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Mortgage Free help
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SueP19
Posts: 1,882 Forumite


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:
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
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Comments
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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
Bexster0 -
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
SueDebt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot0 -
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
Bexster0 -
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!0 -
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
.
jeanangeo0 -
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 pot0 -
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.0 -
turtlemoose wrote: »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 amendDebt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot0 -
2 Diaries - see The Spreadsheet Diva's MF DiaryAlways 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 27.10.190
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A_Frayed_Knot wrote: »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 itDebt Free Diary - Second Chances! Life in a Tourer........Debt free, building a savings pot0
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