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Opinions Please....extra income
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# 1
KirstyO
Old 09-12-2012, 12:46 AM
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Join Date: Dec 2008
Posts: 126
Default Opinions Please....extra income

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 - 3610.64/10000
Holiday fund - 91.11/1000
Emergency fund - 25/5000
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# 2
Want-To-Fit-In
Old 09-12-2012, 12:56 AM
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Join Date: Dec 2012
Posts: 147
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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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# 3
Time to face the music
Old 09-12-2012, 7:39 AM
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Join Date: Jan 2012
Posts: 4,645
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Quote:
Originally Posted by KirstyO View Post
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 5/2/12: 82,344 ~ 27/1/15: 4935=94.01% paid ~ DFD 31/1/16 ASAP
10/11 unsecured debts down, 1 to go ..... Final target: Lloyds TSB
Mortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads
The light at the end of the tunnel gets brighter every single day
Proud to be dealing with our debt and making our money our own
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# 4
KirstyO
Old 09-12-2012, 8:51 AM
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Join Date: Dec 2008
Posts: 126
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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 2015
House deposit - 3610.64/10000
Holiday fund - 91.11/1000
Emergency fund - 25/5000
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# 5
beanielou
Old 09-12-2012, 8:51 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Feb 2006
Location: Scotland
Posts: 40,540
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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** Slow & steady No 1

"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. Slow & steady No 1
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# 6
katy_ann
Old 09-12-2012, 9:24 PM
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Join Date: Oct 2011
Location: Dorset
Posts: 693
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I would add it to my DMP
Proud to be dealing with my debts
Self Managed DMP since February 2013
Total debt as of 18/12/2014 - 3181.41
Aiming to be Debt Free by June 2016
Comping since August 2014 / Couponing since December 2014
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# 7
moongarden
Old 09-12-2012, 9:55 PM
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Join Date: Dec 2005
Posts: 456
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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?
Former DFW from LBM in 2005 to DF in 2009 - 17.5k of debt cleared to 0

SoA Calculator is on Stoozing. com website under calculator
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