Quickest Way to Pay off a Loan

Firewalka

Hi everyone...Something I have noticed with this particular thread is that everyone has been kind enough to offer advice & find out more about the outgoings yet no one has come up with a ny type of solution...

So may I offer this little scenario to help...If I am teaching you to suck eggs then my apologies yet from experience this has & still is working EXTREMELY well & we are on course to clear ALL our creditors within the next 3 years..YES this does include the mortgage..Death by time...!!!

Make a note of ALL your outstanding creditors (this doesn't include utilities) you need to know the outstanding monies owed, monthly payments, the interest rates & the time left & term.

Then create a spreadsheet/table with the following info...

Column 1 Name of creditor
Column 2 Total Balance
Column 3 Monthly Payment
Column 4 Division Answer
Column 5 Pay off Priority
Column 6 Margin Roll up
Column 7 Months to pay off

So write down each creditor in the first column, total balance in the 2nd the bills monthly MINIMUM payment in the 3rd, then divide the total balance by the monthly payment placing the answer in column 4. Prioritize the creditors in column 5, starting with the lowest number first from column 4, until all are numbered. Column 6 shows you the accumulated Accelerated Margin roll up from creditors 1, 2, 3 etc as they are paid off( including the monthly payments). Column 7 is column 2 divided by column 6, this is only an approximation.

The Accelerator margin is what you use to add on top off the current minimum monthly payment until the creditor is settled. Any amount will do yet 10% of your income is always a great start, the more you can find the better obviously. You then compound the next payment by adding the 1st payment along with the 2nd pament along with your AM so on & so on until you finally pay off your mortgage & live a live of Prosperity & Abundance...!!! :j

One final thing to remember creating wealth is all about state of mind...Yet having a life of no creditors & no mortgage how more abundant would your life be...???

As for us...??? We had over £190k worth of creditors 3 years ago that is now down to the mortgage so within 6 years we will be mortgage & creditor free...!!!

Something to think about...!!!

Whatever you choose to do with this info...Make it OUTSTANDING...!!!

jinkssick

You want it serious right? You want this gone? Then lets stop the pampering.

NO homechoice. Freeviews good enough.
Pay as you go or cheapest tariff on your mobile, my gf pays £1 a month. 1500 minutes to tmobile after 7pm only.

chief

Are you sure it was a 30k loan for 7 years?

If your paying £337 a month back, over 12 Months, this is £4044.

Over the 7 years this is only £28308.

A bit less that 30k! Am I right about this, or has I missed something obvious? Are you already overpaying?

MissBrokeandnotfixingit

Have you tried seeing if your local hospital has a gym that you can join? They're not as snazzy as main gyms and they don't offer classes, but they have all the basic equipment in good working order in my experience. Plus its cost me £70 for 6 months, massive saving. I also get use of the pool and there are squash courts/ tennis courts I can access (this might depend on the hospital though)

moanymoany

Anything you can live without is a luxury. Life may not be so comfortable without them - but needs must!

There are ways of dealing with the mobile. When the folks from India phone and ask my husband what he spends on his mobile and he tells them £25 they say 'a month?' and he replies 'no, a year!' He still manages to live a full life.

Gym - you don't need it. Walking is excellent exercise.

You can get over £4,000 a year in rent from lodgers without paying tax. Get the groundrules sorted before you interview, choose wisely and get payment in advance. Companies often keep a register of people who take lodgers, you know they are working then. Any room can make you money.

I do get the feeling that you have not made that final transition that makes you prepared to take on moneysaving and debt reduction as a way of life. There are excellent threads on the thrift section, that deal with shopping, cooking and moneysaving. These are not just threads for the girls!

You should be keeping a spending diary to write down EVERY PENNY that you part with.

There are hundreds of contributors on MMT:money: that have overcome these same problems and they are all prepared to help others. They are Martin's Angels :A and they know their stuff. :T

Princess_Jane

I have just paid off a £5k graduate loan.

I have a second job working three nights a week delivering pizza.

Sold everything that wasn't nailed down on ebay/amazon.

Started shopping at Lidl and the local market instead of major supermarkets.

I couldn't have done it without the second job TBF. It really sucks doing a full day's work then going to work but was worth it to see the loan dwindle down over two years instead of five.