Back on the wagon

Philliggi

Hi all. Its been well over 10 years since ive been on these forums, and have been quite frivolous with my cash by my standards over those years. Im probably far from the most in debt here but ive recently got the bug again and want to make massive inroads.

So im a dad of two, and married. We have 87,000 left of the mortgage and a personal loan of around 8000. Tjis is our only real debt, but the mortgage is up for renewal in march 2025 and i want to pay that 8000 off by then, in order to compensate for the probable massive interest rate hike. We have been lucky enough to enjoy a 1.74% for 5 years and similarly low rate prior to that so even a rise to 3.5 or 4% will be a shock. 

I have 2100 in overpayment on the mortgage which im in the process of drawing down on in the form of payment holidays for the next 4 months in order to redirect that finance towards the higher rate personal loan of 6.9%. 

Ive done the minimise direct debits saga, cancelling anything unused, and im also utilising other methods like quidco, and various small income streams like freecash.com

I guess this is my story. A basic story, and also a re introduction to the forum. Thank you if you read this far. See you in there

enthusiasticsaver

Sounds like a good plan to get rid of that personal loan before the higher mortgage rate kicks in. Good luck. 

enthusiasticsaver

Incidentally as you are logging a journey rather than asking a DFW question would you like me to move your thread to diaries section? 

Philliggi

Yes please. Im a little out of touch with forum etiquette. I always was more of a  reader than a poster 😁

lilian1977

Good luck @Philliggi, I'll follow your journey. I paid off my mortgage 13 years earlier back in January and it felt amazing! 

MSE_ForumTeam5

Moved to diaries section

Philliggi

Made an effort this month to get some overtime in at work. I knew it was stacking up but just totalled it up and im on for 40+ hrs dependant what i get in the last 3 days before cut off.

This is huge for me and 100% of it will go towards debt. 

On a side note ive just checked experian for the first time ever and my CS is 999 😁

Philliggi

Hope we are all having a good weekend. Ive been reading through some of the debt challenges on these forums and they appeal to me, although most seem to run from the new year so i think im going to break it down and do what works for me. 

So ive a debt of £7581 which needs to be gone by the end of march, some of which ive already allocated money to, even if ive not actually got that money yet. 

So after discounting that cash, and all the regular payments im scheduled to make between now and then, im left with a shortfall of £1860 which i need to find before then. So £1860 broken down equates to:

1% = £18.60
46 weekly payments of £40.45

So my challenge to myself will be to make a payment of £40.45 per week to my debt. For me this is quite steep on top of the already hefty £298 monthly payment so im going to have to work doubly hard on the payment games sites, and branded surveys to supplement this. Ill revisit this monthly to adjust the minimum if im falling short. 

God this clearing debt bug is addictive. Im finding myself counting down the days until payday so i can allocate all my finance to it. Is that sad?

MFW2023

Your situation is so similar to mine, I am following with great interest.  You're right, it's addictive.  Isn't that what Dave Ramsey says?  Once you're gazelle intense you find money from anywhere to get that debt cleared!  Good Luck!

lilian1977

You're doing really well, keep it up!

Philliggi

Thank you. I get really obsessed with things then drop them quite quickly but im hoping i can stick this one out. 

My adhd doesnt help but ill get there