please advise me how to become debt free!

sparkle_monkey

Hi everyone,
I hope you can help me work out the best way to pay off my remaining debts.
I live in Japan, I will be moving back to UK in August. I have 3 paychecks left and approx 1000gbp (sorry dont have pound sign on my computer) per month available to clear debt. The only way to transfer money is expensive, it costs approx 17gbp per time, plus I get a bad exchange rate. So my idea was to bring the cash back with me in August, get a better exchange rate and save a lot of money.
Here's the situation:
Money to service debts
(paychecks May,June,July) = 3000

Debt
Dad 1300 (0%)
Coop visa 829 (5.9% - was balance transfer rate, finishes in 3 months)
HSBC overdraft 630 (14.8%)
Graduate loan 1800 (7.9%) I get charged approx 20quid for early settlement, repayments finish Oct 2007

Currently my graduate loan payments come out of my HSBC account, which means I'm paying extra interest cos it's overdrawn. I can't get any 0% balance transfer cards as I live abroad.

Looking at the figures I could pay off all the debt, bar the graduate loan, with the 3000. Unfortunately I have some other necessary expenses, approx 1000gbp, which I will incur in August once I get back to the UK. Plus I'll have to find a job so will have to pay for basic living expenses (although no rent) until I find work.

The silver lining is I will get a tax rebate of 3000 in November.

What would you do? If I pay off all the debt I will have no money to live so will have to put the 1000 onto a credit card (as u can see- high interest), plus live in my overdraft until I find a job. Or I could pay off less debt and use the extra for living expenses. I have to pay off my dad as I've owed him for a long time. I just want to get rid of the debt!

TBH I'm excited about coming home but really really nervous that things are going to spiral out of control and I'll end up in more debt again. Especially as I'll be setting up a new life, will need clothes for work etc... I need to avoid unnecessary expenses and read these boards as I'm a bit out of touch with how to live cheaply in the UK, especially London where I'm moving to.

You were all really helpful before so I hope someone can give me an idea of what to do.
Thanks

Annie_Fanny

Hokey cokey!

My initial thought is can you ask your dad to lend you anymore money? I know it may be a pride thing in wanting to get it paid off asap BUT it is 0% at the end of the day. Are you staying with your dad when you get back - you mentioned not having to pay rent?

I assume you have internet banking?

How long have you been in Japan?

Annie

lynzpower

My feeling is that if you dont need to pay rent, an extra grand 9is quite a lot of money for general living expenses. and you may need to cut this down. To me Id pay it off and then live off the overflow, to be honest, if you wont need to pay rent then what will you have to pay for 1K is a lot of money for food, and transport.

Does INternet banking incur exhange costs then? #

If your dad can wait, that will save transfer copsts, you can give him the cash back when you are back in the UK?

CLAPTON

you need to consider how much money you need upon your return to the uk.
will you live cheaply at home while looking for a job. how long will it take before you can get a job? will you need money for a deposit on london accommodation. once you have a job you normally wont get paid until the end of the month. so you need to add up how much you will need before that first pay cheque comes in.

whats your dads attitude to say waiting until your tax refund before being repaid?

why is the tax refund in november (is it from the UK tax man....why not write and ask for the money earlier?)