I can do this...step by step

Rdpncp

Going to try to keep more frequent posts on here so I can better keep track and motivate myself.

Checked overpyament rules on my mortgage and the year end is 30.11.24 so put £295.91 on it so new year starts freshly with £50,000 exactly.

I have a 10% allowance on it, so £5,000 or £416.66 per month. Now, Ive been thinking, overpayments are great as they immediately start reducing interest, however, its 4.69% interest and any overpayments cant then be pulled back for any unforeseen spending requirements. 

Therefore, Im going to try to put £300 a month into my regilar saver at 7% interest, so its there if I do need, and if that happens, Ill lose the interest BUT have access to the money. 

At the end of the 12 months (just before 20.11.25) I can then put some money onto mortgage before end of the mortgage year and be pleased.

Anything I can save above the £300 per month is going into a 4% saving account with ability to take out a few times without penalty. I dont have an emergency saving fund. Ive worked out, all bills, mortgage, min debt payments, utilities is about £1,733 a month, so a 3 month safety net would be £5,200 (not including food but does include travel).

I seriously doubt Ill get that emergency fund fully up in a years time, though adding the regilar saver probably will. 

For debt repayment, the 2.8% loan can just run itself out, so 4 years and 8 months to go (July 2029).

For the other loan that went on the house repairs, I think, if I leave it be, will clear itself in 18 months (July 2026), however if I can get past the emegency fund, then Ill start putting away to clear that sooner. Once thats gone, Ill feel more confident more monthly payments onto the mortgage.

Saying this, number one child wil be goinf to university Sept 2027, so need to be careful and likely start putting something away to help with that.

Have a good weekend all, christmas decorating starting tomorrow. 

Rdpncp

Monthly check in, update. 

Good month so far. Oncall/overtime payments for last month have covered the larger than normal shopping spend today (Cannot believe how busy supermarkets were pre-7am this morning).

All presents for friends/family done, wrapped, delivered. 

Back in work tomorrow then two days off and back in again.

Have managed to put another £250 into Emergency fund and £100 should be going into regular saver in a week.

Still have some backdated overtime which should be a nice chunk in next months pay, alongside some call outs/overtime for this month. The plan will be to put that ~£750 into sinking fund and another ~£750 into emergency fund, which puts those well on track to be complete by next summer.

Im due new brake pads and discs on car, plus oil sensor is playing up, so possibly most of overtime will go onto this, but will see how bad it is when that gets done.

Im now at a stage where I may actually have over £100 in my current account by month end, didnt happen this month, but be good to get ti that stage going forwards (after covered bills, debt payments and putting into savings).

I hope everyone has a really good Christmas and New Years break and for those working over the bank holidays, I hope your shifts go smoothly.

dawnybabes

I know, I went to Tesco for 7am as I normally do and was busy already 

Rdpncp

So, I know Ive said Ive access to all my apps, loans, accounts, but to now, Ive only been going off annual statements and working out each month in my head for the longer loan.
Theres been some issues logging on, but finally had account reset and can access this online.
Im a little disappointed that Im £672.24 worse (more left on loan) than I thought, but my signature settings are now up to date.

So, £23,191.24 on 2 loans left to go.
Less than a week to go to the 4th anniversary of my LBM and its less than half the amount it started at, acknowledging Inwould have cleared it if not for house repairs.

Im overall ok, I should probably feel happier, but I know Incould have saved more, spent less, etc. And been in a better position than I am now.

Ive submitted overtime sheets to sort some overdue back paybthat hasnt been paid and agreed some extra shifts up to end of March which should be a hefty bump in getting to my targets for sinking and emergency funds.

Ive lowered the sinking fund target to 1k rather than 1.5k as its for those unforeseen things and cant imagine needing more than 1k for car repair, etc.

With overtime payments end of Jan, I should be able to get to sinking fund,  plus new breakpads and discs on car and maybe have a bit left to go onto emrgency funs pot.

There are 17 more payments left on the smaller but higher % interest loan and Im really looking forward to thay ending, ideally in that time not needing to take any other loans out and any modifications, changes to house coming out of savings or emergency funds.

It would be lovely to clear both loans in thay time, but somehow that feels very challenging. In theory if I could achieve 25 hours overtime a month and dump my savings and sinking/emergency pot, then in 17 months, I could just about get there. That would be exceptional, but Im not counting on that.

