Advisen me on how to get out of debt!!

James240

Hi Guys

I currently have a £13,000 Loan that i have taken out with Egg at 7.9% apr to consolidate a few debts that i have built up over the last few years, through excess partying, going out with friends,etc, etc. what would be the best way i could go about paying this loan off faster it is for 54 months. I have two jobs one which pays around £300 a month after tax and the other pays £1029 after tax. ( i use the job that pays £300 a month to make the loan repayments) from my other job ( the one that pays £1029) i have approx £500 left to either put in a savings account or pay more off the loan.

Please would you advise me which would be the more sensible option many thanks peeps :beer:

Woby_Tide

unless a savings account is paying 7.9% after tax it's better off putting the money to wards the loan(unless you want to create a savings pot to cover emergencies first then start paying of loan with that money, i.e. save first couple of months payments in decent account)

Debt_Free_Chick

Is this the Egg flexible loan? If so, I thought they let you pay off extra whenever you wanted to.

James - check the terms of the Egg loan or send them a secure message.

James240

hi guys thanks for replying, it is the egg flexible loan which enables me to pay off extra bits off theloan, i didnt know weather or not i should do this or i should be putting money away and saving it .......... so itake it i should be paying extra bits off the loan then?

downandout!

Are you in a position to get one of the 0% Credit Card deals? I fso you could get 1 of these and use it to pay off a lump sum of your loan and then pay this off. With £500 spare each month you could clear a large amount off in no time.

saubryn

I'd be inclined to put away two maybe three months of loan payments out of the extra to cover emergencies, then after that throw as much as I possibly could at clearing the loan.

I used to have a good job and was meeting (and paying extra) on my payments, but then when I lost that job I had absolutely no money to make payments for a few months, and that didn't help me with landing in the mess I'm in now, so that's why I'd be inclined to save at least a bit of a backup, but usually you're better off paying debts just to save the interest charges.

It sounds like you're in a good position to clear this off quickly, good luck!