What is the best way to pay of my loan?

chunky-monkey_8

I currently have a loan with HSBC for £500 I earn about £350 - £400 a month from ASDA and £300 of that goes out in direct debits. each month they charge me interest of £6.65. what is the best way to pay it off quickly?

Beast

Second Job? More Hours? Ebay stuff? Cut back on monthly spending?

Tixy

How much do you currently pay towards your loan each month?
Is that included in the direct debits of £300?

what else is in the £300? are they all essential items?

Can you do more hours at work? are you entitled to any benefits/tax credits etc?

chunky-monkey_8

Here is where the £300 goes each month:

Mum - £80
Internet - £9
Contract Phone - £40
Bus Ticket - £35
Car Insurance £85
Loan Repayment £20

I have asked for extra hours but they have none to give me as for a second job thats a no go because i will be starting work placement in September and i will be required to work normal school times. Someone recomended a 0% credit card but i dunno about credit cards the kinda scare me.

the_insider

Do you not pay any road tax/petrol/maintenance for the car? What do you eat? I take it you live with your parents and pay £80 per month for room and board? Might be worth popping over to Debt Free Wannabe. There are lots of people there who can give you some tips to reduce your income.

Tixy

Can you reduce your contract phone down a tariff? phone up and try? is the car essential? especially if the bus is used for commuting to work?

I don't think you will get a 0% card on those earnings, best way to pay off this loan is to see if the loan allows overpayments and to somehow free up a bit more money, or earn a bit more money and then make those overpayments.

That will get the debt paid off quicker and reduce the amount of interest you pay.

The figures you have listed come to £269. Where does the other £81-£131 go?