Crunchy pays off the loan early, and other stories

crunchy_time

Oh my gosh the most amazing thing happened today! I am speechless and we cannot believe it.

A close relative has come into some money and is going to give some of it to us. It’s life changing…

circa £50k!!!!!!!!!

Actual amount yet to be confirmed.

Enough to pay off all of our debts and then some.

We are speechless.

I didn’t want to share it on here but I changed my mind because I don’t have anyone other than husband and the family member to talk about it in real life.

I am speechless. I cannot believe this has happened.

Aspiration

Amazing news!! 

DancingInTheRain

Aww that's fantastic!

Sarahwithlove

Thats amazing news, very happy for you. Will make such a difference to your life not having that debt over your head and you can go ahead with saving for enjoyment rather than paying off debts. 

ohdearhowdidthathappen

Amazing news, how lovely

enthusiasticsaver

How lovely and generous of your family member.  I expect that will come in really useful and help with the debts and savings. 

crunchy_time

I still don’t believe it is happening until I see the money in our bank account.  Hopefully that will be the end of the month.

It is really generous of them and life changing for us. Not having to pay c £550 a month for loans will be incredible and such a blessing. 

Crunch xx

crunchy_time

Afternoon all,

The last few days have been mind boggling and we have spent many a lovely moment deciding how we are going to manage this windfall. 

The rough plan is this:

1) pay off loans
2) get quotes to do so remaining things to the house and then make decisions as to whether to use money to pay for them or save up for them now not paying off loans.
3) based on decisions re house plans pay off £5k credit card or not or let it run until next year and then pay it off with husbands bonus.
4) Remaining money to go into savings for now.

Our monthly budget will remain the same for now until we have made a plan and budget for the house, Hopefully completed by the first quarter of 2023. The only thing we are going to up is our personal spending money so we can save up for things we want. I need a new laptop for example but I want to save up for it.

We also plan to see a financial advisor to talk about pensions and investments and update our wills with our solicitors. 

Once all this is done and we have finalised our house plans and budget we can discuss and plan out a new journey to become mortgage free. Our mortgage is currently £258k with 23 years left and we are 42/41. We would like to pay it off by the time husband is 55 which feels like a stretch goal - 13 years. We have a rough plan to reduce the term by a couple of years each time we renew our mortgage but also overpay by rounding down accounts and selling things. I think it will be a real satisfaction to have paid it down early through sheer hard work and I do enjoy a challenge.

Crunchy xx

enthusiasticsaver

Sounds like a good plan. We had several windfalls over our working lives due to inheritances and gifts and were much appreciative of them and felt very lucky.  We never really had debt as I was always  debt averse  but our approach with all the windfalls was the rule of three.  One third to long term savings/overpaying mortgage and pensions, one third to medium term savings for new car/kitchen/bathroom etc and one third to short term for things we wanted to do immediately like a holiday or passing on gifts to our children.

We also shied away from making immediate spending plans to make sure they were well considered.  This approach may or may not work for you but thought I would share anyway.  It is fun thinking these things through anyway.  

ohdearhowdidthathappen

I'd personally pay off all remaining debt with the lovely windfall, complete clean slate and then save the rest....
I've been listening to DR on repeat, so would save 3-6 month expenses before then saving for house stuff especially if you want to start overpaying mortgage to bring down term.
But whatever you do, this is an amazing gift and will put you a few years ahead of your previous plans