Ok, we’re getting very excited about all this debt reduction activity.
I’ve just calculated some figures using the BBC Homes mortgage calculator. The £98K mortgage could be paid off in 10.5 years, based on an interest rate of 6% and a monthly payment of £1,000. This goes down to 9 years if £1,200 is paid each month (at 6%).
This £1K payment would be possible if we use all the money which we were putting into the loan and credit card each month, added to the existing monthly payment for the mortgage.
So, in about 2 years time (once the credit card and loan is paid off), this is the plan, meaning in about 12 years from now, we should be debt free.