Kicking my debt in the !!!! - any advice?

SBell_2

Hi all,
This is my first post on here, and as of today, I'm officially taking my money situation SERIOUSLY! I'm 27 next week and I think it's finally hit me that 30 isn't too far off and I need to get my ar*e into gear!

I currently have the following debts:
Loan - £4200
Credit Card - £1800 (currently 0% until Aug)
Overdraft - £1900 (stupid rate of interest - about 18%?!)
= £7900. Perhaps not the most colossal of debts, but I don't have much to show for it - mostly left over from student days/family problems/being very unwise with my cash etc.

Anyway - quite a lot of waffling, but just 'setting the scene'. I'm actually after some advice as to where to go next. I basically have 2 (or 3) options and I wanted some Money Savers' expert opinions. I can either a) extend my current loan to £7900 and pay it off over two years b) extend loan but pay it off over 3 years or c) keep my loan as it is (due to finish in March 2012) and try and juggle the other amounts between 0% credit cards.

My only issue is that I'm desperately hoping to go travelling next year for 5 - 6 weeks, and so if possible, I really want to factor in being able to save too. I know logic dictates that I should forget about travelling & get myself completely debt free, but I know if I don't go now, I never will. I don't have much disposable income every month, and I don't want to stretch myself too far, but pathetic as it might sound I know unless I'm 'forced' to pay it back, I'll never clear my debts.

Any help/advice/general encouragement would be most appreciated. I've lived for far too long with my head in the sand and I really want to sort my finances out.

Sam

Tixy

Hi Sam, well done for posting and deciding to make a change now.

I would say the starting point to help you decide and us advise is a statement of affairs to show where your money is being spent and how much you can afford in total on debt repayments.
http://www.makesenseofcards.com/soacalc.html

SBell_2

Excellent, thanks Tixy....I'll give it a go. Looks like a vast improvement on the mutli-coloured spreadsheet in front of me!

I've always avoided thinking about where my money is going because I know I'm being frivolous/stupid with far too much of it. But at least I've accepted that now!

I'll grit my teeth, do a SOA and report back.

Thanks x