I want to be debt free.

Hippychick

Just noticed you have payment protection on your loan I would try and cancel this as they generally don't pay out anyway, if it was mis sold to you you may be able to get a full refund. That would also gain you the extra £46.00 per month.

Check here for more info.

mitty_2

Buffythedebtslayer wrote: »

Monthly Incomings:

including 46 pounds pp.

Can you cancel the PP? its probably bad value for money and they normally have so many 'get out' clauses! You could use the £46 (£552 a year) to overpay the loan if possible or save as an emergency fund.

Karmacat

Hi Buffy

(ooh, I wish you were! - I've just watched the ep where Willow tries to destroy the world, wonderful stuff).

Anyway, this is what springs to mind on reading your soas:
- the car. Do you drive it or not, you haven't replied. If you don't, seems best you should sell - that could immediately cut down a big proportion of your debt.
- you live at home, and pay rent to your parents, is that right? So that rent includes your council tax, is that correct? If not, you need to make allowances for that.
- you *absolutely* need to define what you spend that "spending money" on: its not spending money at all, its a big % of your income, if you get control over that, you're well on the way to solving your problems.
- if you live in a tiny room and have a lot of stuff, can you ebay/amazon some of the stuff to create more space and more money? Books are my weakness too - eventually I decided that every time I bought one, one had to go. That soon made me think.
- if you have credit cards with 0% balances, you should probably close them down, so that you can get an interest-free balance-transfer credit card when thats right for you - or for when you want that mortgage!
- as others have said, people very very rarely benefit from having PPI on loans etc - do, please, think seriously about cancelling it, once again thats more money to throw at your debts.
- like Hippychick has said, this is about not just what you *like* to spend, but what you *need* to spend. You don't *need* DVDs, you just like them, or want them. Join some free DVD clubs online, remembering to cancel before the payment date comes up, rent them from the library, whatever - but they still cost a lot to buy, comparatively, and they clutter up that little room of yours.
- its not sensible to save when you're this much in debt. Go to the main site here, and read Martin's articles on this, and the sums he's done - it doesn't make sense to save in your situation. Say that you were getting 5% interest on your savigns, and paying out 8% interest on your debts - if you pay off your debts with your savings, you're saving yourself 3% interest. That can really add up when you have £20k of debts as you have - 3% is £600!!!
- your phone. Is it on the cheapest tariff you can find?

Best of luck, anyway - you've started, just need to keep going now!

Buffythedebtslayer

Right this had better, work I just typed a really long post and it disappeared!!!!

Ok, I am going to do an intensive driving course in Oct so am keeping the car.

ermmm I have forgotten what else i wrote.

this week I am going to clear out my room! and find stuff to sell, I will be sleeping in the conservatory such is my dedication to emptying cupboards and finding things.

I am an Avon rep as well, I really should tackle that properly and make some money as opposed to having endless supplies of make up

I am scared to have a loan without PP. What if my legs drop off or I have some disaster?

Hippychick, this really made me think.

One thing I would say is ditch the savings, repay your debt first then save once your loan has gone also if you cut your spending money down to say £100.00 per month you will then be able to throw this at your debts

250 savings + 300 surplus spending money + 448 loan payment = £998

Pay that to your loan and it will take less than 2 years to clear.

two years. plus if I made any extra money from e bay, Avon etc it could be sooner. crikey that is scary. wow.

in fact after some hasty sums on the calculator, I could pay off my loan in 23 months and save 50 quid a month in case of emergencies or I could put all my savings accounts in to one (currently saving for various things in various accounts) and have that as my safety net.

there is probably lots more i could say but I shall go now and find my money stuff!

thank you all so much

Buffy ( Best TV programme ever!)

Buffythedebtslayer

Just one more thing, Should I keep my pension? its a work based one,
cheers

Mrs_Sparkle

Buffythedebtslayer wrote: »

Just one more thing, Should I keep my pension? its a work based one,
cheers

Is it a final salary scheme or not? Does your employer contribute? I have to admit I don't pay into a pension as I'm not convinced they're the best investment. But there are some excellent schemes around and if you were in one of them it would be a shame to pull out. I'm sure you'll get lots of people much more sensible than me telling you to keep it- I just wanted to wish you good luck. I second every one of the previous suggestions, cancelling PP, keeping a spending diary etc.

