Past gambling issues debts and one big loan

Shadowhound202

Hello all this is my first time on this forum so I’m hoping this could be my saving grace ☺️

BACKGROUND

Currently 24 years of age who has had big issues with gambling and mental health issues in the past which equated in me getting into my overdraft every month, numerous credit cards all equating too £5000 in total, and my biggest burden, my £19800 loan that I am paying off over 60 months. Never Ending feeling of regret, as you can see the time of my bad mental health, poor judgment on the finance side of life haha.

Current Situation
I Have paid off the over draft and credit cards. Which is a big plus, and I have took control of the gambling so I won’t get back to that position. The big loan was the outcome of all previous debts I had equated from gambling. Which is now all in the past (thank god) but I’m left with black hole sucking away at my account and life...

I am currently +£3000 in the bank which makes it healthy. And I earn on average £2000 a month after tax.
I live at home with my parents and eventually want to get my own mortgage. But I feel whilst I’m still chipping away at this loan, it’s not going to be possible to get one. ��

I am paying £443.48 a month (12.9% APR). On the loan repayments
All in all my out goings in my bank is £800 (direct debits)
Which leaves around £1200.

I feel as though all of the above is mumble jumbled and I could have structured this a lot better.

But my question to everyone is under the circumstances stated above, what’s my best way of getting rid of this big big loan and being free financially?

I really look forward to your responses

Kindest of Regards

Shadow x :money:

foxy-stoat

Odd how you have £3,000 in cash savings and havent paid this into your 12.9% loan.

You want to clear the loan and build up a deposit in that order, overpay where you can.

Shadowhound202

foxy-stoat wrote: »

Odd how you have £3,000 in cash savings and havent paid this into your 12.9% loan.

You want to clear the loan and build up a deposit in that order, overpay where you can.

Also please remember this is why I am here, I am not financially savvy at all, would I be better trying to save as well pay of the loan or just every bit of money I have got put into paying the loan off?

Thanks

Shadow x

Shadowhound202

foxy-stoat wrote: »

Odd how you have £3,000 in cash savings and havent paid this into your 12.9% loan.

You want to clear the loan and build up a deposit in that order, overpay where you can.

This +3000 came from winnings which is how I also managed to pay the overdraft. And credit cards from

foxtrotoscar_2

Where is the £1200 you have 'spare' each month going? Over pay the loan with it?

[Deleted User]

With 3k of savings and £1200 spare cash a month, you could get the loan cleared in a little over a year.

Keep an emergency fund but throw everything you can at the loan.

Shadowhound202

foxtrotoscar wrote: »

Where is the £1200 you have 'spare' each month going? Over pay the loan with it?

This is as of today, I received the winnings and have paid everything I can off, so this is why now with that 3K and working out what I will have from payday next week I will have, so sounds a good plan. ( I have used “GAMBAN” to self exclude from all websites, so will not be possible for me to ruin my life anymore on gambling ☺️)

Shadowhound202

Deleted_User wrote: »

With 3k of savings and £1200 spare cash a month, you could get the loan cleared in a little over a year.

Keep an emergency fund but throw everything you can at the loan.

Thank you for such a positive response, in regards to the emergency fund, is this something I should add too each month or just keep at the same amount each month

kind regards

SusieT

Shadowhound202 wrote: »

Thank you for such a positive response, in regards to the emergency fund, is this something I should add too each month or just keep at the same amount each month

kind regards

You have outgoings of around 800 a month, so if possible you would want an emergency fund to cover 6 months of outgoings so call it 5000 as a nice round number. You already have 3000 so I would put 100 a month into that, and then see if the loan will allow overpayments.
If it will, then at the end of the month throw what you can at it just before payday.
If it will not, put any overpayments into as high an interest account as possible so that you can repay it early.
Also check the loan agreement for any early repayment fees, as some will penalise you if you repay it early, but are fine if you repay most and then let the last couple of direct debits take care of the remainder.

Other than the emergency fund, there is no point having savings that will pay you interest at eg 2% that you also get taxed on, when you are paying out over 6 x that on the loan.

Well done on kicking the gambling habit, I hope you are able to stay away permanently

Shadowhound202

SusieT wrote: »

You have outgoings of around 800 a month, so if possible you would want an emergency fund to cover 6 months of outgoings so call it 5000 as a nice round number. You already have 3000 so I would put 100 a month into that, and then see if the loan will allow overpayments.
If it will, then at the end of the month throw what you can at it just before payday.
If it will not, put any overpayments into as high an interest account as possible so that you can repay it early.
Also check the loan agreement for any early repayment fees, as some will penalise you if you repay it early, but are fine if you repay most and then let the last couple of direct debits take care of the remainder.

Other than the emergency fund, there is no point having savings that will pay you interest at eg 2% that you also get taxed on, when you are paying out over 6 x that on the loan.

Well done on kicking the gambling habit, I hope you are able to stay away permanently

Thank you this. Is a very big help and sounds a good structured way to do it ☺️

Thank you, my demons of gambling have affected me since 18 so it feels nice to finally breathe ☺️ X

[Deleted User]

Work out how much you can afford to put towards your debts each month and then plug the numbers into a snowball calculator to work out when you will become debt free.

http://www.whatsthecost.com