Pay off mortgage and start having fun!

newgirly
newgirly Posts: 8,861
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edited 16 March 2012 at 12:47PM in Mortgage-free wannabe
I have been reading other peoples posts for a while,trying to get myself in the right frame of mind to start overpaying on the mortage.DH and I have a house worth about £220,000 with a mortgage of £159,000 although we only paid £120,000 for it (£93,000 mortgage) to start. So as you can see we have been not so great in the past! Last year we also owed about £20,000 on credit cards which is now down to £10,000. I really want to get rid of the mortgage before our youngest turn 18, the twins are nearly 10 now. So any words of encouragement would be great, I need keeping on the straight and narrow.

Xmas paid for by saving £1 a day minimum in a sealed tin, plus homemade/sale stuff.
Birthdays now in monthly budget, plus extra vouchers earned

I am taking part in the earn £2012 in 2012 challenge on the up your income board, so whatever earned from that will be split between op's and holidays fingers crossed.

Budget from may 2012 onwards:

income.................2092.00
child benefit..........188.60
child tax cr..............0 no longer!
total....................£2280.60

mobiles x 2...........32.00
tv licence..............12.37
elec/gas................140.00
water....................60.00
council tax............125.83
home insurance.......11.83
pension..................21.90
life ins....................15.17
sky ........................21.00
car tax....................15.83
car ins.....................22.00
car maintenance.........8.33
petrol.......................60.00

school dinners............48.00 (1 dinner/1 bacon sarnie each pw)
pocket money.............20.00
clothes.......................30.00
birthdays....................50.00

grocery.......................250.00
(food/pets/cleaning)
DH's money.................100.00
0%cc ................................32.35
mortgage interest.........425.00
mortage overpayment....778.39


money in: £2280.60
money out:£2280.60







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2022 MFW 67 - 33 month challenge to clear mortgage, month 15 completed and on track 🙂MFI3 No.12
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Comments

  • SmartRRRR
    SmartRRRR Posts: 101
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    My advice is always this - know the difference between what you WANT and what you NEED.

    Think carefully about why you want something, and only buy what you need; you will spend less.


    Good luck on your MFW mission.
  • Jonbvn
    Jonbvn Posts: 5,562
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    Get rid of the expensive CC debt before you move on to the mortgage.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • black_taxi_2
    black_taxi_2 Posts: 1,816
    Debt-free and Proud! Mortgage-free Glee!
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    agree--clear credit card--PRIORITY
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
    vanguard shares index isa £1000
    credit union £400
    emergency fund£500
    #81 save 2018£4200
  • newgirly
    newgirly Posts: 8,861
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    I forgot to mention, my credit card is on 0% until August, which is also when the expensive fixed rate ends on the mortgage. Am thinking of getting a one account as DH gets a lump sum once a year, approx £8000 from work.
    2022 MFW 67 - 33 month challenge to clear mortgage, month 15 completed and on track 🙂MFI3 No.12
  • pammyj74
    pammyj74 Posts: 3,290 Forumite
    Good luck on being MF. Have a look at all the challenges on here (see my sig!)
    Also try and look at your outgoings and see what you can save by changing suppliers and insurance (going through cashback sites etc)

    Do you work full time? I work part time and in the evenings I do surveys and reviews etc to gain some extra cash.

    Definitely watch what you are spending and ONLY buy things if you really need to and have the money for already (not on CC)
    Join Freecycle if you need anything just ask, someone may have it for you (I got a breadmaker the other day and have had a childs bike)

    Set yourself a target to OP each year (mine is £3k)

    Maybe see about decluttering and doing a carboot now they have started again?

    Once you start OPing it will become an obsession!

    Good Luck x
    MPs left feb '08 276- Dec 13 36 :T MB Jan 10 ~ £82,377 Dec 13 ~ £29987
    EMFD was Feb 32 :eek: NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!! :j
  • Hi newgirly,

    Welcome to the mortgage free wannabe forums. May be worth listing your mortgage balance and rate, your credit card balances, rates and when any 0% deals expire, so that we can advise what should be paid off first.

    Biggest debts first, as others have mentioned. Chances are that that will be the credit cards.

    Financial Bliss.
    Mortgage and debt free. Building up savings...
  • Glamazon
    Glamazon Posts: 8,401 Forumite
    newgirly wrote: »
    I have been reading other peoples posts for a while,trying to get myself in the right frame of mind to start overpaying on the mortage.DH and I have a house worth about £220,000 with a mortgage of £159,000 although we only paid £120,000 for it (£93,000 mortgage) to start. So as you can see we have been not so great in the past! Last year we also owed about £20,000 on credit cards which is now down to £10,000. I really want to get rid of the mortgage before our youngest turn 18, the twins are nearly 10 now. So any words of encouragement would be great, I need keeping on the straight and narrow!

    hi!

    Just wanted to say good luck - I'll try & read your thread when I can :)
    A very busy Yummy Mummy to a 1 year old gorgeous boy :smileyhea

    Where does the time go? :think:
  • newgirly
    newgirly Posts: 8,861
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    I can't wait to start overpaying on the mortgage in August, I have already started doing online surveys and have earnt about £60 using topcashback in the last 2 months. I have cut my shopping budget from about £120 per WEEK! to £60 which is a start, but I know i can get it down further whith help from some of the other boards. Must try to get kids to eat what we eat a bit more and not be so fussy! I do a bit of cleaning for some extra money sometimes, but am a SAHM, at the moment it is easier as OH has just taken over running the company he was working for, which was a bit unexpected, and he is working from 4.30am until at least 7pm sometimes much later, and often weekends, so he is not around much. I am hoping that if we can pay the mortgage off earlier than the 30 year term we currently have, he can leave if the stress gets too much in the future. Anyway I am off to make some homemade bread for lunch, one of the only things EVERYONE in the house likes! Have a great day.
    2022 MFW 67 - 33 month challenge to clear mortgage, month 15 completed and on track 🙂MFI3 No.12
  • wymondham
    wymondham Posts: 6,354
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    edited 17 April 2010 at 8:02AM
    Good luck newgirly!! We did this a few years ago (for my 40th). It's a nice feeling not having to pay any rent/mortgage etc - makes you feel 200% more secure in this uncertain world. I did it by evaluating all outgoings, checking i was getting the best deals, cashing in all bad/poor investments. I changed to a current account mortgage so I overpaid automatically (anything left pays the mortgage) - we did it in a few years. You've had some good advice on here, especially the poster who said evaluate what you NEED rather than what you WANT - remember it's not what you earn, it's what you spend that decides if you'll be successful...

    Just to add be sensible about it - don't let it rule your life!
  • pammyj74
    pammyj74 Posts: 3,290 Forumite
    wymondham wrote: »

    Just to add be sensible about it - don't let it rule your life!

    It's a bit late for that for me lol
    MPs left feb '08 276- Dec 13 36 :T MB Jan 10 ~ £82,377 Dec 13 ~ £29987
    EMFD was Feb 32 :eek: NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!! :j
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