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Your Opinion plz...
tegai1
Posts: 39 Forumite
My situation
I have a loan with Northern Rock with an end date of May 2012 so that’s 41 Payments left of £378.12 per month. The loan is front loaded so overpaying this would not be beneficial; I would only save on interest if I paid in full.
I have a mortgage of £89,000 with 27yrs remaining monthly payments of £564.21
With direct debits etc my total monthly expenditure is £1,417, not including petrol and food and misc items!
No credit card’s no overdraft and no savings!!
My Plan
Save £5,671 as an emergency fund. That should see me through 4 months out of work. Then once this is in place overpay the mortgage to a max of £500 per month until 2012. At this point the loan will be paid off in full and we will have improved our equity in the house and we could then move up the ladder. (We’ve just got married and are looking at getting kids in the next few years, hence why we want a better home)
Comments....
Please give your comments/suggestions on my plan. What would you do different? P.S. I have learnt my lesson on the loan situation, I will not be spending money I don’t have in the future, I’m 27 so I’m hoping to be in the clear by the time in 30!! Better late then ever right?
I have a loan with Northern Rock with an end date of May 2012 so that’s 41 Payments left of £378.12 per month. The loan is front loaded so overpaying this would not be beneficial; I would only save on interest if I paid in full.
I have a mortgage of £89,000 with 27yrs remaining monthly payments of £564.21
With direct debits etc my total monthly expenditure is £1,417, not including petrol and food and misc items!
No credit card’s no overdraft and no savings!!
My Plan
Save £5,671 as an emergency fund. That should see me through 4 months out of work. Then once this is in place overpay the mortgage to a max of £500 per month until 2012. At this point the loan will be paid off in full and we will have improved our equity in the house and we could then move up the ladder. (We’ve just got married and are looking at getting kids in the next few years, hence why we want a better home)
Comments....
Please give your comments/suggestions on my plan. What would you do different? P.S. I have learnt my lesson on the loan situation, I will not be spending money I don’t have in the future, I’m 27 so I’m hoping to be in the clear by the time in 30!! Better late then ever right?
0
Comments
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It sounds like a good plan to me, if you can save while making those loan payments. I would also suggest a savings plan for when you are on maternity leave, so you can take the maximum time your company will allow. I took 13 months off and even thgouh I am still paying for it now I don't regret a minute of the time it gave me to dedicate to my son (who came three months early, so don't forget to factor that possibility into the equation!)0
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it sounds like you have thought this out have you tried doing a soa? just to see if there is anything you can cut back on and throw the extra money at the savings?0
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Hi Cady,
Yeah we've been through everything and have cut back on loads. It's amazing how much you spend on things you don't need. For example we were paying about £60 for Sky!!! We now pay £17, we had life and critical illness cover totalling £75 we now pay £35 for the same cover through another company!0 -
well it seems like your working it all out well ... good luck x0
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