Three years to get debt free

Willowtree222

Not really sure what to do with myself now. It's been such a huge part of my thinking space for 5 years. 

I just need to really think about the best thing to transfer the money I was paying too. I'm thinking the mortgage as opposed to the car. 

Willowtree222

It still feels very surreal to have paid that debt off. 

This now leaves me with my car and also my mortgage. 

My car has approx £9300 left. It's due a balloon payment next August and I've already had calls about changing it.

In reality, I need a car that's higher up because of my back however, getting into more debt is holding me back significantly.

My mortgage will need overpayments to account for the change in interest rates.  If I take the rate it would be now, I'd be laying £300 more a month. I need to ensure this is lower to account for the potential interest rates.

I'm torn how to manage this as I also want to save and at the same time celebrate my achievement by having more flexibility each month for things for me. 

I'm thinking a three way split might be best in the short term until I can decide what will actually be for the best. X

24ta

3 way split is a good idea, it removes the recurring monthly stress of ‘what shall I do with it this month’.
well done, you should be very proud of your achievement 😊

joedenise

I agree a 3 way split would be a good idea.  That way you can have a bit of extra monthly money, reduce your mortgage and save.

I would leave the car at least for the time being.  As you are already paying for the car each month this would give you time to think about what to do next August when the balloon payment is due.  Are you able to save enough to be able to hand back the car and buy a more suitable car outright?  Otherwise it may well be worth getting another more suitable car on the same terms and using your savings as extra deposit.

Lots to think about between now and then.

vampirotoothus

Hi I would save save save (providing that you can get better rates than you are paying for your car and mortgage). You can always pay off a lump sum later when you have to change your mortgage. Good luck V x

Willowtree222

Exciting today because my Christmas savings gift card has arrived. It means that I can start to sort my Christmas presents out and start buying. Sunday is when I'm going to start. DD is with her dad so I can shop without her seeing. I should be able to buy all the extended family and wrap ups for immediate family. I've been online already looking at potential items so know what I'm looking for. 
X

Sun_Addict

You’re starting early but then that’s the best way when you have children to buy for. 

daisy_1571

While its still early maybe do the Martin Lewis tit for tat conversation and see if any on your list want to stop this year ?

Daisy xx

Willowtree222

Thank you,

Christmas shopping day today. I have already cut down, Daisy so now it's only a handful of immediate family and some close friends. That was one of the best things I did and agree completely with Martin on it. I have 4 close family members that I buy for and then the rest get just a small gift, which works out so much cheaper. DD obviously has the biggest and I save up for her all.year round. 

I've decided to change car now. My reasoning is the same as the mortgage. I have two years to overpay so it's as low as I can make it by the time the mortgage is due up. The credit card payments will be used to over pay it as well as a little more that I have. If I change next year, I have only a year to overpay before the mortgage is due which I know will be a lot more pressure. 

The balance I need between saving and paying off and living will be split with the credit card allocated payment going to the car. I've really thought about it and think it's the right decision. 

I'm so looking forward to today! I'll feel so much more relaxed once I've started getting gifts. I've also cleaned out my tins cupboard so that I can stock up as well saving me money on food shopping will also help. X

daisy_1571

I knew you'd have already sorted it