Need Help

ADO_4

Hi All,

Need some advice. In a bit a situation where I have been in the country for about 3 years and have kinda gone through a bad patch. Goin on 34 and have nothing to my name just debt. I have a personal loan of £4k and a credit card of another £500. Im currently in a houseshare because I cont afoard my own place. I sold my car and have that money which is £3400 and have have £1000 in a ISA. I havent been wise with my money and now its all hit home and dont know what to do. I have a job and its not the best paid job but Im living.

Should I use the money that I have to pay offer the debt and start all over again or should I carry on paying the personal loan? I have another 18 months to go.

Any suggestions would be good.

Thanks

Kohoutek

If you don't need the savings to live on, then it would be best to pay off the debt, because the interest you receive on your savings is guaranteed to be less than the interest you are paying on your debt. Definitely pay off the credit card as soon as possible - the interest rates are always very high on credit cards.

[Deleted User]

Will you be charged for repaying your loan early?

Agree with above, pay off credit card completly unless you are currently in a 0% ARP phase, in which case pay it off in full just before that ends.

OMAR

I personally would pay it all off AND close accounts. Then start building up savings to buy a replacement car and things etc. Avoiding credit where possible, obviously!

ADO_4

Thanks for the advise.

Yes there is a penalty of £98 for early settlement. I dont need the money to live on but also dont want to be left with nothing to fall back on should I need to.

Is it ever to late to start agian from scratch.