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  • FIRST POST
    • mcscoobs
    • By mcscoobs 8th Nov 18, 8:59 AM
    • 72Posts
    • 11Thanks
    mcscoobs
    Is there a smarter way of me getting out of debt?
    • #1
    • 8th Nov 18, 8:59 AM
    Is there a smarter way of me getting out of debt? 8th Nov 18 at 8:59 AM
    I guess the question is, I want to work smarter, not harder

    So here's my current debt issues:

    Sofa from Sofology since November 2017
    Settlement figure as of today: 1045.81
    Last payment due: 01/10/2020
    Currently paying: 45.47 per month
    Term: 36 months - 0% APR

    Loan from Halifax
    Loan taken out totalling 18,000.
    Remaining: 17,177
    Monthly payment: 330.75
    APR: 7.9%
    63 months to go out of 67 month term
    Settlement figure is 17,400 as of today

    Barclaycard
    Current Balance: 6300
    Credit Limit: 14,700
    Currently monthly payment: 120
    0% balance transfer for another 18 months

    Tesco Credit Card
    Current Balance: 0
    Credit Limit: 5300

    Car loan
    Total loan taken out: 4,000
    APR: 14.9%
    Current monthly payment: 138.55 per month
    36 months - repaid 554.20 so far

    So currently everything is manageable and i'm able to pay each month, that's not an issue. But i'm wondering if I can work smarter and juggle debt around?

    With regards to my circumstances, I may soon be in a position where i'll be living back home (relationship breakdown), which may potentially mean i'll have another 1000-1500) a month to play with to put towards debt.

    Any advice is appreciated!
    Last edited by mcscoobs; 08-11-2018 at 9:01 AM.
Page 2
    • redux
    • By redux 9th Nov 18, 6:35 PM
    • 18,635 Posts
    • 24,890 Thanks
    redux
    I'd pay minimum on Barclaycard for now and throw cash at Sofology just to get rid, then the car finance.

    The Barclaycard payment should be transferrable to another 0% offer if your credit rating is good

    I would let the loan tick along until you have the extra cash from paying the sofa and car off
    Originally posted by natlie
    I don't understand that. The Sofology loan is at 0% interest, so there's no point in speeding it up.

    I'd spend a few quid a month on the Tesco, paying the spent amount in full each time, to keep it trickling along, hoping for balance or money transfer offers. After the initial offer on opening, they seem to repeat 12 month span offers fairly regularly, 3% fee on balance transfer, 4% on money transfer.

    That could be useful towards part of the car loan now, and towards the remaining BC balance when its 0% offer expires.
    Last edited by redux; 09-11-2018 at 6:37 PM.
    • RandomQ
    • By RandomQ 10th Nov 18, 2:09 AM
    • 179 Posts
    • 53 Thanks
    RandomQ
    Just saw the edits! Currently my partner pays for Water, TV Licence, Council tax. I pay for netflix for 7.99. I get my mobile phone contract for free and parking is free for me (at work). Contents and road tax was paid in full when it was taken out. I literally listed all my current outgoings and put it above. I'm not the best "planner" to be fair!
    Originally posted by mcscoobs
    I am not seeing the means to pay off the 17k in a year

    You did not answer the WHY?

    You cannot selectively includer partner's salary but not the debts they pay, put everything in the SOA

    You are in this together and you agree a budget for every little expense.

    When the 1k comes you can pay 12k a year off the 17k

    It is this unrealistic attitude to what you can pay off and how much your debts are month to month that got you into this position,

    You are actually far luckier than most on here as you can service the debt, for now at least.
    • Craig1981
    • By Craig1981 10th Nov 18, 5:42 AM
    • 418 Posts
    • 195 Thanks
    Craig1981
    each to their own for the smaller amounts - if it is covered in the surplus 800 form your SOA, like birthday, christmas etc, your call, but would strongly recommend christmas budgeting throughout the year as surely you'll spend more on this specific occasion yearly?

    with what you have posted, i re-iterate what i said earlier, dont change a thing - try and increase payments as much as possible to your loans each month, to bring those down as quickly as possible.

    IF you had surplus of 400 after each penny accounted for for ALL expenses, then there are some options you could have available to you
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