OMG I owe 250k!!!

pinkteapot

Can only reiterate what everyone else has said. Do you have a monthly budget written out? Do you know where your money is going?

We earn around £80k and owe about £220k, down from £245k 18 months ago.

We overpay £1,500 per month.

We don't have kids so our outgoings will certainly be lower (if you've got nursery fees I know they can be huge), but you should be able to save *something* each month.

You need to write out your outgoings:

- mortgage
- council tax
- utilities
- mobile phones
- TV/broadband/phone
- any other monthly bills - gym - anything going out regularly

You need to start tracking your spending. Note what your credit card bills are each month, and what goes out of your current account in cash withdrawals etc. Beyond the monthly bills, how much do you spend?

If it's too much, you need to delve deeper into exactly what's being spent, on what.

We make our overpayment at the start of the month, as soon as we've been paid. Our process for choosing the amount we're overpaying was:

1. Total the monthly bills
2. Subtract from our salary to get our disposable income
3. Decide between us how much of that to spend, and how much to save

We make the overpayment at the start of the month and our spending amount is our monthly budget. We don't even see that extra money or think of it as available.