Advice needed new job and existing debt

bradqwer

Ok guys So have just accepted a contract to start a new role working for Plus net which is part of the British Telecom group I also am in the process of starting up a side hustle in eCommerce to supplement my income.

My salary is £18,500 with a take home pay from Plus Net is £1,330 working full time 2 PM till 10 PM whilst my side hustle which I hope one day will enable me to leave the working for someone else will generate £22,000 in first year sales with a NET of £13,500 (I took on the job to pay for the side hustle so I can bootstrap it)

On to my financial situation I have outgoings of £612 which breakdown into the following rent:215 food:250 Gas:50 Investments:50 and debts of £2,000 which im currently paying interest free with various agencies.

That leaves me with a surplus of £700+ a month however some will be taken out for that as I plan to buy a annual travel pass through our perk schemes.

I have never had a pension nor paid into one (38 years old) and will most likely contribute to the company pension on offer not sure what kind of product it is yet.

What would peoples advice be can I still pay of the debt at the current interest free or would u suggest just paying more and having a less nice lifestyle?

EssexHebridean

The sooner you are out of debt, the better, would be my view. A nice lifestyle is all well and good, but a nice lifestyle with added financial stability is even better. Your debts aren't massively high so I'd suggest ploughing all profit from the second income (do remember to account for your tax & additional national insurance upfront though won't you!) straight back to debt clearing, it'll be gone before you know it.

bradqwer

EssexHebridean wrote: »

The sooner you are out of debt, the better, would be my view. A nice lifestyle is all well and good, but a nice lifestyle with added financial stability is even better. Your debts aren't massively high so I'd suggest ploughing all profit from the second income (do remember to account for your tax & additional national insurance upfront though won't you!) straight back to debt clearing, it'll be gone before you know it.

Hey ty for the reply I have emailed the 3 collection agencies with full and final settlement offers started at 30% so see what they come back with in terms of a settlement

enthusiasticsaver

Why would you go for F and Fs when you can afford to pay it off in full and why would they accept it? They ask for income details and verification before accepting any settlement and as presumably you have not defaulted there is no way they will accept 30%. People are usually paying tokens for years before they get a F and F and have defaulted. Why on earth would you trash your credit record?

Also why email the collection agencies? Presumably it was not them who lent you money? Either you are confused or I am.

Craig1981

enthusiasticsaver wrote: »

Why would you go for F and Fs when you can afford to pay it off in full and why would they accept it? They ask for income details and verification before accepting any settlement and as presumably you have not defaulted there is no way they will accept 30%. People are usually paying tokens for years before they get a F and F and have defaulted. Why on earth would you trash your credit record?

Also why email the collection agencies? Presumably it was not them who lent you money? Either you are confused or I am.

the OP talks about paying interest free the £2k owed to various agencies - i would assume the agencies are debt collection agencies, so credit history already up the creek

Craig1981

you have lent the money, are now receiving good income - drop lifestyle by 6 months and pay off in full what you owe - could be done within three months looking at your income.

then start to rebuild your credit history and live your life debt free

John_G_Jones

I’d agree with the posts above, if you can pay back what you owe in full then pay it back.

ShakeItOff

I think I would be using the side hustle money to pay off the debt, and anything else you can throw at it. Debt free first (short term), nice lifestyle after (long term).

bradqwer

That's correct I am paying the collection agencies who have bought the debt for pennies on the pound I assume my credit is already way up the creek these are 2 year old debts that I have just ignored and they have never enforced other than sending me letters weekly.

I no longer deal with the retail branch that was attached to this debt so the collection agency would be more open to taking a reduced settlement offer tho I'm not silly to think they will take the 30% but as I not paid in years I felt this was a good spot and they will counter no doubt.

I see no point in paying it in full and I don't start my new job for a month so technically Im still on universal credit and for them to get a settlement offer is a win in my eyes and I also get a reduction on the outlay not saying this is ethical but that's not why I'm posting

Pixie5740

Craig1981 wrote: »

you have lent the money, are now receiving good income - drop lifestyle by 6 months and pay off in full what you owe - could be done within three months looking at your income.

then start to rebuild your credit history and live your life debt free

I dont think the OP has loaned any money.

Pixie5740

I don't see what's wrong with making F&F payments. The debt collection companies will have paid pennies in the pound for the debts so they're doing well to get any money back.