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  • FIRST POST
    • KirstyO
    • By KirstyO 9th Dec 12, 12:46 AM
    • 198Posts
    • 277Thanks
    KirstyO
    Opinions Please....extra income
    • #1
    • 9th Dec 12, 12:46 AM
    Opinions Please....extra income 9th Dec 12 at 12:46 AM
    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!!!
    Debt free on 2nd January 2015
    House deposit - 8895.49/10000
    Holiday fund - 502.21/1000
    Emergency fund - 125.14/5000
Page 1
  • Want-To-Fit-In
    • #2
    • 9th Dec 12, 12:56 AM
    • #2
    • 9th Dec 12, 12:56 AM
    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
    • Time to face the music
    • By Time to face the music 9th Dec 12, 7:39 AM
    • 5,015 Posts
    • 35,894 Thanks
    Time to face the music
    • #3
    • 9th Dec 12, 7:39 AM
    • #3
    • 9th Dec 12, 7:39 AM
    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!!!
    Originally posted by KirstyO
    Are any of your debts charging interest?
    LBM 10/1/12 ~ DFW Start 6/2/12: 82,344 ~ Now Zero
    Debt free 17th April 2015
    Eternal thanks to the DMP & Mutual Support (no.439) and Payment a Day Threads
    Mortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads
    "Debt is normal. Be weird!" Dave Ramsey
    Proud to have dealt with our debt
    • KirstyO
    • By KirstyO 9th Dec 12, 8:51 AM
    • 198 Posts
    • 277 Thanks
    KirstyO
    • #4
    • 9th Dec 12, 8:51 AM
    • #4
    • 9th Dec 12, 8:51 AM
    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 2015
    House deposit - 8895.49/10000
    Holiday fund - 502.21/1000
    Emergency fund - 125.14/5000
    • beanielou
    • By beanielou 9th Dec 12, 8:51 PM
    • 41,937 Posts
    • 139,155 Thanks
    beanielou
    • #5
    • 9th Dec 12, 8:51 PM
    • #5
    • 9th Dec 12, 8:51 PM
    Add it to DMP.
    My understanding is that you cant favour one creditor while on a DMP.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs**

    "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.
    It starts with you, it starts from now.
  • katy_ann
    • #6
    • 9th Dec 12, 9:24 PM
    • #6
    • 9th Dec 12, 9:24 PM
    I would add it to my DMP
    Official DFW Nerd Club Member #1449 | Proud to be dealing with my debts
    Total debt as of 08/08/2015 - 1703.00 | Aiming to be Debt Free by December 2015 June 2016
    • moongarden
    • By moongarden 9th Dec 12, 9:55 PM
    • 456 Posts
    • 187 Thanks
    moongarden
    • #7
    • 9th Dec 12, 9:55 PM
    • #7
    • 9th Dec 12, 9:55 PM
    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?
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