Opinions Please....extra income
KirstyO
Posts: 287 Forumite
Right, I've just finished paying off a small overdraft at £25 a month, and have managed to live without this very reasonably, so I'm thinking what would be most useful to do with this £25 a month now. I could:
a) put it into my e-isa which has a very attractive interest rate, until such time as I have enough to offer f+f to my 4 outstanding creditors
b) add it to my dmp payments (reducing dfd from 6 years to less than 4)
c) manually snowball my debts in addition to my dmp (eg. i have a £130 argos card thats only getting £5 a month from DMP, but with cash injection each month could be gone in 5 months, then add it onto the highest priority debt after this)
Your opinions would be most grateful. I know there is justification for all three options, but I'd like the one that will make my debt shrink the fastest!!!
a) put it into my e-isa which has a very attractive interest rate, until such time as I have enough to offer f+f to my 4 outstanding creditors
b) add it to my dmp payments (reducing dfd from 6 years to less than 4)
c) manually snowball my debts in addition to my dmp (eg. i have a £130 argos card thats only getting £5 a month from DMP, but with cash injection each month could be gone in 5 months, then add it onto the highest priority debt after this)
Your opinions would be most grateful. I know there is justification for all three options, but I'd like the one that will make my debt shrink the fastest!!!
Debt free on 2nd January 2015
Next savings goals:
£5k emergency fund
£4k holiday of a lifetime fund
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Comments
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Do you have an emergency fund?
If no I'd probably put it towards this.POAMAYC #67 in 2013 £6304.93/£6000
In the negative (to the not so nice) tune of £19771.50 ... 31.8% Paid
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Right, I've just finished paying off a small overdraft at £25 a month, and have managed to live without this very reasonably, so I'm thinking what would be most useful to do with this £25 a month now. I could:
a) put it into my e-isa which has a very attractive interest rate, until such time as I have enough to offer f+f to my 4 outstanding creditors
b) add it to my dmp payments (reducing dfd from 6 years to less than 4)
c) manually snowball my debts in addition to my dmp (eg. i have a £130 argos card thats only getting £5 a month from DMP, but with cash injection each month could be gone in 5 months, then add it onto the highest priority debt after this)
Your opinions would be most grateful. I know there is justification for all three options, but I'd like the one that will make my debt shrink the fastest!!!
Are any of your debts charging interest?LBM 10/1/12 ~ DFW Start 6/2/12: £82,344 ~ Now Zero:staradmin:starmod::staradmin Debt free 17th April 2015 :staradmin:starmod::staradmin
Eternal thanks to the DMP & Mutual Support (no.439) and Payment a Day ThreadsMortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads"Debt is normal. Be weird!" Dave RamseyProud to have dealt with our debt
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my debts are minimal interest because ive had successful negotiations through my DMP. Both CCs are frozen, the store card is minimal (but the highest interest of all my debts and the small which is why i want it gone. Its the most achieveable and of the £5 that goes every month, only about £3.95 of debt is reduced) and the overdraft is also frozen.Debt free on 2nd January 2015Next savings goals:£5k emergency fund£4k holiday of a lifetime fund0
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Add it to DMP.
My understanding is that you cant favour one creditor while on a DMP.I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.0 -
I would add it to my DMP Debt free once - Back again | Current debt: £3002.96 - January 2023 | Currently repaying £50 a month - Estimated DFD Jan 2028 | Make £2023 in 2023 #51 - £33.75/£20230
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I'd save around £200 somewhere as an emergency fund and then manually snowball by saving the full amount for the debt with the highest interest then ring them and ask for a settlement figure.
read the small print on the DMP first though. You could always say the additional cash was a gift from a family member?0
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