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Considering taking out a loan

January 30th, 2011 at 10:09 am

I mentioned this a few months ago in one of my entries, but then I never thought about it afterwards. Until last night, that is. As usual it was one of hubby and MIL's arguments that got me thinking. When hubby came back to the room he mentioned getting a loan out. A while later I was searching for places online to rent. I found one nearby, a 3-bedroom house, £500 pcm.

It looks so good. Of course we would be struggling if we didn't get Housing Benefit.

Then I started to think about all of the things we would have to pay for:

- rent (£500, plus one month's deposit I assume?)
- council tax (not too sure of the rates)
- food
- gas
- electricity
- phone
- tv licence
- loan payment?

And that's just what I can think of. I also have my car payments and CC debt.

Hubby pointed out that it will take us ages to save up the money we would need. I know it will. But I don't want to get into more debt just so we can move out. He doesn't mind. I can see his point, his mum is annoying me now.

I know the sensible thing to do:

1) SAVE the money
2) clear debt
3) move out

5 Responses to “Considering taking out a loan”

  1. Petunia 100 Says:

    Do you and hubby need a 3 bedroom house? Why not look for a smaller, less expensive place?

    Yes, the best thing from a financial viewpoint is to pay off debt, save, and then move. However, if all 3 of you are miserable, is it really worth it? Only you can decide.

    I do think you should consider cutting back on debt payoff so that you can save more. What if the day comes when MIL says you and hubby MUST move? You will need to have some cash.

  2. scottish girl Says:

    No, we don't need a 3 bedroom house. I think a 2 bedroom house would be fine, even 1 bedroom which hubby definetly doesn't want.
    I never thought about cutting back on debt payoff before. I keep thinking to myself that if I clear debt then I'll have more money to save. However, as soon as I've cleared debt I put it towards other debt and my savings barely increase.
    As for MIL telling us we MUST move... if she done that tomorrow we wouldn't be able to cope with my savings. It's given me something to think about. Thanks Smile

  3. TarWalker Says:

    I personally would not rule out a one bedroom. We currently live in “one-bedroom”, literally. If we got a one bedroom apartment, we would gain our own kitchen! It’d be so much more space than what we’re allocated now. And the space would be all ours! That’s worth trading three bedrooms for one, in my opinion. Although, I would rule out a studio, as I think my husband and I need our own rooms to go to now and then.

    I was just thinking, if you can’t move out into your own place, are there other family/friends that you could move in with temporarily while you save? Would that be better than the tension between your husband and his mom?

  4. scottish girl Says:

    We could move in with my mum but I can't see that working. she's home all the time and hubby and her would argue

  5. Jane Says:

    Do you have an exact number for how much money you need to get together to move out? I would imagine it would look something like: amount of debt you need to pay off before you feel comfortable moving + first/last month's rent/securiy deposit (or whatever they require where you are) + moving expenses fund (maybe $500 if you need to rent a truck, less if you can borrow one?) + $1000 or so emergency fund. If you can put a number on moving out you, hubby, even MIL could see exactly where you stand and it might motivate you both to seek out extra income or save if you can see it getting you measurably closer to your own place.

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