Not many issues but...SOA

magicdogsbrain

Tim_Nicholas wrote: »

Good SOA, agree with others about Internet, sattellite, phone etc, could defo save on that with a bundle package. Mobile phone seems high too

Also, something I notice you do not have is much of a contingency per month, but you do have good savings..

Those savings are actually offset for another house only.

What contingency would you suggest?

Mobile=new samsung i8910 (HD 8mp camera and HD vid) on 12 month contrace - couldnt resist Not very DFW I know.

magicdogsbrain

talana wrote: »

I agree with Prudent.
You're asking for advice on what you're spending that is outrageous, well £235per month servicing debt is outrageous in my view when you have sizeable reserves of cash. Just clear the debt and have done with it.

You're paying 6.3% apr on that car loan.
What % interest are you earning on your cash savings?

IS that the correct definition of servicing debt? I am paying it off at 6.3% (26.66 per month on what I would describe as servicing)

10k over 4 years.

The cash I have is earning (i.e. not costing) 3%. So I agree that I am losing a few quid by not paying off my loan - but not if interest rates start to increase past 6.3% and beyond.

Good hedge or not?

Tim_Nicholas

magicdogsbrain wrote: »

Those savings are actually offset for another house only.

What contingency would you suggest?

I run a monthly contingent for all the unforseen things which come in during the month. Last thing you want is an unexpected bill, as you start the next month negative, then grows from there..

Anything left over from the contingent goes into savings.. Also gives a little cushion and saves so much worry if you know its there... Good for the mind and all that

talana

magicdogsbrain wrote: »

IS that the correct definition of servicing debt? I am paying it off at 6.3% (26.66 per month on what I would describe as servicing)

Well without wanting to argue over terminology .....
You're not actually at the moment paying off the debt as quickly as you think of course.
Yes you're paying £235 a month towards it, but that's taking you into deficit and you then have to find £127.30 (from the cash reserves or wherever) to balance the books.
So net, you're paying off the debt at £108-ish per month.

The cash I have is earning (i.e. not costing) 3%. So I agree that I am losing a few quid by not paying off my loan - but not if interest rates start to increase past 6.3% and beyond.

Can't say I really follow your logic. I'm certainly not saying that the BoE base rate will never get up around the 6.3% mark, but I think we can agree it won't happen for some time (seeing as it's now at 0.5% and it hasn't been at 6.3% since 1998). Every month it's below that you're losing by not paying off the loan, as you acknowledge.
Pay off the loan now while it makes sense.