This debt must go

starnac

Pay went in from my 2nd job this morning. £72.88. I moved the 88p to my small savings account as I have a thing for odd numbers. I also need to move £10 to our holiday savings to meet my monthly savings target there. DS's passport is covered now so that's good only the travel, DH's passport and spending money left to cover

The rest of the money will go towards the loan I think. I need to look at money today before I post an end of month total.

starnac

Money update

It was a bit more complicated to work it out this time. As you may or may not realise, we have 2 loans and DH's cc to pay off. The window loan was 11.4%, the credit card 18% and the car loan 6.9%. About a week and a half ago I had a letter from the bank that gave us the loan to buy my car, saying now we had paid so much money off the loan we could have more blah blah blah. I was just about to put it in the shredding file when I noticed the interest rate was 4.6%. Much lower than we already had. After talking to DH we rang them and asked if we were eligible for the lower interest rate. They said we were and then told us how much extra we could borrow at that rate.

Now I have been around MSE for longer than I care to admit so I know all about borrowing more money yadda yadda yadda. BUT we looked at what debts we had and decided to consolidate them with the new loan. To get the new interest rate we had to cancel our old loan at 6.9% and pay it off with the new loan. This is where it got complicated. We took out a new £9000 loan (bear with me) I know that is more than we owed at this point, but it had to be a round number!!

With the £9k we paid off the window loan, DH's cc, and the car loan. This left us with money left over which we paid straight back to the loan, leaving us with £207.24 less debt overall

So we took out a bigger loan and ended up owing less on a much smaller interest rate with a lower monthly payment

The direct debits to the others have been cancelled and the money will be redirected to the loan, meaning we can make a monthly payment of £300 to the loan without trying. Which is almost double the actual monthly payment.

So I'm feeling pretty pleased at the moment as we now only have one loan and all our spare money can go to that. Let's see what we paid off this month then

starnac

January
Paid off £700.42

February
Paid off £454.97
Total 2014 £1,155.39/£9,827.73 or 11.8%

starnac

Not as good as last month then but at least we are over 10% now

starnac

It has been hectic here this week. DS has been poorly and has been off nursery. We originally thought it was hand foot and mouth as there has been a lot of cases around here but the rash lasted a day and was only on his legs and hands, but nursery said he can't go just in case.

DH has also been off all week. Today is his first day back. As much as I love having his home, I am glad to get some normality back today. It's strange but having him home really puts my morning routine out and we have been almost late for school every day. You'd think that having him home would make things easier wouldn't you??

starnac

£12.12 cheque for selling some old books and DVDs cleared so that was moved to the loan plus £50 leftover from my pay from my 2nd job. Over the weekend I can probably pay some more off as that's when the window loan payment would have been due out.

starnac

DS and I are having a lovely quiet morning this morning. I've been quite busy lately. My second job have been ringing me asking me to do extra shifts which is good for debt busting I suppose.

£60 has been moved to the holiday savings. We went to get DS's passport photos done yesterday. Last time he wouldn't even sit so my mum came with me this time. He did try to get off the stool thing so my mum said "if you are a good boy we'll take you to the shop to buy some chocolate" I remembered I had a Freddo in my bag (as you do) so I gave it to him and told him he could have it after he's had his photo taken. Boom! Lovely passport photos taken no problem :rotfl: and one happy boy eating a Freddo!!

Looked at the banks this morning.
£170 paid off the loan. This was made up of £88 council tax payment and £82 that would have been the window loan payment.

Up to 14% paid off now. There is some more to be paid off once my extra shifts get paid.

clearmydebts

God bless chocolate. It is a great invention!

You are doing an amazing job with the debt. Fair play to you x

starnac

I know. It is amazing stuff

I'm just so fed up of it all now CMD. I've been on this site nearly 5 years now and I seem to get nowhere fast. Until the debt has gone we can't start saving for a nicer house with a garden and off road parking.

You are doing pretty good yourself x

Lemon_Tree

hi Starnac, don't give up, it took me the best part of 6-7 years to clear my debt but it's the best thing I've ever done. It's so liberating.