Getting debt free

DebtFreeMonkey

Hi all!

I have a relatively small credit card debt, two doorstep loans and a bank loan. I always earn enough to pay the minimum requirements but I'm wondering, after clearing the credit card and door step loans by throwing all my spare cash at them, would I then be best to continue that for the bank loan or start to put something towards savings?

Any help would be greatly appreciated. I've very, very recently begun trying to get myself in check to head towards financial independence. I've written out a budget and the like.

DCFC79

Alicia1804 wrote: »

Hi all!

I have a relatively small credit card debt, two doorstep loans and a bank loan. I always earn enough to pay the minimum requirements but I'm wondering, after clearing the credit card and door step loans by throwing all my spare cash at them, would I then be best to continue that for the bank loan or start to put something towards savings?

Any help would be greatly appreciated. I've very, very recently begun trying to get myself in check to head towards financial independence. I've written out a budget and the like.

Depends how much the loan is for.
Do you have an emergency fund ?

If you put some in savings it will take you longer to pay the loan off.
How quick could you clear the loan if you put everything to the loan ?

[Deleted User]

It depends on the rates you're paying, what emergency funds you have.

But in general terms, paying to borrow money while you have savings earning much less isn't a good idea.

DebtFreeMonkey

The loan was for 10,000 over 5 years. I have no emergency funds. That's what I meant to put instead of savings. I wanted to get a buffer of a couple months emergency funds instead of paying off the bank loan intensely and then attacking it once I get an emergency fund sorted.

Thank you for responding, by the way.

[Deleted User]

You'd be wise to get a couple of months savings in the bank first.

RichL74

davidlie321 wrote: »

Depends how much the loan is for.
Do you have an emergency fund ?

Is there a parrot in here?

Clive_Woody

Alicia1804 wrote: »

The loan was for 10,000 over 5 years. I have no emergency funds. That's what I meant to put instead of savings. I wanted to get a buffer of a couple months emergency funds instead of paying off the bank loan intensely and then attacking it once I get an emergency fund sorted.

Thank you for responding, by the way.

I would look to build up a savings pot so if you suddenly needed money you weren't in the position where you had to borrow again. Once you have a pot of money then you can certainly overpay the loan and get rid of it ASAP (even small overpayments make a big difference long term).

There is a Debt Free board on here where there are lots of people on a similar journey to yourself. You could have a look there as I'm sure there's good advice and ideas for saving more so you can clear the debts quicker

:money:

fwor

RichL74 wrote: »

Is there a parrot in here?

He's a forum profile spammer.