2008 MFW newbies

Optimisticpair

elantan wrote: »

it aint much but it works out (i think) approximately half a days interest that the bank will charge me today which when i think its money that i wasnt expecting and it has effectively halved todays amount of interest i have to find i am happy ...does that make sense to anyone or am i rambling again lol

It makes sense I reckon any small amount in your account is better than it being in your mortgage lenders hands. All the small amounts add up at the end of a year

BTW, I quoted some results for overpayments at my OH last night and he was astounded. His enthusiasm has been fuelled by every little success and pledge.

kezza12

well it's finally happened... the amount of savings that i have has finally overtaken the amount of debt that i have:j. yeah i know you're all thinking why do i have debt "and" savings but the debt is a very low interest student loan and a 0% interest credit card and the savings is a high interest regular saver and a high interest isa so i didn't want to put all my money into paying it off but it is nice to know that if i wanted to then i could:j This has nothing to do with overpaying the mortgage but i just wanted to share.:D

galadriel

Hi Kezza, I am in a similar situation, i took out a car loan last year (after searching this site for the lowest interest rate), even though I had enough to pay for the car using my savings. My reasoning was that I wouldn't be disiplined enough to replace my savings, but I would have to repay my car loan.

It's comforting to know that I can clear off the loan if I so wish, but at the moment it is earning a slightly higher rate of interest than I am paying on the loan.

bellsbells

Thanks to all who have updated - we have made some serious overpayments this month!

twinklie

Looks like it will be next year before I can start my overpayments now....waaa. But I intend to do some serious overpaying then. In fact, I'm gonna try and pay at least £250 extra if not more per month. We are allowed to overpay by £499 per month.

LilacPixie

Can I please join you all??

I have recently changed the way I think about debt. I have came to the conclusion that everything including my mortgage and OH student loans is a debt and therefor should be cleared as soon as possible or at the very least offset. At the end of Feb this year we had 26k of unsecured debts plus a 54k mortgage and OH has 7k of student loans. Now we have 16k of unsecured debt plus the 54k mortgage and OH 7k of student loans. We are throwing over £1400 minimum a month at the unsecured debts and mortgage combined. We have cleared all our C cards and are left with 2 loans and Car finance that is due to finish within the year with no overpayments.

According to the snowball calc if we continue with payments as they are we will be DF, MF and SLF in 61 months so just over 5 years.

Most of our unsecured debt is now at the stage where we cannot overpay without penalty so we will be turning our attention to overpaying our mortgage. We can overpay up to 5% of the outstanding amount every year. Once that has been exhausted the remaining is getting put into a high interest account.

I hope its ok joining you while technically I am still trying to be df.

kezza12

hi lilac welcome to the group, i think a few of us (me included) are trying to become mortgage free and debt free at the same time so you're definitely in the right place:D a very well done on clearing that much debt in a short space of time.

llydaw

I've just managed to overpay £400, thanks to ebay sales and some lodgers who are only staying for a few days. Bluebell I've pm'd you, I hope it's come through ok so you can update the figures. I'm getting quite excited by all our hard work.

LilacPixie

Thanks for the welcome Kezza.

Snaggles

Snaggles wrote: »

01/04/08 - mortgage & secured loan total = £37,285.48

15/05/08 - mortgage & secured loan total = £36,913.47

Just quoting this so I know where I'm up to. I keep forgetting to do a month end update, so I'm just going to total it up as of today, and I'll pm you the overall figure Bellsbells, which is:

29/07/08 - mortgage and secured loan total £35,753.65

(Mortgage reduced by £1531.83 since 1/4/08 :T)