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  • FIRST POST
    • Moguline
    • By Moguline 1st Jun 18, 2:04 PM
    • 264Posts
    • 699Thanks
    Moguline
    From debt mess to mortgage success in 5 years (hopefully!)
    • #1
    • 1st Jun 18, 2:04 PM
    From debt mess to mortgage success in 5 years (hopefully!) 1st Jun 18 at 2:04 PM
    Hi everyone,

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

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

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

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

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

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

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

    SOA and all other info in first comment below.

    Any criticism/advice gratefully received!
    Last edited by Moguline; 04-06-2018 at 9:22 PM. Reason: Moved SOA etc into first comment in thread so that the initial post isn't quite so long!
Page 11
    • Gemsy81
    • By Gemsy81 3rd Jul 18, 7:36 PM
    • 148 Posts
    • 431 Thanks
    Gemsy81
    Amazing to be under the 20k mark Moguline....you're getting there!
    • beanielou
    • By beanielou 3rd Jul 18, 8:17 PM
    • 55,469 Posts
    • 222,624 Thanks
    beanielou
    Debt reduction looking good
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • Shelbi
    • By Shelbi 4th Jul 18, 9:36 AM
    • 729 Posts
    • 1,740 Thanks
    Shelbi
    Congratulations on getting under the 20k mark, you're smashing that debt x
    DFD-01.03.2018
    Save for xmas-34/365
    Emergency Fund- 3,000/3,000 (revised amount)
    House Deposit- 1,020.52/25,000.
    Jul'18- NSD- 5/20- Bring Lunch to work 6/20
    make-5pd in Jul- 20.52/155 Parcel 1/25
    • Moguline
    • By Moguline 4th Jul 18, 11:39 AM
    • 264 Posts
    • 699 Thanks
    Moguline
    Thanks so much Gemsy, beanielou and Shelbi! I am very pleased! It's nice to reach milestones.

    Just had my new credit score through and it's now 778, so has gone up another 11 points this month. Everything is heading in the right direction.

    I lost a pound at Slimming World last night too.

    Today will be an NSD, plenty of food in the house. Will make sausage rolls tonight which we'll have for tea, and there will be leftovers for snacking and for OH to take to work.

    Really need to sort out the house though, haven't got any energy in this heat - the clean clothes are piling up in the washing basket and the floor is crying out for a hoover!
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • Moguline
    • By Moguline 5th Jul 18, 8:56 AM
    • 264 Posts
    • 699 Thanks
    Moguline
    Morning!

    I did manage an NSD yesterday, so that's good. The 17.50 from mystery shopping arrived in my account last night which is good - means my budget is actually what I thought it would be. I also received 20 from the haircare online panel (it ended 2 weeks early which is good for me as lessens the work load!). I'll split that equally between the depleted transport pot, and the "other" pot.

    Leaves me with the budgets as follows:

    (left/total budget)

    Groceries 110/200
    Slimming World 15/20
    Bus/taxi 10/10
    Other 19.50/30
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • Say No to Credit Cards
    • By Say No to Credit Cards 5th Jul 18, 10:36 AM
    • 99 Posts
    • 373 Thanks
    Say No to Credit Cards
    Morning Moguline

    You are doing great, under 20k now so keep it going you can nail this.

    Great news on the mystery shop money and the hair panel coming in.

    Take care and have a great day
    June 2018 Extra Income 498.00 / 300 -
    July 2018 46.75 / 500
    • Moguline
    • By Moguline 5th Jul 18, 12:07 PM
    • 264 Posts
    • 699 Thanks
    Moguline
    Thanks SNTC, every little helps, doesn't it?
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • Purplemumof2
    • By Purplemumof2 5th Jul 18, 1:56 PM
    • 6,179 Posts
    • 22,717 Thanks
    Purplemumof2
    Well done on getting under the 20K mark, that's brilliant xx
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: 6130.00 Cap 1: 305.35 BC: TBC

    POAMAYC 2018 #041 PD 6559.32/7000
    Savings for Christmas 233.21/365
    20p Savers 2018 2 Savers 2018 50p Savers 2018 SPC 11 2018 #003
    • Moguline
    • By Moguline 8th Jul 18, 8:47 AM
    • 264 Posts
    • 699 Thanks
    Moguline
    Not much to report here. Spent 38 in Asda and Aldi yesterday, which I'm happy with. I had to buy deodorant which is 5 (it's the only one that works for me) and a few other staples we'd run out of, like oil, kitchen paper, puppy pads. So the next shop should be less.
    63 left in the grocery budget now. That'll do for the 2 weekly shops that are left to do this month.
    Saw that Aldi are doing school uniform from Thursday. I walk past one on Thursday mornings so will try and have a look to see if I can get some cheap stuff. I was planning on buying the rest in August, but it's much cheaper in Aldi than anywhere else, so will move budgets around a bit as it'll save money in the long run.
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • lonelyrat
    • By lonelyrat 8th Jul 18, 10:41 AM
    • 362 Posts
    • 887 Thanks
    lonelyrat
    Well done on being under 20k - very impressive! Have just read through your diary and love how motivated/ focused you are. Debt mess to mortgage success is very much what I want too! Currently living with my OH's parents while we try and sort out the debt mess we are in but as soon as we are done it's all go on the savings. I'm getting very, very, veeery broody but want to wait until we have our own place before we get to the babymaking.

