FULLy offset as of today....Yipee!

Nice_guy

Hi Guys,

As per title, today we became FULLY offset! 8 months on from starting our mortgage free journey. Our outstanding mortgage amount is vitually the same as our savings - approx 113k. It really is a wonderful feeling

However as always there is a BUT. Our fully offset status is on borrowed time, as a large portion of our 'savings' is from 0% purchase cards - approx 37k. The first of these cards will have to be paid off in 4months and the last of the cards has 11 months to run. We went from having no credit cards 8 months ago to now having 7 cards with a combined credit limit of 43k. It scares me to think what would have been possible pre credit crunch/recession.

I have recently had a few rejections in trying to get further 0% cards so I think i'm pretty much at my limit. I'm at the point that if I asked my mom and dad for a fiver over 12 months even they would reject me :rotfl:LOL. I haven't tried obtaining anymore cards on the OH's name just in case we needed credit in the very near future. Can't see it happening, but you never know!

If all goes to plan we should be fully offset with our own funds within 8-12 months. Becoming fully offset today has just made me even more motivated to get our mortgage out of the way with. It came at the perfect time too as I felt my motivation had dipped with mortgage free journey. But as we all know its a marathon not a sprint.

So to everyone on this journey, keep your heads up, keep marching on, it's a battle you will win and it is worth every second!

Nice_guy

getmore4less

Whats the mortgage rate?

It is hard to make stoozing pay with the BT fees at around 3%.

hillcats

Make damn sure that you pay those cards in plenty of time !!!

Jeff77

Glad to hear you're doing well nice guy. Just always be careful with the cards. They are the things that drag us to a sea of debts sometimes. Ha ha.

Nice_guy

getmore4less - our mortgage rate is 2.99% fixed for 2 years with FD. The money stoozed on the CC's was just intended to be for quick stoozing. With balance transfer fees on nearly all CC's - the long stooze may well be dead.

Come the end of the 0% rate each card will be paid off in full. I have 7 separate accounts representing the outstanding amounts on each of our credit cards. This method has kept me well organised and made sure I haven't spent money that is not ours!

I have rung each card provider three times to get the deadline date by which the balance needs to be paid on each CC along with their accepted methods of payment. I will ring again closer to time on each CC and each card will be paid off 2 weeks in advance of the deadline date.

Jeff77 I think I have seen too many people get into trouble with CC to hope not make the same mistake. Stoozing at whichever level is only for the organised.

getmore4less

With a BT fee of 3% on a 12 month BT you are losing money.

With the delay in getting the money, the need to pay off the cards a little early and the min payments the BT fee has to be a fare bit lower than 2.99% to even break even

What fees have you been paying?

Gorgeous_George

Sometimes I feel that people let a target obscure their vision.

The title says 'Fully offset...'.

It should say 'Cheap mortgage transferred to risky credit card much to the delight of the mortgage and credit card companies.'

Sorry, I don't see what you have achieved other than damage to your credit rating.

GG

Nice_guy

Gorgeous George - I've stoozed 37k on CC's and offset that amount against my mortgage, thus saving interest on 37k - that's what has been achieved.

Your are right the title of the post does say 'FULLY offset' and that because I am fully offset. If you read my post properly I've stated while I am technically fully offset I know this is on borrowed time. I don't see my stoozing efforts as being 'risky' as I am in complete control of my finances.

The CC companies may well be delighted that I have stoozed up 37k as they have made money from outlets I have purchased from, however they won't be getting a penny of interest out of me as all the balances will be paid in full I'm not so sure why the mortgage company would be so happy as you say? I've reduced the interest I pay them by stoozing.

I have got rejected for 2 credit cards, thats the only way I see that I have damaged my credit rating. I don't see this as a big deal as I have never defaulted on any credit payments. The two rejections will fall off my file in time.

Can you expand on me 'letting a target obscure my vision'?

getmore4less

And the BT fees were?

Nice_guy

getmore4less wrote: »

With a BT fee of 3% on a 12 month BT you are losing money.

With the delay in getting the money, the need to pay off the cards a little early and the min payments the BT fee has to be a fare bit lower than 2.99% to even break even

What fees have you been paying?

I haven't been paying any fees? Sorry if I have confused things a little along the way. The 37k that has been stoozed is all on 0% new purchase cards. I've just been paying the minimum payments. Just before the 12 month introductory offer ends each card will be paid in full.

My intention has been never to balance transfer any of the cards as the fees involved in doing so makes it not worthwhile.

getmore4less

OK got it.

I found the quicker route to 100% offset became cutbacks on spends. Work expences helped with the stooze pot.