Whats the best way to go

PhoenixB

My partner and I are desperatly trying to pay off the outstanding stuff we have, should we just struggle on the way we've been going or look at another way

Heres what we owe

Abbey C/C - 3300
Capital 1 - 1000
Littlewoods catalogue - 600
Simply be catalogue - 800
Argos - 112
Black Horse - 3370

We also have a consolidation loan with Nemo of around 22k, which we know is not going to be paid off until we can pay off the other stuff and then add it onto our mortgage when it comes to review our fixed rate.

We have been trying to pay off one at a time and having them cleared by the time our Black horse loan ends in 2013, although we have looked at getting a loan to pay them off, we have been rejected, so whats the best to do - advice please

Treacle1983

I don't think trying to pay them off one at a time is the best way.

Work out how much you have available to pay towards your debts and allocate them a percantage by the amount you own them.

eg:
£300 leftover each month.

Owe debt A: 10,000
Owe debt B: 5,000

then pay debt A £200 and debt B £100 a month.

the creditors will be understanding with this method if you write to them with a breakdown of your income and expenditure and how you have calculated the repayment offers.

Then when you have extra - overtime, tax rebate, penny pinching month - pay that to whichever one you like to try and clear it quicker.

Is the Nemo consolidation loan getting any payments made on it at the moment? If not then you should include it with the others to try and pay them all fairly.

PhoenixB

We pay all the bills every month, but always the minimum payments, so we thought by concentrating on one at a time it would be easier to whittle it down, we just never have anything to spare each month and we have two children, which we never get to take anywhere nice - Christmas is such a struggle this year!

Pippilongstocking

Hiya - are there big differences in the interest rates? I have paid my debts off by keeping up with regular payments BUT have prioritised each in order of the interest rates they had.

Ie paid the ones with the highest rates of interest first to make real impact where the interest is highest.

Might help if you list the rates of each and then have a think about which ones are 'costing' you the most?

Just a thought. By moving my extra money at those with the highest rates and clearing them first, I've managed to then clear them and look at the others.

Do you know the rates of all your debts? Took me a while to get my head around which were the highest interest debts and therefore my highest priority.

Might help? Just a thought though

Hugs hunny added to say why don't you post a statement of affairs on here and let folks see if they can help spot areas where you might be able to save some money and give you some extra?

They are really helpful at seeing how things might be shaved off your expenses here and there! (Goodluck!)

Pippilongstocking

PS sometimes its easier to tackle things one at a time as well by targeting a specific debt - its how I've managed to clear some of mine, keep up payments on all but really hammer one debt - made mine seem more managable somehow. xx

PhoenixB

Thanks Fayjmck!!!! We just want to clear them so much so that we can start to live a little, maybe Martin could come round for a cuppa and so me how its done!!! x

Pippilongstocking

Hello and welcome to the boards - I also have two kids and honestly think about posting your SOA - cos then lots of very clever folks will come along and add some good solid advice

Until I foudn this site I was over spending each month and had managed to get myself in over around £35k worth of debt, minimum payments, spending more than I had coming in each month etc - I'm under £20k now just by posting an SOA, listening to advice (hard to hear sometimes) and then by really lookign at how my extra newly saved/earned cash could get me out of this hole.

Goodluck - think about perhaps popping in some more advice.....

PhoenixB

Where do i post that and whats a SOA

Sorry being a thicket!!!! x

Pippilongstocking

here it is http://www.makesenseofcards.com/soacalc.html


sorry for not finding it sooner SOA - statement of affairs - you plug in everything about your finances (expenditure and income) etc and then press the bit that lets you format it for MSE

If you then post it on here - folks will lend a hand at advising where you can save - it might take a wee while to put in all the info but its so worth it


PS If you've not looked on here then its full of useful stuff.............where to start ...........http://forums.moneysavingexpert.com/showthread.html?t=562271