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    • Dragonrider
    • By Dragonrider 10th Sep 17, 10:30 PM
    • 144Posts
    • 643Thanks
    Dragonrider
    Something to aim for
    • #1
    • 10th Sep 17, 10:30 PM
    Something to aim for 10th Sep 17 at 10:30 PM
    Hi all,

    I've been a MFW for a while now, and often browse this board for inspiration. There are some v good ideas on here!

    I've been overpaying for years just by increasing my monthly DD, and have sometimes had an extra push to take more off the balance each month, but never sustained it.

    However, life has got complicated, and I now need to focus on getting the balance down quickly....

    Newly single with young kids, my ex has agreed to give up all equity in the house in return for me giving up all claim to his pension. Fortunately, seeing as I am on a pretty low part-time salary, he's also agreed to remain on the mortgage for the remainder of the current fixed term - which is 5 years, finishing in August 2022. I can afford the repayments at the moment with tax credits and child maintenance.

    I therefore have 5 years to either get the balance down to where I can afford to take it over on my current salary, or increase my salary dramatically. I'm going to try to do a bit of both!

    This diary is going to track my progress and keep me motivated, and I'm open to any brainwaves people might have along the way.

    Current mortgage balance is -359,337.18!!!! Oh help!

    Currently overpaying an automatic £77.31 by rounding up my DD, and am hoping to overpay another £200 per month in order to take £1k off the balance each month. This will hopefully be doable - I have been keeping a detailed spending diary for the past 4 years, so have a good handle on my outgoings, and where I can cut them. This will bring me down to just under £300k at the end of the 5 years.

    One of the silver linings of divorcing is that I'm in complete control of the finances - no OH spending £15 per day on coffees and lunch, or having to have the latest £200 gadget - gotta find the bright side, right?!

    Dragonrider
Page 2
    • Dragonrider
    • By Dragonrider 5th Dec 17, 2:19 PM
    • 144 Posts
    • 643 Thanks
    Dragonrider
    Plus, I got through the first round of my promotion process, and had my interview last week. I've been told I should hear next week, so just waiting with baited breath now!

    It would mean an extra £300 per month on my salary - unfortunately my tax credits will be adjusted downwards to account for this, but it does mean that more of my incoming money is down to ME, not dependent on anyone else (HMRC/ex-husband). Even though the bottom line will be the same, I will feel better about it! And then when I get to the point when I no longer need tax credits (no childcare costs etc) then I'll be in a better position overall.

    Dragonrider
    Goal = to get under £300k by Aug 2022 (by reducing the balance by £1k per montb - this needs an OP of £200 per month)
    Sept 2017 -£359,337.18
    Monthly interest £792.22
    Daily interest £25.56
    • pinkypig
    • By pinkypig 6th Dec 17, 9:18 PM
    • 738 Posts
    • 6,438 Thanks
    pinkypig
    That's brilliant - well done you
    Wishing you the very best of luck with your promotion, you truly cannot beat a bit of independence and the freedom it brings.

    PP xx
    • getmore4less
    • By getmore4less 7th Dec 17, 9:47 AM
    • 30,738 Posts
    • 18,374 Thanks
    getmore4less
    dropped in to have a read and doing really well

    this caught my eye.

    I've managed to spread my big annual expenses out over the year, which helps.
    do you mean you save monthly for them
    or
    pay them monthly rather than in one go.

    if the later be very careful on the effective interest rate if they charge any more than the annual/12, also look out for monthly bills that can be paid in one go for a discount, by doing this the companies can hide the APR as they call it a discount.

    eg Virgin Media give a £32 discount if you pay the land line up front,

    £196 for the year or £19pm that's a hidden 28.88 APR
    • michelle09
    • By michelle09 8th Dec 17, 4:02 PM
    • 451 Posts
    • 1,774 Thanks
    michelle09
    Fingers crossed that the promotion comes through!

    Looks like you're doing really well, well done.
    • Dragonrider
    • By Dragonrider 9th Dec 17, 9:05 AM
    • 144 Posts
    • 643 Thanks
    Dragonrider
    Thanks everyone! Keep your fingers crossed.

    What I mean by spreading my expenses out is that I have a bills account and I put £1000 in there every month. Some monthly bills come out of there such as utility/phone etc, but most I pay in termly or annual lump sums eg insurance, kids clubs etc.

    However, I have arranged it so that my big annual ones don't all fall in the same month - so car insurance is in March, house insurance in May, car service/MOT in August etc. This means that even if one of these were to be bigger than I was expecting, because there isn't another big outgoing timetabled for the same month, I remain comfortably within my 1000 per month total.

    Hopefully that makes sense! If anyone has other ideas of how to organise it, if love to hear them.

    Thanks,
    Dragonrider
    Goal = to get under £300k by Aug 2022 (by reducing the balance by £1k per montb - this needs an OP of £200 per month)
    Sept 2017 -£359,337.18
    Monthly interest £792.22
    Daily interest £25.56
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