Advise please!

Christie22

Hi Everyone!

I come on here alot to have a read but have never posted!
Im looking for some advice and would really appricate the help!

I am about to start saving to buy a house with my boyfriend. We are aiming to save enough by December 2009 (aiming to save about 14k each)
Im in a little bit of debt and im wondering what the best way to do this is.
I am going to list my debts to make this a bit easier to understand!...

Loan 1(Lloyds TSB) - £4350 (after 14 months of travelling through Australia and Asia) due to finish in Dec 2009

Loan 2(Lloyds TSB)- £4167 (car loan) due to finish Dec 2010

0 % interest credit card - £1040 (yet more debt from more travelling .. America this time around.. yes I am obbsessed with travelling!!)

Also hoping to buy my car insurance outright and not monthly which is £660.00 and a college course at £450.00

So right heres to the dilema.. Do I continue paying my payments on my loans and credit card monthly and save at the same time. Or do i clear my debts first and then save? What is the best way to do this?

If anyone could advise me on the best way i'd really appricate the help!

Many Thanks

Christie

Keeping_Motivated

Hi can you make overpayments on your loans and what are the interest rates?

hypno06

If it were me, I would focus on getting the debts cleared as quickly as possible, then save up as much as possible afterwards.

Your ability to save when debt free can be your motivation to get them cleared quicker!

Hell1

Hi Christie!:j

Just to say welcome! I'm not sure my advice will be the best (see my sig!) But I would advise paying off your debts first, maybe keeping £500 aside as "savings/rainy day money". When the debts are paid, everything else will be yours!

Got a crazy idea off here earlier - colouring in squares for every £100 debt paid off - you can see how well you are doing, - a great incentive!
Lots of luck
Hell:j

Poosmate

Hi Christie.

It's hard to offer any advise really without knowing the full facts like your income and expenditure. But then you are not asking for advice on how to pay off your debts so maybe your case is different.

But to save 14k AND pay off your debts (including college fee and car ins) that equals £24,667! Eek!

I guess it depends on how much you can save at the moment in your current financial situation and how much debt you will have by the time you apply for your mortgage. Also, if you can save enough to pay off your loans early are their any penalties to pay on them.

I don't understand what you mean by "Do I continue paying my payments on my loans" - I mean, well, unless you have a spare £8.5k lying around you will have to keep making those payments (you're not planning on leaving the country again are you? lol). Seriously though, your dilemma is usually owned by people who want to save but are paying high interest on credit card or storecard debts.

Oooh! you are a funny one! lol You got me thinking "what would I do?" And do you know what? I don't know!!!! I'll think about it and get back to you! lol

I need to lie down now!

Poo

hypno06

It is do-able - join in the "pay £20k by Christmas 2008" challenge to get some ideas!

Instead, yours will be "pay £25k by December 2009"......:D

Poosmate

Ok I'm back!

I read the other posts andeverything became clear!

I'd make overpayments on the loans and get rid of them as soon as I could and then save like the clappers.

Now I'm going to find "Pay off £20k by Xmas 08 Challenge" just to see how the other half live - right now I'd be ecstatic if I thought I could paid £200 (yes hundred) off my debts by Xmas 08! lol

Good luck with your debtbusting/saving

Poo

hypno06

poosmate - if the £20k challenge seems too scary, join in on the £10 a day challenge instead - you could have that £200 paid off by the middle of next month!!

Poosmate

LOL! Thanks Hypno but even that scares me! Maybe I should start my own challenge - Save £10 a Month! lol

I'll check them both out.

Thanks again

Poo

Christie22

Thanks for the advice everyone!
I like the idea of coloring in the boxes!

Sorry for confusing you poo!
I earn about 25k a year I clear £1470 a month after tax/pension once I have cleared my debts my outgoings will only be £200.00 (board phone and gym.)

I found out there is a £250 early settlement fee on each of my loans but the interest I am paying is 11% so it will be worth it.

Im guessing your right and I should get clearing my debts first! I am due to get a £700 bonus this month so ill wack that off the debt and I will have to get ebaying/carbooting!!

Hopefully I can be debt free by christmas!