Debt mutual support thread number 7 ....... Spring is coming - let the sun shine into your finances and your life

[TalkinPeace]

This thread follows on from the last six threads in the series, the most recent of which is here.
www.mumsnet.com/Talk/legal_money_matters/2258202-Debt-mutual-support-thread-number-6-start-the-new-year-with-a-clear-purpose-and-keep-moving-forwards-even-by-tiny-steps?

We live in a society that makes it horribly easy to get into debt but makes it incredibly hard to admit you have a problem and even harder to get out of debt.
The posters on threads, new and experienced, are here to help people get to where they want to be.

I am not in debt, any more.
Here is a link to some spreadsheets that might help
www.mumsnet.com/Talk/legal_money_matters/1987219-SPREADSHEETS-for-Debt-Control-Budgeting-Mortgages-etc

and lots of people use this
YouNeedABudget

The important things to remember are

• yesterday is as past as the Crimean War

( we will not judge how you got into debt, but we will support you on the way out )

• this is an anonymous forum

( we will not tell your employer, family or friends of the reality of your numbers and we are here day and night )

• this thread is about supporting people through the huge mindset changes needed to come out of debt

( feel free to offload all of the feelings that drive you to want to spend, that make it hard to save and that generally make life crap at times, including getting those closest to you to recognise the changes needed )

Join in, bare your soul and come out the other end.
Its worth it.
You are worth it
The long term results for you, your partner, your children, and your friends and family are worth it.

We're having a smashing time laughing at location x3. Who has £400k for a first home? who?

£400k for a first home? Surely a lot of that has to come from inheritance?

I watch that programme with my mouth hanging open at some of the places people can buy. Wow.

One of the teachers at school has a son who did two years of uni and then dropped out to be a plumber......happy boy now, but has £24k of debt to clear!

It's madness. I dread my kids going, I only want them to go if they need a degree ie teaching or law etc. How are they ever going to buy a house and raise a family if they're saddled with that level of debt?

kinky

Got paid today - all YNAB envelopes budgeted for. Looking good for now. Luckily February is a short month. I'm working 3 extra shifts this month. It doesn't sound much but should all be worthwhile. It's fairly unobtrusive due to the timings, so I'm not losing out on any family time. The joys of being divorced!

Talkin we had student finance in to talk to students a couple of weeks ago. They actively discourage anyone from paying up front. They've dropped the rate of repayment too. Like you, I was thinking of trying to pay DD through, but I'm not going to now. It would actually be better to let them take the debt and when it starts coming out of their salary at the other end (in pretty small amounts tbh), making that money up for them. It is in no way ideal, but if your DD remains a low earner, she might never pay it all back and it's written off after 30 years.

They were also encouraging students to look at the many, many bursaries and funds that they have available.

Also, she assured us that even though it is 'debt', it is not taken into account when wanting to get mortgage, etc.

Talkin I don't think all debt is actually bad. Student loans fall under what I class as 'investment debt' - something you've taken a conscious decision to do, that you know will bring you benefit for quite a while to come. I think that's completely different to the debt a lot of us fell into, which I call the 'what on earth did I spend that on?' Debt, which just comes from living beyond your means. We bought our motor home last year, it's only 3 years old and cost us just over £30k, but it means that now we're having children we have an easy and cheap way to go on holiday for the next ten years. That was a conscious plan, and I don't regret the debt we took out to finance that for a second.... And actually, I think it's good for students to appreciate that their education doesn't come free. I paid my student loan off early and it was the best feeling to achieve that!

Dh still has all his student debt. It didn't make any impact on our ability to get a mortgage and because he's been mostly on very low wages he's never paid any of it back apart from a 6 month period where he had a reasonable job and paid about £60 a month back which was manageable given the salary he was on at the time.

When dd goes to university I am fulling expecting her to use student debt. It's the only way she will be able to go as we won't be able to support her at all apart from the odd few notes slipped here and there.

Dhs siblings are all graduates and due to our area being shockingly bad for medium to high earning jobs none of them have paid any of their loans back. Dhs sister has a first from a very good university and has not worked more or less since leaving - she went on to have 3 children and hasn't worked at all.

I think having some level of student debt is very normal for most people. I think mumsnet is quite the little bubble in terms of people being relatively well off (I mean outside of this thread) and worrying about it.... Most people just accept it's how it is I think.

Also, she assured us that even though it is 'debt', it is not taken into account when wanting to get mortgage, etc.

That's a real worry that student advisors are saying that- it does affect mortgage applications nowadays.

It isn't treated like other debt but it is an outgoing which will reduce mortgage affordability- it is no longer completely ignored.

For mortgages it counts as a reduction in income rather than debt.

And this whole reducing fees soundbite crap pisses me right off as the main benefactors will be the super rich who I'm chatting to on another thread, NOT those who actually need it.

End of the YNAB month (well almost, I won't spend anything tomorrow). My monthly food bill came in at £50 under budget. I'm going to try and trim another £50 off of it next month by doing more packed lunches, and having cheaper breakfasts. Kept my guilt free spends within my budget too. Had to use the overdraft to pay for my car service and MOT as I have no savings but that's just the way it is at the moment.

