We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
What to pay to clear debt and look towards a mortgage
Options

B0B
Posts: 105 Forumite
I am on a DMP paying £268 a month (Below rounded up)
HALIFAX PLC £514.00 paying £99 with no interest (Showing as normal payments on file)
IDEM CAPITAL SEC £418.43 paying £77 with no interest (marked as DMP/AP)
ALLIANCE & LEICE £2,229.82 (£500 is interest \ arrears) paying £57 not sure of apr (Defaulted and comes of credit file in October
HONOURS STUDENT LOANS £2,801.84 paying £35 (not on credit file, but cannot defer due to income)
Not on the DMP with about 2 and a half years to run, I needed a car for work and had no choice to get it, as my cheap banger, which replaced a cheap banger was just costing more than a car payment.
Car Finance £4500.00 (Settlement is around £3000) paying £141 around 49% apr, with all payments met on my credit file
Basically paying out £409
Due to a bonus at work and a pay rise I have managed to save £3600 in my current account in a nationwide flex account with 3% interest on first £2500.
My debts are below, I know the car finance has the highest APR, but I am worried if I pay it off I lose my emergency fun.
I have applied for a F&F with the Alliance and Leicester off £500 which I do not think they will take, but it’s worth a try. Already CCA’ed them. Even a 50% or 70% F&F is better than nothing.
The Halifax and IDEM are finished in September, which means I can snowball the extra £176 onto something else.
The student loan is not a concern and come October I can meet normal payments again as the Halifax and IDEM are finished, and it’s not on my credit file.
Or do I just keep paying as I do, and saving around £300/£400 a month, and pay the car off in a few months and then the Alliance and Leicester loan, once my emergency fund as built up.
The car is touch wood reliable, and the MOT is not due till November. My flat is rented, so no concerns about boiler breaking etc.
HALIFAX PLC £514.00 paying £99 with no interest (Showing as normal payments on file)
IDEM CAPITAL SEC £418.43 paying £77 with no interest (marked as DMP/AP)
ALLIANCE & LEICE £2,229.82 (£500 is interest \ arrears) paying £57 not sure of apr (Defaulted and comes of credit file in October
HONOURS STUDENT LOANS £2,801.84 paying £35 (not on credit file, but cannot defer due to income)
Not on the DMP with about 2 and a half years to run, I needed a car for work and had no choice to get it, as my cheap banger, which replaced a cheap banger was just costing more than a car payment.
Car Finance £4500.00 (Settlement is around £3000) paying £141 around 49% apr, with all payments met on my credit file
Basically paying out £409
Due to a bonus at work and a pay rise I have managed to save £3600 in my current account in a nationwide flex account with 3% interest on first £2500.
My debts are below, I know the car finance has the highest APR, but I am worried if I pay it off I lose my emergency fun.
I have applied for a F&F with the Alliance and Leicester off £500 which I do not think they will take, but it’s worth a try. Already CCA’ed them. Even a 50% or 70% F&F is better than nothing.
The Halifax and IDEM are finished in September, which means I can snowball the extra £176 onto something else.
The student loan is not a concern and come October I can meet normal payments again as the Halifax and IDEM are finished, and it’s not on my credit file.
Or do I just keep paying as I do, and saving around £300/£400 a month, and pay the car off in a few months and then the Alliance and Leicester loan, once my emergency fund as built up.
The car is touch wood reliable, and the MOT is not due till November. My flat is rented, so no concerns about boiler breaking etc.
0
Comments
-
Just keep £500-£1000 as an emergency fund and throw everything else at your debt!
try the snowball calculator for the best way to pay it off.Total Debt in Feb 2015 - £6,052 | DEBT FREE 26/05/2017Swagbucks £200 Valued Opinions £100Dave Ramsey Baby Step 2 | Mr Money Mustache Addict0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards