11.5K by Dec Challenge

QuietOne

Hi all,

I haven't posted on here for a long time.

I currently have a debt of £11.5k and Tesco loan being the majority of that. I took out a loan with them for £25k at 6.9% back in March 2017 over 7 years. My final payment would have been May next year but I took a pay break during covid so now it's September next year. I've had a few rough patches during that time but I think I'm in a position now where I want and can pay it off early.

Here is a list of my debts as it stands. I'm including devices on O2 as I want to pay them off early too.

Tesco loan - £6,785.64 and paying £376.98 p/m
Barclaycard - £329.69 - Will pay in full
Virgin credit card - £1,900 - Paying roughly £300 to £400 a month
Currys Your Plan - £549 - BNPL and needs to be cleared by Dec before interest is added
O2 tablet - £940 - £23.50 a month
O2 watch - £266 - £9.50 a month
O2 phone - £612.48 - £21.88 a month

Total - £11,383.01

I used the barclaycard for the first time this month in over a year so I'll pay that in full when the statement comes in. Virgin Credit card is interest free until March next year, Loan is a fixed monthly payment. O2 devices are interest free.

I just need some advice on how you guys would tackle it?

I'm thinking of clearing Virgin Credit card first then over-paying on the loan then clearing the rest or chip off the credit card and over-pay on the loan. I normally have between 1 to 1.5k left to play with.

Your advice is much appreciated.

RAS

Really need the APRs on all the debts and the end dates for loans/finance deals. Look out the paper work to check if you can repay early without penalty.

QuietOne

RAS said:

Really need the APRs on all the debts and the end dates for loans/finance deals. Look out the paper work to check if you can repay early without penalty.

Hi RAS

Tesco is about 6.9% and final payment is Sept' 15th 2024 and there is no penalty for paying early
Virgin credit card is 0% until March next year. Can't remember what it after that.
Barclaycard is 23.5% but will be paid in full
Currys your plan is 0% until Dec so will need to be paid before then
O2 devices are on 0% and end date is May 2025 but can be paid off early

NeverendingDMP

Is your 1-1.5 spare to throw at the debts or to use for shopping bills etc too. Also do you have any savings.
If you have savings why not pay Barclaycard first month and also the bnpl so you can forget about it. Nice easy win. Then 100 a month on virgin and the rest from virgin and any extra pay to tesco to get shut of the one that's costing you the most each month and has interest being charged.
Then if something crops up the bulk of your debts are still on 0% and your monthly commitments are less. And I think it would be a nice boost after so long to get shut of the Tesco loan

QuietOne

NeverendingDMP said:

Is your 1-1.5 spare to throw at the debts or to us for shopping bills etc too. Also do you have savings as well.
If you have savings why not pay Barclaycard first month and also the bnpl so you can forget about it. Nice easy win. Then 100 a month on virgin and the extra to tesco to get shut of the one that's costing you the most each month and has interest being charged.
Then if something crops up the bulk of your debts are still on 0% and I think it would be a nice boost after so long to get shut on the Tesco loan

Hi there, 

Yeah the 1-1.5 is spare after the monthly payments on loan, O2, rent and brodband etc. then I allocate that on credit cards etc. I have no savings as I want to clear all this debt this year. I was paid on Friday so I cleared my Marbles card which was around £600 and Paypal which was around £310, paid £300 on virgin credit card and Loan payment goes out tomorrow then I have Virgin internet and Spotify that go out on the 28th so my money has been accounted for this month.

Next pay I should have more money to play with as I've done some OT so I should have between 1.8 to 2k to play with plus £200 from Santander for switching with them.

TheAble

The loan is costing you interest so to my mind it makes sense to focus on that. The others have several months of 0% left so you can revisit those nearer the time.

RAS

Ok, so clearing the Barclaycard is priority.

Paying £300 per month will clear the Virgin card before the 0% runs out (I'd divide the outstanding by the number of months left minus 1 and set up a standing order) but you could set it for December.

£100 per month will clear the BNPL in time as well. 

Then shove everything spare towards the Tesco loan, but read up on the terms and conditions. Can you pay extra each month, or is it fixed payments but you can pay a lump sum to clear the total outstanding?

TheAble

RAS said:

Ok, so clearing the Barclaycard is priority.

Paying £300 per month will clear the Virgin card before the 0% runs out (I'd divide the outstanding by the number of months left minus 1 and set up a standing order) but you could set it for December.

£100 per month will clear the BNPL in time as well. 

Then shove everything spare towards the Tesco loan, but read up on the terms and conditions. Can you pay extra each month, or is it fixed payments but you can pay a lump sum to clear the total outstanding?

