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In need of help
RJ_25
Posts: 1 Newbie
Hi,
In October last year i took on £7,000 of my sisters debt.. Its a long story to how she got the debt but it was through any fault of her own, well maybe a little loved up naivety! Her Ex boyfriend.... Anyway.. working in London and earning i fairly good salary and her only able to work part time in lincolnshire earning next to nothing – she has brilliantly paid off £12,000 by herself and has worked incredibly hard to do so – she needed a break as it was making her ill, so i helped out.
Anyway, i now have £6,200 of that debt to pay off which finishes in May next year at £413 a month.. I also have £4,600 of my own debt on an interest free credit card which i pay off £200 a month.
So i pay off £613 per month off debt which seems like a lot and only leaves me with £430 a month for food, travel, social (not that there is much) and anything else i need to buy.. I think at the rate i am paying this off i will be debt free in years! But i thought i'd check out some loans and i found that if i got a loan of £11000 over 2 years at £447 pcm i would only pay £900 in interest, would be debt free in 2 years and would have £166 to start saving! (no savings at the mo)
Sorry this is a bit drawn out....
Is it the right thing to do to consolidate, in order to start saving (i feel that i need a cushion/future deposit for a flat), or should i continue paying what i am paying?
In October last year i took on £7,000 of my sisters debt.. Its a long story to how she got the debt but it was through any fault of her own, well maybe a little loved up naivety! Her Ex boyfriend.... Anyway.. working in London and earning i fairly good salary and her only able to work part time in lincolnshire earning next to nothing – she has brilliantly paid off £12,000 by herself and has worked incredibly hard to do so – she needed a break as it was making her ill, so i helped out.
Anyway, i now have £6,200 of that debt to pay off which finishes in May next year at £413 a month.. I also have £4,600 of my own debt on an interest free credit card which i pay off £200 a month.
So i pay off £613 per month off debt which seems like a lot and only leaves me with £430 a month for food, travel, social (not that there is much) and anything else i need to buy.. I think at the rate i am paying this off i will be debt free in years! But i thought i'd check out some loans and i found that if i got a loan of £11000 over 2 years at £447 pcm i would only pay £900 in interest, would be debt free in 2 years and would have £166 to start saving! (no savings at the mo)
Sorry this is a bit drawn out....
Is it the right thing to do to consolidate, in order to start saving (i feel that i need a cushion/future deposit for a flat), or should i continue paying what i am paying?
0
Comments
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i think the big thinks are down to APR's
in my mind it is crazy to take something that is currently on a 0% interest CC to put it on a interest charging loan,
however if the other is on a much higher interest rate than the loan it might be worth while, however it could be easier if you got another 0% credit card
anyways i hoep you see what i am on about, your best bet is to get things on as low of an APR as you can and if you can get 0% balance transfer credit cards to tart on that would usually be the best way.
another thought is is the loan secured or unsecured? does it have the ability to increase payments without penalty? can you drop payments if you need to without penaltys?Drop a brand challenge
on a £100 shop you might on average get 70 items save
10p per product = £7 a week ~ £28 a month
20p per product = £14 a week ~ £56 a month
30p per product = £21 a week ~ £84 a month (or in other words one weeks shoping at the new price)0 -
I certainly wouldn't be turning interest free credit into a loan.
Next May isn't that long away.
If you are struggling, then post an SOA (incomings and outgoings) and we will see if we can reduce your outgoings.
Well done for helping your sister out, is she in any position to help you out with the repayments at all?0
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