Mortgage free by 2023 (!)

debtfreeoneday

All quiet in the bank account and on surveys. Car to be picked up today, pick up a tesc0 direct order and off to a NT place for the day.

SueP19

Have a fab day x

debtfreeoneday

Thank you SueP - we did. no pennies spent apart from paying for the blinking car repairs and filling the tank!

So last day of half term.. and one of those, iron, clean shoes, read books, bake, sweep up leaves - prep for half term to come type of days.

Also need to carve our pumpkins and think DH is planning to finish the slab laying out the front.. after his epic lie in I promised him!

£20.64 cleared on Pr0filic so I've requested that payment to be sent. All quiet in the bank account as it's Sunday, my payday tomorrow so it'll liven up again.

Not heard anything on my power switch for a few weeks but assume that is all going through - should get a little bit back from that when the switch happens.

Happy Sunday all.

debtfreeoneday

Just musing away here, because let's face it I was never going to get any longer in bed today, thanks to DS - he got up at 4.30 (old time) so 3.30 (adjusted time)

I've just sent payment to the CC to cover the car.. we are left with £15 in the bank account!! Just don't want to go over our limit with the payment. This all shows me yet again that we must have a rainy day fund, even if we are trying to clear debt, so I will save a percentage of all earnings into that, just not sure on the percentage - the more I pay off the debt, the more I can then send to the savings and mortgage - I desperately want the debt gone and I swear 2017 will be the year that it happens.. I hate hate hate credit cards.

CathT

We also need a rainy day fund or it becomes a never ending cycle with the 0% cc doesn't it.

hiddenshadow

I do like Dave Ramsey's baby steps for debt (steps 1-3)

Baby Step 1 – £1,000 to start an Emergency Fund (the size of the "baby emergency fund" should probably be tailored to one's income/expenses - I think ave salary in the US is about $10k higher than here as well)
Baby Step 2 – Pay off all debt using the Debt Snowball
Baby Step 3 – 3 to 6 months of expenses in savings

It works well (or did for me, anyway) because you break out of the CC cycle that CathT mentioned, so you have a lot more flexibility to really throw everything at the debt because you have that cushion if you really need it.

(If you're curious, step 4 is to save 15% income for retirement, step 5 is pay for university for kids, step 6 is pay off the mortgage, and step 7 is invest/grow wealth. His advice there is ok, but doesn't account for individual circumstances, and the maths in his books assume a very nice return on investments, which isn't realistic IMO.)

Moneyfordreams

I haven't kept much cash savings... around £2k.... but i can use it for whats needed... like an overdraft... spend a bit, top it up. I have got a zero CC... may aim for the next 6 months is to get CC neutral so I can remortgage easily next summer.

debtfreeoneday

Thank you all - that's helpful. I agree with saving the £1000, but I think I will do it alongside paying the CC bearing in mind I am relatively close to clearing the blinkin things!

PurpleFairy26

DFOD once I was in sight of the finishing line on my CC I reduced the minimum payment (to double the min they said) and then started saving £75 a month in to a EF, I'm currently at £575 and it's built up quickly and I've not noticed tbh. I still TT to savings etc.. but find that I'm not going to the extreme of throwing every penny at debt and then being short. I budget very well though so I'm lucky I've not been in the overdraft for a couple of years and managed to pay a substantial chunk off debt. Like you I just want the CC gone, never to be seen again!

Once I get to £1000 and debt is paid, I'll got back to £75 plus some and try and get it to 3, then 6 months expenses.

You're doing great

debtfreeoneday

Thank you PF, that's kind of you to say that!

I'm hoping with the council tax free months and the double Child ben in january I'll be able to clear it - just frustrating what i'm not doing is OP'ing that on the mortgage.