Am i doing the right thing?

Bobby81

I forgot to say one loan is for another 3 years and the other two are for 5 years so i would be paying them anyway, if that makes sense...thanks vrey much for your replys, greatly appreciated.

all_hours

Bobby81 wrote:

I forgot to say one loan is for another 3 years and the other two are for 5 years so i would be paying them anyway, if that makes sense...thanks vrey much for your replys, greatly appreciated.

Another way to look at this - if you work out how to manage for the next 3 years then when the first loan is finished you'll have the amount you were paying free to spend. So the very tight period would only be for 3 years instead of 5.

Per month
Husband Income: after tax 1280
Mine: 470
Child Benefit: 116
Tax Credits: 780
Total 2646

Outgoings

Childcare: 887
Rent: 180
Elec: 21
Gas: 33
Council tax 85
TV Licence: 10.99

Phone/Internet: 41
Mobiles: 54

Car Tax: 11
Petrol: 80
Car Insurance: 48
Car Repairs and Servicing: ?

Insurance 7.99
Insurance 16.75
Insurance 33

Child trust Fund: 20
Food: 320
Sky: 46
Pet 14.99

HP 13
Great Universal 35
Next 25
1st LLoyds TSb Loan owe £17600 pay £407 (APR 7.1%) 407
2nd Lloyds TSB Loan owe £8000 pay £185 (APR11.8%) 181
Credit Card: £6000 Limit owe £400 10
Car Loan £8200 pay £180 (APR 16%) 180
Overdraft:£2000

Total 2760.72

Surplus/deficit -114.72

The first step is to make sure you've included all outgoings so that you know exactly how short you are each month. With the extra outgoings you have a deficit of £115 a month. But this doesn't include any repayment to the overdraft, car repairs or anything for christmas and birthdays.

Next and Great Universal - would those payments cover clothes and shoes for all the family? Could you add the balances and what the interest rates are?

Have you looked at your credit report to see why your rating is so low? It could be something simple such as you're not on the electoral role. It could be down to late payments and you can see when these are going to drop of the history.

tyllwyd

Could you get settlement figures and the number of repayments outstanding for all the loans?