Washing Away My Debts By 2024

LittleMissDetermined

Sorry I'm late catching up with your diary, it's been a busy few days for me. That's a big chunk added to your mortgage! I know that the rates just keep going up at the moment but if you don't fix will you just go to a base rate tracker? Thankfully when we moved we fixed for 5 years (wish it was 10 now!) but it's still expensive in terms of interest.  I'm no expert when it comes to mortgages so maybe add a post to the mortgage boards for advice?

Well done on using the tax free childcare scheme, it has been around for a long time and to be honest every employer I've been with has advertised/promoted these so I am surprised you didn't know. It's a saving from here on in though! 

Enjoy your walk, and your enchiladas... I love them too!
LMD x

Squirrelz92

It really is a rather large chunk @LittleMissDetermined! Today is 3 months and counting until my current fixed rate ends so I was able to log in to my online banking and switch my deal in 5 minutes before starting work. They did in fact also offer me a 2 year fixed again at 3.59% but I think with the current economic predictions for the end of 2023 its not worth the risk. So I have gone with my gut (and Mum's advice) and have chosen the 3.56% for 5 years. Fingers crossed things will have calmed down by the end of 2027 and I can revert back to a kinder interest rate! There were some slightly lower interest rates but after adding fees and the exhaustion of putting a new application in from scratch, I wouldn't have been any better off so it's worked out quite well sticking with my current provider

I changed jobs in March and my previous employer was a rubbish company so naturally didn't inform me of any voucher scheme. Oh well, what's done is done but at least I can benefit from the extra 20% for the next 3 years for DD until she hits high school. 

LittleMissDetermined

I find that having the fixed rate means I can properly budget so it's good for my mental well-being x

sunshine_raincloud

Dealing with mortgages and things is so stressful! Good to get it sorted and fixed in until things hopefully calm down in the next few years like you say! 

Squirrelz92

Yes I would be in a constant state of panic if I decided to transfer across to the variable rate (currently 4.4%) as I would never have a stable mortgage payment and my budgets would fly out the window day one.

I got bored at work so decided to play about with some figures so I shall now vent my thoughts as follows :

My remaining balance on CC2 is £1887.29. My plan is to pay this off before the 0% interest deal ends in Jan 2023. This gives me 7 months of paying out an average of £269.61. Taking away the standard DD of £25 a month and a minimum accumulated PAD total of £30 (£1 a day), this means I need to try and overpay by £214.61 each month. I think this is doable It may become a bit more of a challenge come October when I have to pay £100 more to my mortgage but I still think I can do it. If I can clear this by Jan then I have a much better chance of applying for another Virgin CC to transfer my CC1 balance for another 12 months at the very least. 

With 7 days to go until payday I was also playing about with what I may have left on the 7th to throw towards it as an additional bulk overpayment for July Currently have £191.79 in my current account after keeping a buffer from the CSA payment and also receiving the £60 owed from my part loaner I am then due £145 child benefit on Monday followed by the first July instalment of £150 towards bills from my partner. This will bring me to £486.79. Taking out of this £45 for my weekly food shop, £50 for diesel for the week and £13 for shavings, this leaves me with £378.79. I could use all of this as an overpayment to CC2 or I could split it. I do have another £100 in transport to pay to get the horse to the vet and I also do have my car MOT/service/repairs to pay for which at the minute is coming out of my EF.

Any ideas folks? x

LittleMissDetermined

I personally think that as you KNOW you have these costs coming, I'd split it. Sending half to the CC and adding half of he remaining to horse/car funds. 
Your choice at the end of the day though
LMD x

Martico

Hi Squirrelz, just popping by to say great diary, and you're doing really well, as are you LMD (I'm only part way through your marathon!)

LittleMissDetermined

Martico said:

Hi Squirrelz, just popping by to say great diary, and you're doing really well, as are you LMD (I'm only part way through your marathon!)

It’s definitely a marathon! But thank you for taking the time

Squirrelz92

Swinging towards your suggestion @LittleMissDetermined. I know I want to get through this debt as fast as possible but like you said, I know I have these upcoming expenses which will hurt my EF so may put extra into the EF to help soften the blow

Welcome and thank you so much for taking the time to read @Martico!

Sarahwithlove

my mortgage ends next summer and I'm dreading what the rates will be like. Once card is paid off think i need to focus on building emergency fund as wont have as much flexibility in budget next year. I like you will probably fix, will decide on whether 2 or 5 years once know how things look next year.