Financial dilemma - RE Car & Debts

cdixon1041k

Lilac's right. Pay it down over the term. Keep working the debt. All you have to do is deal with your basic expenses each month. Nothing to fret about there. Keep your nose to the grindstone.

Chris

noz85

Thanks one and all

Rockporkchop

I would definitely go with (C), no question. You say you are thinking of a three year plan. If you clear all your debts now and start saving like mad, you could have well over £30,000 towards a house in three years. If you keep the car and its huge outgoings, in three years you will have a car worth about £6,000 and probably £10,000 in savings if you are lucky.

At 24, moving out of home is your priority. You will have plenty of time in the future to buy flash cars and, believe me, it feels great when they are parked in the drive of your own house.

ladyrider260

Blimey, wish we made 1450 a month with £600 left over!
Reality is that most people don't even have £100 a month left over, the thing is because you live with the folks then it's all you know. Others live on less with a family, so you have no worries! Just be prepared for a big shock when you move out, it's tough!

Firstly, the car is a high insurance group, possibly thirsty and it will be expensive. If you want to start seeing a result with your money now, you're better off selling the car and clearing your debts. If you've got time to save for the house, you need to be strict with your budgeting and seriously pull in your belt, this needs some serious discipline.
You need to know why, even with £600 left at the end of the month, you are still ending up in your overdraft.
Keep every single receipt and record the item/s and cost on a spreadsheet. You'll soon pick up where your cash is going.
Draw up a budget of all your bills and up the payments to clear your debt faster. If you can, add to that a savings outgoing. Set up a standing order into a savings account, that way the money will just go out like a bill.
Take out a weekly allowance and then put your card in the drawer. Spend only the cash and don't be tempted to 'dip' into next weeks allowance.
Look at your bank account at the end of the month & enjoy that + in your account! Once you start seeing the money build up, it gives you incentive to be more careful and get the balance higher.

I hope that helps & I haven't gabbed on too much!