So, my goals for the forthcoming year:
1. Continue to not get into further debt
2. Complete sinking fund target and top it up as/when used
3. Complete emergency fund target
4. Continue to put £100 a month into a regular saver at the highest rate I can and toward end, look for the next account I could be ready to switch to forbthe next years saver
5. Anything left at the end of each month once above goals are achieved to go onto loan overpayments

Rdpncp

As a little note to above post, Ive tried to pay an additional £25 off the bigger loan, and its not thatbstraight forward. I have to submit an amount I wish to overpay by and they will get back to me on how to do this. Hmmm. Not huge fan of this. Its 2.76% interest and Im 4.3% interest in flexible saver account atm. It did say if I wish to clear loan in full then an amount was shown which is less than in my signature, as that includes interest for remaining loan period. So I think, putting money into savings toward a one off clearance of loan. While it also shrinks each month with repayments will be the way to go with this one.

So, if I can get sinking and emergency funds up asap, I can then start focusing on saving ro clear this thing.

MFWannabe

Hi. Out of interest why would you not pay overpayments off smaller loan? Are you not allowed? 

Rdpncp

Hi, I can overpay either. I guess for the amount left, Ive just thiught it will clear itself quickly enough. But yes, could definitely aim to clear that, esp as its highest rate then free up £305 a month payments to go onto other things.

Rdpncp

So, its the 4th anniversary of my LBM and thought I'd better post a small update as it hasn't been that long since the last post however a little tidying of accounts has taken place.

So, looking back. I started with £52k debt, since then, Ive added a further £27k for house repairs,  though now Im down to a little under £23k debt remaining. 

Its been a hard slog, much slower to start with then I had planned but quite a heavy last 18 months with extra income and better accountability of my spending.

There's going to be as much a push now over the next 24 months to clear everything (except the mortgage).

Im now at £300 of target £1000 in sinking fund and £550 of target £5,200 in emrgency fund.

I'm really feeling positive, there have been ups and downs, but reading a lot of similar stories on here has really helped with the motivation.

Wishing everyone a great 2025!

Rdpncp

Update time.

Pay day and some overtime has been paid (The big amount still due in Feb pay).

Loan payment coming out tomorrow but updating everything today, Im so close to being less than £20k to clear loans, which still sounds huge but 27% left of starting debt. Im going to be so happy when pass 25% mark.

£50 has gone towards emergency fund with some standing orders end of next week into savings and sinking fund.

Rest of overtime has gone into joint account for family holiday in 3 weeks, anything left from that will go into emergency fund.

Rdpncp

Monthly update time. 

Its pyaday again.

Finally, Im now up to date with back dated overtime and oncalls.

Loan 2 comes out tomorrow but money set aside so conaidering it done, leaves 53 payments to go with out any overpayments. 

Loan 1 has 14 payments to go.

Mortgage has 114 payments to go.

All in all really positive. 

Ive not made any overpayments this month and now at the stage where my monthly income makes all minimum payments.

Overtime pay has gotten my Emergency fund to 50%.

The sinking fund has been renamed as I feel the emrgency fund can cover any unexpected costs. This bit of savings will now go towards new windows and doors which we need, estimating £6,000 for. Im now at 10% for that.

Im really happy with where things are.

Ive discussed with other half not rushing to get the windows done and perhaps about summer time cleaeing loan 1 early instead, however we feel we would like to continue getting the house all fixed up and are happy that we can cover all monthly outgoings whilst having an emergency fund building up, having a pot for holidays and still putting money into kids trust fund.

If we can continue at this pace, then when loan 1 ends, we can put that money against the mortgage each month without incurring overpyament penalty. Then when loan 2 ends, we can put that into savings and when the mortgage fixed rate ends, drop it into clearing mortgage earlier.

Currently how much goes into the mortgage and loans each month would clear all debt in 72 payments (6 years).

No doubt things will change between now and then with plenty of unexpected suprises along the way, and eldest going to uni, but Im finally feeling really confident woth everything and my mental health (at least from a financial point) is so much better.

Will I be able to continue the amount of ovwrtime Ive been picking up? It doesnt look good from next financial year as NHS is going to have a lot of financial challenges, however I am cheaper than agency (a lot cheaper) and there are still so many vacancies in the team and not enough getting trained up. Its busy, but I still enjoy my work (to a point).

So I guess all is well.

I think I may drop these posts to less frequently, though I still enjoy updating my signature everytime a payment is made or I add to savings as its my one place to track everything.