Nerdy question re totalling loan debts

Seaxwyn

hi there

I'm adding up my debts ready to post an SOA here, and I am wondering what total I should include for two loans: the amount it would cost to clear them as of now, or the total I will pay if I see them through til the bitter end. What do others do?

Annie_Fanny

Hey Seaxwyn

Can you afford to pay them off as of now??

Annie

moozie_2

Hi there

I have gone around that question many times in my head and a few months ago I decide to use the figure it would cost me to pay them off now. I have two loans and I will repay one of them 14 months early so feel comfortable with my way of counting them

CLAPTON

a very astute question ....i dont think that most people dont really think about it and most dont know the settlement figure anyway.

if there is a possibilty of paying the debt off soon then both figures are needed to work out whether its worthwhile, otherwise i would suggest using the 'bitter end' figure.



but just my view..

Seaxwyn

Thanks folks. As I certainly can't pay them off now, alas, I'd better stick with the 'bitter end' figure, although it's depressing as so high. Until now I've mentally used the lower figure but perhaps that's a form of denial! One loan is my priority 3 debt so when it reaches the top of the list, I can review whether it's worth finding a way of paying it off early.

Thanks again for the very speedy responses.

iceicebaby

I would go with the worst case scenario really, ie what you will end up paying then if it turns out you can pay them early and end up paying less then all the better !

moozie_2

Nice to see all the varied opinions

The other thing I forgot to mention is that both my loans were front loaded with interest. Sadly, that means I have already paid the majority of the interest and paying them off early, only saves me about £300-400 overall.

This is another reason why I use the settlement figure for my debt total.

Good luck with repaying your debts. As long as you are paying them off, that's the main thing really :T