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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
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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!!!
Thanks to the inheritance fairy I will be debt free in 2014. Such a small amount but such a BIG difference it will make to my life!
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# 2
Want-To-Fit-In
Old 09-12-2012, 12:56 AM
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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
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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: £82344 ~ Month 33: £10492=87.26% paid ~ DFD 31/1/16 ASAP
9/11 unsecured debts down, 2 to go ... Next target Marbles
Mortgage free 3rd July 2014 - Grateful thanks to the 2013/4 MFW threads
“Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt” Henrik Ibsen
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
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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.
Thanks to the inheritance fairy I will be debt free in 2014. Such a small amount but such a BIG difference it will make to my life!
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# 5
beanielou
Old 09-12-2012, 8:51 PM
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Location: Scotland
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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 9 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.
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# 6
katy_ann
Old 09-12-2012, 9:24 PM
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I would add it to my DMP
Proud to be dealing with my debts
Comping since August 2014

Self Managed DMP since February 2013
Total debt as of 18/06/2014 - £3552.42
Aiming to be Debt Free by June 2015

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# 7
moongarden
Old 09-12-2012, 9:55 PM
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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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