Feeling positive about banishing a decade of debt

pippa_pelada

Not much happening here other than a phone meeting with the mortgage people the other day where we renegotiated our mortgage and had it agreed in principal. We’re adding £10,000 to our existing mortgage while at the same time reducing the number of years remaining on the mortgage by two and yet we’ll still be paying the same monthly amount. I’m very happy with that and it means we can carry out the urgent maintenance work that we need to do on the house. In the end we weren’t tempted to do any debt consolidation as we’re managing ok with what we’re paying off now and the end is in sight (ish)

Sarahwithlove

That's great news well done. Once the debt is gone you'll be able to make overpayments on the mortgage as well. 

pippa_pelada

Sarahwithlove said:

That's great news well done. Once the debt is gone you'll be able to make overpayments on the mortgage as well. 

Thank you! And yes, that’s definitely the next plan as soon as we’re debt free

pippa_pelada

We should have the money from the remortgage in a few weeks (forms sent back today and the person from the mortgage company reckons it should be about a month) It’s going to be strange having all that money sitting in the bank account but with everything we need to do on the house, I can’t imagine it will be sitting there for long. We’re going to keep it in a separate savings account so that it isn’t swallowed up with the rest of the household expenses and so that we’re not tempted to blow it on anything else other than essential maintenance. I reckon this will be a very good test of how far we have (or haven’t) come with our new mindsets of saving and paying off debt! Yikes! 

Hubby’s 50th is at the end of the week so I’ve gone all out for that seeing as he can’t really celebrate during lockdown. I’ve ordered a 3 course meal from a posh restaurant as a surprise and gone mad with helium balloons (I can’t stand them normally, so environmentally unfriendly) and presents that I know he’ll love - oh, and I secretly ordered a cake too. Behind the scenes, all his friends and family are making sweet videos wishing him a happy birthday so I’ll put that together before the big day and I’m trying to put together an evening zoom call for everyone too. I’m hoping it’s going to be an epic day for him and no doubt he’ll celebrate again once we’re able to go out and meet up with people.

I’ll get back to saving in earnest from March, it’s been an expensive year so far with big birthdays!

pippa_pelada

End of the month round up for Feb

Savings Pots = £100

Emergency Fund = £600

Premium Bonds =£1450

=£2150

Debt

Car loan - £6932

NW loan - £16,301

Credit card - £7800 

Total = £31,033

Hubby gets a pay rise next month which should be about £150 extra a month and hopefully that will increase the credit card payments to at least £1000 a month. We're aiming to have the cc gone by October if life doesn't get in the way. £31,033 is still a heck of a lot of debt but it's a heck of a lot less that it used to be so I'm still feeling very positive about getting this debt banished once and for all!

pippa_pelada

The money from the remortgage landed in the bank account today and two years ago I’d be mentally spending it on all kinds of stuff that we don’t really need but that look nice and I’d be planning weekends away and pricey nights out. Because I know it’s for necessary house maintenance it’s causing no excitement whatsoever, just relief that we can get stuff fixed. 

Hubby’s still sticking to the plan and there’s very little unnecessary spending compared to last year. I’m impressed with how his mindset has gradually changed and while he might not have had a full on LBM he’s definitely changing. He seems lighter and brighter for it too. 

This month is muddling along but my goodness, I’m wishing the debt away. The months of repayments are stretching ahead and I’m so impatient, I just want it all gone. I think we’re still on track for being debt free by May of next year and still on track to have the credit card gone by Sept/Oct and the car paid off by December. I’m wishing the year away in monthly repayments and I need stop doing that! Time’s passing by too quickly as it is.

londoner2019

You're making great progress! I'm the same about wishing the months away... to be honest that's not so bad when you're sat in lockdown, but once things open up again, that impatience is going to be more frustrating I think. 

pippa_pelada

@londoner2019 thank you! Yes, you’re right, it’s fine to wish these lockdown months away, the quicker they’re over the better!

pippa_pelada

End of the month round up for March 

Savings Pots = £250

Emergency Fund = £800

Premium Bonds =£1550

=£2600

Debt

Car loan - £6355

NW loan - £15894

Credit card - £6600 

Total = £28,849

Getting there! 

pippa_pelada

I'm still chipping away at the credit card throughout the month and adding any spare money to premium bonds where I can. Hubby's still buying daft things (not expensive these days, just unnecessary) so the latest weapon in my armoury is to remind him that if he focuses, early retirement is within easy reach.

I've been chasing up my mum's married woman's pension shortfall as highlighted on this website and other places. She found out today that they're only giving her a back payment of 12 months but I think that's ridiculous as they've been been underpaying her for 20 years. I've been doing some research and I see that the next step is to officially complain and see if that gets her anywhere but I think it's going to involve an official complaint form signed by her MP and then sent on to the ombudsman to see if that gets her better results. We shall see...