Upfront Advice Needed

Performance_Pursuit · 26 July 2014 at 3:04PM

Hi everyone

Just after some straight forward advice

I currently have a debt of around £10,000 to reply in order to become debt free , this is made up from a tesco bank personal loan of £8300 and a bank overdraft of £1700.

I am currently paying £395 pm for The loan and I have 22 months left to pay. I have not yet started to repay the overdraft.

My master plan was to get a 0% money transfer card and pay off all debts and pay back the card before the 0% offer expired. However when I have applied for the card they have only give me a credit limit of £2900 (damn it) my credit score is 996 which is excellent and I know I will not be able to increase the limit on the card.

My monthly take home pay is £1740 after tax and after paying my rent and loan payment I have already paid out nearly £900 not leaving that much money atterwrds for the rest of the month.

Does anyone have any advice on how I should go about tackling the debt. Should I use the 0% card to pay off my overdraft? This would increase my outgoing to around £1000 before spending a penny elsewhere .

Many thanks

double_mummy · 26 July 2014 at 4:01PM

why would moving the overdraft to a 0% card increase your outgoings?

get an SOA posted let us have a look

[Deleted User] · 26 July 2014 at 4:06PM

Performance_Pursuit wrote: »

My monthly take home pay is £1740 after tax and after paying my rent and loan payment I have already paid out nearly £900 not leaving that much money afterwards for the rest of the month.

£445+ pm isn't bad going, after rent and loan payments.

double_mummy · 26 July 2014 at 4:12PM

bob they have over 800 left after rent and the loan so should be plenty to sort everything else

Performance_Pursuit · 26 July 2014 at 4:15PM

there is a 4% handling fee for transfering the money to your account on £1700 this is around £68

paying back 1768 over the 29 months is another £60 added ontop of the £395 for the loan payment.

if i had managed to transfer the whole debt amount onto the 0% card i could have redcued the loan amount on a early settlement figure of around 7808 plus 1700 overdraft plus around 380 handling fee making the total amount £9888 over a 0% amount of 31 months would have made the monthly payment of around £318

This way i am paying £395 for the loan plus £60 for overdraft repyament on the 0% card making a total of £455

Hope this makes sense?

[Deleted User] · 26 July 2014 at 4:15PM

You are right DM.

I misread it.

£840-ish pm, after rent and loan payments, isn't a bad position to be in.

[Deleted User] · 26 July 2014 at 4:17PM

Are you allowed to make overpayments on the loan, without penalty?

Performance_Pursuit · 26 July 2014 at 4:19PM

i understand my situation is not as bad as perhaps some on here but from the money left over still comes the issue of car insurance, food shopping fuel etc etc, so come the end of the month it can feel difficult

i was just seeing if there was perhaps a more efficient way i could reply back this debt

many thanks

double_mummy · 26 July 2014 at 4:20PM

always happy to help bob

you need to get an SOA up pursuit because that 800 has to be going somewhere maybe we can help you identify where

yup makes sense did you have any overdraft fees? if you are not pay OD fees is it worth looking at paying some of the loan off with the CC rather than the OD? yes it would cost more in the short term but could save you in the long term

Performance_Pursuit · 26 July 2014 at 4:23PM

sorry what is a SOA ??? (newbie sorry)

Yes there is fees for the overdraft around £20 pm or so

double_mummy · 26 July 2014 at 4:26PM

so then its only actually an extra £40 per month because you wont be paying OD fees anymore

an SOA is a statement off affairs im sure bob will grab you a linky in a second

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