No More Procrastination..DFW is my Destination!

lemanie

nellis10 wrote: »

I have!! Dave Ramsey has now drilled it into me! :j

:rotfl:

I listened to most of it yesterday whilst working, thanks for the link. It is reinforcement of some other reading I've been doing;http://www.careforthefamily.org.uk/Shop/money_life_resources/the_money_secret and http://www.themoneyrevolution.net/book.htm which both had a big impact on me.

I have finally had a 'real' LBM and we are on a proper and manageable DFW journey. It started last summer but I realized we were really doing it when I looked at our budget for the new year and being debt free seemed possible.

Very annoying about the loan :mad: but congrats on the Amazon card.

My DH finally got around to getting online banking from our mortgage lender sorted and we switched mortgage and saved £77/month just like that, :T.

nellis10

lemanie wrote: »

:rotfl:

I listened to most of it yesterday whilst working, thanks for the link. It is reinforcement of some other reading I've been doing;http://www.careforthefamily.org.uk/Shop/money_life_resources/the_money_secret and http://www.themoneyrevolution.net/book.htm which both had a big impact on me.

I have finally had a 'real' LBM and we are on a proper and manageable DFW journey. It started last summer but I realized we were really doing it when I looked at our budget for the new year and being debt free seemed possible.

Very annoying about the loan :mad: but congrats on the Amazon card.

My DH finally got around to getting online banking from our mortgage lender sorted and we switched mortgage and saved £77/month just like that, :T.

Yep, My real lightbulb moment has come. I really feel energised about getting rid of the debt. I'm just about divorced (awaiting paperwork), I'm in a little house I can live with - Just me and my DS (part-time), and I just need my mortgage sorted and I will feel much better about the future!

I'm going to keep reading as much as I can about debt and life changing stories to keep me motivated to achieve my goal of being completely debt free in 10 years. It will mean some sacrifices, but if I budget for fun times with DS, we shouldn't miss anything too much! :cool:

nellis10

Ugh!

I've tasked myself to have some of my ribbons on ebay before the end of the week.

Just looking at my ribbon box and I have no idea where to start! lol

Will check out ebay and see what they are selling and how much and write down a few things to photo and get listed.

It's going to be a chore!

nellis10

Hi guys,

Got a query,

Phoned my Car Loan place and asked what the APR is - They said 8.53%, but she said the interest is 4%...not sure what this means.

I did confirm however that I can make overpayments and can state if I want to shorten the term or the payments (obviously I will choose term)

Another question - What should I pay off first?

Outstanding balance Divorce Loan - 4250 6.4% APR
Outstanding balance Car Loan - 6450 8.53% APR

lemanie

nellis10 wrote: »

I'm going to keep reading as much as I can about debt and life changing stories to keep me motivated to achieve my goal of being completely debt free in 10 years.

Please don't forget to make any recommendations if you find something worth a read because I think that's a good plan.;)

I have no idea about which to pay off 1st, Dave would say "smallest balance first",:D but a debt snowballer would show you which would save you most in interest?

nellis10

lemanie wrote: »

Please don't forget to make any recommendations if you find something worth a read because I think that's a good plan.;)

I have no idea about which to pay off 1st, Dave would say "smallest balance first",:D but a debt snowballer would show you which would save you most in interest?

I'm going for the psychological advantage of paying off the smallest one, all the while making the regular payments to the bigger one, so that by the time I get rid of the smaller one, the bigger one is roughly the same size as the smaller one was when I started, and thus won't seem like such a big deal when I get to it.

That's my logic anyway! :rotfl:

nellis10

Woohoo the £10.71 was taken off my loan this morning...So now I only owe the Nationwide £4240 :eek::eek::eek:

I am aiming to get this under £4000 in June! :A

My YNAB account is now totally matching all my bank and loan accounts and it's so good to see it all in one place and decide what I am going to do.

I am actually looking forward to next payday, so I can re-budget the month and see where I can make further savings and add more to the loan!

I've created a little spreadsheet to help me visualise paying off the first loan by December and the second loan by Dec 2015. Keeps me motivated...especially if I can get either loan paid off a month earlier than this plan!!

Time to start selling off anything that isn't nailed down! :rotfl:

EssexHebridean

The question of the "which to pay off first" - without question :money: would say "hammer the one with the higher interest rate" and I must admit, much as I know your reasons for wanting to get the other one gone first, I'd agree with him. Another point though - check the agreements on both to see how the interest works. Some loans will refund you some of the interest that you've paid if you pay them off early - in which case if one of yours is like that, and the other isn't, that will have a bearing on your decision.

Hope that helps!

nellis10

EssexHebridean wrote: »

The question of the "which to pay off first" - without question :money: would say "hammer the one with the higher interest rate" and I must admit, much as I know your reasons for wanting to get the other one gone first, I'd agree with him. Another point though - check the agreements on both to see how the interest works. Some loans will refund you some of the interest that you've paid if you pay them off early - in which case if one of yours is like that, and the other isn't, that will have a bearing on your decision.

Hope that helps!

I think both of them calculate interest daily...BUT I get what you mean about interest. The thing is, it's much easier - technically to pay off the loan first as I have an account linked to it...so I can fire off money into it at will. With the car, I have to do a standing order or one off payment, then email them and tell them I've made a payment and then tell them if I want the money off the monthly payment or the term.

Would love to save up and just pay the car loan off in one fell swoop, but I feel obliged psychologically to get of the "divorce" loan and put it behind me.

To be fair, both have about 3 or 4 years left to run, the amount of difference in interest saved isn't going to be HUGE in comparison to a mortgage or whatever so for this, I will go with my heart, not my calculator. :)

EssexHebridean

So long as you've looked at all the options, and made a reasoned decision based on them, then all good. From memory I think our loan was about 3.5k, paid off in 13 months not 30 (which was the term) and we saved about £800 in interest, I think, so no, not huge in the bigger scheme of things. From our point of view the saving was worth it as the interest rate was a fair bit higher than our mortgage, and it was a choice between one, or the other. (Oh, and as soon as the loan was paid off I went after Northern Rock for mis-sold PPI and got another £700 back on that, too! )

Happy spreadsheeting! :T