The "Pay ALL your debt off by Xmas 2012" challenge - PART 2!!!

jakes-mum

Thank you Kerri :T

I followed in your footsteps and through t*pcashb*ck opened a gala account and used my £10 deposit and £20 top up on the scratchies, just withdrew £26 and if the cashback tracks thats £22.72 on top

Linzight

£45.80 off the CC so I'm now at 9.16%. Really need to get motivated and back on eBay but it's just finding the time!

kerri_dfw

No wonder I'm not feeling so pinched this month, threw fleabay and the bingo last night I've managed to earn £250+ on top of my wages this month yippee. Keeping a spending diary has really taken the pressure off as well, and I have my petrol + grocery budget in my purse so I don't need to touch anything else. Why don't our parents teach us how to budget?!?!?!

GreenSaints

Hi all,

Everyone seems to be doing fabulously!

Cancelled my contact lense subscription with Boots (found 19 months of lenses and they keep sending me more and I'm paying for them!) so I got a refund for my January payment. Put that towards the old Barclaycard, so my total is now:

Member #27 £1082.96/£22,922.39 (4.72%)

More importantly, my total from January 2011 is now: £9992.79! So close to that £10k mark!

mf0u1098

Please please help me peeps! I'm so torn...!!!!

I took out a loan with HBSC in 2006 for £18,500 + interest = £24,500 (I'm an idiot I know...)
I have just rang them up to see what my settlement figure would be and it's £7461.39 as of today which includes an interest rebate of £597.37. I then asked her what it would cost to take out a £7,500 loan over the same period at 6.2% APR (as opposed to original of 7.9%) as new loans allow overpayments but my old one doesn't which is why I have been saving up to pay it off in full early. The new loan over the same term as remaining on my original loan would mean that total repayable at the end would be £8100. This tells me that the maximum amount of interest that I could save is £600.

Now, this is where is gets a bit sticky. Apparently when my loan was started there was a special offer of a rebate for allowing it to go to term (i.e. not pay off early) and this is £1521.60 that the advisor confirmed would be paid into my account after the last payment was made in August 2014. That means that I would have to swallow the £600 interest rebate for paying off early BUT they would give me £1500 instead... I have never been told about this rebate before of £1500 and it is definitely not in any of my paperwork as I've gone through it with a fine tooth comb for PPI reclaiming. I know that I need to contact them to get it in writing but can you please confirm that I've got this right?

The thing is that 1) I HATE HBSC and can't wait to be rid of them (although this lady today was actually lovely...) and 2) it means I have to pay this for another 2.5yrs so cannot be debt free by Xmas like I'd wanted.

However, if I still save up the equivalent then it's not like I've not achieved my target so that's not a problem. Also, I'm thinking that it will enable me to save up for a house a lot quicker...

Oh I hate this loan though and have been counting down the days until I can tell them to stuff their account where the sun doesn't shine. The thought of staying with them for the next 2.5yrs so I can get this money back from them is hurting my pride!!!

Please tell me what to do... xxx

antonia1

Hi Jemma, I'm a bit confused with all your numbers, so let me know if I have this right.

Option 1 - keep current loan over original loan period
Outstanding balance £8100 approx (including interest), £1500 rebate at end
Therefore, £6600 overall

Option 2 - replace current loan with new loan over same period
Total repayable £8100

Option 3 - replace current loan with new loan and repay soon as possible
Outstanding balance £7500 + interest (say £200 before you repay)
Total repayable £7700 ish?


I can't really give you advice on which to do, it depends how much you want to be debt free and whether you could consider yourself debt free when you have enough savings to cover the total cost of the loan and use the loan a bit like stoozing?

If you decide to keep the current loan I would defo get the rebate offer in writing.

kerri_dfw

mf0u1098 wrote: »

Please please help me peeps! I'm so torn...!!!!

