    Save 12k in 2018 #53 - after August 78.83% 7,883.47/10,000
    OS Grocery Challenge 2018 spent 1,530.09/3,000 including stores 51% of my annual budget at the end of August.
    My DFD is here
    • PositiveBalance
    • By PositiveBalance 21st Aug 18, 2:48 PM
    • 814 Posts
    • 4,154 Thanks
    PositiveBalance
    Happy holidays, ToPM!


    It might be worth asking around the credit card section of the forum but if you already have a spare card with a 16k credit limit and no balance I would get rid of the Barclaycard if you can transfer the remaining balance off it as you will have enough CC potential balance to cover an emergency but are highly likely to look more appealing to future prospective lenders as your overall available credit to run up more debt will have not gone up.

    But check to be on the safe side.

    Happy camping!
    Original debt to source: 11,640.02; debt repaid: 6771.01 (58%); remaining debt: 5069.01
    0% CC balance: 4999.67 now
    2855.95 (42% repaid)
    Emergency Fund (#187): 107/500
    Terrimundi: fleeced!
    • nomi01
    • By nomi01 24th Aug 18, 9:44 AM
    • 330 Posts
    • 2,109 Thanks
    nomi01
    Hi TOPM
    I found your diary about 2 weeks ago and have nearly caught up.
    I have loved reading it.
    I am also struggling with debt, poor choices, misplaced priorities and bad luck have all been a factor for us.
    Not brave enough to complete my SOA yet, but keep thinking I ought to.
    Well done on your debt payments and changes in your thinking.
    I do find it hard as I grew up being led to believe my parents managed money well. I now know that there was a huge reliance on credit.
    There has always been the implication that as I had 'things' growing up, I need to replicate that for my own children, my parents had an attitude that if you throw money at a problem, it is going to be fine.
    I am actively fighting this mindset now. My mother in particular uses money to control others. As a result, I now don't have contact with her this is a recent thing but has definitely made me re-evaluate my actions. I have also list my financial safety net.
    Anyway, I wanted to say that I think you are doing a great job. Keep it up. It's so easy to fall back into bad habits when time and energy are in short supply.
    PAYDXMAS2017 #027 5,992.05/12000
    • Suffolk lass
    • By Suffolk lass 24th Aug 18, 11:56 AM
    • 2,118 Posts
    • 22,111 Thanks
    Suffolk lass
    Hi TOPM
    I found your diary about 2 weeks ago and have nearly caught up.
    I have loved reading it.
    I am also struggling with debt, poor choices, misplaced priorities and bad luck have all been a factor for us.
    Not brave enough to complete my SOA yet, but keep thinking I ought to.
    Well done on your debt payments and changes in your thinking.
    I do find it hard as I grew up being led to believe my parents managed money well. I now know that there was a huge reliance on credit.
    There has always been the implication that as I had 'things' growing up, I need to replicate that for my own children, my parents had an attitude that if you throw money at a problem, it is going to be fine.
    I am actively fighting this mindset now. My mother in particular uses money to control others. As a result, I now don't have contact with her this is a recent thing but has definitely made me re-evaluate my actions. I have also list my financial safety net.
    Anyway, I wanted to say that I think you are doing a great job. Keep it up. It's so easy to fall back into bad habits when time and energy are in short supply.
    Originally posted by nomi01
    Oh nomi01! Well done for sharing some of your own issues. You really must do your SOA, even if you don't share it. At least then you can be honest about what you are dealing with. And as you start tackling your own issues, there is plenty of support on here - look at MFW Board as well as the DFW space. Loads of cross-over.

    If you do start sharing, there is just so much good advice on here.

    Your issues with your Mum are, I am sure, more complex than your post shows. It is your issue, but our Mums don't live for ever and there may be other ways of managing the relationship than not having any contact. Several of the diaries I follow have had parental (and other relationship issues) and people have vented and journeyed through them. No "go and do this" advice helps because it is only the people in the relationship that really know (and sometimes then, not both) what is going on, but sometimes suggestions for you to reflect on different things can help.
    MFiT T4 #2 update 94.29% after Q10 ahead of where I should be
    Save 12k in 2018 #53 - after August 78.83% 7,883.47/10,000
    OS Grocery Challenge 2018 spent 1,530.09/3,000 including stores 51% of my annual budget at the end of August.
    My DFD is here
    • Treadingonplaymobil
    • By Treadingonplaymobil 24th Aug 18, 2:42 PM
    • 1,748 Posts
    • 17,892 Thanks
    Treadingonplaymobil
    Week 80: Day 5

    Quick check in from the campsite cafe while I'm online balancing bank accounts (OMG the spending. Urgh). This summer has definitely been worse than last year for constant little spends - cafe trips, fish and chip dinners etc - we've holidayed a lot more with other people (albeit mainly family) and DH and I both hate being the 'sorry, can't afford that' ones and ruining everyone else's plans (as they would avoid them too), so usually end up agreeing to go to cafes etc. The weather also isn't great, and eventually you run out of activities to do in a tent! Most free activities are outdoors, when it comes down to it.

    It's not a total disaster though - we've ground down a few pots, but there's no danger of cracking out the CCs or anything.

    Also on the bright side, we are so pleased with the trailer we bought earlier this year, it's been a great buy and has really improved our holidays -both the packing and the camping, as we can set up a little kitchen area in the trailer which can easily be covered over, rather than getting the stove in and out every time it rains. It's nice to have made a well considered purchase, saved money on it, and to really feel it was worth it.

    Nomi01 welcome! I hope you work up the confidence to do your own SOA - you only have to read back to my early posts to see how out of touch with our spending we were, and even though we're a loooonnng way from perfect now, there's no way we could have improved as much as we have without the constant encouragement/constructive criticism of people on here. It's really made me question every aspect of our spending, and although our choices are the same as many would make, we are at least making them consciously.

    We're into our last couple of days of holiday, then back to reality either on Sunday or Monday (depending which is the better day to pack up!) with tons and tons of laundry and general mess to sort out. Only a couple of days at home though, then back to my mum's so she can look after the DCs again while I work, then a wedding to go next weekend. Could do without that busy-ness the week before the DCs go back to school, but can't exactly control other people's wedding plans .

    Although I'm still miles short of September's income, I've just calculated that with the extra work I had earlier this month and will have on Friday, I'll make a good 700 profit this month, hopefully a little more (can't quite work it out without the expense figures in front of me).

    To do this week
    1. Confirm balance transfer to Santander. This hasn't gone through - DH has just phoned and it's pending though. Next week when we're home he'll move some of the remainder onto the Virgin card too, so hopefully only a few hundred will be charged interest.
    2. Attempt balance transfer to Virgin of remainder of Barclaycard balance (this might have to be next week if we need details we don't have with us). One for next week.
    3. Phone a couple more builders to arrange meetings/quotes. Also abandoned until next week.
    4. Finish next week's contract work.
    5. Check on the planning portal to ensure revised drawings are up. Don't ask. Architect hell. Suffice to say it should be done today.

    August money goals:
    - 15.04/31 August rounding down pot. Um. I might not add to this much more this month after the accidental 422 overpayment .
    - 3,684.18/5,000 2018 debt repayment goal.
    - 382/932 extension pre-build costs predicted shortfall.
    - 214/864 income needed for September .
    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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