when is realistic?

louise30_2

Hi All

I've been posting in the debt free board for a few months and can't believe I am even thinking about paying my mortgage off.

I'm sure I'm not ready yet, but I am paying £250 a month off a debt (and any extra I can pull together) and hope to be - no I will be clear - in a year.

I may need a new car soon after then, but my question is , when should I really look at paying my mortgage off.

I'm £30, single with a three bedroomed house. I have a dog, a full time job and an R-reg car. (I need a car for work) My profession doesn't pay much (I bring home £1,100 a month - but I pay a pension before I get this money)

I'm on a v tight budget to pay off the £250 a month, - should I chip at my mortgage now, or wait a few years?

- oh and the other thing - I'm not v good with money!

Newtonlot

Hi Louise,
You should look at the mortgage pig thread. Anything off your mortgage helps. My OH keeps asking 'What's the £1.odd that's left the joint account?' and it's me just sending a pound or so to the mortgage as every little adds up.
You are doing really well to be paying off your debt. Just chuck a couple of pound at the mortgage every now and again until your debt is cleared and then think about how much you can afford to throw at it, and do that. And then every time you find yourself with a bit to spare put that on the mortgage aswell.
HTH

Gingham_Ribbon

If your debt is costing you more in interest than your mortgage, which I assume it is, I'd be tempted to put everything I could into that first. Then you can work on your mortgage, already in the habit of putting extra away every month.

Old_No.7

Hi Louise30, I'd say: pay off your debt first and foremost (and avoid building up new debt), build a cushion for emergencies (like put 6 months outgoings in a savings account), save up for the car if you need one and then reassess your budget: establish what sort of lifestyle fits best with your income. Coz after all that you might want to ease up a bit on the tight budget (I can imagine you want to have a life as well as a budget). Then again maybe your money saving ways will have become ingrained and you keep things as they are: seeing the savings grow is way more satisfying then paying off debts!
Only then start chipping away at your mortgage if you can. It might be a long way off, but a very good goal to aim for. Do it one step at a time though: you can't always take the money out of the mortgage easily should you need it, and all things considered, a mortgage is not that bad a debt to have: usually the lowest in interest, so a loan for a car would probably be more expensive.