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  • FIRST POST
    • Pugblue
    • By Pugblue 7th May 17, 9:09 PM
    • 11Posts
    • 19Thanks
    Pugblue
    Bitter sweet landmark day
    • #1
    • 7th May 17, 9:09 PM
    Bitter sweet landmark day 7th May 17 at 9:09 PM
    7/5/2017 Is a landmark day! Its a great day as it happens, but it's also a day where the reality of the road ahead now dawns on me, let me explain;

    The story starts two and half years ago, November 2014 to be exact, this was the date we moved into our second home together, at this point we were very happy but had emptied our bank accounts to make this dream to reality, and almost immediatly the finanical gremlins came out to play!

    I need to total up the impact over the last few years but the CC and loan debt would have been approx £6.5k - this was split into 4 elements (overdraft, CC 1 0% interest, CC 2 18.9% interest and bank of mum)

    The reason today is a great day though is its the first day since Nov 2014 that all credit card and overdraft debt is clear! i dont have much in my bank account (less than £100) roughly £500 in emergancy cash account, but i cannot under estimate the feeling of relief - I know reading on here our debt might not be large (but that amount is only half the story) however its a great feeling (I celebrated by taking my daughter to McDonalds and bowling trip)

    Now here is the bitter sweet bit - whilst i am now CC debt free the second half of this journey is the mortagage! i will post details in another post - but its scheduled to finsh at 65 - well that is not happening! and i also shudder to think how much i will pay back!

    So now is the challenge - Be mortgage free by 50! How i am going to do this and what it means really is a mystery? I am open to any ideas and inspiration at this point!
Page 1
    • Pugblue
    • By Pugblue 8th May 17, 8:49 PM
    • 11 Posts
    • 19 Thanks
    Pugblue
    • #2
    • 8th May 17, 8:49 PM
    Day 2
    • #2
    • 8th May 17, 8:49 PM
    Well 24 hours has past since i celebrated my last achievement and set my new goal. I have been thinking of good starting points? and i believe awareness is the first key task!

    The barrier

    The trouble is part of the feeling i celebrated yesterday was that of not being in anymore short term debt, that was great However if i now face upto the debt of the mortgage my fear will be i go back to that feeling of dread! i must admit it wasnt until i read other peoples stories on these forums that i begain to associate the debt with the personal moods that i would be in and this feeling of dread and hopelessness?

    Okay lets break this down?

    I know if i work out what i owe i might be overwhelmed! But i do need to consider that in last few years i have paid the mortgage, so nothing is going to change, life will be okay and what ever i do CC debt will not inpact this (yeah) I also know until pay day i cant influcence anything else so lets take a baby step and prepare!

    Baby step 1

    lets get orgainised - review all outgoings post findings!

    Baby step 2

    Read other forum post for inspiration?
    • Tahlullah
    • By Tahlullah 8th May 17, 9:04 PM
    • 800 Posts
    • 4,690 Thanks
    Tahlullah
    • #3
    • 8th May 17, 9:04 PM
    • #3
    • 8th May 17, 9:04 PM
    Hello Mortgage Free Wannabe! Congratulations with dealing with your CC debt and looking forward to clearing the mortgage.

    I am certain you will find lots of support and inspiration on here, but do pop across to the MFW board as well.

    Tx
    Striving to be mortgage free.
    2018 MFW #135
    • Pugblue
    • By Pugblue 12th May 17, 10:17 PM
    • 11 Posts
    • 19 Thanks
    Pugblue
    • #4
    • 12th May 17, 10:17 PM
    • #4
    • 12th May 17, 10:17 PM
    [Day 5[/B]

    Okay now for the facts

    I have checked the mortgage to date and I owe the following £149663.80, it's split into 3 parts

    Part 1 = £72219.44
    Part 2 = £67589.20
    Part 3 = £9855.16

    Term left is 22 years 6 months the rate on all is 1.65% fixed for 18 months

    First thoughts now the credit card payments are finished re-direct money to overpay mortgage, I tracked my credit card overpayments and approx £300 has been overpaid monthly so in theory I can overpay this much, but it wouldn't let me save towards a emergency fund so let's go for £200

    Having a little play with the overpayments calculator gives a rough result of saving 7 years 2 months, this moves my target of being 50 and mortgage free to now 56 from 63, and saving £8520 in interest!

    I've got to speak with bank to ensure I pay correct section of mortgages etc, I will also firm up them numbers, but now the problem is down to saving a further 7 years?


    The last task this week was to get some inspiration from others, I like one idea/challenge of saving £10 per day for a month, might give this a go for June?
    • Pugblue
    • By Pugblue 28th May 17, 10:22 AM
    • 11 Posts
    • 19 Thanks
    Pugblue
    • #5
    • 28th May 17, 10:22 AM
    • #5
    • 28th May 17, 10:22 AM
    Month one

    After last month's excitement of paying the credit cards off now it's the start off this new target!

