Paying Debt Off Advice

simonjones_2

Hi, to cut the story short I currently owe about 12k but sick of it all and trying to turn it around.

I have put all my credit card balances onto one RBS 12 Month 0.0% which total £5000 and feel this is the right way to go rather than paying interest as I was doing on the other cards I previously had.

The problem I am having now is paying off a Cahoot Flexible Loan. My balance with them is £6979.16, and I'm currently paying off £150 a month to Cahoot but the interest is £62.79 so in reality and only paying £87.21 per month.

At this rate it will take forever. Does anybody have any better ideas on how I can reduce the debt and am I doing the right thing with the 0.0 % deal on the Credit Cards?

Thanks for taking the time to read this.

Simon

Robert_Sterling_3

The £5000 at 0% on credit card is a smart move.
The longer term solution is to spend less and/or earn more.

mountainofdebt

Is the £150 a minimum payment or a set payment?

If you can afford it then I would stick to this amount, that way you will eat into the capital faster and pay less interest.

An additional way of reducing the amount of interest you pay is to throw any spare cash at the debt (you can make additional payments any time to the loan).

If you post your outgoings here I reckon we can find a way of saving you £££s which can then be thrown at the debt.

simonjones_2

Its a set payment but I have just finished paying my car off so have an extra £200 a month to put towards it as well. I know it will take a while to get down, just seems at the moment I'm not getting anywhere with the interest. Just cancelled my monthly phone contract as it use to be about £50 and changed to PAYG where I spend £15 max a month now also stopped buying useless items I had no use for and did in the past. Thanks for the help.

southernscouser

Definately list all your ins and outs and people might be able to help you reduce your costs meaning you can pay more off you debt.

Good luck.

mountainofdebt

If I were you then I would change the set payment so that the money you have freed up with the car loan/mobile is automatically put towards the debt.

Yes it would be nice to have £235 in your pocket but look at it this way:

In 6 months you will have paid £2310 towards this loan. This time next year you will have paid £4620.

Makes you think, doesn't it?