    My OH is in a similar positiion with clothes! He's 6'5 and has a really long torso and arms but short-ish legs. Means he can get trousers anywhere but t-shirts and shirts are a bit of a nightmare.

    Good luck on the debt busting I'll subscribe to cheer you along!
    Total Debt: 625 / 7266.93
    Outstanding Debt: Virgin CC 625
    Weight Loss:14.9kg/ 45kg
    • lonelyrat
    • By lonelyrat 8th Jul 18, 10:43 AM
    • 362 Posts
    • 887 Thanks
    lonelyrat
    Oh also, how was the seitan? I'd like to make some I'm not much of a meat eater so am always looking for alternatives and seitan is so pricey here. Never even thought of making it myself...
    Total Debt: 625 / 7266.93
    Outstanding Debt: Virgin CC 625
    Weight Loss:14.9kg/ 45kg
    • Gemsy81
    • By Gemsy81 9th Jul 18, 8:18 AM
    • 148 Posts
    • 431 Thanks
    Gemsy81
    I'm just about to start uniform buying too Moguline.....we've got a local ASDA so I think that will be my first port of call for trousers etc. I also find Sainsburys really good for little clothes.
    • Moguline
    • By Moguline 9th Jul 18, 8:44 AM
    • 264 Posts
    • 699 Thanks
    Moguline
    Good morning!

    Thanks for your messages, lonelyrat! It's great you can stay with your OH's parents, that'll really help you save!
    It really baffles me how small the margin for "normal" sized clothes is on the high street. I mean, yes, my OH is tall, but it's but like he's freakishly tall - and there are more and more tall people these days so you'd think they'd start catering for them!
    The seitan was nice actually, and quite straightforward to make. Vital gluten flour is really cheap so it's very cost effective, fake meat can be so pricey!

    Gemsy - I've had a look in Asda and Sainsbury's as well. I'll go to Asda if I can't get what I need in Aldi. The Sainsbury's clothes tend to be a bit wide for Spud, he's tall but slim like his dad! Saying that, my MIL works in clothes department there and gets staff discount, so it's something to consider!
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • Moguline
    • By Moguline 12th Jul 18, 11:40 AM
    • 264 Posts
    • 699 Thanks
    Moguline
    Well, I managed to go to Aldi this morning and get some uniform bits. I got 6 shirts, 4 pairs of trousers and 2 packets of socks - grand total was 19.50! Amazing ha.

    They did have cheap shoes as well, but they were real leather, so not really an option for me as a vegan. Will buy shoes in Asda next month instead.

    Also had unexpected expense of Nursery Graduation tickets for Spud - didn't know that was a thing!! It cost 6 for myself and OH.

    I've moved a couple of things such as spud haircut out into August for now which should help balance the books overall.

    Now got the following left in my budgets:

    Groceries: 55
    Slimming World: 10
    Transport: 6.60
    Other: 5

    Other budget is looking low, but not got much else planned.
    Only costs coming up this weekend is 4.40 for the bus to go and visit a friend on Sunday.

    We still have plenty of food in the house, although might need a top up for milk, cereal, bread and fruit. Dinners should be ok for a while though.

    Running low on frozen lunches so will try and fit some batch cooking in at the weekend.

    We've had 2 courgettes from our garden now, with more underway. There are well over 20 tomatoes growing on the plants with lots of new flowers coming through as well, so hopefully we'll have a bit of a tomato glut coming up!
    Beetroot and carrots should also be ready in a couple of weeks. I'm so excited that we've actually grown our own veg successfully!!

