Should Pay My Debts Off?

OMAR

I currently have £2200 in my A and L ISA and Alliance and Leicester have just given me an overdraft of £2400 (£5 per month charge on Premier Direct Account).........my outstanding loan balance and rate is below.

Should I pay off my A and L Loan and just have the Tesco one left??......I don't know whether I should as its at 5.9%!....plus I will have no savings at all left....

24 and live at home, although so wana move and get my own place!!....

OMAR

?

RAS

Hi

You would not be payiung them off so much are reallocating your debts.

need loads more information, specifically whether there are any early redemption penalties on the loans?

And it might be a good idea to do an SOA?

OMAR

Wage - 35k get paid every 4 weeks minus student loan repayments

£144.24 A and L Loan
£265.34 Tesco Loan
£30 O2 Mobile
£19.97 Internet
£29.30 Life Insurance
£29.50 Gym
£12 BT

OMAR

:money: bump.....

skintandscared_2

Are the loans ones that you can make overpayments on? I'd say with that income and such small outgoings you'd be best off making big overpayments on the loans and get rid of them ASAP. You'll be very glad you did once you move out and have rent and utility bills to pay every month!

CLAPTON

Post up a proper SOA ... your current one says your income is 2,430 per month and your spending is about 500 leaving 1,900 per month spare (i.e. 22k per annum)
so you could clear your debts in under a year.

in any event use any spare money to pay debts with the highest APR and not the lowest.

http://www.makesenseofcards.com/soacalc.html

OMAR

thats my correct soa

OMAR

no more thoughts??

saintly_2

hey omar

when people say an SOa they mean like the one posters have put the link to, this includes money set aside for bdays, xmas, travel, entertainment, haircuts etc. this just gives people a bettr overview of what you have left and where it is best directed at

Jesthar

OMAR wrote: »

thats my correct soa

Hi Omar,

The details may be correct, but there are for too few of those details for us to be any help, really - we need to know an awful lot more to give you sensible and safe advice!

The SoA Clapton gave a link to ( http://www.makesenseofcards.com/soacalc.html ) is far more comprehensive, and when filled out properly tells us everything we need to help you get debt free. Don't forget the APRs on the loans!


~Jes