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  • FIRST POST
    • Mahsroh
    • By Mahsroh 23rd Jan 18, 1:51 PM
    • 339Posts
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    Mahsroh
    Time to make this change!
    • #1
    • 23rd Jan 18, 1:51 PM
    Time to make this change! 23rd Jan 18 at 1:51 PM
    So, here's my situation. I bought a house in my hometown in the midlands circa 10 years ago. Lived in it for 3 years, moved around a bit for work so lived with parents. Rented property out. Settled in the South East 4/5years ago. Now rent a property down south as a private tenant.

    Pretty much immediately after buying my property 10 years ago, the housing market crashed, prices came tumbling down. Value of house fell by about 20% almost overnight. (I bought the property on a 97% LTV but with charges/fees added to the mortgage it was essentially 99%). Since then there has been a gradual climb back up to where it was when I bought it. Conversely house prices in the South East have rocketed in that time, making it impossible thus far to sell my property and get on the ladder in the south east due to a significant difference in property prices.

    At the same time, my finances aren't brilliant (not completely disastrous, but not great either) and I do have a fair amount of debt. So, here's the jist of it:

    Debt (rounded):
    Mortgage £88,800.00 (minimum payments £592/month) Interest rate 5.19% (Consent to Lease)
    HSBC Personal Loan £16,250.00 (£271/month) Interest rate 3.3%
    Halifax CC £1,300.00 - 17.9% interest
    Tesco CC £3400.00 (min payment 1%) - 0% Interest until November '18
    HSBC CC £820 (min payment 2.5%) - 0% Interest until early 2019.

    Total debt including Mortgage £110,570.00

    Property value £110k to 120k (let's say110k for the purpose of this, plus "savings" of circa £1000.00

    So in broad terms - my financial position is currently ZERO. If I sold all my assets, I'd pay off my debts. This obviously doesn't include pension pots which would clear all my debts and pay a large chuck off my mortgage but a) that's not what it's there for and b) I can't touch it for another 30years+!!

    So, my personal challenge, starting today! Turn my current position of ZERO, to £50,000.00. This to fund a deposit + costs of buying a property in the south east.

    I'm not going to do full SOA as I'm happy that I'm generally getting value on my 'essential' outgoings. (though if anything jumps out then please shout). My issue is and always has been overspending on non-essential things!

    I was going to set a target of 5years, but just paying off my minimum mortgage payment and my personal loan would get me in excess of £30k within 5 years, with virtually no effort, and I'd hope for some increased value in the property in that time, so let's make it more of a challenge and say 4 years.... That means improving my position by £12,500.00 per year.

    My rental income (before expenses) is £600pcm, although after letting agents fees I see about £500 per calendar month. My salary is £2,900 pcm after tax with my rent being £925.00, so without doing a full SOA that shows that there is some scope to vastly improve my position.

    I currently overpay on my mortgage by £50 a month (as a standing order) and make the occasional ad-hoc payments, but at the moment my bigger focus needs to be the Halifax CC that's subject to interest, then the Tesco CC which has 10/11months left to run before I start incurring interest. I also pay £75 a month into ISA's which may or may not be used to pay off chunks of credit card debt when 0% periods come to an end - I'll tackle that later in the year.

    I'm generally quite good with money, in that I understand it. My issue over the last few years is a tendency to ignore my head and over indulge and spend money on credit cards knowing that it's not the sensible thing to do. I have also had a couple of issues at the rental property which has cost me - new boiler for example. And the £3,400 debt on the Tesco credit card at 0% has pretty much funded a new kitchen at the property as the old one fell into a state of disrepair.

    I'm hoping by keeping this thread active on here and gaining encouragement from you guys, it will curb my urge to over-indulge and stop the mentality of "i'll just stick it on the card and worry about it later.

    So, here goes, day 1 of the new me.......
    Last edited by Mahsroh; 25-01-2018 at 8:38 AM.
Page 2
    • Mahsroh
    • By Mahsroh 31st Jan 18, 7:57 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Morning all,

    Can't believe we're 1/12th through the year already!

