Clearing my debt

postingalwaysposting

yummum wrote:

Hi there, do you have any savings that you could use against your loan, as has been stated many times on here you are better off paying off debts before you start saving.

Also, I was in your posistion when I was younger and left home with debt. At the time I couldn't see any problem with that but I wish I knew then what I know now! This is the only time in your life when you will get rent for £100 a month!!!
Once you have to start and pay for things like gas/elec/water/council tax, etc,etc... it takes you so much longer to pay off debt. Try your hardest to get rid of it before you leave home!!

yummum is right, living at home gives you the chance to pay back debt and save, i am still at home saving and i dred the day that i have to leave and pay 'proper' bills...

xzibit pay back most if not all of the debt before you find somewhere else, debt follows you and unless you get it under control you will be in debt for most of your life (i have seen it happen) well done to facing up to it though and starting the ball rolling :T

xzibit

Hi and thanks for everyones replies.

Yes I do have some savings, about £2000. And I'm currently trying to sell my bike for £2000. So will have approx £4000 after that. But surely I don't want to put all off that into my loan, as I need to keep something behind me incase something unexpected happens. Though I reckon I could put £3000 of it into the loan.

I have been doing some calculations (get me lol) and reckon I can overpay my loan by about £400 a month. This will still allow me a small amount of pocket money each week.

It's amazing, I really wish I'd came here a year or more ago!!!

postingalwaysposting

xzibit wrote:

It's amazing, I really wish I'd came here a year or more ago!!!

xzibit we all do once we are here :rotfl:

xzibit

I have been thinking it all over. Now, what I was finding it hard to get my head around, is that if I put all my money into paying off this debt now, I won't have any more savings at the end of it, and will never get a house. But, I have worked out that, if I sell my bike for £2000, and put that into a savings account and take out £200 a month, to put into the loan, along with the £400 extra I can afford to pay into it, that will be £851.50 a month, and it will only take me 9 months (next may!) to pay it off.
I know i'll have to look into whether I can over pay etc, but if I can do that and pay it all off, I will be able to save £650 a month after that, so if I put back buying a house a year than originally planned, I could have about £8000 saved, plus be on a better salary (hopefully lol) AND BE DEBT FREE!!!!!!
Will it work out like this? First things first, is to look into whether I can over pay my loan, and get this bike sold!
There is some hope then! Are there any major flaws in my plan that, perhaps i'm too excited to spot lol?

Little_Miss_Winner

It's amazing, I really wish I'd came here a year or more ago!!!

It get sooooooooo addictive, doesn't it?:rotfl:

Little_Miss_Winner

You plan sounds good to me. Yes obviously things will crop up, such as birthdays, weddings etc. You will need a little money for such events.
Ebay is a great way of saving/earning money. Do have any unwanted items you could sell?
Clothes, cds, dvds etc...?

Then maybe you could put this money aside for such events.

xzibit

potogold wrote:

You plan sounds good to me. Yes obviously things will crop up, such as birthdays, weddings etc. You will need a little money for such events.
Ebay is a great way of saving/earning money. Do have any unwanted items you could sell?
Clothes, cds, dvds etc...?

Then maybe you could put this money aside for such events.

I have a few things, which I am actually in the process of putting on ebay! :j Yes you are right, some months, I may have things I have to pay for such as xmas and bdays, but if I stick to it as hard as I can, I can hopefully be debt free by next summer. How come you people can give joy to us all so easily? For the last few months, I've been giving myself headaches just thinking that I was stuck for years, but after all your advice, and the major determination I now have, I feel somewhat lighter and relaxed. I just have to stick to it now!!

yummum_3

Hi again, If you were to pay your £4000 off your loan then pay back £651.50 it would take you 5 months to get rid of your debt saving you money on the interest on the loan, then if you saved 651.50 for 4 months you will have £2606 savings at the end of 9 months (next may) rather than the £200 if you did it your way.

xzibit

yummum wrote:

Hi again, If you were to pay your £4000 off your loan then pay back £651.50 it would take you 5 months to get rid of your debt saving you money on the interest on the loan, then if you saved 651.50 for 4 months you will have £2606 savings at the end of 9 months (next may) rather than the £200 if you did it your way.

Hi yummum (are you really yummy? ) thanks for that! Yes I have played about with figures and reckon it is doable by Feb 07!! I just can't quite believe why I never spotted this sooner. Suppose I'm not programmed to think like that lol. Looks like if I can put off buying a house for a year, I can have a nice deposit too. I'm in love with this place! :A

Little_Miss_Winner

I have a few things, which I am actually in the process of putting on ebay!

Don't forget if you list on a thursday for 10 days, you will get TWO full weekends, instead of 1 ! :T
The majority of bids are placed at weekend.;)