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Loan B-Gone! One debt down and the march to zero...

Today I zero'd my pro study loan. All £14,000 plus interest of it. By paying it back now rather than over the 7 year term (I made sure when I took it out there was no penalty for early repayment) I have saved myself over £2000 in interest payments alone! Calculating this when I formulated my plan was a massive motivational factor.

My remaining debts are my overdraft and my student loan.

I do not intend to repay my student loan any faster than it comes out of my PAYE, namely about £30 a month, which just about matches the interest charged... Instead from here on out I will be saving and investing, with an aim to reaching a positive Net Worth, whereby my assets outweigh my liabilities. I hope to achieve this in the next two years, perhaps sooner.

HSBC will reduce the interest free portion of my overdraft in July to 0, so I will repay the £500 then and wish to cancel the overdraft facility completely, since it currently stands at £2000.

In the past year I have binned off all my credit cards, so have gone from having £11,000 available credit to just the £2000 overdraft facility described above.

I'd like to say thanks to everyone who has read my drivel over the past 18 months, offered words of encouragement and support, and fake laughed at my jokes. :rotfl: Props.
Beers tonight. Cheap beers. :beer: Peace.
Student Loan Company Ltd: 17,805 (2.8%) Overdraft: 500 (Interest free)
Savings: £5,100
- Target by end of 2008 £5,000+
Net Worth
1/7/06: -£32,698 -- Net Worth 25/8/08: -£13,350.

Comments

  • Well done :T :T :T

    I love reading sucess stories. Hope you have a good celebration tonight :beer:
    Jan 1st 07 Car loan £4830.46@12% Personal Loan £11,517@8% variable Overdraft £1500 July 2009Halifax-£0Debt free date 14th July 2009 :j
  • Sea78
    Sea78 Posts: 6,185 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    Fantastic!! Well done you! That's really good going - you must feel great for your progress so far.

    Sea xx
    CCCS DMP:Feb 07
    Total:£37,016.47 now £0 DEBT FREE FEB 14

    2022 Decluttering Campaign 49/1011
  • fanatastic! YOu will be set up for life now if you follow this path you have put yourself on. Well done.
  • hbl_2
    hbl_2 Posts: 391 Forumite
    Man I got drunk that evening. Still looking forward to next paycheck. Was hoping to save £600, but with all the things I have been putting off buying in the past 18 months, I need to actually spend some money now rather than being such a cheapskate. Still hope to save about £400 to start me off in 2008.
    Student Loan Company Ltd: 17,805 (2.8%) Overdraft: 500 (Interest free)
    Savings: £5,100
    - Target by end of 2008 £5,000+
    Net Worth
    1/7/06: -£32,698 -- Net Worth 25/8/08: -£13,350.
  • doodledo_2
    doodledo_2 Posts: 4,676 Forumite
    Congratulations brilliant news :T
    Proud to be dealing with my debts - DFW No: 712

    03/09/09 - DEBT FREE AT LAST :D
    Racing Hypno to Save - £10/£5000
  • Well done! :beer:
    Proud to be dealing with my debts
    Debt as of 15/10/07: £4489.93
    Current: £1397.05
This discussion has been closed.
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