I need to be debt-free! HELP

foxy-stoat

So what is the current value of the car and time left till its yours?

DrEskimo

[Deleted User] wrote:

The reason one of them is a little higher (£318 - Usually only £208), Is due to a bit of financial difficulty about 6 months ago, So I have had to up the payment to catch up with what I owe on arrears (Was my choice to up the payment).

As you say, you are able to pay of this debt relatively quickly with your current budget, however that assumes nothing happens in the meantime that might set you back....

If I have read your form correctly, you have nothing in the way of cash savings?

I would be looking to address mainly your outgoings on cars to try and ensure you can build a good emergency fund and look at things like saving for a house deposit, building a good pension, etc. in the future. Obviously being debt free will help free up extra income, but always good to look at your budget to determine how you got into that position to begin with.

I always look at costs in terms of proportions to my income in deciding what is sensible.

Best of luck :money:

[Deleted User]

One is valued at around £5000 *Settlement of £6018.17, I owe another 3 years on one, And one valued now around £4000, Settlement of £5650.27, also owe another 3 years.

[Deleted User]

Luckily , With my job, I'm on a great pension scheme, Probably one of the best in the UK if i'm honest.

As I have seen how much it is worth already, But cannot touch that fund for another 35 years.

foxy-stoat

[Deleted User] wrote:

Luckily , With my job, I'm on a great pension scheme, Probably one of the best in the UK if i'm honest.

As I have seen how much it is worth already, But cannot touch that fund for another 35 years.

You can opt-out for 6 months and get your finances back on track.

[Deleted User]

foxy-stoat wrote: »

You can opt-out for 6 months and get your finances back on track.

What do you mean by opt out ? Remove the money from the pension? and start again in 6 months? Or just generally stop paying into my pension for 6 months?

barbarawright

You really spend nothing at all on entertainment? Or is that wishful thinking?

DrEskimo

[Deleted User] wrote:

One is valued at around £5000 *Settlement of £6018.17, I owe another 3 years on one, And one valued now around £4000, Settlement of £5650.27, also owe another 3 years.

Is it really 3 years still remaining? It's just that 36 payments of both £318 and £218 are substantially higher than the settlement figures you've given, unless I'm missing something obvious here?

Who has valued them at £5k and £4k? Is this WBAC trade value, or what you think you could get as a private seller based on AutoTrader listings of similar cars?

As above, I think the SOA is probably a bit optimistic, and I think you need to add these HP loans in as part of your secured debt.

foxy-stoat

Opt out of paying, your can't get the money you have already paid until you reach retirment age

hyubh

foxy-stoat wrote: »

Opt out of paying, your can't get the money you have already paid until you reach retirment age

Opting out means taking, in effect, a small voluntary pay cut - the employer contribution vanishes and can never be reclaimed. Moreover, opting out for 6 months will easily become opting out for much longer. And having a pension pot for retirement is a good thing...