Big debt. Any advice appreciated.

Waynep88_2

Hi everyone.

I'm currently in a shared ownership property but would love nothing more than to have a full mortgage, but the downside is I have built up a substantial amount of debt. The plus side to the debt is that I'm in control of it and I haven't ever missed a payment and I have a little disposable income at the end of each month. My debts are as follows...

£24,389 personal loan 3.3% Apr
£6000 car finance

Both of these have around 5 years left to be cleared.

I'm just wondering if anyone has any ideas to get these cleared off quicker?

My wife would love to move house sooner than 5 years time and with that amount of debt I doubt we would ever get a full mortgage.

If anyone has any advice I would be truly greatfull

Many thanks

Wayne

sourcrates

Hi,

No magic solution to it unfortunately, either you have to increase your income, decrease your outgoings, or ideally do both.

Maybe a second job, does your wife work ?

Anything you can sell ?

Waynep88_2

Hi. Thank you for your reply..
Managed to get all other outgoings down as low as possible. I didn't think of a second job it could certainly be an option if I can get hours to suit.

Thanks again

fire-wannabe

Perhaps get the debt in a 0% credit card? To save on interest.....

lazer-zxr

From my experience, I found the following boosted me on my DFW journey:

Switch bank accounts, your own, your wifes and a joint, keep moving them round (possible £1500+ in there)

Matched betting (Possible £1000 in there)

Put an SOA up on here, and listen to the tips

Shift debt to lowest % possible

Cut down: we went to cutting our own hair; minimal wastage;

council TV;

cheapest broadband;

cheapest phone deals;

Quidco cashback everything (£700 in 2 years);

Sell everything you're hording (made £1500 on this);

I completed a full time course funded by my employer(while still doing my day job) and got a 25% reduction in council tax, and a good qualification (MBA);

Learned to repair my own car (new Auxilary belt, couple of repairs, fitted exhaust);

buy budget and yellow sticker items in supermarket;

don't spread payments over 12 months if it costs more (insurance etc.);

Get an AMEX nectar card, we clicked for 30,000 nectar points (free £150 worth of shopping), just make sure you pay it off in full;

Use the snowball method to attack debt.

Do a budget. Stick to it. Make your overpayments a real charge on your budget that you must make. You should be able to draw up a plan now, that shows you when you can be debt free. You can identify your debt free date today. If you dont like it, change your budget (less costs, more income) and make that change happen.

.... I'll try to list some more later.

waynep88

Thanks for all your advice. It is very appreciated. Thank you

waynep88

Thank you all for the great advice. I've managed to cut back on the car to a £3450 one instead of £6k and got 0% interest for 37 months on it. Happy days.

Thanks again and I'll certainly be using most of the ideas mentioned above.

Thank you