Starting again with debt....again!

A question about : Starting again with debt....again!

Hi all, this is my first diary thread here in around two and a half years. We were well on our way to debt freedom when life took over...again.

As a bit of background, am now 30 and married with two cats. We previously got into a lot of debt when we bought our first flat when we were 20 & 21 (around Ј25000) and had to go on a DMP.

We finally paid this off after 8 years and got married a year after that (all paid for, no debt ) but then we wanted to sell our flat (our second flat). You guessed it, we were now in negative equity as bought at the height of the market.

My DH's parents were kind enough to gift us the money for a deposit for a house but we had to take out 2 loans to cover the negative equity when we finally sold the flat. We had managed to save enough to cover estate agent & solicitor fees etc.

So now we were in a brand new house with a big new debt so what did we do? Went & spent more money so that we had new credit card debt & were in the overdraft up to our eyeballs. but it was all for the new stuff we needed for the new house.

We have now given ourselves a stern talking to (again) and sorted ourselves out. I took a cash transfer from my credit card to the bank account to clear the overdraft. CC is on 0% for 9 months so now paying this off plus the two loans. The additional credit card debt was balance transferred & is now almost paid off (250 to go).

So now we need to not go into the overdraft, stop silly spending and pay off the debts as quickly as possible. I have re-joined the PAD thread as it previously motivated & inspired me. I feel that I need some accountability because it's so easy to slip into old spending habits even when you really don't want to and really can't afford to.

We are both working and bring in a decent combined income so we need to sort the debt out again. I really want to get rid of it and not be in the same cycle forever.

Best answers:

