Bit of debt advice please

adpom

Andyjflet said:

adpom said:

Hi Guys, I’m new to the forum and just after a bit of debt advice 

So recently I woke up and realised I’m 43 next month I have £22k of debt (2 loans, 4 credit cards(1 is only £200) and Klarna £299) and zero savings  

1 of my loans has only £606 on it left and I plan on paying it off next week, this will free up £202 a month but I’m unsure what to do with the £202 as my plan is to try and get a 20k loan(my credit score low) to pay off everything else. Would free up close to £500 a month 

so I was thinking of paying off Klarna and then the £200 credit card(then unsure if to cancel it or keep it at 0) to boost my credit score to get the loan. 

Is this a good idea or should I try something else?

thank you 

Bad idea my friend. The usual advice on here is to start planning.

1, Put together an emergency fund of £1000 and dont ever use credit or loans again.
2. Start paying off the smallest debt first and then snowball this payment into the next debt. (Small and quick wins will boost your motivation, I talk from experience, will keep you engaged and change your mindset about living in debt.)

Thank Andy, I changed my mind on a loan. My plan is to pay off my 606 loan next month and hopefully my Klarna or cc4 and then work my highest interest card off while saving at the same time 

Andyjflet

Again, I wouldn't saving any money in this step, apart from having your £1000 emergency fund ready, this saves you using cards again in the event of an emergenct, go intense and get the loan and cards paid off quicker and then save. 

adpom

Hi Guys, thanks for all your help, I took a big step today and cleared my lowest loan and cc4 and cancelled it. Hoping to clear my Klarna before the end of the month and then focus on my Very which I never added, as it in buy now pay later but the APR awful so that’s my next goal then focus on my highest CC interest 

adpom

I also upped my work place pension by 2% so my company now an extra 2% so getting 12% instead of 8% also getting a 4% pay rise so I’ll be better off still 

Andyjflet

Just on the pension, in reality you should be pausing pension and investing until your debts are cleared, use any surplus money to get the gone. Have a look at the Dave Ramsey babysteps this is how I cleared £65k debt in 4 years. 

stu12345_2

Andy if you don't mind me asking what was your salary per year in order to clear debt so fast
I watch Dave Ramsey on YouTube and I see Americans on £60,000 a year clearing debt fast , mostly by getting rid of car loans, the Americans are so much in debt due to PCP car loans which they roll over constantly 

Andyjflet

stu12345_2 said:

Andy if you don't mind me asking what was your salary per year in order to clear debt so fast
I watch Dave Ramsey on YouTube and I see Americans on £60,000 a year clearing debt fast , mostly by getting rid of car loans, the Americans are so much in debt due to PCP car loans which they roll over constantly 

At the time my basic pay was £27k plus commission totalling around £45k, I did two other jobs at Post Office and Amazon to boost my earnings.

I now earn £55k basic plus £15k bonus and just have the one job. 

stu12345_2

Andyjflet said:

stu12345_2 said:

Andy if you don't mind me asking what was your salary per year in order to clear debt so fast
I watch Dave Ramsey on YouTube and I see Americans on £60,000 a year clearing debt fast , mostly by getting rid of car loans, the Americans are so much in debt due to PCP car loans which they roll over constantly 

At the time my basic pay was £27k plus commission totalling around £45k, I did two other jobs at Post Office and Amazon to boost my earnings.

I now earn £55k basic plus £15k bonus and just have the one job. 

that's impressive, I'm on approx£25000 a year with £10000 debt, and maxed out on hours cos my day is so long with numerous unpaid parts of it , I'm physically and mentally tired these days.

but if eg I was on say £60000 a year, I'd be debt free in months, cos my overheads arent that much, relatively speaking 

I think my earnings limits are near the max I'm almost 56 and certainly too old to take on university degree courses and all the debt.
so I guess it's maximise no spend days as much as possible.
i live in a cheap flat own an old car now 

adpom

stu12345_2 said:

Andyjflet said:

stu12345_2 said:

Andy if you don't mind me asking what was your salary per year in order to clear debt so fast
I watch Dave Ramsey on YouTube and I see Americans on £60,000 a year clearing debt fast , mostly by getting rid of car loans, the Americans are so much in debt due to PCP car loans which they roll over constantly 

At the time my basic pay was £27k plus commission totalling around £45k, I did two other jobs at Post Office and Amazon to boost my earnings.

I now earn £55k basic plus £15k bonus and just have the one job. 

that's impressive, I'm on approx£25000 a year with £10000 debt, and maxed out on hours cos my day is so long with numerous unpaid parts of it , I'm physically and mentally tired these days.

but if eg I was on say £60000 a year, I'd be debt free in months, cos my overheads arent that much, relatively speaking 

I think my earnings limits are near the max I'm almost 56 and certainly too old to take on university degree courses and all the debt.
so I guess it's maximise no spend days as much as possible.
i live in a cheap flat own an old car now 

Have you thought about looking for another job? I drive a bus and earn 40k a year and it’s a dead easy job, plus loads of overtime available 

recklessmurmur

On the note of second jobs, I signed up to deliveroo & I enjoy it! Easy peasy & its fun!! Just avoid the golden arches !! Xx