£15000 debts

Johan

Hi all,

I have done an Excell spreadsheet and organised the debt APR% on each debt so I can pay of the highest one first, first indications are that my income exceeds my expenditure by a fair amount which is good news!

So things aren't as bad as I tought, never the less we have to start looking where we can economise and clear those debts.

Instead of making the minimum payments with the credit and storecards I will pay a bit more so I save some interest on the outstanding balance.

A detailed sheet of my income and expenditure will follow later, meanwhile thank you all for your help!

Johan

tomstickland

Great work there. You'll even start to enjoy yourself once you get some of it payed off, I tell thee.

Johan

Hi all,

Just an update on how everything is going with my debt of £15000.
These are the actions I have taken!

I am changing my bank account to Alliance and Leicester, better rates!
I am selling my motorbike, bought for £2000, selling for £2400.
Balance of my credit union loan is £3490, I will use the proceeds of motorbike sale of £2400 to reduce the credit union loan to £1090, My savings I have with the credit union of £1700 will be used to clear the remaining £1090 debt with them, leaving me with £610.

I must state that this loan with them is not the highest APR, it is however the highest loan amount I have at £3490 It will also reduce my outgoings by £96.00 a month!

By the way the £610 will be used to clear the highest APR debts!

Or should I clear the highest APR debts first and leave the credit union until later on!

My debt so far £14.017
If I clear the credit union, one more credit card and a mail order account it will be £9849.56, is this the way to go or will I use the proceeds of the bike sale £2400 to clear the highest APR's, I can't touch the savings of £1700 with the credit union because of the loan I have with them of £3490

A bit of a dilema, Do I clear the credit union loan thus releasing my savings of £1700 and use to pay of rest of loan with them and the remaining £610 to clear the highest APR mail order account and one credit card with the highest APR?

By doing it this way it will release an extra £130 a month which I will use to pay of the highest APR's accounts first!

Someone has some advice for me please?

all_hours

Hi Johan,

Put the details of your cards and loans in here, this will tell you the best order to pay them off and show you how soon you can be debt free.

http://www.whatsthecost.com/snowball.aspx

tesuhoha

If you are going to go ahead with this loan then be careful to check that it is 5.8% that you are getting. A few years ago we were offered a loan by Alliance & Leicester at 5.6%, we needed £15,000. I didnt check the small print and when the loan came through the interest rate was actually nearer 15% because we didnt quite fit their criteria for the 5.6%. I paid it back immediately but it still cost us about £500, cheaper than paying it back over the years but still a fair sum to lose. Still, if you can get it, thats not a bad interest rate if you cant manage to pay it off with low rate ccs.

Alleycat

Hi Johan,

Do you know what the APR is on the credit union loan and savings account?

Sounds like it would be in your best interest to clear the credit union loan so you can get to your savings, though it would depend on the amount owed to the credit cards etc and what the APR is for the credit union loan and savings.

If you post a list of what is owed to who and what the APRs and monthly payments are it would really help us to help you prioritise those debts.

Sounds like you are getting a handle on things and well done for selling the bike for a profit!

Johan

tesuhoha wrote:

If you are going to go ahead with this loan then be careful to check that it is 5.8% that you are getting. A few years ago we were offered a loan by Alliance & Leicester at 5.6%, we needed £15,000. I didnt check the small print and when the loan came through the interest rate was actually nearer 15% because we didnt quite fit their criteria for the 5.6%. I paid it back immediately but it still cost us about £500, cheaper than paying it back over the years but still a fair sum to lose. Still, if you can get it, thats not a bad interest rate if you cant manage to pay it off with low rate ccs.

No I have decided against this loan as it will tie me down for a long time!

tesuhoha

Okay. I think youre doing the right thing. Good luck.

Johan

Alleycat wrote:

Hi Johan,

Do you know what the APR is on the credit union loan and savings account?

Sounds like it would be in your best interest to clear the credit union loan so you can get to your savings, though it would depend on the amount owed to the credit cards etc and what the APR is for the credit union loan and savings.

If you post a list of what is owed to who and what the APRs and monthly payments are it would really help us to help you prioritise those debts.

Sounds like you are getting a handle on things and well done for selling the bike for a profit!

The interest on the savings or anybody elses savings for that matter would be far outweighed by the amount of interest charged to loans and credit cards these days!

The credit union APR is 12.68%, The interest paid is 3% and a loan interest rebate of 25% It is all a bit confusing I think but there you have it!

Johan

Hi all

I have been away from this site for a while, things sort a got worse...well depends how you look at it realy!

We have gone trough a few changes for the better!

We moved from a privatly rented house costing us £575.00 per month to a housing association house (secure accomodation) as our landlord wanted us out.......saving us £216.00 per month + we have the option to buy after 4.5 years.

My motorbike did not sell after all......mind you she is still up for sale and with the weather improving there might be takers this time!......meanwhile I use away at it!

I have defaulted on a creditcard owing £5071.80....oops, and I am in arrears with 2 others! I fell behind with Argos...£178.00...might catch up again as we needed to get another wash m/c and dish washer and other items associated with moving house.

With floors carpets and everything else we owe £825.00 to guy who put it in (priority debt)

We owe £249 to electricity board and £250 to BT, and to make matters worse our flipping oil tank is empty..:eek:....er almost, oil watchman on 1 and light flashing!

On the plus site of things hopefully we will get on top of things again ....mind you our debts are now £20.000 from £15.000