New WFTC budget means we're down by £200 p/m

tescobabe69

niftythrifty33 wrote: »

Thank you all for your advice. Annie123, I know you are probably right but been doing this for a few yrs and even though it doesn't make sense, in my head it means I'm still doing that little extra bit towards clearing the biggest one, the dredded mortgage. But I will have a good think about this. I also have a little bit stashed away that was given to me in someones will but I cant bear to use it to pay off debts, it seems wrong somehow! I think I should be posting this stuff on the dfwb forum?

What rate on interest are you receiving on your savings, and what rate are you paying on your debts ?

sniggings

niftythrifty33 wrote: »

Thank you all for your advice. Annie123, I know you are probably right but been doing this for a few yrs and even though it doesn't make sense, in my head it means I'm still doing that little extra bit towards clearing the biggest one, the dredded mortgage. But I will have a good think about this. I also have a little bit stashed away that was given to me in someones will but I cant bear to use it to pay off debts, it seems wrong somehow! I think I should be posting this stuff on the dfwb forum?

really you do not have any savings if you owe more than the savings!

You might as well pay the debts off with the savings, then replace the savings when you are debt free, paying interest on debts is daft if you can reduce the debt/interest.

Sorry but if you are earning £29,000 plus CTC and family allowance and no child care costs, I can't see how a reduction of around £30 a week if going to affect you in the way you say? you say you are living on the bare minimum? is your mortgage too high? car expenses etc sorry if it sounds like I'm having a go, I'm not, I'm just trying to understand how someone on a half decent income is not able to make ends meet.

niftythrifty33

Sniggings, you have a good point. We can make ends meet and I know we are lucky to both have a job with half decent wages especially for where we live. We do rely on the extra from CTC but we can manage without but it's a very fine line. We have a small mortgage compared to lots of people. Our DD's are 1k p/m for everything. Car Ins. is yearly. We need to budget but haven't done so properly/regularly over the past 2 yrs, hence Cr card and OD debt. Also the kids seems to cost so much these days even though we don't give pocket money unless they do jobs, its mostly school trips and new uniform, shoes etc.

I have got the little bit that was given to me in an ISA. I will prob use this to clear the OD but not the credit card as its 0%

somethingcorporate

It really is foolish putting extra into the mortgage which has such a low % compared to your O/D.

If you have the facility to withdraw overpayments you may really want to consider doing this, I know you feel it is going backwards but the interest rate on your unsecured debts will continue to punish you compared to the saving you are getting it by putting it in the mortgage.