Hypno's kick up the backside debt diary....

blackangeluk

Seaxwyn wrote: »

Blackangel, I have a bad feeling about this. Don't go onto interest-only until you've had some expert advice (and I count hypno as an expert so that's a start).

I changed to interest-only but I do wonder if it's like consolidation, something that seems to take pressure off at the time but you live to bitterly regret. If we are paying int-only the size of the debt does not decrease and if rates are considerably higher in future, we will be paying high interest on the whole lot when we could have reduced it.

I am very keen to go back to repayment as soon as it seems feasible.

Hypno - what is this thing called 'ironing' that you mention?

Oops thread hijack sorry hypno

I know what you are saying Sea, hence why it is sat on my desk signed but not delivered! Suppose what looked good was paying the extra off the debts and getting them out of the way and dealing with the mortgage later - I may pop over to the mortgage board and have a read over there.

I am definately having a day full of quandries today - needless to say my time sheet now has a fantastic 6 units on it. I am going to open a client folder for MSE on the computer and just time record time spent on MSE for it instead :rotfl:

hypno06

Hijack away BAUK - we are all in this together really aren't we, so any help we can give each other, is surely the whole point of this board!!

I don't think the whole interest only/repayment thing was ever an option for us, actually. When we bought this house we had a huge amount of debt and were told to concentrate on getting that down before tackling the mortgage. I think the figures probably said that we couldn't afford the capital repayment element at that time. So for us, no choice, but be sure you are happy before you do it - another few days of it sitting on your desk won't make much difference in the bigger scheme of things.

Verbatim

Hi there,

Can I just butt in to say be cautious about changing to interest only. If your other debt is unsecured it is likely to be better to pay off the secured debt, ie the capital of your secured debt, or mortgage. I too remember high interest rates of 15% and above and at the moment we have historically low interest rates. There's no guarantee they'll be 5% again for years or ever. Personally my guess is that they'll be down to 5% again but not for about 2 years. But I wouldn't put money on it.

I like to play safe with important financial decisions and I'd advise on prioritizing your mortgage.

blackangeluk

Hi Hypno - this is now the mortgage thread :rolleyes:

I am with the Halifax and the best they can offer me is 6.59%, quite frightening when I am now on a 4.1% mortgage :mad: Am going to calculate DH's future salary and work out what is best to do - for me I wanted the debts gone and tackle the mortgage as a whole - but now I'm not sure. I'm also giving myself a huge kick for not fixing a deal for longer than 2 years :mad:

Feel quite annoyed that a huge chunk of this extra income could potentially be swallowed up straight away into the mortgage, but I suppose I should be thankful we have this extra money as things could have been a lot worse!

My other thought if opening a high interest bank account and putting the capital money in there instead?

taka

I thought I'd say hi... :hello: I saw your post on MFW and thought I'd come and be nosey over here!! I paid off all my CCards in April (unfortunately about the same time as finding this site or it would have been much sooner!) but am now in the process of getting a loan to get repairs done to my flat (roof and bathroom which are both leaking and falling to bits - Essential now unfortunately). I've got both in my snowball and it provides even more of a kick up the behind to get them paid off all the sooner! Good luck!

Taka

Seaxwyn

Hypno, if you stick with snowballing just the unsecured debt, when will you have paid off the high rate CCs and just have the loan left?

hypno06

Seaxwyn wrote: »

Hypno, if you stick with snowballing just the unsecured debt, when will you have paid off the high rate CCs and just have the loan left?

November 2009 sees just the loan and the mortgage. If I leave the loan to run its natural course, it finishes in September 2011.

Hi to Verbatim and thank you for your wise words of caution.

Also hi to Taka, pop over more often - we are a nice bunch.....really......yes, really we are Good luck with the snowballing - I love it!!

hypno06

I have just been given a sure sign that housework should not be done after 2.45pm.............the hoover has died!!!

Oh well, sacrifices will have to be made..............dare not risk the iron just in case :rotfl:

blackangeluk

Verbatim wrote: »

Hi there,

Can I just butt in to say be cautious about changing to interest only. If your other debt is unsecured it is likely to be better to pay off the secured debt, ie the capital of your secured debt, or mortgage. I too remember high interest rates of 15% and above and at the moment we have historically low interest rates. There's no guarantee they'll be 5% again for years or ever. Personally my guess is that they'll be down to 5% again but not for about 2 years. But I wouldn't put money on it.

I like to play safe with important financial decisions and I'd advise on prioritizing your mortgage.

Thanks for your post Verbatim - I am looking at either the 2 or 5 year fixed rate and don't know which one to do now I don't want to be back in this position in 2 years time and kicking myself I didn't grab a longer deal?

Decisions, decisions......maybe I should leave the money side to my DH and just whistle and plead ignorance??

p.s. Hypno, sorry about the hoover but I would take it as a definate signal not to do the ironing. Sit down - now!

taka

hypno06 wrote: »

November 2009 sees just the loan and the mortgage. If I leave the loan to run its natural course, it finishes in September 2011.

Hi to Verbatim and thank you for your wise words of caution.

Also hi to Taka, pop over more often - we are a nice bunch.....really......yes, really we are Good luck with the snowballing - I love it!!

You are all lovely!! I am on DFW often but am more of a lurker than a poster!

Looks like you should attack the credit cards first whatever happens and make a decision when you just have the loan and mortgage to pay off... It may be a boost to then switch to overpaying a bit on both just so your debt free (apart from mortgage) date isn't too far off anyway!!

PS Sorry your hoover died... maybe it just needs a rest and a new fuse?? I'm hoping mine lives for a little bit longer... its held together with packing tape at the mo... Have asked for donations/vouchers to the replace the hoover fund for my birthday next month instead of prezzies!! Is your birthday coming up anytime soon?? :rotfl: