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

antonia1

rdchick - the general rule is to pay off which ever is costing you the most in interest / charges. So if your interest over a month on the loan is £17 but your overdraft charges over each month are £60, you should pay towards the overdraft.

kerri_dfw

rdchick glad you're feeling better today and have your lists all sorted I'd pay the overdraft until £2500 (as you say this is higher) then if OD is still higher interest rate than loan keep paying minimum on loan and pour money into OD until it's clear or at 0% (if that's ever applicable).

I can't type today, my fingers are really sore from rock climbing yesterday and I have back muscles that hurt which I never knew I had.

No debt busting today, and no lunch brought in naughty me but didn't have time last night to make anything.

rdchick

Thanks guys I think that's what I will do, I am going to get my little debts out of the way first which is my credit cards and studio account and then tackle the big ones, it's probably not the right way but it will give me a boost knowing I only have 3 debts left and one of them is 0% at the bank of mum and dad

Rock climbing is awesome Kerri! I used to go a lot with the scouts in my younger days

I am debating whether to put my last £9 in my account into my credit card but have a fear that something may pop up and need to take it... hmmm....

rdchick

Ok I did it, I put it into my credit card but was naughty last week and had to pay for something on my credit card as I hadn't expected it! So yeah, playing catch up on my total again! xxx

oooh I just redid my totals and I have paid off more than I thought I had!

#252: £135.67/£8703.32

I_want_expendable_cash

Hi, I would liove to join this challange!

I cancommit to £700 p/m/£7700 this year :-)

Please let me know if I can join this challange?

Cheers,
I want expendable cash!

kerri_dfw

Well done rdchick you're doing well. Have you thought about how much it's going to cost in interest for each different way of paying them back first? The general rule is to pay the highest interest first as it costs you more money. Plus think how much of a boost you'll get when you've cleared the massive high cost debt and only have the little ones left Just a thought x

rdchick

This is true Kerri but they are all roughly the same, astronomical! (29.9% I think) but the overdraft is just charges, nothing comes off that amount so I think you're right that would be a good one to tackle quickly. One of my credit cards closes next month - will that affect my credit report? or will the balance just come down and once it's done it's gone?!

kerri_dfw

From what I can remember credit reports are all mumbo jumbo anyway as each bank uses their own system and if you have 6 months of good payments then your rating increases. Having less credit available to you is also a good thing from what I recall. I'm no expert though, I'm just going on what I've read on these forums If you want a free credit report then I recommend Noddle, it's free no charges ever and linked to call credit It's currently got my rating on 1/5 but I'm going to increase this this year yes sireee

rdchick

Yeah I have Noddle and yeah I don't want credit but I am planning on going into the RAF at the end of the year so I need as little debt and as good credit rating as I can get - at the mo it's all green and pretty so I hope the credit card keeps it that way...

My Noddle is also 1/5 so would be nice to get that down too xxx

loubie_lou

I have joined Noddle, but they won't let me in yet! Grrrrrrrrrrrrr :mad::mad: