Wannabe debt free - just starting out

CreativeDan

Hi all. 

Totally new to this although I have been reading people’s threads for a while - really inspiring me. 

I am looking to get debt free, mainly to reduce outgoings and build a pot for nicer things in life. 

Current debt 

Loan - Monzo - £22484.57 balance, 15.4% APR. (Wondering if it’s worth changing this to a lower rate - I have a 950+ credit rating). was taken out when I moved house to build a conservatory and was all I was being offered. 

Credit card MBNA - £975.00 - 0% for 12 months 

Mortgage - HSBC - 138,914. 2.9% currently, but will be going up to 4.79% in April 2024 

I spend a stupid amount on just eat each month. Circa £300 which will be getting cut right down. 

Looking to over pay end of each months with money saved, and also going to be joining some of the features on the forum to make some extra £ to pay off. 

MFWannabe

Welcome to the forum
your credit score is meaningless 
have you checked via the link on this site if you could get a cheaper loan? It’s worth a check 

CreativeDan

MFWannabe said:

Welcome to the forum
your credit score is meaningless 
have you checked via the link on this site if you could get a cheaper loan? It’s worth a check 

Hi. Thanks for the welcome. Yes I have checked, I can get better interest rates now. I assumed my credit score contributed to what was available to me (according to my Experian report anyway !) - I will look into the loans side of things to lower the outgoings and tk be able to pay off more. 

MFWannabe

I would definitely look to change loan to lower interest ASAP 
also as you’ve stated you spend a ridiculous amount on Just Eat; that would make a big difference paying that extra off the debt each month; could clear credit card in 3 months 
Do you have any emergency fund saved? 

CreativeDan

MFWannabe said:

I would definitely look to change loan to lower interest ASAP 
also as you’ve stated you spend a ridiculous amount on Just Eat; that would make a big difference paying that extra off the debt each month; could clear credit card in 3 months 
Do you have any emergency fund saved? 

No emergency fund at the moment - I had about £3000 saved but ended up having to use it due a my kitchen flooding. I will build back up again but concentrate more on the loan as well. 

I will sort out the new loan tomorrow - thank you !