Pay ALL your debt off by Xmas 2015!

Pablosammy

Rachiedabbler70 wrote: »

Hi Pablosammy - difficult one - personally I would pay everything else off before thinking about saving for a house just because I think mortgage lenders like it when you have no other debt and you might get a better interest rate. If you have debts with interest rates as well you will also save money by paying early subject to any early repayment charges. I don't have any money set aside I just decided to hit the debt and get rid of it once and for all, but I know it is a risky strategy. Good luck deciding.:)

I've decided to overpay the debt, otherwise I'll just spend it! Just sent £2k to first direct, more to come in 2 weeks on payday...

Rachiedabbler70

Pablosammy wrote: »

I've decided to overpay the debt, otherwise I'll just spend it! Just sent £2k to first direct, more to come in 2 weeks on payday...

Fantastic payment. :j Well done.

Pablosammy

Rachiedabbler70 wrote: »

Fantastic payment. :j Well done.

Thanks Rachie!

I'm tempted to get a replacment CC (for the one I cut up but didn't close down), and have that as my emergency backup instead of £2k cash I've got in TSB. Then I can send another £2k to FD. Seems silly to have cash and debt at the same time. Might sleep on that decision though :rotfl:

amr547

go you, pablosammy!!!! i'm not quite as brave as you and would prefer to hang on to the cash! although its locked away in a 40 day notice access account.

Rachiedabbler70

Pablosammy wrote: »

Thanks Rachie!

I'm tempted to get a replacment CC (for the one I cut up but didn't close down), and have that as my emergency backup instead of £2k cash I've got in TSB. Then I can send another £2k to FD. Seems silly to have cash and debt at the same time. Might sleep on that decision though :rotfl:

That would tempt me too just to get more paid off, but like you say probably worth thinking about first.


I only have credit cards as back up just because saving money with very low interest seems pointless at present whilst I have debt - one of my mortgages is a fixed rate at 5.44% so I overpay it by £100 each month rather than saving money as the interest is far higher. It all depends how much of a risk taker you are as well - I've always been one to fly by the seat of my pants..............:rotfl:

Pablosammy

amr547 wrote: »

go you, pablosammy!!!! i'm not quite as brave as you and would prefer to hang on to the cash! although its locked away in a 40 day notice access account.

I'm better at budgeting properly now I have YNAB, so I'd like to think unexpected costs will be minimal. House is rented, so no random maintenance. Car is under warranty, so no unexpected repairs. No kids. Hmmmm.... I'm talking myself into this.

Phoned First Direct and confirmed there are no overpayment limits or penalties, so I'm good to go. MBNA replacement card ordered as a backup.

Another £2k sent to First Direct... :T

Rachiedabbler70

Pablosammy wrote: »

I'm better at budgeting properly now I have YNAB, so I'd like to think unexpected costs will be minimal. House is rented, so no random maintenance. Car is under warranty, so no unexpected repairs. No kids. Hmmmm.... I'm talking myself into this.

Phoned First Direct and confirmed there are no overpayment limits or penalties, so I'm good to go. MBNA replacement card ordered as a backup.

Another £2k sent to First Direct... :T

Nice one :j

nomi01

Yay, just PAID off my credit card. I don't dare cut it up in case there is an unexpected payment or repair needed.So I am going to freeze it so I can't use it impulsively.
I will add my TOTAL payments at the end of the month. Feeling pleased with myself and desperately trying to avoid the February dip.

Fmess

Well done pablosammy, I am in the same situation as you are now. I don't save my money, I put it all straight towards my debt and have credit cards for emergencies. So far it seems to be working, there are always the odd unexpected expenses but then I just put them on my card, pay them off the next month, and carry on.


Well done nomi01, I love it when I hit a milestone

rubywhatashmoo

When we applied for a mortgage I had about £1500 on a credit card and the amount they would offer us for a mortgage dipped by about 50K!! Craziness, if you've got any debts that you're paying interest on definitely get them paid off - I'm lucky in that I only pay fees for my overdraft (which fingers crossed will be cleared in 19 days!!), but I still just throw any spare money debtwards as I want rid of them for goooood!