Our Proposed Debt Free Plan

wizard3891

DEBTS

£19000 halifax loan, 7 years from september 2005 - £283.84 per month

£10000 Rac loan, 5 years from Dec 2005 - £208.38 per month

£9883.00 (including balloon payment) Renault car payments, £163.26 per month 3.5 yrs from Oct 2005

£2930 - Abbey credit card

£1000 - Lloyds credit card

we have income of £2540 per month

OUTGOINGS

£446.39 MORTGAGE (INCLUDES ALL PROTECTION & INSURANCES)

£262.40 RENT / SERVICE CHARGE

£180 SHOPPING

£55 NTL/BROADBAND/HOMEPHONE

£70 MOBILES (CONTRACTS RUN OUT IN JULY)

£100 PETROL (PUBLIC TRANSPORT WILL COST ME £109 A MONTH FOR WORK)

£46 CAR INSURANCE

£20 GAS/ELECTRIC

LEAVES US WITH £130 A MONTH

We have worked out that we badly want to be debt free (except mortgage) in 4 years as we cant stand the thought of having these loans and credit cards running on forever.

THE PLAN

Monthly debt payments of £986 per month for 4 years which pays off all the mentioned debts including all interest as if they run the full term

The £986 includes

£284 loan
£209 loan
£164 car
£329 on ccards untill they are clear then throw at the loans



QUESTIONS

DOES THIS PLAN SEEM REASONABLE?

WILL INTEREST BE REDUCED IF WE PAY THESE LOANS OFF EARLY?

ANY OTHER COMENTS OR IDEAS?

thanks guys

scottishspendaholic

Hi Wizard,

I'm not an expert at any of this - but I just wanted to say hello and I'm sure someone much more knowledgeable than me will be along very soon.

Well done on posting.

SS x

roswell

Hi And welcome

Id phone NTL and move onto there 3 for £30 plan only takes 2 mins to do theres 1 quick win. or is freeview an option for the TV ? what speed broadband do you have and how much do you use the house phone eg if house phone is on talk unlimited 24x7 but your at work most of the day you would be better off with talk local evening maybe ??

Any chance of changing mobile phones to pay as you go ? its hard to beat the 02 online offers and you can normaly get the sim cards free if you keep your eyes out on some sites. alos list what protection and insurance policies you have on your morgage you may be able to get them cheaper / scrap some. can you move the credit cards to 0 % ? or are thy one 0% ?

wizard3891

thanks, our mortgage protection insurances / protectection including contents insurance is all at halifax staff rate as my girlfriend works for them.

the NTL is currently down to base package with 2 meg bb and £6 for the free eve & weekend calls on phone.

Is it poss to get rid of tv and keep phone & bb???

wil defo look into payg mobs in july.

Should we hammer the cards like i said then throw it at the loans??

is this the best way??

Also my girlfriend gets a garunteed bonus each year of £1000 ish and as I get paid 4 weekly (13 times a year) i can move the direct debits around and save about £1200 one month a year so thats an extra £2200 a year to throw at the loans.

Will this bring our debt free date forward alot and will interest be reduced when making the overpayments on the loans??

any help is great thanks alot

JAMIEDODGER

what are the aprs on both cc's?

Lottiepots

You should look at https://www.whatsthecost.co.uk after you have managed to find out your APR's and have a play about... This will help you work out how quickly you could pay off all debts..

tattooed_lady

Is that your rent/service charge for a MONTH or YEAR??

wizard3891

ruyareece wrote:

Is that your rent/service charge for a MONTH or YEAR??

£262 is a month

wizard3891

JAMIEDODGER wrote:

what are the aprs on both cc's?

im not entirly sure as they are my girlfriends. Ill chck them out.

But the interest per month on the abbey £3000 is £50 and the min payment is about that too so to pay the min gets nowhere.

Want to kill the ccards before anything else.

Pooky

Public transport would be cheaper for you at £109 a month than £100 for petrol, £40odd for insurance + mot/service/tax......

wizard3891

Pooky wrote:

Public transport would be cheaper for you at £109 a month than £100 for petrol, £40odd for insurance + mot/service/tax......

yes but the £100 petrol is for my work mon- fri and ALL other driving shopping trips out etc etc.

the £109 is just a return fare for work only.

Mot is ok for next 3 years as the cars new