    Round one - review monthly outgoings and check what's on the agenda this month, here I hit a bit of a problem, I had overspend! This basically was poor planning on my front, in my excitement of being able to pay all credit card debt I had forgotten to plan for either my mum's birthday and family day out + a works night out! This means I start with owing the credit card £90 and overdraft £161 ��

    With that now all paid off and having to come out of my monthly target of £250 overpayment I will not being overpaying anything this month, however seeing this as a learning opportunity I have looked at what is coming up and budgeted accordingly (I have amended spreadsheet to pick up these key things)

    Family camping holiday £50 (all paid off before)
    Car service £160
    Wedding anniversary free

    This is all budgeted for and as 2 days before our wedding anniversary my works are treating us to a all expenses paid posh meal out (20 years service) we got a little lucky

    I am however going to take the £10 a day challenge during June, so here is to £300 extra to look forward to, I will keep you updated
    • Pugblue
    • By Pugblue 17th Sep 17, 8:15 PM
    • 11 Posts
    • 19 Thanks
    Pugblue
    • #6
    • 17th Sep 17, 8:15 PM
    Day 133
    • #6
    • 17th Sep 17, 8:15 PM
    Day 133

    Been a long time since a update, of course summers been and gone, and our financial situation has changed! However this time I feel more in control, let me explain;

    Current state of play

    Total debt £5248 (all on a Tesco interest free credit card - rate expires December 2019)
    Savings account £2398 (all in a cash isa)
    Total debt after savings £2850

    The reason for not feeling stressed is that I have a plan (read budget) I know from previous monitoring that my average debt payment was £313 per month, so all things being equal that £2850 divided by average monthly debt payments is well within the interest free period, I've set the direct debt up to cover this.

    Now the second reason for not feeling stressed is I've started to tackle one of the two bigger contributors to the original debt, I now have set up a monthly Christmas savings amount, this has been running for 6 months, I've got used to it so I don't notice it! It has £180 in it.

    Now the reason for the sudden large increase in debt, we have a new kitchen, we planned it and apart from a small overspend it's all gone well.

    You have two ways to reduce debt, 1, increase earnings 2, reduce spending - so with that in mind these are the next focus topics

    1 - selling on eBay - we are now clearing out old or not used bits total in account £73 will keep this updated.

    2 - wife has a new challenge, save off weekly shopping budget, every penny saved under £135 will go straight to debt payments. Again I will keep this updated
    • Pugblue
    • By Pugblue 20th Sep 17, 11:31 AM
    • 11 Posts
    • 19 Thanks
    Pugblue
    • #7
    • 20th Sep 17, 11:31 AM
    Day 135
    • #7
    • 20th Sep 17, 11:31 AM
    Update on option 2 Spend less

    I have a days holiday so I've spent it reducing pontential costs, my target was my Sky bill, I had already started the cancellation period as I was due on October to pay £108.9, this included the full package and line rental/ unlimited broadband that meant a yearly cost of £1307.88!!!


    I know this is a pure luxury, it is something I strongly considered canning, and I know really deep down that this is money I am stopping being paid off debt! However I don't smoke, I don't drink very often, I walk or cycle to work, it's used by all the family so I decided to keep it but must be on a budget,

    When I called to cancel I was offered a deal around £70 but that was too much, I let it run down still and called again today - my broadband and call part was going to £28.99 for next month, I had checked out best market price and had this info ready, I was straight forward with my budget and choices, after speaking with the broadband team explained my situation, with a little back and forward between department staff I struck a new 12 month deal! My new cost of full package with broadband and line rental is £58.99.


    That's a saving of £600 vs full year price

    Needless to say I have already adjusted my monthly savings to a extra £50 so this goes straight into the debt payments
    • Pugblue
    • By Pugblue 6th Oct 17, 6:04 AM
    • 11 Posts
    • 19 Thanks
    Pugblue
    • #8
    • 6th Oct 17, 6:04 AM
    • #8
    • 6th Oct 17, 6:04 AM
    Day 151

    Okay not so good news at the monent, our water tank in airing cupboard has sprung a small leak, had a plumber round and quote came back at £1250!!! That's going to hurt, the cash will come out of savings account and will not be added to the credit card, but the gap between savings and debt will widen


    I have managed to sort the gas and electric bill though, I couldn't beat the deal I had so it I'll be about £22 more a month, but I did bag a 2 year fix from Ovo energy, if I had left it I would have gone to standard variable rate, if that had happened my yearly bill was estimated at approximately £363 more a year,

    Finally missus Pugblue has yet to save anything off the weekly shop, she promises I will get some next week as she had been making use of 2 for 1 deals that will stock up! We will see, more on this later

    On the plus side it was the first month in well over a year where I had managed not to use my overdraft my target is to see if I can do it two months in a row and then start to build a small buffer.
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 6th Oct 17, 9:33 PM
    • 2,253 Posts
    • 10,858 Thanks
    HairyHandofDartmoor
    • #9
    • 6th Oct 17, 9:33 PM
    • #9
    • 6th Oct 17, 9:33 PM
    Bad luck with the water tank but well done on not going into the overdraft.
    My Diary http://forums.moneysavingexpert.com/showthread.php?t=5716867
    Debt in July 2017 = £58,766 DEBT FREE 31 October 2017
    NEW GOALS - Build an Emergency Fund & Loss of Income Fund
    Emergency Fund 1 = £818/Emergency Fund 2 = £203.76
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