A year ago we truly got a grip of our finances and decided to put our house on the market and went through the motions of having it valued and then went about tidying it up and making the place sellable. We duly spent money on the place, put it on the market and by late November last year; had sold, had an offer accepted and had our new mortgage application in place. We were hit with the bomb of the building society's calculation of affordability and despite the fact that we had never missed a payment with any of our creditors; were told - "You can't afford a mortgage due to your outstanding borrowings".
We were then faced with staying in a huge house, that we couldn't sell and we're locked into a property and that we were going no where. The sums are incredible and my outgoings per month make up 82% of our income before we pay for food, transport, clothes or fripperies such as a hair cut! They are so excessive as I have been paying debts back at three times more than the minimum rate to pay off what I owe as quickly as I can. We've calculated that our next affordable holiday will be in 2015! However there is really good news.
Due to overtime and over payment I now owe HBOS £2137 (July 2009 I owed the £7300!!)
I owe Fiat Finance £6424 (January 2009 I owed £9999!!) - I owe Lloyds personal Loan £13,556 (July 2007 I owed £25,000) - So - I used to owe £42,229 and now it's £22,122 - I have paid off £20,107.
It's been another tough week. I felt forced to go to work even though I've had a hacking chest infection. We've cut back on everything we possibly can and then the car started leaking water and the repair is not covered by the warranty and we don't know where we will get the money to fix it. I hold onto a date in my mind where I will start to feel a big difference from my frugality. Think of this..............when you watch the opening ceremony of the London Olympics - we will have paid off the last of our debt repayments; I'm holding onto that thought as I need to be optimistic!
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