My road to being a millionaire - I wish

millionaire_in_training · 7 July 2007 at 8:19PM

ok have paid off sony. 2 down loads to go.

Ok MS stuff done today. Took clementines back to ASDA as were manky. Got money refunded. Would normally have just binned them. Went for lunch with kids to macdonalds and spent £1. I had called a couple of weeks ago to complain about how dirty the restaurant was and I was given 2 adult and 2 childrens meals. Made the 3 kids buy their own ices so only paid for mine

. DD got a rabbit a few months back and the deal was she would pay for everything for it but guess who ended up paying. Told her today she has to pay half of all costs from today onwards. Helped DD do her paper round (saves me paying her pocket money). DS went swimming and got in free as our council do free admission with a passport to leisure during the school hols:j . Went to poundland and stocked up on bin bags and kitchen roll.

Not too bad a day all in all.
Wonder how long it will last!!

millionaire_in_training · 8 July 2007 at 7:07PM

No spend today other than collection at church. Ate home made bread for brekkie with grilled sausages. Had no lunch except a couple biscuits. Kids were at their dads for lunch. Had egg mayonnaise and salad for 1st course, Lamb potatoes and cauli cheese for main course. Too stuffed to eat any pudding. Have frozen enough cauli/cheese for another night and have pots left for frying for supper later on. Won't be buying lamb again to be honest as was really expensive and hardly any actual meat on it. Kids are already getting used to no sweet tin. I'm not lol

Going to make chocolate crispies to help my chocolate craving.

Gave my credit card to my mum so now all cut up and mum has the only one thats left. Scary but really hope I can do it. Was thinking earlier that I have about £500 to go onto my balance from before hols so will probably be a couple of months before I see a real difference. Hey ho

millionaire_in_training · 9 July 2007 at 12:09PM

Just got my bills in for Halifax and Barclaycard. I knew I had spent on them whilst my head was still in the sand but I have just put about a grand onto my debt and added 3 months to my DFD. STUPID! STUPID!STUPID!!!!!!

I am away to make muffins and a chocolate cake. Not that I comfort eat or anything

millionaire_in_training · 9 July 2007 at 4:06PM

mmm muffins are yummy. Kids dont like them so thank god I only made 6 as I will need to eat them all myself. Made a chocolate cake and bread is cooking at the moment. They will eat them no bother.

I have called my mortgage protection company and cancelled my critical illness cover. Only have life cover now. This scares me a bit but saves me £22 per month. Phoned to see if I could overpay my car as the interest is 10.1% and costing me over £2000 in all :eek: lass said direct debit cannot be changed but I can overpay any time by switch. Will add it to my signature and snowball it to see how long it will take me with that included.

Have been thinking about changing my mortgage to interest only as a temporary measure. My main plan in paying off everything is to give me access to as much money as possible to get a bigger house. If I reduce my mortgage outgoings then I can pay off my debt quicker and reach my goal quicker. I could then move to new house and start being a mortgage free wannabee.

has anyone any thoughts on this please?

millionaire_in_training · 9 July 2007 at 10:08PM

Was mucking about with my snowball and can get rid of my credit cards in 2 years if I can increase my payments by £250 per month. Don't know if this is manageable but going to have a damn good try. Really really want a new house as this one is just too small for us. Still not sure what to do re going onto interest only mortgage. Might call mortgage company tomorrow and see what the difference would be per month. Feeling really positive and quite excited about all this.

Seaxwyn · 9 July 2007 at 10:17PM

hi m-i-t

This is the first time I've seen your thread but I'll be hooked now - I like your style!

We had a bit of a chat today about the pros and cons of going interest-only on Hypno's thread, so have a look there (you might have to go back a few pages as hypno's place seems to be chat central at the mo).

millionaire_in_training · 9 July 2007 at 11:04PM

Thanks Seaaxwyn. I had a wee nosey. Still confused but hey what's new I always am. I'll sleep on this one methinks and then decide. x

Seaxwyn · 9 July 2007 at 11:10PM

Hi m-i-t

People expressed various opinions on going interest-only. I think, to summarise, the consensus was that it can be good if it enables you to pay off higher interest debt, but that there is a danger of storing up problems as you are delaying paying off debt on which the interest rate is likely to rise.

It's too late for me to say anything lucid so you might be safest gathering a number of opinions before making a decision!

Kaz2904 · 10 July 2007 at 3:10AM

I would defo say don't do it!
You are able to afford your repayments with your income, you just need to adjust your thought process.
Use the time now while you are clearing debt to get your house sorted with boot sales and ebay. Not only will it make you money, it will save you more money.
If you downsize yours and the kids clothes you will find it much easier to choose an outfit and get ready quickly. This means that you'll have time to make lunches! Clothes will not mount up in the wash as they will need to be washed and replaced quickly. When there aren't mountains of clothing around you won't end up washing clean clothes again. Clothes won't get ruined by being crammed into overstuffed wardrobes etc etc.
You will begin to think about what you actually want in your house and don't go out buying ornaments every month because you have found all of your precious stuff.
The best bit is that while you are at home sorting (bit at a time though), you aren't out spending!

The going interest only is seeming to be a bit of a kneejerk reaction to your lbm. The trouble is you need to learn to live within budget and that budget needs to include your mortgage. You will get there. If you need any further confirmation about what it could do to your mortgage, add that into the snowball calculator after you've worked out what your payment would be- and remeber that your interest costs wouldn't reduce each month!

hypno06 · 10 July 2007 at 7:56AM

hi MIT, thanks for your post on my diary.

I would say to give the rest of the things chance to work before you do something as drastic as change the mortgage. At the moment you have made a good start and you really need to keep the momentum going here and work out the many little things that you can do on a daily basis which not only get you debt free but will create the good habits on the way which will mean you can stay debt free!!

I don't know if you noticed on my diary, but I didn't have a choice about being interest only - it was the only thing offered to me as I had about £100k of other debt at the time!! So for me, no choice, but it does scare me a bit, that I am not paying anything off the capital and am subject to possibly a huge hike in rates when I come off the fixed rate. However, I have a further 6 years at fixed rate, so again for me it gives me time to sort things out.

Sorry if this sounds negative - it is certainly not meant to be! Keep going, keep making choccy muffins and you will soon be knocking that debt dead - and it will be all your own work so you will never go there again!!

My road to being a millionaire - I wish

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