Taxis back to basics...debt and mortgage free before 50(feb 2014)

taxi73

Thanks you two.
DGS..is a little perkier but still not much energy and he has been being sick this morning.Hopefully,it won't last long.
I haven't had the results back yet as they said about a month...so a while yet.
I am the same with thetax man as well...we had a taxi wrote off last year and between loss of earnings and the loss on the car and finance and various stuff by the time the accountant had gone through it all and beacuase we paid absolutely loads last year on account by the time they take this years tax we have £1432.20 tax rebates due....I have no payment on account for 2010 and DH has 2 totalling £657.08.....so I will pay DHs tax out of the rebate and the other ££775.12 will either go on a CC or into Egg savings...not sure yet!!!

WARNING...couple of longish posts to follow outling my plans:

taxi73

I have been evaluating all my plans this morning.
And here they are:

This needs to be a double attack in order for me to be debt and mortgage free before 50 in feb 2014.I need to attack debt and mortgage at the same time!!!

Our mortgage is only 0.99%....It is a Abbey flexible lifetime offset mortgage and runs at 0.49% above BOE base rate.
We took out our 1st mortgage in oct 2002...and have remortgaged a couple of times each time reducing the term.Last year when taking this product we reduced it to 10 years..so way in front already...all overpayments made to mortgage go into offset.
Due to savings rate being higher elsewhere.I felt the best plan is to put money into savings acccounts instead..as interest is like free money escpecially compounded.
So I have so far:
An Egg fixed rate (3.25) until july...in there I aim to put money from surveys,tax savings,cashback,reward acccount money etc.
When the rate runs out in july I'll transfer this to whatevers best at the time.

Today I've open a Halifax Reg saver 5%...I have deposited the 1st £500 and the standing order is set to take £500 p/m standing order from Halifax.I had to open a account to pay that into when it's finished next year.
I will then transfer that into whatever savings account I'm using at that time....
Will then see what the best reg savings are available at that time..and may continue with that one dep on rate.
I will count savings as my offset against mortgage once mfit starts.

taxi73

I did look at Isas but the rates are pathetic.
I will not have a seperate emergency fund as the EGg account will do for that purpose or the overdraft...but it must be a real emergency.
Hopefully I'll never have to touch it and the reg saver.
I will save more when all CCs and loans are paid off.

If, I let the loans run their course 2 will be finished in july +aug 2011 and the v3rd in 2012.
These three loans when paid off will free up £704.92 p/m so will go to the mortgage/savings....I will have to let them run at the moment whilst sorting out the CC debt.

taxi73

CREDIT CARDS:

Barclaycard LOB 6.9%....paying minimum at moment.
BMI LOB 6.9%..paying min but also odds and sods as and when.
Virgin 0%.....this may yet get transferred to Santander 0%..am awaiting deciscion....I have an interest bearing debt behind the 0%(stupid I know)...I pay my min payment plus whatever I can on my PAD quest.
Halifax 0%....I save all our change including £1s and £2s coins plus DHS pension and DDs board money etc and pay this off once a month and also pay the min by DD
American Express...I use this for all diesel and if I food shop anywhere that takes it for the cashback....this card is paid in FULL every month..cash back will go into Egg savings.

taxi73

We need to be as frugal as possible,always look for bargains etc.
I also need to make an effort to go to work and work as hard as possible to achieve the above.

I used my "floating" £1000 that I keep to transfer between Halifax acccounts in order to get £5 reward money each month to open and fund the reg saver today and to keep the £500 ready for !st November.
So during the course of November I'll need to find another spare £1000 to use to float and the £500 for DEc reg saver.....
Dec..I'll aready have the £1000 float in there and will just need to find £500 ready for Jans Reg saver payment.

Over christmas I think I'll purt enough in to cover the regt saver during the bad 3 months after christmas...then should be easier.....

The tax money will go to Egg....


So there we have it....any comments/ideas welcome.

Karmacat

You've thought it out so well, I don't see what any of us could add! I *like* the sound of a 5% saver, thats a brilliant rate. You have a lot of 0% debt too, which as a *rate* is wonderful, but the loan interest rates are quite high compared to the rest of it, at 6.9%. But if you pay that off, and then find you can't get another 0% card, I'm guessing that'd be a real problem in relation to what rates you *could* get. Logically, its work on the debt with the highest interest rate, but thats not always how it works out.........

elantan

well i like it ...looking at it it becomes obvious you are not new to the whole idea and have made alot of changes already...using the amex and paying it off every month deff helps i got £100 the first year i had it ...so i know this is a good one ...also the virgin going to santander yep thats what i will be doing when my 0% runs out.. the fact you also have a couple oflob's is good although at 6.9% they are a bit high but you are paying extra as and when you can with one of them and i am sure once that one is gone you will do it with the other one as well so that is good.

i am loving the keeping the coins they make such a difference ..i tend to however keep them for holidays but then i am on the slow burn with the mortgage ...if i was to tell hubby that i was going even tighter i think he would demand a divorce lol

great idea on the halifax might need to nick it ..also very impressed with the idea and planning ahead for the hard three months ...that is sensible

but the most impressive thing and i mean the most impressive thing ...what a mortgage rate wow ...i am 4.69% and i think i have it good ...i would save a fortune if mine was the same as yours

incidently i am loving the tax rebate go mrs

elantan

ha ha ha you can tell who here is an oldie cant you ...kc says basically the same as me ( although much better) i tell you we must have this hone in radar lol

taxi73

You have valid poins there Karma...Thanks
The case of the normal loans...if I want to overpay I need to pay in full as they are not flexible..I would really love to do that but as the loans take care of them selves for the moment then I have to concentrate on the other stuff.

I also agree about the 6.9% LOB CCS as well...normally it would make sense to pay those off 1st but I really want to make sure that I pay the 0% ones off before the 0% runs out...so that I don't have to apply for any more 0% cards as they are hard to come by and I don't want to be left with big balances at a high interest rate either not being able to shift it.
If santander works out ok..then I'll concentrate on the 6.9% ones.

Also it sounds daft having savings but if I wait until the all the debt is paid off then I'll not get the mortgage paid off in time.

I'm hoping that once debts are paid off and I can throw everything at the savings/mortgage pot that as well as the mortgage coming down by itself at some point before 5 years the savings will equal the outstanding balance.

It's very tricky being S?e as well as need to keep money away for tax,repairs,emergency etc as last year showed me.

taxi73

Thanks El..you must have posted same time as me.
Just been thinking again..lol
I think the tax rebate can go off DHS LOB BMI Card and I'll make more effort with that one as well.
The deal on the mortgage was great when I got it...It didn't need changing until May last year but booked in the february...now it's an absolutely fantastic deal.

If the interest rates shhot up I'll just transfer all the savings into the offset if it works better for me in there as I can still get at it easily.