That's it - Debt free is now my aim

dave_gill

That's it folks, I've had enough of not being able to spend my hard earned money because of my pervious built up debt.

My aim is now to do something about it........any help/support would be much appreciated as I am new to this sort of thing.

But here we go, I'm going to lay my cards on the desk as a starting point.

Current Debt (excluding mortgage)

Virgin Credit Card £3500
Egg Credit Card £2150
Overdraft £200
Loan £3600

Sub Total £9450

Also:
Student loan ~ £7000

Grand Total £16450

My aim is to clear off the sub total amount in 2 years. I have been fortunate to have just received a nice bonus from work, so that is a very good start.

My monthly disopable income is roughly £550, which includes mortgage and bills but excludes loan/credit card repayments & food.

My bonus was £3000 after tax, which I will use to pay off most of my loan, leaving £600 left, which will be £362 after this months repayment. So will stretched a bit further next month to pay off in full.

That will leave me in 2 months time:

Virgin Credit Card £3500
Egg Credit Card £2150
Overdraft £200
[STRIKE]Loan £3600[/STRIKE] Paid

Sub Total [STRIKE]£9450[/STRIKE] £5850

Also:
Student loan ~ £7000

Grand Total [STRIKE]£16450[/STRIKE] £12850

I then be better off by £238 per month, giving me £788 disopable income. But of course I will have the credit card repayments:

Current (minimum repayments)

Egg ~£35
Virgin ~£75
Total ~ £110

Now with my extra £238,

I plan to pay:

Egg ~£70
Virgin ~£275
Total ~ £345

Hopefully this will achieve my aim of 2 years.

And thoughts/comments or advice would be welcomed.

RAS

Hi and welcome

before you get too busy

1. go play with the snowball on www.whatsthecost.com. This tells you how to pay off the debts most effectively, generally the one with the highest APR first.

2. Check whether there are any early repayment penalties on the loan?