    So yesterday wasn't an NSD in the end - Got a bit hungry at work mid afternoon and ended up raiding the snack box - so that was £2 spent yesterday. Entire spend for the day. No real plans today money wise so today has the potential to be an NSD.

    Few direct debits going out tomorrow, one of which I class as part of my "disposable income" so that'll be circa £8 spent tomorrow on top of my "essential" direct debits.

    Otherwise - nothing really to report.
    • Mahsroh
    • By Mahsroh 2nd Feb 18, 8:09 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Morning all,

    All a bit quiet at the moment and not much to report, but thought I'd check in just to keep my diary active.

    Wednesday was a NSD as predicted. Thursday was with the exception of a direct debit going out that I class as a 'nice to have' therefore counts towards my disposable income.

    Didn't bring sandwiches to work today so will be treating myself to a bacon sandwich mid-morning! This weekend not a huge amount planned. We have the dreaded meeting with the landlord this weekend. I'm really hoping he's not going to give us notice as that will be another expense involved in moving - although we have tentatively started looking and found a place we love (although basing this purely on pictures at the moment!). So it will be mixed emotions whatever the outcome of that meeting is.

    Handover for my new tenants seemed to go okay on Wednesday. They've got the keys now so that revenue stream will start up again from next month. All good news. Spoke to them yesterday. They haven't moved in yet but plan to do so over the weekend. Always a risk that I'll end up spending a bit of money on that in the next month or two - it's not uncommon new tenants go in and uncover things that need sorting that I wasn't aware of! So I need to be wary of that.

    Out for lunch on Sunday to celebrate a friends birthday so there will be a bit of cost involved there, but that's budgeted for.

    All in all, since starting this diary, it's going pretty well!

    Have a good weekend all.
    Last edited by Mahsroh; 02-02-2018 at 8:17 AM.
    • Mahsroh
    • By Mahsroh 5th Feb 18, 8:21 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Morning everyone,

    Hope you all had a good weekend.

    So, our meeting with the Landlord was nothing to worry about after all. He just wanted to talk to us about a rent increase...so okay, in that respect, it's an additional cost, but one we were expecting. He's kept the rent the same for a couple of years and when you look at other similar properties available for rent in the area, we're arguably paying over a £100 too little, so no complaints about a £50 increase. So from April rent will go from £925 to £975, but we can stay... that's the most important thing. No removal costs, letting agents fees, deposits to sort.

    My tenants in my rental property moved in on Saturday. I've not had chance to speak to them myself but my Dad popped round to do some brief maintenance and they seemed to be settling in nicely, so that's good.

    In terms of my spend over the weekend, all good! Saturday was a no spend day - Landlord bought the coffees! Sunday we went out for lunch for a friends birthday, but my friends wife was adamant she was covering the drinks bill so it was £20 spent for food. So my total spend for last week (Mon-Sun) was £35.18 which I think is pretty good!
    • Mahsroh
    • By Mahsroh 5th Feb 18, 11:41 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    So, small update. Because the loan is a new loan that I took out mid-January with payment to go 1st of the month, the first payment doesn't come out until 1st March, so I'm £271 better off than I thought I would be this month. So I've just split it 50/50. £135.50 gone into the ISA, £135.50 gone on the Halifax CC, and the latter means I've paid off my first 1% of the unsecured debt since starting this diary! So I've coloured in my first 'square' green on my spreadsheet! Woohoo!
    • Mahsroh
    • By Mahsroh 8th Feb 18, 10:31 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Hi everyone.

    Happy Thursday! Can't believe we're approaching the end of the week already. My diary is starting to sound particularly dull! But thought I should post a bit of an update.

    The last 3 days have all been No Spend Days which is good. Today won't be. Realised this morning we've ran out of bread at home so couldn't make sandwiches. So I'll be buying lunch today!

