I need to be debt-free! HELP

DrEskimo

What about the £11,500 debt you owe on the cars? What's the plan with those?

Do you happen to know the exact details (exact number of months left, APR, etc.), as based on the details provided so far, they seem like very high cost debts...

Candyapple

Use this and play around with how much extra you can pay for further incentive as to how long it will take to clear your debts:

http://www.whatsthecost.com/snowball.aspx

[Deleted User]

The cars aren’t an issue for me, I’m not bothered by them, it’s the negative impact that’s bothering me

[Deleted User]

I should probably clarify what I mean by !!!8216;negative debts!!!8217; the ones I have mentioned that are negative, are missed payment debts.

The cars are paid each month on time, obviously appart from the little mishap I had a half year a go, but other than that, they are in a positive standing.

DrEskimo

OK. My concerns with the HP loans was more with the cost of the loans themselves, and potentially looking at ways to reduce these costs to help you pay down the other debts faster by freeing up more income.

I might be missing something crucial (for instance the arrears you alluded to), or just miscalculating, but I've worked out that together, both loans currently stand at £11,668.44 and are costing you £536 per month. If they have 3-years still left to run, then 36 payments of £536 is £19,296. That would mean you are paying down the £11,668.44 capital, but also paying £7,627.56 in interest. That equates to an average APR of ~43% between the two loans....

I suspect the estimate that they still have 3-years is where the issue is. If it's actually closer to 2-years left to run, not 3, then that would mean only paying back a total of about £12,850, which would make the average APR about 10%. Much less alarming!

That was why I was asking if you had specific details about these HP loans (time left, APR, etc).

[Deleted User]

I’ll definitley look into it , but I could of sworn they were both 3 years left, I may be completely wrong, give me 10 minutes and I’ll check documents

[Deleted User]

Ah, okay, so the £318 one , actually ends in October 2019, this was a 3 year HP, the price is also £100 over due to me missing around 4 months worth of payments, due to a circumstance back In 2016, but is in good standing with the company, as we arranged something, so it wouldn’t negatively impact my credit.

The £218 payment is up in June 2021, which is 3 years indeed, I didn’t realise I had these agreements a year appart, it felt a lot closer than it actually is.

The £218 one was a 4 year HP agreement.

[Deleted User]

Sounds a lot better to me now also!

DrEskimo

[Deleted User] wrote:

Ah, okay, so the £318 one , actually ends in October 2019, this was a 3 year HP, the price is also £100 over due to me missing around 4 months worth of payments, due to a circumstance back In 2016, but is in good standing with the company, as we arranged something, so it wouldn’t negatively impact my credit.

The £218 payment is up in June 2021, which is 3 years indeed, I didn’t realise I had these agreements a year appart, it felt a lot closer than it actually is.

The £218 one was a 4 year HP agreement.

Ah OK, great. Always good to get the exact details so you understand them

Which payment relates to which settlement figure?
Is the £218 for the £6,018.17 or the £5,650.27? I'm assuming the £6,018.17?

Does it give the APR, as if it does relate to the £6k loan, then you are looking at about 18%...might be worth thinking about doing something to reduce this.

Assuming the settlement figures don't include this month, then you have 17 payments left on the £318. 17 payments of £318 is only £5,406, which is not enough to clear either debt, so I'm guessing something additional was done here due to the 4 missed payments?

[Deleted User]

Yes it’s 18% apr exactly on the £218 , what are my options to reduce this ?, if any?

This month has been paid, so it’s just July 2018- October 2019 left on the £318 one.