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Newbie Debt payback advice
gttngdbtfree
Posts: 8 Forumite
Hello Everyone,
Been reading this site for about 3 months and decided to post for some advice and help. I have run up debt in the past, due to living above our means and also having online gambling addiction!
2nd was hidden from my wife and friends for a long time- long story short, it all has confessed and we are in the process of recovery, and havent had any issues on that front for already 6 months. There are safeguards in place for it not to happen again and my wife and I now have a very open aproach to finances and she has unlimited access to my bank acount online.
Anyway, total debt amount is as follows:
Halifax CC £4550- 23.9% APR -monthly payment £127
Halifax overdraft £2800- they dont advertise, but i worked out APR to be around 19.8%- monthly charges £42
Friends personal loan £3850- was used to clear of payday loans 0% APR kindly from them, but will need at least £2000 back in about 6 months.
We have done our budgeting for past 3 months, and each month we are left with about £225 balance (this is minimum, as my salary also has comission on top of basic, but I count only basic coming in, and comission will be as a bonus on top of that), that at the moment is applied as follows:
£50 Emergency savings ( £150 so far/ goal to have £500)
£175 prepaying the loans
We really need to payback our friends, as they will need money to renovate their house later in the year and also credit card and overdraft are on very high interest.
My thoughts were to take out 0% transfer balance card and shift as much as possible to that and rest take out in low interest conselidating loan to be able to repay our friends and wipe out overdraft. savings in interest potentialy would be around £100 a month.
However some of the loans i looked online, do not offer prepayment each month option ( in particualar Nationwide loan).
Anyway, any thoughts? Hope this makes sense.
P.S.
We are in the process of selling a building plot in overseas development, that we have no need for and will bring us around £11000 in cash when sold, could take some time though.
Been reading this site for about 3 months and decided to post for some advice and help. I have run up debt in the past, due to living above our means and also having online gambling addiction!
2nd was hidden from my wife and friends for a long time- long story short, it all has confessed and we are in the process of recovery, and havent had any issues on that front for already 6 months. There are safeguards in place for it not to happen again and my wife and I now have a very open aproach to finances and she has unlimited access to my bank acount online.
Anyway, total debt amount is as follows:
Halifax CC £4550- 23.9% APR -monthly payment £127
Halifax overdraft £2800- they dont advertise, but i worked out APR to be around 19.8%- monthly charges £42
Friends personal loan £3850- was used to clear of payday loans 0% APR kindly from them, but will need at least £2000 back in about 6 months.
We have done our budgeting for past 3 months, and each month we are left with about £225 balance (this is minimum, as my salary also has comission on top of basic, but I count only basic coming in, and comission will be as a bonus on top of that), that at the moment is applied as follows:
£50 Emergency savings ( £150 so far/ goal to have £500)
£175 prepaying the loans
We really need to payback our friends, as they will need money to renovate their house later in the year and also credit card and overdraft are on very high interest.
My thoughts were to take out 0% transfer balance card and shift as much as possible to that and rest take out in low interest conselidating loan to be able to repay our friends and wipe out overdraft. savings in interest potentialy would be around £100 a month.
However some of the loans i looked online, do not offer prepayment each month option ( in particualar Nationwide loan).
Anyway, any thoughts? Hope this makes sense.
P.S.
We are in the process of selling a building plot in overseas development, that we have no need for and will bring us around £11000 in cash when sold, could take some time though.
LBM Moment 03/07/2012
Halifax CC £4650/£0
Barclays CC £1000/£586
Halifax OD £2800/£0
Friends Loan £4360/£2110
Halifax CC £4650/£0
Barclays CC £1000/£586
Halifax OD £2800/£0
Friends Loan £4360/£2110
0
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