What is the best way?

sonicshelly

Hi, I am looking for the best way of getting out of a bit of debt. The thing is, we tend to get into a bit of debt and then come the renewal of our mortgage we add this on to that. But I am not what is best to do as we do this everytime.

Admittedly we have not upped the amount or years on our mortgage.

We have a
£3000 loan only taken out 4 months ago (3yr loan)
£1500 egg card
£1000 overdrawn
£700 barclay card

So we have payments going out everymonth of £92, £100, £50 plus being overdrawn. With around £240 a month going out on debts and being overdrawn which we won't claw back in the near future. I am unsure of the best way to go so we can claw some money back towards the overdraft.

I have looked at 4 yr loans for £700 which I am getting a figure of £160 a month - this would pay off the debts/overdraft. So we would be £80 better off and overdraft free. But is a 4 year loan the best way to go???

Any help would be great, as I am not sure of the best course of action. There may be a better way to go that I don't know about - cheers in advance.

OliveOyl_2

Hi and welcome :wave:
The best thing you can do is go to the top of the page and wade through the introduction stickie which will give you MASSES of info.
(make yourself a cup of tea, and settle down for a long read)

then come back and tell us more about your situation. You're in the right place, and the peeps here will give lots of good advice.

sonicshelly

Sorry - whereabouts is the 'introduction stickie'. There is so much stuff at the top of the page, I'm not sure. Do you mean the step-by-step guide? Thanks very much.

OliveOyl_2

http://forums.moneysavingexpert.com/showthread.html?t=562271

there you are.
I've posted a shortcut for the very first time (I'm so proud of myself!)

girl-about-town_2

Hi,
here's the link http://forums.moneysavingexpert.com/showthread.html?t=562271

Good luck

RAS

Welcome

The other thing that you might want to explore is the snowball on www.whatsthecost.com.

This helps you to understand just how much extra you are paying to the privelege to adding a few thousand pounds to the mortgage over the next 15-20 years or by taking out a loan rather then dealing with the debt. It is a lot.

In_Search_Of_Me

It would be much better to save dosh than consolodate again...you can save thousands just by not wasting money on food, utilities & tightening your belt a bit! Post your SOA & we'll see where we can help! Welcome meanwhile

sonicshelly

Hi - sorry once again, what does post my SOA mean. Never very good at these abbreviations. Thank you

Numpty_Monkey

:hello:

Just a quick hello, an SOA is a statement of affairs(accounts), Imorral_Angel has done a new sticky a dictonary for abbreviations and more (sorry I can't do linky things:o )

An SOA is all your income, all your bills(include as much as you can) - uttilities,council tax, food, car tax, mot, insurence,travel, entertainment
Debts-balance, APR, monthly payments

I know it will be scarey sonicshelley but the brilliant people on here will help you:A

and welcome:T

sonicshelly

If I want to post a SOA, what do I do, just list my incomings, outgoings and debt. Do I post it here? Thanks

sonicshelly

bump.......................

Anyone help, please?