Debt Free Help

SparciaM

Hi guys!

Well I've a lot of debt in places and need advice on what people think I should do.

HSBC Credit Card at 14.9% with £826.57 debt, paying £50 a month off.
HSBC Student Acc with £1500 0% overdraft (currently at -£1200 at mo) - I use this overdraft to pay my rent and loan repayments.

HSBC Graduate Loan at 7.9% £9165.03 left to pay (if settled today would be £7830.55) - as HSBC add all interest on top first, paying £160 a month - 5 Years to go
Cahoot Personal Loan at 9.7% £3763.42 (inc settlement fig) left to pay, paying £105 a month - 3.5 Years to go

So total debt inc settling loans early = £11593.97 not including the 0% Overdraft.

I've done some calculations about shifting the loans and here it comes to:

Cahoot 9.7% to Smile 6.9% I would spend £264.94 - but the loan would be paid off 1 year early.
HSBC 7.9% to Smile 6.9% I would save £165.71 - but the loan would be paid off in the same time.

So would someone advise to get a loan paid off 1 year early, even though you pay more interest - or let it run for the term and save £264.94??

BUT - If I consoladated both loans into one I would actually be paying £5000 more over the same term, so 2 loans into 1 isn't an option.!.

Savings: £1500 in cash ISA at 5.5% I've closed this today, so I can get rid of the credit card and will have about £700 left to play with.

I budget like hell. It set myself a weekly budget and stick to it, but I don't earn enough to pay the debt off more quickly. So what would people do?

scottishspendaholic

Hi SparciaM,

I am no expert in the above - but can only suggest a second job/ebay selling to boost your income...
How about:-
Selling rubbish around the home on ebay or making something and selling it
Babysitting
Job in pub
Work for a friend/relative for pin money

Any of these suit?

Scottish Spendaholic x

headchef

Hi there. You could post a SOA (list of incomings and outgoings). We've all benefitted from having our outgoings scruitinised (or seeing others with similar habits). Well done on working out how much a consolidation loan will actually cost you - not many people do that!

SparciaM

Ok here's my SOA to be scrutinized.

Incomings: £800 a month wages.

Rent: £275.00
HSBC Loan: £160
Cahoot Loan: £105
CC Bill: £50
Food: £80
Socialising: £60
Petrol: £60
Car Insurance: £20
Gas: £19
Electric: £19
Water: £16
Car Tax: £10
Phone: £10
Broadband: £9

Total outgoings: £803 a month! Once CC is paid off in 5 days I'll be saving £50 a month there!

So I know my budget isn't too bad, but main problems are my loans. Do I:

a)Pay Cahoot loan off 1 year early, by moving to a lower APR or
b)Move HSBC loan to a lower APR to save £1200 in the end.

I can definately get a lower rate for Cahoot, but with HSBC maybe not as the balance is high. I've already cancelled my £1500 ISA and using this money to pay my CC off. So i'm just left with the decision about what to do with the loans.?!?