Hypno's "no more boom or bust" diary

hypno06

Yes, SS, I have my longstanding snowball which I have been updating for ever, and so I just made a new one for the three remaining debts plus the mortgage.

I will keep both of them running - I don't intend abandoning my original at this stage!

Lemon_Tree

Hypno you've now got me thinking about my mortgage and how i would be able to show is, my trouble is it's on repayment so my monthly payment barely knocks anything off it, how would you calculate the current debt?

hypno06

Same as any other debt, LT - put it in the snowball calculator - early on, the amount of capital that is repaid is low, but as time goes on, that amount gets bigger as the proportion of interest is less.

If you overpay your mortgage at all, then obviously that overpayment comes off the capital bringing the debt down further.

EssexHebridean

I've now got my mortgage calculating spreadsheet set up to show the amount per month we're paying in Capital over interest - thanks to OP'ing we passed the all important "tipping point" when the June payment was made and now are paying more off the Capital than in interest each month. :A SUCH a good feeling!

Another vote here for "go if you can get the time off" for the Skiing holiday Hypno - I can hardly think of anyone who deserves a holiday and some "self time" more than you do.

Lemon_Tree

ah but there's the crux i never did start the snowball, i once tried and it lost me so i gave up. My calcs have always been done in excel. Maybe i should give a snowball another go

hypno06

Because we only paid interest only for the last six years, our capital repayment element of our monthly payment HAS to be fairly high in order to catch up, so our current minimum required payment is 60/40 in favour of interest, which does at least mean that we notice a difference in the capital each month, and it won't be long if I overpay before we too will be at "tipping point"

LT, if you are running a spreadsheet, have a word with essexhebredian and see if you can tweak it to include the mortgage!

skint_spice

OK, now have snowball all done and I'm looking forward to finding some extra money here and there and seeing the date creep forward!

Hope you get your time off on monday - holiday sounds a great idea.

hypno06

Hurrah for the snowball calculator :T It has been a huge motivator for me since I started this DFW lark :T

skint_spice

hypno06 wrote: »

Hurrah for the snowball calculator :T It has been a huge motivator for me since I started this DFW lark :T

I used it when I had debts but never thought of using it for the mortgage, my current calculations are slightly flawed as they are based on my rate staying at 3.5% till it ends which is never gonna happen:D.

Lemon_Tree

just sorted out the snowball calculator, why did i have trouble with it before? heaven knows. have sorted out what mortgage should stand at at the moment and still paying tonnes more on interest than capital. Now i may just be sad and figure out how to get this into my accounting program so i can track that as well. Oh heavens i need a life on a saturday night!