Best Method?

KwassyKwassy

Hi all,

I am wanting to be completely debt-free truthfully, as quick as I humanly can.

I earn 45K then various additional bits on top, generally resulting in around £3K per month post tax.

my monthly expenses, car, fuel, food, general living costs, clothes etc equate to £1800.

this means at present I have £1200 or so left over each and every month.

I don’t have any savings right now but my job is very secure so I don’t see any sudden loss of earnings any time soon.

my debts are as follows;

- Monzo Flex - £2450 
- AMEX credit card - £2050 
- PayPal Credit - £1350 
- Halifax Credit Card - £1300 

7K in debt or so.

the simple answer is to just snowball effect them as quick as possible, paying 1K each month to debts and £200 to a savings pot?

just wondered if that plan seems sensible or can anybody offer any other tips 

El_Torro

Why put £200 a month into savings? The interest rate you'd be getting is probably a lot lower than the interest on your credit cards. You can add to your savings when you have no credit card debt. 

Hopefully your £7k debt will be gone in 6 months or so. Just make sure to pay off the highest interest debt first, unless there's good reason to do otherwise.

enthusiasticsaver

I agree that you would do better to focus solely on the debts unless they are at 0%.  If they are I would work out how much to repay to clear them within the deal period and then save for emergencies. If you are paying interest just pay as much as possible to clear it. 

Rob5342

How did the debts arise and how much have you been paying towards them so far?

fatbelly

You could consider 0% balance transfers but TBH most have a fee and you can clear the whole lot in a short time so there's probably no advantage

TheAble

Seems a sensible plan to me. Getting into a savings habit alongside paying off a good chunk each month is no bad thing.