Fastest, Easiest way to clear debt?

blvckpolar

Hey,

I was wondering about my options for clearing the debt Ive amassed over the past couple of years, each month i am getting more and more skint as i look to move out of my family home and go travelling, but I just end up sitting at the bottom of my overdraft each month with nothing to show for it.

Its been affecting my mental health for years and have been contemplating the easiest way to clear everything. Its not huge but its enough to stress me out most months.

I currently sit at the bottom of a £2000 graduate overdraft, have roughly £1400 (£180 a month for the next 10 months incl intrest) of a loan left to pay off and £300 in payday loans left to pay back, and £250 on a credit card to pay off.

I have the standard monthly outgoings, phone, £60, insurance, £100, Rent, £300, but i also have a PCP car which i pay £214 a month for (stupid mistake), but I'm tied to that for the next two years and the pay off seems too big to pay off in one go, so that's a write off.
All this on top of banks fees for being in my overdraft each month, plus petrol and just the cost of living is putting me in more and more debt, and Im pretty sure my family want me out as soon as possible.

So what do you guys recommend my best course of action is?

I've been looking at at 0% credit card, i haven't applied for any of of yet, but would it be possible to pay off all my debts with that one card and pay back monthly over the 36/40 months that some of these cards offer? I've done the maths and i think if i pay 120 a month over 36 months, it works out cheaper than the outgoings im paying now for my loan and my overdraft by about £100,

I really need to save, and i am really in need of some advice, thanks alot

MrsSave

You are best starting by filling an soa (link below) which gives a clear understanding of your income and outgoings. Try to be as accurate as possible.

http://www.stoozing.com/calculator/soa.php

tealady

The fastest may not be the easiest so you need to decide what you can ditch and what helps you get through.
For examply I cancelled subscription tv but visiting family and friends means a lot to me so I budget for that.
You could live like a hermit and clear your debs quickly however that may not teach you what we all need to know, thai is how to budget.
Best of luck

Ilona

Hi. There isn't a fast easy way. If you were able to get a 0% card you won't be paying off your debts, you will just be moving them to another place. Consolidation is rarely the answer because as soon as you have moved the debts you will be tempted to start spending on your cards again.

The best thing you can do is to fill out a Statement of Affairs, listing all your incomings and outgoings. Then start a spending diary so you can keep track of every penny you spend. You may find you have to make some changes to your lifestyle, cut out frivolous spending, stop going out, stop buying stuff you don't need.

Your living expenses should be quite low if you are living at home. If you were living in rented accommodation you would be realy skint with those debts.

Post up your SOA and people can talk you through it, and make suggestions on how you can cut down on your spending to free up some cash to put towards the debts.

Ilona