• Off work at the moment with a horrible cold, just feeling very drained & it's absolutely freezing outside. Used up my energy this morning sticking the ingredients for a sausage casserole in the slow cooker for dinner. Will get DH to make mashed potatoes later to go with it yum.
  Now resting on the couch with one kitty and a blanket so nice and warm. The other kitty is being anti-social in his bed - selfish cat should be loaning his warmth to me!
• Hi sashybo. Welcome back to the forums & happy new diary. I am sure you will bust through the debt in no time!
  Congratulations on the new house! Property is worth having. I too was in negative equity and my ex & I have been split for 6 years now... still both have the mortgage around our necks as he is a lying selfish scrote, and the house stands empty whilst he swans around, but each to their own, he may owe me thousands but he at least pays the mortgage each month and keeps me from being chased by serious bailiffs.
  Hope you don't mind if I subscribe and pop in every now and again I'd like to see your progress!!
• Hi Lilt, thanks for dropping in and for your support.
  My DH keeps saying the loans we took out for the negative equity are "good debt" as it meant we could buy our house (which we both love) but at the same time it's still debt and I want it gone! It just feels like one step forward and two steps back in some respects.
  Sorry to hear about your ex and the negative equity - it's a horrible feeling. We lost around Ј25k value on our flat within 7 years.
• You're welcome, and your DH could have a point. It is allowing you to live your dreams and you are going the right way about getting rid of it. Focus on keeping the interest as low as possible, which means being good, no overdrafts or CC's for spending, live within your means and pay what you can to the loans. If you can afford to put some aside, then do so. The loan companies might accept a settlement eventually...
  My negative equity was Ј20k within 6 months of buying.. and the mortgage was only Ј80k. It would cost me another Ј20k to buy out of the mortgage now through fees and solicitors etc. It is finally out of neg equity, but as I said, standing empty and my ex and I no longer speak so it is just a noose really. I have my head in the sand on that one... it is a horrible feeling to find something is not worth what you paid for it. Another reason I will never buy a brand new car ever!
• Hi sashybo
  Glad you have come back and started a diary - I love my diary and need to post more often instead of reading
  Good luck with clearing the debt
• Have been quite lazy today so far but must be needing the rest so am just going with it for now. Am cuddled up in bed with my iPad mini and the two kitties, browsing MSE.
  Plan to get up and have a shower soon and then stick a washing on. Will then see how my energy reserves are doing. DH is working early shifts this week so should be home around half 3ish. I got some chicken breasts out of the freezer last night so will do something with them for dinner. I was thinking of a chicken & broccoli bake but also have a jar of Thai red curry sauce in the cupboard so that's another option.
  Hi again Lilt thanks for your reply. Scary negative equity. The credit card balance is around Ј2250 (Ј250 BT & Ј2000 cash transfer - both 0% until September). Both loans are interest bearing over 5 years (first year up in April) so am overpaying every month to both, usually only Ј10-Ј25 each but better than nothing I guess. So we have a set amount going to the CC to clear it by Sept plus PAD's & any cash made through online surveys as well. Although the extra survey money should probably come off one of the loans as paying interest on those.
  We are both paid 4 weekly so the date changes every month & it can make it difficult for the bills & DDs. We got into a mess with the O/D by not watching what we were spending vs when bills & wages were due. My DH was getting a bit carried away & just thinking it was money he could spend.
  So no more of that, he's had a talking to and done the appropriate puppy dog eyes at me. I actually gave him a fright & he started selling his old tech stuff online to make a bit of money. He's very into tech & computers so always has a lot of "stuff" lying about that's not always needed.
  Hi EE, good to be back, I just need to try and keep updating as it does help to keep me on my best behaviour as don't like to post when I've been bad.
• Feeling a bit mopey today, maybe because still feeling a bit ill so this post will be off-topic. Made the mistake of watching The Snowman & the Snowdog on Christmas Day and cried the whole way through it. It was the wee old dog dying that did it, just reminded me of the two cats we lost last year I think.
  One of them is my avatar for this site - she was a wee beauty and only 12 when we had to put her to sleep. She had breast cancer as had been a breeding queen before we got her at 7yo(she was a lilac point Siamese).
  We had an operation to remove the lump but the cancer had already spread. The op gave us nearly another year with her so was well worth it, in the last few weeks she told us when it was time as she was no longer her happy, noisy, greedy self. The night before she came into our room and slept between us for most of the night, good as gold. Then she went back to her bed with her two cat companions and cuddled.
  We both took her to the vets and cried our eyes out while she went to sleep for the last time, my DH had his hand on her head and he was the last thing she saw. That was good because she always loved him best.
  Our remaining cats were lost and pined for her. They looked for her everywhere. Our remaining female had never been without her since kitten hood and within 6 months she died. She had kidney problems we didn't know about & it was very sudden. She had never been the same since her companion left her & it broke our hearts to watch her search, I think she had a broken heart. She had to be rushed to the vets & was so ill we couldn't be with her at the end. I often worry that she thinks we abandoned her at the end & hope that she didn't know we weren't there.
  We were left with my now 6yo Siamese boy on his own and he was NOT happy, was really pining for the ladies he had been with since he was a kitten.
  We got a British short hair kitten as a companion & boy is he trouble! He will be 1yo in January and I know my Siamese boy is grateful for the company but I think he wants to strangle him a lot of the time as well.
  I don't know where that all came from, just wanted to get it out. You can't say a lot of this stuff to people because they think you're mad and "It's only a cat".
• Well after that cheery post I'm back again. Finally had a shower & feel a bit better. Have stuck the towels in the wash & they can go into the tumble dryer when they're done. Have a huge pile of ironing but can't really face it just now.
  Think we are opting for the Thai red curry sauce with the chicken I defrosted. Will order coconut rice & a starter from the local Thai restaurant to take away and that makes it feel like a wee treat but not as bad as a full takeaway.
  Remembered last night that two friends turn 30 in January - one at the start & one at the end of the month. Have ordered some art store vouchers for the first birthday & also spotted a pretty arty bag in the Joe Browns sale I think she would like. Hopefully I'll get the stuff delivered before I see her. Will keep an eye out for any bargains for my other friend but at least have more time to look around for her.
• ((sashybo))
  It's always so sad when a cat goes to rainbow bridge - we nearly lost one of ours a few months ago. He had acute kidney failure (from some sort of poison) and they didn't know if he would make it - they managed to save him and now he has chronic kidney failure.
  He will be due a retest in January to see whether his kidneys have recovered enough for him to stop the medication and special cat food. He is only 5years old so fingers crossed it has worked.
