£46,000 possibly more debt I want it gone..

nsl101

Pixie5740 wrote: »

The interest on your First Direct loan hasn’t been front loaded. Interest is calculated daily so the more you overpay the less interest you’ll pay in total.

Are you sure about this, im in a bit of a quandary, I don't know if that's entirely true they said and I quote "If you pay £5,000.00 lump sum, then you reduce the term by the number of payments that covers". To be fair they did say it could potentially reduce the interest but they say they have no way of calculating that until all payments have been paid and then they would refund any owed.. if any??

I'm going to sell a car and i have the option of saving 2,000 from the sale price back for use for a holiday for me and to send to take my kids to Scotland to see my elderly grandmother or I can put the whole lot on the loan now... but from what they say it I don't know if that does make a lot of difference... its so confusing.. as from next month I am going to budget provision for a holiday the following year as i think its important to live a bit even though i have such a big debt to pay I cant live no life for the term of the loan.

I just don't know... Id feel happier if i knew by putting X amount in it saves me X amount interest so i can make a real informed choice at the cost of me going on holiday..

enthusiasticsaver

nsl101 wrote: »

Yes please, I want to keep this rolling so I keep motivated this time.. :-)

moved to diaries section.

nsl101

So in the interests of trying to get this debt down today i have almost completely decluttered the first room of the house. I have found several items that could be sold, that i don't use, want or need. Listings have been created and saved for later... I will be setting them live on Thursday...

I also showed a prospective lodger round the freshly decluttered room in the hope that they will rent it Monday to Friday... they said they would let me know... eeek

I've spent some considerable time looking for higher paid work, and also prepared a quote to DJ for a birthday party...

I have almost got my paper work in order too, i have a stack of papers on a desk now i need to work through and make sure i have them all sorted.. just finishing off 2016-2017 books for my lady who does them to enter up and complete my tax return and i'm starting 2017-2018 to try and get that in a soon as possible so i have no unexpected tax bills... that should give me one less thing to stress about.

Considering phoning my energy supplier Scottish Power to discuss what Tariff I am on,. I know it might not make a lot of difference but i think its worth finding out...

My lodger has passed me a collection of watches to sell on Ebay, he tends to make a bit of extra cash buying and selling and hes trying to help me learn to do some trading, if this works it might provide me with another source of income.

on the down side my Fuel card was rejected when i filled up my tank today £62.00 of fuel i had to take the whack out of my current account... so although I thought i was doing well this week keeping my spending inside what i predicted on my SOA, I think ive blown the fuel budget for last month which has hit me this week. I need to follow up on the fuel card in the morning when i can phone up and discuss the limit...

The car i intend to keep is going in for a service tomorrow too, so fingers crossed but sods law being what it is I am expecting costs... Next year there will be a pot of cash waiting for the service... but meh i have to just figure it out this time..

Pixie5740

nsl101 wrote: »

Are you sure about this, im in a bit of a quandary, I don't know if that's entirely true they said and I quote "If you pay £5,000.00 lump sum, then you reduce the term by the number of payments that covers". To be fair they did say it could potentially reduce the interest but they say they have no way of calculating that until all payments have been paid and then they would refund any owed.. if any??

Yes I am sure. Front loaded interest is not legal in the UK for Consumer Credit as all loans have to have the interest calculated on an actuarial basis meaning that on early settlement you only pay the interest accrued to date plus a maximum penalty of 58 days interest.

What do the T&C of your loan say about overpayments and early settlement?

MuffinTops

Hello nsl101. Thank you for popping in to read my diary. I've subscribed to yours now and I'll have a proper catch up this evening.

MT

MuffinTops

So, I've caught up with your diary and you've done so much. I also really admire your bravery for speaking to your girlfriend and telling her what's been going on and why you weren't able to commit.

You've had a huge amount of useful financial advice so I won't muddy those waters, but I will say that we're not just about the finances here. If you feel you're slipping into a depression then come on and have an anonymous vent or just get things off your chest. Or just come on and tell us about your day.

Your Dad is lovely for letting you take a breather from his debt. That shows he has trust in you to get things sorted out.

Your DJing sounds fun too. Even better if you get some payments for it too.

MT

nsl101

Pixie5740 wrote: »

Yes I am sure. Front loaded interest is not legal in the UK for Consumer Credit as all loans have to have the interest calculated on an actuarial basis meaning that on early settlement you only pay the interest accrued to date plus a maximum penalty of 58 days interest.

What do the T&C of your loan say about overpayments and early settlement?

I'm sorry i haven't had a chance to dig it out, yet I will try and sort it this week, reached a bit of a meh moment all getting a bit on top of me at the moment, I've fallen behind with this thread, my budgeting etc...

Asmoosy

You need to sit down and write a list of your outgoings which you have done.
You then need to look at ways of saving on your bills, mortgage payments etc. Whatever you have left must go to the most expensive debt you have and start to pay it off.
Also you need to become more frugal, you probably have £1000 sitting in your house in stuff you could sell on eBay.
Join the debt free community on Instagram and make extra money through side hustles. I am @freebiequeenuk. The debt free community will show you so many ways to make money that don't involve much work and find ways of saving money on your bills.
Cashback/ freebies for groceries are not going to feed you day in day out but you'll save some money on some items!

Asmoosy

Also try moving some of your credit card balance to an interest free card. If you do a balance transfer it could save you a big chuck of interest. I know you don't want more credit cards but it could make things more manageable for 18months at least!

nsl101

MuffinTops wrote: »

So, I've caught up with your diary and you've done so much. I also really admire your bravery for speaking to your girlfriend and telling her what's been going on and why you weren't able to commit.

You've had a huge amount of useful financial advice so I won't muddy those waters, but I will say that we're not just about the finances here. If you feel you're slipping into a depression then come on and have an anonymous vent or just get things off your chest. Or just come on and tell us about your day.

Your Dad is lovely for letting you take a breather from his debt. That shows he has trust in you to get things sorted out.

Your DJing sounds fun too. Even better if you get some payments for it too.

MT

Hey MT,

Thanks for reading... I have had a lot to think about and i think i'm doing really well, however finding it really tough to stay high spirited about it all at the moment.

I have now sold my car and I've made a massive effort to stick to lower costs. As a result I have one tesco current account with £3,000.00 another with £3,303 - this was at £3906 but ive paid out for a holiday this year... I need to finally get my first break away from this place.

I found Monzo, this is a pre payment card, fantastic, its really working well for me as the app shows me all my spending, also i'm making a special effort to ensure that when i want something i count through in my mind, is this something I need or is it a luxury item.

I wanted a new door mat - bigger than my current one ... i went to the shop looked at them saw that the price and said to myself... I don't need it... didn't buy it and went home. Felt quite good about it too. This is a new behavior for me...

Sadly the DJing has to come to an end as from mid March. Its not really making me money, I know this as my tax bill is really low. I want to concentrate on doing things that make me money, its important now more than ever that I don't burn considerable amounts of time doing things that do not contribute to my goals. Also I enjoy it less and less these days.

The trading on ebay appears to be going well, I've been doing this for three weeks and I have yet to crunch the numbers properly but I appear to be up on the numbers.. I need to make time to take stock of all my associated costs and the time i am spending doing it to understand if its worth my time and if I am going to use it as part of my strategy to pay off the debt.

Lots to think about and what does not help is i have had a few off moments with my family..

I know im making progress and I need to update all the spreadsheets and do a fresh SOA but ... meh

I dunno perhaps ill feel lighter tonight lol.