Mortgage Rate Rises

Syla5 said:
The key though really is about having the capacity to service the debt, that’s the key, not the saving what you spend bit but ultimately the funds to regularly cover the MMP
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The mmp is irrelevant. You need the cashflow to cover the balance by the end of the team. Mmp is just basic table stakes
 
Unless I paid my monthly bills I can’t see myself building up a balance quickly enough to make it worth my while but I guess it’s a little like compound interest, it will start off small and build over time.

Still, something I have capacity to do, so will definetly look in to it in more detail.
 
dlockers said:
The mmp is irrelevant. You need the cashflow to cover the balance by the end of the team. Mmp is just basic table stakes
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I disagree, you very much do have to have the MMP in mind, especially if missing it once screws the whole process. Also so you know your limit of total debt to aim for, this can obviously be adjusted as you go, but if you start with an £x mmp target that also means you can be saving quicker if you factor that in from day 1, by saving the difference between your target mmp and actual + your spend.
 
Syla5 said:
Unless I paid my monthly bills I can’t see myself building up a balance quickly enough to make it worth my while but I guess it’s a little like compound interest, it will start off small and build over time.
Still, something I have capacity to do, so will definetly look in to it in more detail.
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every little helps, especially when it's less than 15mins to apply for a 0% CC

can't really be bitching moaning about how banks make bank off the common folk when said common folk do zilch to help themselves lol
 
Syla5 said:
I disagree, you very much do have to have the MMP in mind, especially if missing it once screws the whole process. Also so you know your limit of total debt to aim for, this can obviously be adjusted as you go, but if you start with an £x mmp target that also means you can be saving quicker if you factor that in from day 1, by saving the difference between your target mmp and actual + your spend.
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There is zero risk of not having the mmp available as you can just take it from what you saved from putting all your spending on the credit card.
You know the mmp reduces the credit card balance and is not a charge/interest payment, right?
 
Syla5 said:
I disagree, you very much do have to have the MMP in mind, especially if missing it once screws the whole process. Also so you know your limit of total debt to aim for, this can obviously be adjusted as you go, but if you start with an £x mmp target that also means you can be saving quicker if you factor that in from day 1, by saving the difference between your target mmp and actual + your spend.
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My point is mmp is too low of a threshold and you've completely misunderstood the task at hand if that becomes an issue.
 
dlockers said:
My point is mmp is too low of a threshold and you've completely misunderstood the task at hand if that becomes an issue.
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Yeah it's so minor relative to the income you require to service the debt. One of my purchase cards at 18k debt to be fair is a higher minimum payent (about 500/600 a month) but I just load it up with shopping each month.

The other 30k is like 300quid a month.

The flaws syla is looking for are minor, the major risk / issue is you forget about a card and start having to pay 27% APR or whatever it is.
 
When stoozing was really popular in the early 00s, (made popular by MSE I believe), some people had many tens of thousands of stooze cash. An £80k stooze pot at 5% is £4k a year. But if you have a 3% MMP that is £2400 a month on that balance which would be difficult to maintain I think.

Getting to that level takes a lot of time and management as well. You can always pay the debt back so risk is low but I'd be concerned that the transfer deals dry up. A single mistake could cost you all the interest you've earned.

I'll look into it again but for me I could possible make a couple hundred quid interest this year doing it, which whilst free money I'm not sure I can be bothered with the hassle of it.
 
danlightbulb said:
When stoozing was really popular in the early 00s, (made popular by MSE I believe), some people had many tens of thousands of stooze cash. An £80k stooze pot at 5% is £4k a year. But if you have a 3% MMP that is £2400 a month on that balance which would be difficult to maintain I think.

Getting to that level takes a lot of time and management as well. You can always pay the debt back so risk is low but I'd be concerned that the transfer deals dry up. A single mistake could cost you all the interest you've earned.

I'll look into it again but for me I could possible make a couple hundred quid interest this year doing it, which whilst free money I'm not sure I can be bothered with the hassle of it.
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Don't go full fat just rinse a few 0pc offers.
 
danlightbulb said:
I looked into it but by the time I'd factored in the transfer fees and monthly repayments the amount of interest wasnt worth the hassle for me.
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danlightbulb said:
You can always pay the debt back so risk is low but I'd be concerned that the transfer deals dry up.
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Personally, I think I would just pay off the lump sum at the end of the interest free period. Rather than balance transferring. Most gain for least amount of work.

danlightbulb said:
A single mistake could cost you all the interest you've earned.
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Do you not have a finance spreadsheet to keep track of your accounts?
 
dlockers said:
My point is mmp is too low of a threshold and you've completely misunderstood the task at hand if that becomes an issue.
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No I’ve not missunderstood the task at all. For the task to work and not fail you very much have to be able to service the debt. If you don’t have sight of that then you are much more likely to fail.

If you can’t afford £250/£500/£1000 per month then you can’t afford it, regardless of if that is to put in savings of spend on mmp’s, so if you can’t afford that then you can’t service the debt.
Buffman said:
Yeah it's so minor relative to the income you require to service the debt. One of my purchase cards at 18k debt to be fair is a higher minimum payent (about 500/600 a month) but I just load it up with shopping each month.

The other 30k is like 300quid a month.

The flaws syla is looking for are minor, the major risk / issue is you forget about a card and start having to pay 27% APR or whatever it is.
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I wouldn’t call £900 a month a minor flaw to over look when the impact of screwing that up just once can remove the entire benefit of stoozing.
 
Syla5 said:
No I’ve not missunderstood the task at all. For the task to work and not fail you very much have to be able to service the debt. If you don’t have sight of that then you are much more likely to fail.

If you can’t afford £250/£500/£1000 per month then you can’t afford it, regardless of if that is to put in savings of spend on mmp’s, so if you can’t afford that then you can’t service the debt.

I wouldn’t call £900 a month a minor flaw to over look when the impact of screwing that up just once can remove the entire benefit of stoozing.
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OK just proportionally for my income it's not significant. The 900 figure you've taken is 600 off an account that I would use for grocery expenditure also so you'd have that going weekly/monthly anyway.

If someone's income was a lot lower then yes maybe an issue. If you are semi competent and/or reasonable income to outgoings or save a lot it requires minimal thinking.

In 10 years I've not had any issues but like all things in life your mileage may vary.

It works very well if you've got a high income /good budgeting and or use it to offset high cost items (eg car purchase, house renovations).
 
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