what target to set now?

Hi guys, first time poster, long time lurker! Looking for some advice as to what target to set now?

Some background - last couple of years have been trying to pay off credit card. Balance was 6100 in September time but will be paid off next week. No intention to run up anymore debt on credit cards.

My situation can roughly be summarised like this:

Mortgage: 131k HBOS SVR 32 years to go monthly payment is 599
Personal loan: 3362 (221 a month until Sept 2010)
0% loan from employer: 700 (50 quid a month)
Student loan: approx 12k
Assets - Property worth around 180k and shares around 5.5k

After all the monthly bills come off I have 715 left. I am in the fortunate situation of working abroad for the first six months of this year which looks like roughly equating to another 1000 at the end of the month.

My initial thinking is to make no decisions for the next few months and just save as much as I can. It really is a strange situation for me as have been burdened by the credit card each month for a full two years


  • get cracking with paying personal loan off (or saving up money to pay it off earlier using a lump sum)
  • TixyTixy Forumite
    31.5K Posts
    Well done on repaying your credit card ruletheworld (maybe the first thing you could do is give yourself a small treat).
    Start to build up some savings equivalent to 3months outgoings for the unexpected or any financial emergencies (so you don't have to use credit cards again).
    Find out the APRs on your mortgage, loan and student loan and whether overpayments are allowed on the mortgage and personal loan.
    Start overpayments on the highest APR (I expect this will be the loan).
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • What is the APR on the mortgage and on the loan. The answer would be to overpay whichever one has the greater APR. Assuming there is no penalty for doing so.

    The other thing to do is to have an savings account, which had 3 months salary in it. Just in case the worst comes.

    I want a job that is less than an hour driving away from my house! Are you listening universe?
  • I would suggest overpaying your mortgage and reduce the term, possibly even getting another deal. You could easily reduce your mortgage to 20 years and save a fortune in interest. In 20 years you would have spare income and possibly things to spend it on ie kids, holidays and you never know what state your heaslth will be in.

    Even though you will pay more per month now you will have 12 years of not paying 599 pm which is roughly 80,000.
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