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What to pay to clear debt and look towards a mortgage

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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.



Comments

  • rockm87
    rockm87 Posts: 847 Forumite
    Wedding Day Wonder
    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 26/05/2017
    Swagbucks £200 Valued Opinions £100
    Dave Ramsey Baby Step 2 | Mr Money Mustache Addict
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