Keep calm and carry on....

South_coast

Thanks Jessy 😀 It gets better - I've just won £1 off my next Lidl shop from a scratchcard on their app 🥳🥳🥳!

coldcazzie

South_coast said:

Thanks Jessy 😀 It gets better - I've just won £1 off my next Lidl shop from a scratchcard on their app 🥳🥳🥳!

Now don't spend it all at once!!

South_coast

🤣           

killerpeaty

Well done with your OP!

How is your job going?

South_coast

Thanks KP 😀 The job is going well so far 🤞

debtfreeoneday

Why wouldn’t you pay off £1k and reduce the monthly payment?  Sorry if that’s a silly question. I’m looking to do that and wondering if I’ve missed something. 

Grogged

debtfreeoneday said:

Why wouldn’t you pay off £1k and reduce the monthly payment?  Sorry if that’s a silly question. I’m looking to do that and wondering if I’ve missed something. 

The banker here, look! shiny things, nothing to see here... 😁

South_coast

Hi DFOD, I have thought about it, but it would take into account all the OP's I have ever made and recalculate the monthly payment to an amount which would leave a zero balance at the end of the 25-year term. I asked the bank about it a little while back and they said the new payments would be c£90/month. Which sounds great, until you consider that the interest payment is still going to be the same, as it's a percentage of the outstanding balance. So the interest stays at c£38 and the payment drops from £253 to £90, meaning a much bigger proportion of the monthly payment is swallowed up by interest and not reducing the balance. Of course, I could keep allocating the same amount to it every month and just OP the difference, but this would mean the 10% allowance gets used up much more quickly each year because there's more money going to "OP's" even though the amount I'm paying is the same. So it's better for me to keep the payments as they are. Hope I've explained that alright, it makes sense to me but I'm no mathematician!

badmemory

When does your current fixed rate run out?  I'm sure you have said somewhere but I have forgotten.  I'm sure I read somewhere, quite possibly in my imagination, that if you owe less than £10k that they will only do one at SVR.  You are so close now & believe me getting there feels great.  Basically they can throw what they like at you & you can just shrug it off.  And when you get your pension it is even better because no-one can take it away - well apart from the tax man!

debtfreeoneday

South_coast said:

Hi DFOD, I have thought about it, but it would take into account all the OP's I have ever made and recalculate the monthly payment to an amount which would leave a zero balance at the end of the 25-year term. I asked the bank about it a little while back and they said the new payments would be c£90/month. Which sounds great, until you consider that the interest payment is still going to be the same, as it's a percentage of the outstanding balance. So the interest stays at c£38 and the payment drops from £253 to £90, meaning a much bigger proportion of the monthly payment is swallowed up by interest and not reducing the balance. Of course, I could keep allocating the same amount to it every month and just OP the difference, but this would mean the 10% allowance gets used up much more quickly each year because there's more money going to "OP's" even though the amount I'm paying is the same. So it's better for me to keep the payments as they are. Hope I've explained that alright, it makes sense to me but I'm no mathematician!

I think I get it. I’ll OP at £999 😂