Debt Free Part 3

natlie

After becoming debt free in 2014, i have unfortunately accrued some new debt currently my debt is as follows

* Updated Nov 2016

Barclaycard £6181 0% APR for 3 years
Tesco CC £5315.94
MBNA £5466.11p 0% for 40 mnths
Virgin £1250.10p 0% for 2 years
First Direct Car loan £9636 4% over 6 years

I am on a decent wage, my parter doesn't work he is a house husband he has no income and we have 3 children.

We have one hybrid vehicle, no car tax low fuel and insurance I don't use it for work unless I have to, I cycle.

I think that taking a bit more control of my food shopping will help.

My goals are -
[STRIKE]Pay off Very by May 2016 -done
Pay off Next by Sept 2016 done
Pay off Virgin by March 2017 Not quite on track for this at the moment need to review
Pay off Barclaycard by Dec 2017- Definately not on track for this plan is to increase payments once I have paid off Virgin
Make extra payment off car loan to close the account before 2020

I will try to update this regularly

good luck to everyone on the same journey

Nat

xxx

nextyeartina

Good luck x

Bobarella

Good luck with your journey.

Huskyrunner

good luck keep the updates nice and regular

sillyinthepast

Good luck you seem to have a decent plan.

natlie

Cheques in the post today £25 refund and £135 refund for Car Tax have paid the £160 total off my very account which is now just £40

[STRIKE]£18,400[/STRIKE] £18,240

sugar-walsh

Hi Natalie,

Wishing you good luck with your journey - I am on my second one too. Just out of interest, why don't you use the ISA savings to pay your car loan, next and very? I understand the other two, as they are interest free, but confused to those two.

Hope I don't offend, just curious.

natlie

Hi

Not offended at all

Next and very are manageable for me they will be paid off shortly, the car loan I pondered I was scared of paying such a big chunk out of my savings when the APR on the loan is only 3.4% my ISA is also locked for 3 years so I could pay the loan off in two years once my ISA term is completed. I really could have done without buying a new car but ours was 14 years old, bald tyres, and MOT due in June we decided we would buy a car we would keep for a long time again. This one came up and we went for it. I'm hoping no tax and low fuel will offset at least the interest on the loan.

Thank you for your reply
x

sugar-walsh

These things always happen when we could do without them! We need a new van for work, but trying to get through for a little while without it - or hiring if required, so we have a better chance of getting some money together.

I'm impressed with your low car loan though - I may need to look into that instead!

natlie

My loan is with First Direct, I bank with them, the offer is only available to customers with a First Direct Account, worth trying them if you don't bank with them already as you get £150 when you switch

sugar-walsh

Thanks for the advice - I use to bank with them many moons ago, I think I will try as £150 is always welcome!