RAS I don't quite see the logic. Why put money towards a 0% now rather than a 6.9%? You could pay the Virgin card off in full the day before the 0% expires.

QuietOne

Thanks for all your help guys,

My plan of action will be to clear Barclaycard when I get paid and I'm aiming to clear the loan in October. Payment went out today so my new balance is £6,408.66 so over 6 months I will pay £1,068.11 which will be £691.13 extra each month but the final payment will probably be less with reduced interest.

The rest will be allocated towards Virgin money being the majority and making small payments to the BNPL plan to reduce that. Then in Nov' when I get paid I should be able to clear BNPL and possibly Virgin Money with the extra £376.98.

Time will tell

I will create a diary in the debt free wannabe section anyway.

Thanks again.

enthusiasticsaver

QuietOne said:

Hi all,

I haven't posted on here for a long time.

I currently have a debt of £11.5k and Tesco loan being the majority of that. I took out a loan with them for £25k at 6.9% back in March 2017 over 7 years. My final payment would have been May next year but I took a pay break during covid so now it's September next year. I've had a few rough patches during that time but I think I'm in a position now where I want and can pay it off early.

Here is a list of my debts as it stands. I'm including devices on O2 as I want to pay them off early too.

Tesco loan - £6,785.64 and paying £376.98 p/m
Barclaycard - £329.69 - Will pay in full
Virgin credit card - £1,900 - Paying roughly £300 to £400 a month
Currys Your Plan - £549 - BNPL and needs to be cleared by Dec before interest is added
O2 tablet - £940 - £23.50 a month
O2 watch - £266 - £9.50 a month
O2 phone - £612.48 - £21.88 a month

Total - £11,383.01

I used the barclaycard for the first time this month in over a year so I'll pay that in full when the statement comes in. Virgin Credit card is interest free until March next year, Loan is a fixed monthly payment. O2 devices are interest free.

I just need some advice on how you guys would tackle it?

I'm thinking of clearing Virgin Credit card first then over-paying on the loan then clearing the rest or chip off the credit card and over-pay on the loan. I normally have between 1 to 1.5k left to play with.

Your advice is much appreciated.

My advice would be to drop the Virgin credit card monthly payment down to £190 which will clear it at the latest by the end of the 0% deal and throw everything at the Tesco loan as that is what is costing you money. Clear the BNPL debt before interest starts getting charged and obviously clear Barclaycard in full each month.  Your plan looks ok as well though.  Do you have any emergency savings? 

QuietOne

enthusiasticsaver said:

QuietOne said:

Hi all,

I haven't posted on here for a long time.

I currently have a debt of £11.5k and Tesco loan being the majority of that. I took out a loan with them for £25k at 6.9% back in March 2017 over 7 years. My final payment would have been May next year but I took a pay break during covid so now it's September next year. I've had a few rough patches during that time but I think I'm in a position now where I want and can pay it off early.

Here is a list of my debts as it stands. I'm including devices on O2 as I want to pay them off early too.

Tesco loan - £6,785.64 and paying £376.98 p/m
Barclaycard - £329.69 - Will pay in full
Virgin credit card - £1,900 - Paying roughly £300 to £400 a month
Currys Your Plan - £549 - BNPL and needs to be cleared by Dec before interest is added
O2 tablet - £940 - £23.50 a month
O2 watch - £266 - £9.50 a month
O2 phone - £612.48 - £21.88 a month

Total - £11,383.01

I used the barclaycard for the first time this month in over a year so I'll pay that in full when the statement comes in. Virgin Credit card is interest free until March next year, Loan is a fixed monthly payment. O2 devices are interest free.

I just need some advice on how you guys would tackle it?

I'm thinking of clearing Virgin Credit card first then over-paying on the loan then clearing the rest or chip off the credit card and over-pay on the loan. I normally have between 1 to 1.5k left to play with.

Your advice is much appreciated.

My advice would be to drop the Virgin credit card monthly payment down to £190 which will clear it at the latest by the end of the 0% deal and throw everything at the Tesco loan as that is what is costing you money. Clear the BNPL debt before interest starts getting charged and obviously clear Barclaycard in full each month.  Your plan looks ok as well though.  Do you have any emergency savings? 

Hi there, 

I am now planning to clear my loan by end of Oct' this year which will be 11 months early. Barclaycard will be paid in full on payday, then throwing the rest at Virgin and BNPL, virgin being the majority. I am aiming to be debt free by the end of the year if all goes well. The O2 devices won't be a priority for now but would love to have them paid off this year. 

I don't have any emergency funds as all the spare cash that's left over after everything gets thrown into the debts. I have no vehicle to worry about as I have a company one and everything is dealt by the lease company. Though I will need to get a cheap run around soon as I don't want to lose my NCB.