Please can someone give me some advice!

whitewing

Do your folks know you're in debt? Can they know you're in debt?

Don't be too hard on yourself; we've all made mistakes here..

jellybean08

If you're on 15k a year and living at home you should be able to pay your debts off and live quite comfortably. I'm not sure how it would work out if you sold the car, paid off 6 of the 9k debt. Wonder if interest wise it would work out cheaper paying 3k off and buying a second hand one with a lot cheaper insurance. My insurance at 20 was no more than 600 a year. The other 2k debt you have, you could have it paid off in a couple of months if you budget correctly. Def post an soa tomorrow.


good luck

MyLastFiver

Yeah - don't be too hard on yourself.

If you're paying £210 p/m over 60 months on a ten grand-ish loan, then the interest rate is sharp but isn't "sub-prime" ridiculous.

If you carry on paying the loan and the insurance for another four years this will take a serious chunk out of the best years of your life.

My advice? Cut your losses and sell the car. Pay 5 grand off the loan. Use the left-over grand to buy a car in insurance class 1. Insure it third party. And drive it carefully :-) If you can halve your insurance costs you will be better off by £100 per month, plus paying off half of the car loan will vastly reduce the interest you pay, and mean that you will pay the loan much quicker.

When you are old like me, you won't remember the cool car you owned when you were 20 - you will remember the good times you had because you were carefree. And burdening yourself will an unnnecessary debt like this does not make for carefree living!!!

I understand that you may be reuctant to continue to paying a loan when you don't have the benefit of the car, but the interest on the loan, plus the insurance costs, are killing you. Better to free up this money and have fun with it.

MrsTinks

£190 a month on insurance??? wow... I didn't pay that when I had a 2 seater Fiat x1/9 at the age of 17! Oh the fun I had in that car! However it was my OHs and so never had to pay to buy it I guess The insurance should have been pretty high but I think we managed to get it down to under £900 for the year... Bear in mind that was a 1.4 I think but blooming powerful for what it was as there was no weight in it
Cut your losses and get shot of the car... Buy something cheaper if you need a car to get to work and you will be debt free soon enough once you start watching your expenditure and budgeting properly