Advice on debts to pay

Betty_Crumble

wants.to.be.debt.free wrote: »

Thats great news that you are thinking ahead, and take no notice of comments made by others, Just over 1 year and you will be debt free and in a fantastic position to start a family.

If one month you have some surplus from your entertainment budget, could i suggest you open a savings account so you can have a little back up - just incase a fridge freezer/washing machine breaks , then you dont have to reach for the credit cards.

Good luck in your journey

They are putting £200 pm away for emergrncy fund by the looks of the statement of affairs so should be ok

katejo

am1981 wrote: »

I don't understand the point of your post? If it's a dig at my family's income then that's unfair - we weren't born with silver spoons in our mouths, we are both children of immigrants and have worked hard for our current salaries.

That being said, you never know when things change - I could lose my job tomorrow and you could get promoted tomorrow. In those circumstances you would be better off than me and I wouldn't begrudge you.

I am not begrudging you your income. I simply mean that you must have plenty of room to cut your spending. I am saving towards a new kitchen so I have limited my spending on social life and holidays. Your first email seems to suggest that you have no room to limit your outgoings. If I had a large debt, my spending would be limited to the absolute basics and I wouldn't eat out or buy takeaways.

wants.to.be.debt.free

Betty_Crumble wrote: »

They are putting £200 pm away for emergrncy fund by the looks of the statement of affairs so should be ok

Yes i see that now - so any left over from entertaintment can also be thrown at the debt - so they are debt free in less time

paulmapp8306

I still say, dont pay off the low interest loans (student loans and any other that remain that low), but overpay your mortgage first. At the rate your on its pretty high compared to some of your loans (obviously the ones that will rise need paying).

The new rate your thinking of when you re-mortgage almost certainly wont be available when you want it. Rates are rising daily - and in 6 months or so (when you can re-mortgage) you may do well to secure anything as low as that. Your best bet on that front is to get you ballance down - either by overpaying OR by saving.

pippitypop

paulmapp8306 wrote: »

I still say, dont pay off the low interest loans (student loans and any other that remain that low), but overpay your mortgage first. At the rate your on its pretty high compared to some of your loans (obviously the ones that will rise need paying).

The new rate your thinking of when you re-mortgage almost certainly wont be available when you want it. Rates are rising daily - and in 6 months or so (when you can re-mortgage) you may do well to secure anything as low as that. Your best bet on that front is to get you ballance down - either by overpaying OR by saving.

I agree, if the mortgage rate of interest is higher I would be putting any spare money per month into the mortgage. If times get tough they could also take a payment break for a month from the mortgage.