Head out the sand.

Krisa_2

Hi guys,

Long time reader, have finally deceided to post and get some help.

I want to be debt free and need some help formulating a plan on how to do so!

I have a personal loan of around 5000,
A credit card with 2400
And a £2000 overdraft.

I currently earn around £1200 a month and after all bills etc have £500ish disposable a month.

I really want to make a start clearing my debts so any help would be very much appreciated.

Regards

Krisa

moohound

Do you know the APRs?

Krisa_2

Hi thanks for the reply!

I have made a duplicate thread however I don't have details of the APR at hand at the moment as I'm not at home.

Regards

Krisa

lovinituk

Krisa wrote: »

I currently earn around £1200 a month and after all bills etc have £500ish disposable a month.

Is that totally disposable income? If so you could clear your debts completely in a year and half. Give yourself £100 a month for treats and you can still clear your debts in 2 years.

Krisa_2

Yes that is totally disposable income.
Would you advise just knuckeling down and getting them paid?
Is £100 a month enough to leave myself incase something unexpected comes up?

Regards

Krisa

lovinituk

Krisa wrote: »

Would you advise just knuckeling down and getting them paid?

That's what I would do! What are you spending £500 a month on at the moment? Is that more important than clearing your debts?

Krisa wrote: »

Is £100 a month enough to leave myself incase something unexpected comes up?

Entirely up to you. What unexpected expenses could occur? Car break down, fridge/washing machine/cooker break down, etc?

Krisa_2

I am spending the £500 on general expenses and you are right. They probably aren't as important as paying off the debt. I am going to make paying off my debts my priority in the forseeable future.

Yes that is exactly what I meant by unexpected costs. I just don't want to be leaving myself short and then having no means of paying for repairs etc.

Regards

Krisa

lovinituk

Krisa wrote: »

Yes that is exactly what I meant by unexpected costs. I just don't want to be leaving myself short and then having no means of paying for repairs etc.

I'm not sure what the general advice is for this. Do you put some of the £500 away for emergencies or pay off more of your debt to reduce the overall interest? I'll leave that one to the board experts.