I took out a loan with HBSC in 2006 for £18,500 + interest = £24,500 (I'm an idiot I know...)
I have just rang them up to see what my settlement figure would be and it's £7461.39 as of today which includes an interest rebate of £597.37. I then asked her what it would cost to take out a £7,500 loan over the same period at 6.2% APR (as opposed to original of 7.9%) as new loans allow overpayments but my old one doesn't which is why I have been saving up to pay it off in full early. The new loan over the same term as remaining on my original loan would mean that total repayable at the end would be £8100. This tells me that the maximum amount of interest that I could save is £600.

Now, this is where is gets a bit sticky. Apparently when my loan was started there was a special offer of a rebate for allowing it to go to term (i.e. not pay off early) and this is £1521.60 that the advisor confirmed would be paid into my account after the last payment was made in August 2014. That means that I would have to swallow the £600 interest rebate for paying off early BUT they would give me £1500 instead... I have never been told about this rebate before of £1500 and it is definitely not in any of my paperwork as I've gone through it with a fine tooth comb for PPI reclaiming. I know that I need to contact them to get it in writing but can you please confirm that I've got this right?

The thing is that 1) I HATE HBSC and can't wait to be rid of them (although this lady today was actually lovely...) and 2) it means I have to pay this for another 2.5yrs so cannot be debt free by Xmas like I'd wanted.

However, if I still save up the equivalent then it's not like I've not achieved my target so that's not a problem. Also, I'm thinking that it will enable me to save up for a house a lot quicker...

Oh I hate this loan though and have been counting down the days until I can tell them to stuff their account where the sun doesn't shine. The thought of staying with them for the next 2.5yrs so I can get this money back from them is hurting my pride!!!

Please tell me what to do... xxx

Gemma, you need to weigh up which one will cost you the most. Can you put it into simple form for me...so something like:

Option A: Pay off early, total cost of loan = xyz
Option B: Take out a new loan, total cost of both loans = xyz
Option C: Carry on as I am, total cost of loan = xyz

I think that'll give you a very clear indication of what is best. Remember the tortoise and the hare...

Edit: Haha antonia beat me to it

mf0u1098

antonia1 wrote: »

Hi Jemma, I'm a bit confused with all your numbers, so let me know if I have this right.

Option 1 - keep current loan over original loan period
Outstanding balance £8100 approx (including interest), £1500 rebate at end
Therefore, £6600 overall

Option 2 - replace current loan with new loan over same period
Total repayable £8100

Option 3 - replace current loan with new loan and repay soon as possible
Outstanding balance £7500 + interest (say £200 before you repay)
Total repayable £7700 ish?


I can't really give you advice on which to do, it depends how much you want to be debt free and whether you could consider yourself debt free when you have enough savings to cover the total cost of the loan and use the loan a bit like stoozing?

If you decide to keep the current loan I would defo get the rebate offer in writing.

Yeah, there is the Option 4 which is what I'd planned to do before I knew of the other options which was to save alongside my repayments until I had enough to pay off in full so probably about the £7900 at a guess...

I've just rang them back to ask for it in writing and they've said that I just need to go into a branch and they'll print one off for me but that the rebate would be paid back to me within 30days of my final payment...

mf0u1098

kerri_dfw wrote: »

Gemma, you need to weigh up which one will cost you the most. Can you put it into simple form for me...so something like:

Option A: Pay off early, total cost of loan = xyz
Option B: Take out a new loan, total cost of both loans = xyz
Option C: Carry on as I am, total cost of loan = xyz

I think that'll give you a very clear indication of what is best. Remember the tortoise and the hare...

Edit: Haha antonia beat me to it

So I have to decide whether I'm all squidgy with a hard shell, or have stupid big ears...! :rotfl:

Did I mention how much a I HATE HBSC... and not paying off all my debts this year would really hurt especially seen as how this is my challenge!!! But I need to think with my head...

GreenSaints

If it was me, I'd take the option to pay it off the quickest. The interest wouldn't be my concern or if you get money back, it would be the freedom of not having to pay every month for something you want to get rid of (hence I'm overpaying my student loan)

But that's just me