I need to be debt-free! HELP

[Deleted User]

And your correct the £6,018.17 is the £218 PM payments

DrEskimo

Hmmm well you would treat them just the same as the other debts I suppose?

You can either look to re-finance the loan at a lower rate (if possible?), or you could look to make overpayments to reduce the term of the loan.

To be honest, I think your best bet is to look at selling one as close to the settlement figures as you can, and using the monthly payment you no longer have to help pay down the other car/van finance quicker. You will also save on it's associated running costs (petrol, insurance, tax, MOT, etc.) freeing up even more income to go towards debt clearing. It's feasible you could be completely debt free with one fully paid off car/van and no other debts within a year. That would give your disposable income a boost of >£500 a month...!

However it depends how much you need both vehicles. Unfortunately I can't answer that one for you...!

Sorry, I'm pretty good at the numbers, but not at the solutions...! I think other members would be better placed to give you advice on the solutions part. Maybe worth going to the debt board if you haven't already?

[Deleted User]

I need both cars, and as you say sell for as near to the settlement, I’d still be short, trying to get the extra together for the remainder of the balance, so not really viable.

I doubt I can get a refinance due to my credit score and history.

enthusiasticsaver

Consolidation is not the answer and from the sound of it you won't get a good deal anyway until you have repaired your credit history.

I agree with the others the two vehicles are crippling you financially although you do show a surplus. However there are gaps for things like presents, haircuts entertainment and you have no savings for emergencies.

As you are adamant you need both vehicles I would suggest you tackle one debt at a time and snowball them. You should find out the interest rates so you know which one to tackle first.

Ideally you should stop spending on credit cards for everything until the debt is gone. If the cards are not 0% you are paying interest on any spending you do on them.

If you need a van for work why don't they supply it?

[Deleted User]

Little update, drastically decreased my debt within two days by £280.

Never thought spending that large amount of money would make me so happy:T:T:T

Massive weight lifted off my broad shoulders!

mark55man

That's the way to do it - congrats

[Deleted User]

Thank-you!

Keep up the weight loss by the way! ever need any info on diet etc, PM me!

I Have a nutrition and PT degree (but never use it anymore) haha.

DrEskimo

[Deleted User] wrote:

Little update, drastically decreased my debt within two days by £280.

Never thought spending that large amount of money would make me so happy:T:T:T

Massive weight lifted off my broad shoulders!

Whilst it's fantastic that you have started to chip away at these debts (and a great sign how happy it's made you, as it should!), but please do be wary about having enough to cover all your expenses.

It's been pointed out by a few members how your SOA has a few missing parts/might be optimistic. Do ensure you go through your spending in detail and make a written budget accurately itemising where all your money is going, and where it needs to go.
The last thing you want is to realise you have a bill, and now you have put all your extra income into the debt and you have no money to pay it. Thus, sending you back down the road of getting more debt...!

There's a rather eccentric Texan called Dave Ramsey on YouTube. Whilst his stout conservatism, constant raging at communists and evangelical views are a bit jarring to me, his programme for getting out of debt is pretty logical! He promotes a 'Baby Step' method. Once you have a written budget of all your spending, the first step is to build a mini emergency fund (around £500). This covers you for any unexpected bills in the near future. The second step is to then list your debts and start the debt snowball. He advises to pay them off in order or value. His argument is that the psychological boost of paying off the small ones quickly gives you the motivation to tackle the bigger ones. Others suggest listing them in order of APR, and to tackle the ones with the highest APR first to reduce the overall interest you pay.

You can decide which you think is best.

Also look at reducing your expenses as much as possible, and getting extra work if possible.

Best of luck! :beer:

[Deleted User]

Okay, So after a long conversation at work with my manager, He has agreed to supply me with a work vehicle, So this means i can sell the work van, and be left with the "work supplied vehicle".

Secondly, I have also thought about "Downgrading" my "personal" vehicle to something cheaper, As it is on a Hire purchase agreement, I am unknown on my options.

What options, if any, do I have to either "Downgrade" or swap my current car for a lower priced one?

Does it mean I would have to re-apply for finance? As explained, my credit score is atrocious, and my chances of being accepted on finance is little.

Thanks.

mark55man

Thats well done on the work vehicle. You need to be carefull about personal use (which has tax implications), but as you have your other vehicle that sounds likea non problem.

In terms of options, I would be tempted to ask on the motoring forum. There are a lot of very well informed people there. But be warned - they are rather more direct than on this board which values helpfulness over banter