Nearly there: stick with DMP or snowball?

louise3965

Can you help? We are around 8 months from finishing our DMP (of 7 years). We had horrendous debts of about 146k and are down to our last 15k when the next payment goes :j But we have calculated that if we snowball we could save £800 ish and maybe pay off 3 weeks early.

I'm SO scared though at the prospect of going it alone - I'm terrified lessons haven't been learned and feel like an alcoholic must feel when invited to a free bar.

What would you do?

sistafromanothermista

I'm not sure but 146k!!!! Do you mind me asking how?!

louise3965

Having good salaries but being bleedin' idiots. Nothing more complicated than holidays, stupid purchases and being incredibly immature and thick.

startingtogetoutofdebt

OMG!!! That's an incredible sum not only to get into that much debt but to pay it back in 7 years.

I'd definitely pay it off early if you can.

If you've managed to pay so much money towards your debts over the last 7 years have you looked at putting most of the money you have been paying towards debts into a savings account where you can't make any withdrawals for a set number of years. I know savings rates aren't great at the moment but if you've been paying the money out it doesn't make sense to just let it disappear back into your monthly spending.

That way you'll still need to budget but in a few years could have enough money for something really special.