XSpender Speeds it Up - £0 to £60k in 27 months

XSpender

DH and I both got paid yesterday. DH wage was less than I was expecting with his new job but will be able to see better when he brings his payslip home. I have budgeted on what he got paid this month and on the lowest bonus he will earn so hopefully there will be a bit extra to play with.

The plan is to clear the debt balances in this order:

Bank of Mum and Dad 3.9% - 31.12.16
TV 0% - 31.12.16
DS 0% - 31.01.17
CC 0% - 31.07.17

This will leave us with our 3.9% personal loan which I am just going to keep running for a couple of years.

OP Target - LTV under 80% by 01.06.18

I can knock nearly 1.75% off our interest rate if we can reduce our LTV to 79%. This is based on the house price staying the same. We need £13,000 in OPs to do this. Re mortgaging to shorten the term and keep the payment the same will knock another 4 years off the mortgage term :eek:

The plan is to keep shortening the term when re mortgaging and SIF before 10th June 2026.

Simplified Accounting

I have also been having a good look at our bank/savings account and have decided to just keep our club Ll0yd5 and my regular saver as these have the best rates. It will mean using YNAB properly to keep tabs on the balances in each category (pot) but all monies will be kept in current account to earn maximum interest.

I will save the payments to SIF Bank of M&D in the regular saver. I can't pay extra off this each month due to the way it is set up so will save and SIF when I have enough.

Flexing our Frugal Muscle

As I mentioned in an earlier post our mortgage is going up a lot and we wil have less disposable income. We need to flex our frugal muscle and tighten our belts as the thought of been in debt again gives me the heebie jeebies and I want it gone asap.

DH has strict instructions to stick to his personal spending allowance and I need to manage our food spends better and we will both be involved in cutting Christmas and holiday spends. We also need to budget for home improvements and have agreed only the minimum work will be done on the house until next year. I have a pot of money for this put aside, it isn't much!

I could also do with finding a way to make a little bit extra each month.

Suffolk_lass

A quick query from me. Why are you choosing to pay 3.9% on a personal loan while paying off a 0% CC that is due to run until 1.7.17?

Surely the most effective way of making your money work for you is to concentrate on reducing/clearing the highest interest debt first? - even by stoozing the 0% CC when it runs its' course will only be a flat fee of 3.5% so cheaper than plodding with the personal loan at 3.9% and 13 months away...

You may of course, have a perfectly sensible reason but CBA (can't be a---d) is not that reason. You have been so sensible, I hope this is just a little nudge back to your true path

SL

XSpender

Hi SL

No it isn't that I CBA it is because my mortgage rate is high (almost the same as the loan) and I want to spend 2017 OPing enough to get the LTV down so I can access a much better rate in 2018 when my fixed period finishes.

We were limited to what we could get initially due to a higher LTV and it been just under 6 years since our IVA completed.

The date on the CC post above is the date I am aiming to have it paid off by.

Once the new mortgage is secured I will attack the loan.



Thanks for your comments though as it made me stop and think it through again.

XSpender

£2 spent today on some cider for DH to have with the curry I made with stuff from the cupboards, or rather the box of stuff that was in the cupboard and is half packed;) Also rustled up together some muffins using a clean eating recipe and 2 dodgy bananas and other store ingredients.

We received some interest on our current account balance today and it looks like keeping our savings in this account is a good plan.

DH has also achieved his maximum bonus amount so we will receive this next month We have already agreed to split it into savings to clear Bank of Mum and Dad and into the refurbishment fund.

I am WFH tomorrow so will get dressed into my running gear when I get up and go for a quick run in between phone calls

XSpender

Finally got sight of DHs pay slip and the difference between what he got and what I was expecting is due to his monthly bonus being paid a month in arrears so he is paid this month at last months rate and will get paid the new rate from the end of June

I managed to finish an assignment for a course through work yesterday but still have another one outstanding which I have agreed will be handed in by the end of the month :eek:

Last bit of paperwork dropped off at the solicitor this afternoon as we are due to exchange today :eek:

I did get dressed into my running gear this morning, am still in it but not been for a run yet, will go shortly and must then crack on with some preparation for next week's sessions. I am finding it hard to concentrate at home with packing to do, boxes everywhere and no where to sit! Roll on next week when I will have my own office (and no excuses ) I have seen the desk I want and will order it at the end of the week so it can be delivered to the new house.

I have defrosted some pork mince which I must make into meatballs before it goes funny as DH wants fish and chips tonight. It will have to be meatballs tomorrow.

We are out at the Theatre with DS on Sunday afternoon and I have budgeted for a meal beforehand. Doesn't look like I will be cooking much this weekend! I must remember to look for a voucher to use for the pizza place.

Right I am off for a slow run around the block.

RoaringTwenties

I hope you exchanged ok!

XSpender

It didn't happen today after all RT:( One of the solicitors left early so our solicitor couldn't get it through. It appears Friday's are not the best day to try and exchange with all the completions going on.

Solicitor is confident it will happen Monday and I am going to transfer all the required monies this weekend

newgirly

Hope it all goes ok on Monday

RoaringTwenties

I exchanged at 16.59 on a Friday once, never again :eek:

Honestly it's better doing it on Monday, so much less stressful. I'll keep my fingers crossed all goes well

XSpender

Exchanged today

I shouldn't be feeling stressed as we have done as much as we can at the minute with only a few bits left to pack and the beds to take apart but I am.

Only 3 full days left in this house :eek: