MFW Challenge - Pay Off Your Annual Interest aka Yet Another Diary

Floxxie

Thank you MQ and SMF.

MQ have sent you a response.

Today received a cheque from a survey site for £39.21 so will pop that into the pot. Also had 20p found money, £1.96 and £0.54 from money saved at Asda. Roll on Febraury so I can pay it onto the mortgage!

Total so far: £361.63

MoneyQueen

Hi Floxxie,

Not sure how your mortgage works.. but won't you be better paying into the mortgage ASAP instead of waiting for Feb unless the money is in a higher paying savings account...Ofcourse this won't work if you have any restrictions on your mortgage account...

btw sent you a pm...

Floxxie

Hi MQ,

I have an offset so it doesn't matter if I pay it off directly or keep it in a savings pot. My total credit balance is offset against the mortgage balance and I only pay interest on the difference so it is really effective and works well for me.

Floxxie

MoneyQueen

Yes.. now I understand... Thanks for clarifying.. I knew I was missing something...

Floxxie

Well it was worth you checking as I am known for missing out the most obvious things!

Your signature is looking great and I think you will be clearing the mortgage sooner than your target date. Can't wait until mine is down in the 40s...

Floxxie

Floxxie

Well things have become very confusing but hopefully I shall be able to explain it here so I can get it clear in my mind...

We borrowed lots of money when we moved into our house 5 years ago from relatives which was a 0% interest and due to be paid back after 10 years. However at the end of last year this money had to be paid back and my OH used several credit cards (stoozing monies) to pay this back. So far so good, except the stoozing monies are now due to be paid back sooner than he thought.

Rather than go for extra credit cards (as our mortgage interest rate is lower than the balance transfer fee) I have used our reserve account and paid them off but this now gives us an overdraft of £15K :eek: and has wiped out all our positive balances.

So my new challenge is to pay this off completely, reduce the mortgage to £65.5k by the end of the year and build up our savings again. Sounds completely impossible but I like such challenges even though I was hoping not to have to do such a drastic one in 2009.

I shall therefore continue with the paying off my annual interest but I also have to bring in lots of extra funds and reduce our outgoings to pay off the overdraft and bring the mortgage balance down.

This should turn out to be an interesting journey! :rotfl:

MoneyQueen

Hi Floxxie...

Good luck with this.. I am sure you can do this...:)

Floxxie

Thanks MQ, hope you are right

setmefree2

MoneyQueen wrote: »

Hi Floxxie...

Good luck with this.. I am sure you can do this...:)

Floxxie

Checked the mortgage balance earlier and the interest for January has now been added at the grand total of £161 so not much of a challenge to me as I already have this money in the bank so have overpaid that today.

I've planned for the interest for the year to be approximately £3000 so have changed my signature and will use this figure as my target, otherwise there is a risk that I shall not do anything extra to raise the funds . Once this has been paid onto the mortgage, I shall then start on the overdraft before starting on the savings.

Have made a bit on eBay but won't withdraw that from Paypal until it reaches £50. Will spend tomorrow preparing items for listing for Thursday.

Floxxie