I've spend most of this week feeling crap about my debt and like a complete failure. I find keeping it a secret such a burden (only my mum knows). But, today I realised I hadn't been charged for something in a store so went back and paid for it. I may be in debt, I may be hiding it but I am not thief.

Good for you afterthought

Well Ynab didn't roll over as I'd hoped, but have sorted it our now, and know for next month what to do.

The gift budget has taken a good hammering as the kids have 3 parties, there are 2 new family babies and I have 2 nephews birthdays!

All sorted via Argos, card factory etc. so I can relax. No more scrabbling around last minute for me.

Have a good day everyone!

Hello all, really excited for those of you with interviews. Fingers crossed. I've taken on some extra hours. Tip I love your intro to this thread. Can't recall who posted it, (smile?) But just saw someone increasing payments and reducing terms.
Big update . Cover your ears TiP! Dragged Dh to various banks yesterday as we were paying 870 per month on debt of 29000. Just not sustainable, some stuff was going nowhere. We have a joint loan at a lower rate to pay off 25000. Closed all the accounts yesterday apart from one card at 4000 1.5% interest rate. Now paying 400 less each month. I'm sure we could have done something else but I don't know what. I'd spent most this number crunching, and now I feel so relieved. Also cancelled the tv package.
Btw Morrison's had a now tv box for 20 quid - any thoughts?

Hello all the student debt dilemma is an interesting one. I wish I hadn't so blithely racked mine up now - I'd have needed some of it as my parents couldn't support me at all but I could have worked more in holidays and tried to reduce it, but I just took all they offered as it was sold as "not real debt" and "free money"... The interest rates are low but not negligible, when you are a new graduate working a low paid job the repayments are almost 100% interest, and it is a non-negotiable outgoing which mortgage companies will certainly take account of when working out how much you can borrow.
Tbh I hate debt so much I wish that our young people could begin their lives without it, it sends the wrong message, that huge amounts of debt are fine and normal... but there is no way around it, is there? Realistically if we have kids they will end up with loans unless I win the lottery. Bah.

How long's your loan for Nerf? Can you overpay if you want to, or are you just going to let it tick down? I don't blame you as it is a huge amount to go through each month. We are similar and it really grinds you down and limits your choices. That feeling of relief is so lovely!

Peonies, I agree. But I also feel that university should be reserved for the brightest and be paid for by the state and available at any age funded .
Kinky, its 7 years to reduce the amount. But no penalty for overpaying or paying early and we just needed breathing space.

nerf we bought a now tv box when they did the last season on 24 and it's really good. You can't record stuff which is the only negative really, good range of channels and most programmes stay on for a while if you need to catch up. We added a free movies month trial over the Xmas hols to keep the kids entertained and then cancelled it, will do the same this year. Ours was argos and I think DH paid £25 for it which included four months tv and now we pay 4.99 a month (I think).

We only had the basic package anyway before we ditched Sky a few years ago, but with multi room that was just under £30 so I think now tv is jolly good value in comparison.

Thank you that sounds worth thinking about then.

Hi everyone!
Well...my Lenten vow didn't last long, did it!? :)
I am in need of your excellent advice!...
Feb has been a disaster.
Half term was £££ even though we only went out once.
We have had to find £100 for trips for ds1 (they are trips to do with the curriculum)
I am at the dentists next week and I know I need work doing :(
We should have £400 at the end of this month (after paying the balance on the July holiday)
What do we do?
Pay off the overdrafts?
Put it into savings?
Use it to make the conservatory habitable in summer?
I have listed some stuff on e bay but am not hopeful.
I have also started wondering about remortgaging...
When we took out this mortgage it was 2011 and we only has the choice of 2 mortgage products.
It's a fixed rate of 4.79% (ouch)
It's got 2 years left to run.
Obv since then house prices have gone up and IR have gone down.
I have been looking at ways to reduce our monthly outgoings (ha!) and trying to re mortgage seems a good bet, even with the early repayment charge.
I reckon we could save £200 per month on another 2 year fix with a different provider.
So....do I do the application in just Dhs name (I would affect the application as I am a sahm)
Good idea?
Stupid idea?
I think we could get my name put back on the mortgage at a later date?
The loan ends in 2 years too so that's another £300 a month better off!
Thoughts?

Oh, and our mothers are getting co op bunches of flowers this year!
I cannot afford £25 a bunch :(
The student debt thing is interesting.
I would love to retrain, but I just cannot justify adding more to our debt.
It seems....wrong somehow.

Hi all.
Its MARCH its SUNNY
I've been sowing veg seeds.
Happy skips around the room.

Nerf My views on consolidation loans are unchanged
BUT
you have analysed and costed and belt tightened and I cannot see a flaw in your plan. Well done.

Mothers Day
Don't get flowers.
Get pots of live herbs and live lettuce that you can grow and eat for the whole spring - budget £5 to save £20

I have a load of washing OUT ON THE LINE spring has sprung, people!

Raining cats and dogs here :(