advice saught

whiteroom184

Hi guys

would appriciate your thought on what debts to clear with my redundancy settlement

after doing the calculations i will have about £6100 left to pay off debt, as i have income insurance for 12 months i do not want to sit on it as i know i will fritter it away!

options-
barclaycard £4600 o% till nov 09 paying £100 pcm
tesco cc £2800 0% till Apr 10 paying £100pcm
student loan £1880 neg int approx £7pcm paying £87pcm (can defer due to reduced income)
co-op loan 1 £3600 paying £194 pcm fin nov 2010 would save approx £240 in interest if paid off now
co-op loan 2 £3380 paying £154 pcm fin feb 2011 would save approx £175 in interest if paid off now
A/L o/d £4000 currently pay £5pcm service charge

any advice appriciated

thought paying off 2 loans first then using repayments that i would normally pay to clear cc's before end of interest free?

doodledo_2

Paying off the loans seems the most sensible.

But your Barclaycard is due to end its 0% in 6 months so even with the increased payments from the loans being thrown at that it would be a long way off paid off by November.

Suppose it depends on the chances of you being able to get another 0% after that one ends.

Maybe pay one loan and a chunk off the Barclaycard??

whiteroom184

what do you think about defering my student loan to make additional repayments to my barclaycard? also do you think that A/L will get a bit humpy about my large o/d without such a high wage coming in?

many thanks

jayss

Yes deffer your student loan if you can, the money will be of more use to you for the others.
Check with A&L how much you need to pay in each month, if your insurance pays out a high enough level they may be okay.
For me my overdraft wasnt an issue although it wasnt very big when I first stopped working, making sure some money went into the account each month meant the bank were okay.
Dont forget to leave some money to live on if your insurance dosent kick in straight away.

Good luck with finding a new job.

whiteroom184

thanks jayss

i will get paid into this account £1090 income insurance, £550 from OH as his share of household bills etc, £80 child benefit anf £40 tax credit so in total about £ £1750 which is about £600pcm less than normal, hopefuully they will be ok with this, thanks for the support. I may well look at reducing this overdraft by say £50pcm as this is a small enough amount to manage but still be a gesture.
My insurance will kick in after 2 months as i have been paid some notice, i have allocated £3k for this

many thanks again