Just a quickie really -

Gal

Well I have cleared off all credit cards today - (£400 - Barclaycard, £300 Capital one) and will be sending a couple of letters in a weeks time to get these both cancelled.

The only thing I really have left is an Egg Loan, I called them today and got the PPI removed as this was mis-sold in the first place. This has taken £1200 off the total balance which is a bonus, I have asked that my payment amount stays the same as well so it clears it faster.

Now I have additional savings that I have been paying into for the past few months, Should I plough all my additional money into the loan to get it cleared off. The interest amount on my loan is 6.7%.

I have around an extra £300 a month that I could pay off towards it each month (Payments at the moment are £185 a month so in theory it could be £485)

The loan amount at present is £6,800.

I know its not much compared with some but it still counts as a debt to me.

Sorry if it doesn't make much sense its the first time I have posted in this section.

oops_a_daisy

well done Gal :T you are doing brilliantly. If it were me I would pay off the loan asap because you will probably not get as much interest on savings as you are paying on the loan. Check if you will make any savings by over paying every month or saving up and making a lump sum payment to clear the loan. I recently paid off a loan that I saved up the money for and saved about £200 of interest ( the loan was about half of yours ) Or you cound save a little and over pay a little so then get the best of both worlds and have a little 'rainy day' pot for if problems arise.
All the best and good luck

Gal

oops_a_daisy wrote:

well done Gal :T you are doing brilliantly. If it were me I would pay off the loan asap because you will probably not get as much interest on savings as you are paying on the loan. Check if you will make any savings by over paying every month or saving up and making a lump sum payment to clear the loan. I recently paid off a loan that I saved up the money for and saved about £200 of interest ( the loan was about half of yours ) Or you cound save a little and over pay a little so then get the best of both worlds and have a little 'rainy day' pot for if problems arise.
All the best and good luck

Well I earlier in the year my balance on my barclaycard was closer to £5,000 and a loan on top of what was originally £9,900.

So the Cards are all gone, The only thing is paying back money is so boring as you can't really go out and do anything in the meantime (Sure people know how that feels) I know I should pay it off quicker but when its there in a savings account its nice to look at (That sounds proper Weird!)

I think at the moment its a bit like lack of motivation thats preventing me from trying to clear it off asap, I have already paid off almost 7,000 this year already :eek:

Willsnarf1983

Gal wrote:

The only thing is paying back money is so boring as you can't really go out and do anything in the meantime (Sure people know how that feels)

Personally and this is only my opinion is that i don't believe that debt free wannabes should have to be all about paying of as much as possible each and every month to an extreme where people cut the lifestyle down to a ridiculously smaller amount compared to what they were doing when they were in debt. Don't get me wrong there need to be some cutbacks but just because you could pay of an extra £150 a month of the debt of by cutting out something that means something to you...for example Golf (i spend between £80-£100 a month on this), i could cut this out and take alot of time of my repayments but IMO its not worth missing out on golf and missing out on my life.

Will