Mortgage free by 2023 (!)

debtfreeoneday

Well we bought a car.. so that's a lump on the CC as we decided against asking parents for a variety of reasons..

shangaijimmy

Love it... speedy decisive decision!

mummytogirls

Yay to the new car!!! xx

debtfreeoneday

That's me all over SJ, very decisive when I want to be.

Feeling a bit bleurgh about it all today though, knowing the debt is now stretched over 4 credit cards and thinking whether I should knock mortgage Op's on the head for this year, which goes against everything I said a few posts back. I just want to see progress against stuff.

The alternative is to just 'ignore' the debts in that I just keep making payments as and when I can and just accept it's going to take a few years to clear them.

Pre 6am this morning, I can't ever see a day when we will be debt free.

Disappearing now to get out of this funk and get in a more positive mood.

gallygirl

Sorry you're feeling down . Is the CC debt not on the new card also at 0%? If not, then that really should be your focus for now. It's nice to make mortgage OP's but not if it's costing you more elsewhere. I get the feeling you're results driven so wouldn't it feel great to see that balance coming down quickly? If you work out how long it's currently going to take to pay off and how much interest you'll pay, then every time you make a payment you can recalculate it. That should give you a feelgood factor every time. Plus you can make minimum payments on the 0% card and the two lowest interest rates and concentrate on really hammering the highest, once you are down to three cards that will really feel you're getting somewhere.

Have you bunged all CC and mortgage debt into http://www.whatsthecost.com/ - that will show you the impact of snowballing your payments onto the next available card and I found it really helpful - it will show you a pay-off date for each element of debt :T.

Chin up chuck, onwards and downwards .

debtfreeoneday

Well a few hours later and a few diaries read and I'm feeling more positive, apart from slight heart failure for 10 minutes that I'd missed a £104 payment to something! I hadn't, thank goodness.

Right, the new plan of action.

I'm reworking my percentage payoffs. I figure the OP is set up to the mortgage as a minimum to keep us on track to hit 2023, so I'm not going to send any more this way at the moment.

CC1 - 32.5%
CC4 - 32.5%
CC3 - 5% (this is on 0%)
Hols - 20%
Long term savings - 10%

CC4 added for the car purchase, this is an interest paying card, but it's a low rate and it's an old card with a crazy credit limit on that I've always kept 'just in case'. Needless to say I need to deal with this asap.

So, sigh - back up to £9000 debt.. but we've done this before and we'll do it again. Will just keep plodding on as usual.

I'm thinking I should adjust the starting total on CC1 to £950 left otherwise I'm double paying that amount on paper aren't I and it look like I've paid off more debt than we actually had.

Tiny bit more sent to long term savings, I'll be a millionaire in my old age at this rate!

debtfreeoneday

gallygirl wrote: »

Sorry you're feeling down . Is the CC debt not on the new card also at 0%? If not, then that really should be your focus for now. It's nice to make mortgage OP's but not if it's costing you more elsewhere. I get the feeling you're results driven so wouldn't it feel great to see that balance coming down quickly? If you work out how long it's currently going to take to pay off and how much interest you'll pay, then every time you make a payment you can recalculate it. That should give you a feelgood factor every time. Plus you can make minimum payments on the 0% card and the two lowest interest rates and concentrate on really hammering the highest, once you are down to three cards that will really feel you're getting somewhere.

Have you bunged all CC and mortgage debt into http://www.whatsthecost.com/ - that will show you the impact of snowballing your payments onto the next available card and I found it really helpful - it will show you a pay-off date for each element of debt :T.

Chin up chuck, onwards and downwards .

Thanks GG, I will look at that site. I have had this debate again with myself, but I'm worried about not hitting 2023 which is an absolute must. And if I delay OP on the mortgage for probably the best part of two years, there will always be something more important than making OP's - and that is my priority, even if, in the long run, it costs us more. I do absolutely hear what you are saying though and I will give it some more thought.

debtfreeoneday

Checked that site and it says 32 months to clear these, but that depend on what we do when CC1 hits April and isn't 0% anymore.

Anyhoo, no OP's to the mortgage anymore on Sundays (Sorry SJ), so payments of £10.12 to CC4 and £9.00 to CC1 being made today.

CathT

Just been catching up, when I read you had cleared the cc earlier this month I was going to recommend whatsthecost. I use it and find it motivating. The mortgage does take a bit of a back seat for us though at the moment.

smallholdingsister

FWIW you did the right thing not borrowing from the rellies.
Dave Ramsey is very sound on this.