Pay off mortgage and start having fun!

Pearla*Merle

Wow, it's been busy over this way...! I'm a bit behind the times and still need to properly catch up but in the mean time I'm sending over good luck vibes for today xx

newgirly

A term extention up to 17yrs = a payment of £837 ,

Clearing the credit cards in the 0% term would cost £498 pm

If I am allowed to extend term I could clear cards and it would mean a surplus to live on of £1223 I think. By Oct 2016 the cc payments can be snowballed to the mortgage, knocking 79 months off the 17year term.(if I still decode to go down the op and not invest route!) Plus there should be a surplus left as £1223 pm is a lot more than we need for food petrol and clothes etc.

Hope these figures are correct, in a hurry. Wish me luck

Firegirl

Good luck newgirly:0)

getmore4less

last years accounts show a large profit as we had not yet purchased the building

AIUI the debt/building should be on the balance sheet not the profit/loss account.

Most business run with debt on the balance sheet as the business makes more money from the capital than the interest.

We have never had a problem switching 0% deals and as they are unsecured I thought the mortgage more important
That's fine and can be looked at longer term, using 0% to carry debt cheaper than other debts is called Stoozing.
The main issue is that the BT charges make the savings quite low.
Just have to have a plan for the first 0% refusal.


Well I don't have everything I've spent in the last five years, i can try and plan the next seven years of course, but with three kids and a business its difficult to have anything set in stone

Nothing is set in stone but you have to have a fully populated budget that balances over at least a year, if something changes you rebalance.
The near dates(at least 6 month) the plan should be good a year will cover most things and further out more guess work but most things don't change much year on year.

statement like this

To be honest in the past I have prioritised the mortgage payments first and lived off whats left, sometimes its worked and other times we have gone overdrawn to buy food.

show your mind set is wrong you are attaching the OD payment for food to the mortgage payment not the real discretionary spends where your money is going.

greent

Morning newgirly x


My, you've had a busy thread these past few days!:eek:






I think that people generally are thinking positively for you, but ultimately it's you who has to do this. It can be done but it really is a case of pulling your big girl pants on and formulating a realistic and achievable plan - and stick to it. Over the years I've found your diary exhausting at times with the frequent changes of plan. Please don't take that the wrong way - yours is one of my favourite diaries on here, but it sometimes feels like you have all these plans and then fail to see them through and move on to the next one (I accept life changes and throws us all curve balls from time to time)


I'm not sure if your DH is fully aware of the financial situation - he says that you can deal with it all, but have you shown him the harsh reality of the figures? Even get the teens on board - money lessons are always good. x


I think Eric should go - one of your reasons for purchasing him was decreased commute costs - which doesn't apply at all if you're not using him. I spoke out against his purchase before you had him - you don't need him and it really should be a case of needs not wants if you want to achieve some serious debt reduction (with small treats built in to have once progress has been made)


I hope you get somewhere today with talking to the mtge co - fingers crossed x


Hoping to read a positive update from you later xx

newgirly

Thanks again for the input everyone, I've spoken to the accountant and have all the figures for last year confirmed.

Greent thanks for the honesty, I found it easier the first two or three years to stick to a plan and make large ops , its slipped a lot in he last couple of years.

Although our situation is not ideal , we have made some progress, a back of an envelope calculation is we have overspent by £120,000 in the first 14 or so years of our marriage and since joining mse have paid off £57,000. The 120k was multiple remortgages taking "equity" out of the house, its still not good enough, but I'm am very thankful for joining mse and turning things around to into a pay off direction from a keep botorrowing loads direction.

Polly_Wolly_Doodle

Hope you're still in one peace Newgirly and you've had a productive discussion xx

newgirly

Well, not good news. After a very thorough interview with the advisor over the phone the answer is no to every option.

They will allow our wages to be taken into account, however we still fail affordability even though we have a 37% LTV and are looking at borrowing 3x our wages. Its obviously the cards and loan and the new stricter rules.

The good news is I spent a bit of time in the office running lots of spreadsheets before the interview and dh had a look and I think its sunk in how dodgy our situation is. Hopefully that will help if I can get him fully onboard.

Next step a budget.

edinburgher

Did you ask what difference it would make if you paid off the cards?

ourcornercottage

That's just what I was going to ask. I don't think things are as dire as you think. You have the income to get over this when it comes down to it. Cut back, Make a plan and stick to it. In 6 months or a years time go back to the bank to review again.