    Exactly 2 weeks until payday now. Just gotta lay low and keep making good choices and we should be ok.
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • Starmummy
    • By Starmummy 12th Jul 18, 1:10 PM
    • 162 Posts
    • 702 Thanks
    Starmummy
    Well done on getting below 20k. What a great milestone.
    Debt at LBM (01/01/18) 17,937.19
    current Debt (02/07/18) 12,307.50
    31.4% gone forever
    DFD 12/09/19
    • BelleOfBilboa
    • By BelleOfBilboa 12th Jul 18, 1:25 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    Hello Moguline
    Your diary was the first one I came across after having my LBM! I feel quite attached now
    Congrats on getting under 20k what a great achievement!
    I wanted to ask your opinion on Approved Foods...anything negative to report? I understand that the prices are low because the sell by dates are short (if not past?) and most foods are actually fine for a lot longer. What are your thoughts though, good value for money? Or can you get equally good deals from shopping in Aldi/Lidl etc?
    Keep up the good work
    Belle x
    Next 362.91/324.91; Natwest OD 2000/2000; Natwest Loan 1692.50/1692.50; CDL 4000/3790; Bank of M&D 2165.35/2015.35 DFD 31/12/19

    • Moguline
    • By Moguline 12th Jul 18, 1:56 PM
    • 264 Posts
    • 699 Thanks
    Moguline
    Hello Moguline
    Your diary was the first one I came across after having my LBM! I feel quite attached now
    Congrats on getting under 20k what a great achievement!
    I wanted to ask your opinion on Approved Foods...anything negative to report? I understand that the prices are low because the sell by dates are short (if not past?) and most foods are actually fine for a lot longer. What are your thoughts though, good value for money? Or can you get equally good deals from shopping in Aldi/Lidl etc?
    Keep up the good work
    Belle x
    Originally posted by BelleOfBilboa
    Ah, thank you so much, Belle!

    I think Approved Foods is great for being able to get high-value items on the cheap. There are things like Drinks, Pasta, Ready Meals which are rarely cheaper than Aldi/Lidl. But for things like Chia Seeds, Quinoa, fancy sauces, posh cereal bars etc, I find it great. I once got fancy vegan chocolates for 3 that were 20 in the shops, for example! So it can be worth it, but it depends on what they have in stock.

    I find that household products are always cheaper in Home Bargains/Aldi as well.

    But it also depends on their flash deals as those can be amazing.

    A lot of the stuff is past its best before date - but it's all dried/canned/long life things, so it doesn't matter! It's never anything past its used by date - there is a big difference! And quite a lot of the stuff is actually still in date too.
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • BelleOfBilboa
    • By BelleOfBilboa 12th Jul 18, 2:06 PM
    • 23 Posts
    • 52 Thanks
    BelleOfBilboa
    Ah, thank you so much, Belle!

    I think Approved Foods is great for being able to get high-value items on the cheap. There are things like Drinks, Pasta, Ready Meals which are rarely cheaper than Aldi/Lidl. But for things like Chia Seeds, Quinoa, fancy sauces, posh cereal bars etc, I find it great. I once got fancy vegan chocolates for 3 that were 20 in the shops, for example! So it can be worth it, but it depends on what they have in stock.

    I find that household products are always cheaper in Home Bargains/Aldi as well.

    But it also depends on their flash deals as those can be amazing.

    A lot of the stuff is past its best before date - but it's all dried/canned/long life things, so it doesn't matter! It's never anything past its used by date - there is a big difference! And quite a lot of the stuff is actually still in date too.
    Originally posted by Moguline
    Thank you!! I'll definitely give it a whirl next month then
    Next 362.91/324.91; Natwest OD 2000/2000; Natwest Loan 1692.50/1692.50; CDL 4000/3790; Bank of M&D 2165.35/2015.35 DFD 31/12/19

    • Moguline
    • By Moguline 12th Jul 18, 10:05 PM
    • 264 Posts
    • 699 Thanks
    Moguline
    Great, let me know how it goes!
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
    • Moguline
    • By Moguline 14th Jul 18, 8:04 PM
    • 264 Posts
    • 699 Thanks
    Moguline
    Well, I went for shopping tonight and hit the yellow sticker jackpot!!

    The fruit and veg aisle was deserted, and the produce was reduced heavily.

    I got:
    - 1 punnet of strawberries
    - 3 punnets of blackberries
    - 3 six packs of apples
    - 2 avocados
    - 1 bag of new potatoes
    - 1 bunch spring onions
    - 2 bags rocket
    - 1 pack little gem lettuce
    - 1 bunch of parsley
    - 1 packet broccoli rice
    - 5 packets of green beans
    - 5 packets of mango chunks
    - 1 packet of fruit salad
    - 1 packet prepared leeks
    - 1 packet stir fry veg
    - 1 ready made bistro salad
    - 1 packet of carrot sticks
    - 5 trays of mediterranean roast veg
    - 2 packets of choy sum

    I paid 2.49 !!!55358;!!!56611;!!!55358;!!!56611;!!!55358;!!!56 611;
    Feel like I've robbed the place.

    I had to actually come home because my granny trolley and rucksack were full to the brim - now off to Aldi for bread, milk etc. So chuffed ha!
    LBM: Christmas 2017 Highest debt (01/01/2018): 23,786 As of 01/07/2018: 19,887 Total reduction in 2018: -3,899 DFD of my dreams: 31/12/2019
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