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Mortgage Free help

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Ok here is my background.

Been in debt 3 times in my life now, whole nine yards.

Never managed to save a bean let alone a penny

Spent years blaming circumstances, my lot in life, God etc etc for my situation

Fabulous eeker out of money food when need be, generous at other times

DD about to fly the nest at mid 20's, having spend the 8 years at colleges and uni getting qualifications and taking every spare penny and more from me.

A couple of things have brought me to this point, the DD leaving and last year I had to find a huge sum of money on a monthly basis to pay fees, I did, it nearly killed me and made me homeless but I survived.....................showing me one thing (my second light bulb moment) That a mortgage is a dangerous debt, that we are lulled into this false sense of security because the interest is low and it is secured on the property.

If I really focused and worked at it I will be mortgage free.

I am asking pleading begging you all, please what one or two things helped you, no matter how small and how do I start

:beer:
Debt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot

Comments

  • bexster1975
    bexster1975 Posts: 1,576 Forumite
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!
    Wow! Ok, not sure where to start with this one.....

    How much is your mortgage now? What is the interest rate? How long do you have to run? Is it a repayment mortgage? Are you on a fixed term deal? ( if so for how long and do you have restrictions on overpaying). I think that will do for a start.

    In terms of what to do, overpay a small amount every month. It all makes a difference, but even more so if the mortgage is large.

    Produce a SOA to see where you can cut expenses. Where you cut costs put the saving into savings/ OP mortgage.

    Theres a place to begin. Good luck

    Bexster :)
  • SueP19
    SueP19 Posts: 1,882 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    An update SOA to follow

    Mortgage is 16 years to run at £75,000 interest is 2.49% tracker repayment at £442.88 a month
    Sue
    Debt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot
  • bexster1975
    bexster1975 Posts: 1,576 Forumite
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!
    Thanks.

    So, assuming there are no OP limits, first work out what you could easily afford to overpay. Stick that number into the OP calculator in the mortgage calculator on this site then get ready to start trimming expenses!

    Once you see the difference OPs make to overall interest paid its hard to stop wanting to add more to the OP! So start with what's comfortable, look at a trimmed SOA, see where you could make sacrifices that are worth it in the long term. I would say I would not advocate pushing it too hard as mortgage free is generally a marathon not a sprint!

    Very best of luck

    Bexster :)
  • Hi Sue,

    I find keeping a spending diary helps keep me on track, it's scary how quickly some things add up like buying lunch in town when I'm at work. Also reading other peoples diaries on here keeps me motivated too :)

    Good luck!
  • Hi SueP19,

    I can't offer advice because I'm new myself but I can offer solidarity :). The hardest part must surely be deciding to act and posting for the first time. That's step one done :). Good luck, all the best and I'll follow your diary if you post :).

    jeanangeo
  • SueP19
    SueP19 Posts: 1,882 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 10 December 2015 at 11:38AM
    Many thanks

    Here goes, as the situation will change next week (DD leaving home) I have used figures that I believe will be correct after then.

    Just note that prior to 2 years ago we had a large secured loan on top of the mortgage and last year we paid postgraduate fees of £23,500 including travel.

    I have done the usual mse things and shop around for insurance. My problem seems to be the inability to keep my money, I have a list a yard long of things that need replacing/fixing or that we are doing without.

    Your help is greatly appreciated as on the surface I look loaded!!! LOL

    Statement of Affairs and Personal Balance Sheet
    Amended 10/12
    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1236
    Partners monthly income after tax....... 2177this is pro rata over year and can vary wildly
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3413


    Monthly Expense Details

    Mortgage................................ 442
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 130
    Electricity............................. 60
    Gas..................................... 81
    Oil..................................... 0
    Water rates............................. 25
    Telephone (land line)................... 15
    Mobile phone............................ 80
    TV Licence.............................. 12
    Satellite/Cable TV...................... 51
    Internet Services....................... 8
    Groceries etc. ......................... 475
    Clothing................................ 30
    Petrol/diesel........................... 280
    Road tax................................ 39
    Car Insurance........................... 42
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 16
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 26
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 6
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 12
    Entertainment........................... 0
    Holiday................................. 30
    Emergency fund.......................... 0
    Subscription............................ 44
    Cigarettes................................390
    Lottery.....................................35
    Total monthly expenses..................2389



    Assets

    Cash.................................... 300
    House value (Gross)..................... 110000
    Shares and bonds........................ 0
    Car(s).................................. 5000
    Other assets............................ 0
    Total Assets............................ 115300



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 75353....(442)......2.49
    Total secured & HP debts...... 75353.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    m1.............................2300......39........0
    m2.............................2700......46........0
    c1.............................1884......25........0
    q1.............................1255......25........0
    s1.............................410.......10........0
    Total unsecured debts..........8549......145.......-



    Monthly Budget Summary

    Total monthly income.................... 3,413
    Expenses (including HP & secured debts). 2,389
    Available for debt repayments........... 1,024
    Monthly UNsecured debt repayments....... 145
    Amount left after debt repayments....... 879


    Personal Balance Sheet Summary
    Total assets (things you own)........... 115,300
    Total HP & Secured debt................. -75,353
    Total Unsecured debt.................... -8,549
    Net Assets.............................. 31,398


    Created using the SOA calculator at https://www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Debt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot
  • The first question to ask is do you really have £1304 spare every month? If you don't, then your SOA isn't right :)

    If you don't know where that money is, I'd recommend a spending diary to find it.
  • SueP19
    SueP19 Posts: 1,882 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The first question to ask is do you really have £1304 spare every month? If you don't, then your SOA isn't right :)

    If you don't know where that money is, I'd recommend a spending diary to find it.

    Yes I missed a couple of things out by accident and need to amend it.

    A spending diary is a great idea, to be honest it probably goes on rubbish

    Off to amend :D
    Debt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot
  • 2 Diaries - see The Spreadsheet Diva's MF Diary
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
  • SueP19
    SueP19 Posts: 1,882 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    2 Diaries - see The Spreadsheet Diva's MF Diary

    The Spreadsheet Diva's MF Diary will be my diary, I didn't want to mix up advice on SOA with it ;)
    Debt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot
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