  We have 4 cats at the moment (1 is a kitten and she is a nightmare!!)
  Sometimes a good cry is just what's needed - I always think that it's better out then in.
• Thanks EE, yes we both found it very hard as they were such little characters & were also the first pets we had together. My poor DH misses our oldest cat greatly as they were particular friends.
  Our new kitten is also a character but took some getting used to as he's not an Oriental and has a completely different temperament. We're hoping to adopt an older female at some point in 2015 as our Siamese is still missing his ladies.
  That is so scary about your cat, you must have been so worried. I hope his retest goes well & his kidneys have recovered. What is it with kittens, my current one is determined to kill himself & take me with him!!
  We had to take our remaining Siamese to get his teeth cleaned about 6 months ago & we took the optional blood test in case there were any kidney issues. His bloods weren't quite right and we thought we would lose him as well. He was on antibiotic tablets for a couple of months which was NOT fun! My DH ran off every time the tablets had to be given (one and a half twice a day) & said the cat likes you better, you can give them to him! Poor wee guy, eventually we had a routine where I held him like a baby against me & popped the tablets down his throat & he was good as gold. Think he got resigned to it!
• Got Ј40 through from Globaltestmarket today so have paid that off my smaller loan which has the higher interest rate. Also paid Ј1 off the CC.
  Will try and get some surveys done today as have been quite lazy with them over the last couple of weeks. Being off work sick also hasn't helped.
  This morning I managed to get the bed stripped and sheets in the wash and have stuck chilli in the slow cooker for dinner tonight. DH is bringing home the kidney beans, sour cream and birds eye chillies to finish it off. Have some tortilla crisps in the cupboard to have with it as well, prefer these to rice.
  Don't think we will be doing much tonight as still not feeling great with this cold and poor DH is knackered from work - shift work can be so tiring.
• Ok, have done a couple of surveys from various sites and am up to Ј35.40 on OnePoll, only Ј4.60 until I can cash out and that money can be paid off the debt.
  My young cat has been jumping all over me since I sat down at the computer desk and keeps trying to sit on either the keyboard or the mouse, with my hands on them obviously. Also got the joys of him shoving his furry bum into my face! Does that mean he likes me or he's trying to annoy me?!
• Ahh I loved my cat... and she was my baby. Until I got pregnant and she took a serious dislike to my bump... and even more of one to the baby stuff and said baby. After she repeatedly toileted everywhere in the house including in the pram and carseat, I had to have her rehomed with a nice lady who had no children. And she has been much happier ever since. Very sad though and Him misses her like anything.. His mum has 2 cats and they used to have a third but he eventually went to stay with a neighbour a few doors up who insisted on feeding him until he stopped coming home.
  I think the bum in your face means he likes you just hope he doesn't spray!!
  Ref money management... I don't know if you have seen posts on YNAB (YouNeedABudget) but it is a $60 american budgeting software I use to dealth. I paid Ј28 after I got 20% off and exchange rates etc.. and it is incredible. I track a credit card, paypal, all of my 4 weekly payments such as tax credits etc, as well as my monthly earnings, and all of the bills going through 3 different current accounts... AND a regular saver - and if you download 'Steam' and create an account with them today, you can buy YNAB through them for 1 day only for the price of Ј7.49. I wouldn't hesitate. I saved more than twice what I paid for it in the first month alone by budgeting myself properly for the first time ever. Saved about Ј100 on food alone that first month..
  Anyways sorry for harping on, but Aloofdragon just went and bought it after downloading the trial & loving it! and reading about 4 weekly payments.. well that is one thing it helps me keep track of better than anything!
  Yay to all your little overpayments. Well done you!
• Sorry to hear about your cats.. we lost our dogs last summer and this spring and it isn't the right time for more right now, so we got a cat, never had one before.
  He's quickly become part of the family.. rules the blinking roost though.. but he's lovely and I wouldn't be without him..
  I'be tried YNAB and couldn't get the hang of it, but will go and have another look again to see if it makes more sense..
  Happy new Year, will subscribe to follow your journey, well done for tackling the debt!
• Hiya Lilt, sorry to hear about the cat, they can be funny creatures but glad you got her rehomed somewhere she is happy.
  My oldest cat is quite nervous of young children because they are loud but he just runs away. I have four nieces & nephews who are all quite boisterous so he has some experience of high tailing it & hiding. He likes to watch them from a safe distance.
  My younger cat is made of stronger stuff though & likes to play with young kids. Give him a ball and he will hit it to the child and then they pass it back & forward. Kept my friend's nervous 2yo occupied for a while - he was quite unsettled at being in my new house but he enjoyed playing with the cat.
  My mum has two big ginger toms who just make themselves welcome in every house in her street! She is mortified but all her neighbours know them & most have cats of their own so don't really mind.
  Enough crazy cat lady talk now, went & checked out YNAB after you brought it up. I think this might be what we need to keep track as we just seem to spend money & have no idea where it all goes.
  I already have Steam on my PC as DH installed it, he plays lots of games and I play a few now & again. Just decided to go for it and bought YNAB as I think that's a really good price. I think it will take a while to get used to but it looks good. Thanks for the heads up Lilt.
  Have installed the app on my phone as well as the PC and have entered my basic budget for now. I seem to have a decent amount of cash unaccounted for but I think I've probably forgotten something and/or haven't set it up right!
  Will get DH on board, he likes gadgety things so it might appeal.
• Hi Debtfreeoneday thanks for joining in. Sorry to hear about your dogs, it's never easy.
  Glad you're getting on with your cat, they do make themselves right at home & think they own the place. My mum's two ginger toms definitely boss her bjion frise about - they kick him out of his dog bed & he sits on the floor staring at them with a sad face but won't stand up to them.
  I think YNAB needs a bit of working out so I think I'll be googling & asking questions for a while tbh. I may be taking Lilt up on her kind offer.
  Happy New Year to you too.
• I think we may both be bothering Lilt with some YNAB questions.. but I'm pleased I've got it and hope to have it all sorted tonight.. so I know where I am.. Just need to get paid again, so I can play now!
• Now THAT is the spirit!! I am very proud of you both!!
  Please be assured that I genuinely never tire of talking about YNAB. If I can help someone to help themselves with it, the way it has helped me.. then I will put my all into it. I am a trainer at work when necessary and I get excellent feedback and quick results with the people I work with. And these are people of all ages and paces.
  And the perfect attitude to have is not wanting to wait until you get paid. It really is fun!!
  Just mail me, or post in here or in my diary. I am not joking in that I will happily snapshot my pictures and send them to you.
  The good thing to know is that you don't have to use it via Steam. Just download the programme separately and enter your steam activation code and off you go although if you are happier the previous way then whatever works for you!!
  Off for my dinner but back soon most likely nom! xx