    Had a statement from my letting agent and I'm owed about £120 for the first months rent, once they've taken all their fees etc with is more than I was expecting, so once that hits I'll probably do 50% to the Halifax card and 50% to my ISA.

    Looking forward to the weekend. Going to the football on Saturday which will be the first time I've had a day out with friends since starting this diary. Will certainly be watching my spend though, more than I would have done previously!
    Last edited by Mahsroh; 08-02-2018 at 10:34 AM.
    • Mahsroh
    • By Mahsroh 12th Feb 18, 8:00 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Happy Monday Everyone!

    This weekend wasn't great as far as spend goes. We did have a takeaway on Friday night, then food and drinks before the footie on Saturday. My total spend for the week (Mon-Sun) was £59.03, but I'd actually budgeted £65 so was below budget, but still feeling a bit deflated really as I feel like I could have done better. The takeaway on Friday was probably the one expense I really could have gone without. Yes, I spent a bit on Saturday, but whilst I'm trying to spend less, I'm still going to enjoy myself and go the football at a weekend, but we really didn't need that takeaway!

    Never mind, still on track / budget for the month.

    Hope everyone had a good weekend!
    • Mahsroh
    • By Mahsroh 12th Feb 18, 8:54 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Also, forgot to mention above. Need a bit of advice....

    I've had a balance transfer offer through the post from Tesco (for my existing card). 0% on balance transfers for 12months, with a fee of 2.99%. I wasn't going to go for it. I have a balance of just over £1000 on my Halifax card which I'm hopeful of paying off within 3 months so probably wouldn't cost me more than £30 in interest in that time.

    However, I'm also mindful that I still have a 3400 existing balance of my Tesco card which expires in November, and I probably won't have paid that off by November as things stand. In theory, if I transfer £1000 now which will be 0% for 12months, yes it will mean an upfront cost of £29.90 but also means I can start hitting that Tesco card straight away and hit it harder before November, but at the same time, have until March '19 to clear the final £1000.

    On the other hand, I'll probably have other similar offers between now and November anyway. Both Halifax and Tesco write to me almost every month with a various offers on Money Transfers or Balance Transfers.

    Thoughts?
    • Mahsroh
    • By Mahsroh 12th Feb 18, 3:02 PM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Just bumping this back up to the top. Possibly needs a separate thread, but curious to get other people's views / words of wisdom re: my post above about possible balance transfer.
    • Mahsroh
    • By Mahsroh 16th Feb 18, 8:26 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    Morning all, hope you're all well. So re: my post above..... I didn't do a separate thread in the end. reviewed it decided to balance transfer £700 to my Tesco card for a fee of 2.99%, leaving £400 on my Halifax card..... £200 of which to be paid off on payday (before my next statement) and £200 the following month, which will be subject to interest, but only 1 month, so less than the 2.99% fee. As soon as that's clear I can start hitting the Tesco card hard throughout the spring/summer.

    I will have some cash flow issues in the summer with our Honeymoon which is slightly stressing me out.... Basically we're mostly paying for it via a "Wishlist" (where our wedding guests can make a contribution to our honeymoon).... The problem is, many guests will contribute around the time of the wedding (July), but we need to pay the balance in May, so my card will have to take a temporary hit! Hoping for an offer on 0% money transfers on one of my existing cards around that time. If not, I have a plan to minimise the impact / interest by borrowing from the Wedding fund (funded by parents) then putting the balance for the wedding venue (due early July) on my card so hopefully won't be exposed to interest..... or 1 month at the most.

    Good week so far. Spent £2 on Monday, and have 3 NSD's since then, today looking like it could be a 4th consecutive one! Heading off up north tomorrow for Footie, but will taking advantage of the fuel card before I likely hand it back next month, so don't envisage great spends over the weekend. Overall still within my budgets for this month, so going well! Next weekends trip to London will be key. I'm stressing about it a bit, but if I leave my CC's at home I should be fine!
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