Three years of so many outgoings

[thisisasurvivor]

Hello all

Money saving tips would be very much appreciated

Have got so many direct debits coming out over the next three years

Building a house
Had savings but the cost went way over

Had to take out loans (I know it's not the end of the world ) just trying to figure out how to manage these over next three years

Monthly income £3300
Loans total to £2500

I have some credit cards to use to
And pay the minimum monthly payment each month (max limit in total on them is 14k)

Crazy situation I know
Just wondering if I should stay well clear of the credit cards?
Try to get another loan?? Possibly madness I know

Also I managed to download a copy of my credit file (45 pages ) it's a much better overall score than expected 875 out of 1000

(Thought it was much lower due to applying for loads of loans in the space of 8 months 🤦🏼‍♀️🤦🏼‍♀️🤦🏼‍♀️🤦🏼‍♀️)

Does it have to be all or nothing? If you did 2 days a month that would be £1200 which is almost half of your loan payments.

Yes true

There has to be an easier way

I need to sit down again to see what is realistic without putting me over the edge

Still can't quite understand why you would choose the route of suffering rather than liquidate some of your assets by selling the other plots?

I wouldn’t discount the 10 year mortgage option. There is a reason most people have mortgages.

Yes, you would need to pay interest on it, but that is probably going to be at a lower rate than your loans.

And you can get a mortgage that allows you to overpay, so you can pay it off sooner (and therefore pay less interest overall) if you can, while keeping the compulsory part of the payment to something you can manage.

Or get a 10 year mortgage on a 5 year fixed rate, but also pay any extra you can afford into savings and at the end of the 5 years pay off whatever you can (offset the savings against the mortgage, and whatever is left would be your new mortgage).

Ok true very good point

I need to get this sorted and get them priced with a local EA
I already know someone interested in buying one plot

And I realise how lucky I am

I loved for a long time on the floor in my sisters flat

And then fled Dv few years ago

So I tried to save and save for this
But I think I should have been more careful in many ways

I’d convert loans to a longer term mortgage.
Then you say you own other plots, could you sell one if you have to?
Then make extra money if possible and over pay loans/ mortgage when you can to reduce the term and interest paid.

I was shocked just in B&Q last week how prices had rocketed. My garden project was swiftly abandoned ☹️

I went into it thinking it would cost less than half
But here we are

And lucky that it is almost complete

I never even considered overpaying mortgage
It looks like a much better option 🙏🙏🙏

Take a look at 'Dave Ramsay - baby steps' on YouTube - loads of tips and motivation to get rid of debt.

£600 a day wasn't a typo then?!

You could get a lodger but if you can earn £600 a day I guess go with that plan.

With respect, it’s not really debt that is OPs problem. Not in the normal way where someone has got in debt by overspending. The problem is trying to finance a house build with financial vehicles which are not intended for that purpose.

OP you are doing great. You should feel really proud of yourself. A little bit of restructuring of your finances and things can be much easier for you, while still achieving your goals.

Yes very true guys

It's a bit shit

But I will get there

*lived

Sorry for typos

Yes 600 per day for locum work

This won't last forever so going to get as much extra work each week as I can do (without pushing me over the edge )

And I cancelled two holidays this year that I def could not afford ( free cancellation thankfully)

So camping with a borrowed tent it is 👍🏻👍🏻

Camping can be a great experience for everyone. Earplugs, decent camping mats, duvets, make everything better. Expensive holidays aren’t always the best ones.

Exactly m
Pack the car full

The kids will love it

Sadly I don't have any money to cover hotels for a few years
So camping it is 🙏🙏🙏

Thank you all again and sorry for the ridiculous questions

I wish school had been better at teaching us tue realty of student debt etc

I would definitely transfer debt to a mortgage against the house and then heavily overpay as much as you can and feel comfortable with. The debt will be gone before you know it and you will be free to live your life and enjoy your children's childhoods. There are many mortgage overpayment calculators online you can input your info and it'll tell you how much interest you save and how sooner you'll pay off the debt with overpayments etc. worth a look!

This is fantastic

Going to take a look