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What would you do?

kayho123
kayho123 Posts: 44 Forumite
in Debt-free wannabe
Hi all i have debts of around 850 to three creditors and want some advice

I am a student and in Sept will recieve £2300 student finance. Do you think i should use this to pay my debts and just live really cheaply till i get next money in jan???

I can see the pros and cons of doing both just not sure what to do!!!

any help appreciated :T
NOW DEBT FREEEEEEEEEEEEEEEEEEEE AS OF OCT 5TH 2010 NEVER AGAIN WILL I BE SO SILLY WITH MY FINANCES:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j
proudly banking and saving with RBS

Comments

  • bottleofred
    bottleofred Posts: 2,902 Forumite
    Hi Kayho123,

    The decision is really up to you, as you are the one who may be short of cash between now and January. However, if it was me, I'd work out how much it was going to cost me in interest if I did not clear the debts immediately and then decide. If I was going to save some money on interest, I'd clear the debts, but only as long as I had enough cash until January. Good luck with whatever you decide.
    If you've nothing decent to say, perhaps you shouldn't say anything.

    £2 savings jar £300:D
    Total credit card debts £1250:mad::mad::mad::mad::mad: - Will I ever learn!!
  • kayho123
    kayho123 Posts: 44 Forumite
    thanks for advice, i am not paying any interest on debts the three are with DCA but its just from the point of view that they are really annoying the fact that i have to make a monthly payment so i think i will go for it and get debt free early!
    NOW DEBT FREEEEEEEEEEEEEEEEEEEE AS OF OCT 5TH 2010 NEVER AGAIN WILL I BE SO SILLY WITH MY FINANCES:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j
    proudly banking and saving with RBS
  • fatbelly
    fatbelly Posts: 23,733 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Just be careful that you don't run out of cash and are tempted to borrow again at high interest.

    If the dcas are happy with their monthly payments I'd suggest sticking with that and put your grant money in something earning you interest like an ISA or a Lloyds classic current account with vantage
  • Numpty_Monkey
    Numpty_Monkey Posts: 14,196 Forumite
    10,000 Posts Combo Breaker
    As the debts are with DCA's have you thought of making a reduced Full and Final settlement
    http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
    PROUD TO BE DEALING WITH MY DEBT NERD #869
    Numpty,Not sure why but I'm crying :o . Of all the peeps on this board you're the kindest & most supportive of all & I'm :mad: & :( for you all at the same time . Wish I was there to give you a big :grouphug: & emergency hobnobs
    xx
    DFD 5/1/16
  • pipsi_2
    pipsi_2 Posts: 238 Forumite
    Do be careful, you might think you can live off next to nothing when you receive your student loan but the student loan itself will barely cover your expenses for the term nevermind spending £800+ on your debts. If you're in monthly payments i'd say stick to them as they aren't charging you any interest, try to save the £800+ you owe during the term and pay it off at the end of the term if you've managed to save that much, if not, pay off what you have managed to save and do the same next term, make sure you keep to your monthly payments in the mean time though. Also as soon as you get to uni, try to get a part time job, even if it is only one shift a week in a bar, it could be an extra £40 towards expenses.
  • barbiedoll
    barbiedoll Posts: 5,328 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I'm with Numpty on this one, you may be able to get rid of them for around £300!

    ;)
    "I may be many things but not being indiscreet isn't one of them"
This discussion has been closed.
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