To pay off loan or not?

MovingForwards

If your job is stable and the O/T pretty much guaranteed, knowing the debt would be paid off now and you'd have decent savings again by Christmas, I'd can the debt and assess O/T over the winter holidays.

Start the new year with money in the bank and working less O/T in 2023, saving and either scale the O/T back further or do another year to get the mortgage deposit underway.

Martico

Great work on your progress so far, that's brilliant. 
For me, I'd think about that 9.4% interest rate - that's over £50 per month at the moment that you're losing on interest.
So I would look to clear the debt. If you're not comfortable clearing it in one go, then don't, but I would tackle as big a chunk of it as you're comfortable with.
You're almost there, keep on at it.

RAS

Given how precarious the last few years have been, I'd be a bit cautious. How much depends on how much support your workplace give to people who are ill or need leave for things other than holiday.

I'd aim to keep one month's rent and living costs, and then pay the rest towards the loan. That'll save you you a lot of interest and then maybe allow yourself a month when you do less over-time. When you're back doing the OT, split the monthly saving, paying down the loan in a few months and put the other half back into savings?

Wardee

Great advice as always guys thank you. I've decided that I am going to pay the whole lot off once I've been paid. Whether right or wrong I've lived with debt for so long that I think the best thing I can do is clear it once and for all and start a fresh journey without debt ruling my life. I may run into an issue if any large expense happens to occur over the coming weeks/months while I build up a new emergency fund but that is something I'd have to tackle either way with debt or without debt. I suppose at the end of the day even with an emergency fund I'm still in debt.

If I remember and if anyone might be interested I will update this thread with a screenshot of my YNAB report to show the ups and downs through the years. Hopefully it might help someone reading this that can relate and give a bit of hope that there is light at the end of the tunnel. It might not be tomorrow or next month but stick with it and one day goals will happen. I have felt plenty of negativity from starting this, I'm just glad I didn't give up

kimwp

Thank you for letting us know what you decided. It, in theory, is the most financially sound route to take and you will rebuild your emergency fund very quickly so it's a very sensible route to take in my opinion. (Earlier advice was given on the basis of how you advised you were feeling).

Encouragement to others is always a good thing - I'd probably post it on a new thread with a relevant subject line though.

Splash21

Wardee said:

Great advice as always guys thank you. I've decided that I am going to pay the whole lot off once I've been paid. Whether right or wrong I've lived with debt for so long that I think the best thing I can do is clear it once and for all and start a fresh journey without debt ruling my life. I may run into an issue if any large expense happens to occur over the coming weeks/months while I build up a new emergency fund but that is something I'd have to tackle either way with debt or without debt. I suppose at the end of the day even with an emergency fund I'm still in debt.

If I remember and if anyone might be interested I will update this thread with a screenshot of my YNAB report to show the ups and downs through the years. Hopefully it might help someone reading this that can relate and give a bit of hope that there is light at the end of the tunnel. It might not be tomorrow or next month but stick with it and one day goals will happen. I have felt plenty of negativity from starting this, I'm just glad I didn't give up

If an unexpected expense comes up, come back and talk it through! 

I posted recently (slightly different circumstances) but know exactly how you feel with wanting to reduce debt and get your life back, massive turning point. Good luck! 

daz061

Advice to everyone, default on all debt, pay the token £1 per month, all the cash you have or save up in the next few years convert it to tangible real assets such as gold and 'bricks and mortar' and wait for the currency collapse by the end of the decade.