i am harrased, please settle a debt argument

harrased-gf

ZTD thanks, my head is so sore with all this banging and my throat is raw from all the shouting. Presumably he will pay it off with savings and probably expect me to pay half of it!!!!

ZTD

Then why can't he do that with the mortgage and forget about the loan?

From bandraoi's figures, it would be:

Loan - he'd pay minus £75 interest (because £1,000 will be beamed in by Scotty)

Mortgage - he'd pay £753 in interest.

No wonder the thinks the loan would be cheaper!

chappers

harrased-gf wrote: »

Still exasparated and harrased and totally fed up banging my head against the wall!!!

do yourself a favour and start banging his head against the wall perhaps you might knock some sense into him:D

r.mac_2

A couple of questions:

is £120 the max you can pay into the mortgage every month? If not, what is the maximum overpayment you can make?

Do you have any spare income that you could use to make bigger overpayments on the mortgage, should this be allowed? or place in an ISA or savings account in preparation to pay off the remaining mortgage in one go?

You mention that you have some savings - could you continue making your over payments of the mortgage and saving up the remaining amount needed to pay off the mortgage in full, then pay it off? your other thread said you have approx £4,000 in savings. How long do you think it would take you to save the remaining £1000 to pay it off in full?

this would certainly be the quickest way to get rid of the debt, although your Bf may not be comfortable with having no savings for a period of time, although this would be offset by not having to pay the mortgage anymore and that amount would be able to be put towards a savings account everymonth.

hope some of this gets your bf thinking!

bandraoi

The best way to explain it to him, is to look straight at the interest.
Keep it simple, use rough values. I think tllywyd's approach is the simplest.

15.34% / 12 is roughly 1.3% per month. So every month they will add 5000*1.3/100 - £65 to the loan amount, so the first £65 of every payment will go on rent.

at

7.2%, every month the bank will apply roughly 7.2/12 = 0.6% interest to the loan so
5000*0.6/100 = £30, the first £30 of any payment will go on the loan.

Whatever way he looks at it, it's better to pay £30 in interest than £65, it will end up cheaper to pay £30.

Note: dividing the interest by 12 doesn't give the right answer, but for a rough calculation for someone who doesn't really understand interest rates it's enough to be getting on with.

chappers

I s your boyfriend stark raving mad?

Why would you want to take out a loan for £4000 when you have £4000 in savings.I would get a doctor out to check him over.

harrased-gf

thank you, thank you, thank you all

Hypno06, thanks for the smiley -I love it. Just how I feel

Chappers - I have considered doing many things to him - banging his head is the kindest!!!!!

RMac - we could probably pay more off the mortgage, he always seems to have spare cash to go to the pub. However I am reluctant to throw any more of my money into as he hasn't made a will (his house and mortgage). I consider the ammount i pay as being cheaper than paying to rent anywhere.

Bandraoi - thanks for the calculations but he doesn't get it.

and lastly

Chappers again - yes he is mad and so am I doing all the work trying to sort it out

Thanks all

I will keep at it

r.mac_2

harrased-gf wrote: »

RMac - we could probably pay more off the mortgage, he always seems to have spare cash to go to the pub. However I am reluctant to throw any more of my money into as he hasn't made a will (his house and mortgage). I consider the ammount i pay as being cheaper than paying to rent anywhere.

totally understand - when I said you - I really meant you and your partner!

I completely understand why you wouldn't want to put any more of your own money in.