Buffythedebtslayer

eek. I have no idea - feel slightly ashamed. I am a teacher so its a "council " pension? I have tried to opt out before and the Bursurer who is lovely told me off and said I shouldn't. hmmm. I just think it is like saving? and therefore with the huge debt fairly pointless.

am hungry. completely irrelevant but any way.

cheers

GettingThingsDone

Hi Buffy and welcome to DFW!

Quick question:
Are you wanting to buy a house purely as a buy-to-let or to move out and live there too? Is this what you really want, or is it something that seems like a good idea or 'the thing to do?'.

1. Keep the pension - this won't be a big drain on your income at present and you'll be able to make a better more considered decision later. Don't feel ashamed you just need to do some research at some point to work it out.

2. Where did all the money go, if you don't mind me asking? I don't mean that judgmentally, I just mean are there things that you can sell? What are the APRs on your credit cards? Do you have any life of balance low apr cards that you could transfer your debt to? Cut the cards up - resist all temptation

3. Clear the clutter - sell it; turn it back into cash. What's the point of keeping DVD's - it won't be long until they are as old-hat as my VHS collection? Take everything out of your room and put it into a big pile; then just work through it top to bottom, one item at a time - chuck, ebay or keep; for 'keeps' I use the 'useful or beautiful' rule, otherwise it goes.

Be focussed on what you really want e.g. having a picture of your 'dream house' can help - just look at it and believe that you are living there. Do this before going out shopping - everything non-necessity you purchase moves you away from this dream. Every DFW move you make moves you closer to your dream. And it's important that it is your dream e.g. maybe you really want to travel the world and not have a house at all...

Good luck and keep posting!

gtd

Buffythedebtslayer

1. Keep the pension - this won't be a big drain on your income at present and you'll be able to make a better more considered decision later. Don't feel ashamed you just need to do some research at some point to work it out.

cool, spoke to bursar bloke again today, and he told me off again! and said I should keep it too.

2. Where did all the money go, if you don't mind me asking? I don't mean that judgmentally, I just mean are there things that you can sell? What are the APRs on your credit cards? Do you have any life of balance low apr cards that you could transfer your debt to? Cut the cards up - resist all temptation
I don't know.... lots of books shopping eating out, having a private dentist (OUCH) getting the car fixed, student bank loan rip off from my bank (that was 17,000 of it - it was a career development loan and had MASSIVE payment protection on it, was gutted when I found out)

3. Clear the clutter - sell it; turn it back into cash. What's the point of keeping DVD's - it won't be long until they are as old-hat as my VHS collection? Take everything out of your room and put it into a big pile; then just work through it top to bottom, one item at a time - chuck, ebay or keep; for 'keeps' I use the 'useful or beautiful' rule, otherwise it goes.

I am currently sleeping in the conservatory and clearing out a section at a time. I "found" a pile of dvd's today that I forgot to take up stairs and three of them where still in my amazon basket - I might have bought them twice!!!!!!! I am going to a clothes swopping party in a few weeks wardrobe gets done tomorrow night.

Be focussed on what you really want e.g. having a picture of your 'dream house' can help - just look at it and believe that you are living there. Do this before going out shopping - everything non-necessity you purchase moves you away from this dream. Every DFW move you make moves you closer to your dream. And it's important that it is your dream e.g. maybe you really want to travel the world and not have a house at all...
My plan - work full time for 4 years, paying off debts hopefully in two and saving for the other two, buy a house rent it out maybe (depending on savings) have more then one, rent covers mortgage I work part time and either study or travel(visit my sister, plus a list of countries to go see starting with New Zealand.
.
Good luck and keep posting!
thank you, you really made me think,

short term plan - finish decorating this month and start extra payments on loan. then reassess SOA and get a proper debt free date.

thanks again!

Buffyx

GettingThingsDone

Excellent - nice one buffy! I had a feeling your dreams might involve some travelling

Keep posting and see you around

gtd