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Hey Everyone
markwilliams82
Posts: 61 Forumite
Hi everyone, hope you all had a good Christmas and New Year.
This year is the first year where i really try to knuckle down on my savings and cutting costs to try and get my loan paid off earlier.
I basically took out a loan a couple of years ago, i think it was December 2004. £16000 over 6 years. Originally I took it out thinking I would still be with my partner, and that my loan would be paid off by the time she finishes university so we can then both look at moving out together, unfortunately...things never work out as they're planned. We broke up and i have a new girlfriend now, so I'm trying to get rid of this loan as quick as i can really. I have 4 years to go and settlement is approx £12000 i think.
But basically at the start of this year i decided i really want to knuckle down, I've opened up a separate bank account to my regular one so i can put money in to there to save up which i can not touch or have easy access too. That was my first step.
Secondly, my phone contract was up, I've taken out a cheaper contract....gone from £40 a month down to £25.
I've also got my car insurance up for renewal in February so that will be another saving over last year.
And i am currently thinking of replacing my Alfa Romeo (petrol guzzler) with a more economical and cheaper to run diesel car. It might mean spending £500 on top of a part exchange value but i feel that the long term savings on petrol will help.
I'm also thinking about buying a bike to use to cycle to work some mornings, not only will it keep me fit but also let me stay off the roads during rush hour :j
And finally i am also thinking of cancelling the ppi on my loan to lower my monthly costs to enable me to save more, and from what I've heard the ppi i have paid can be refunded and put towards the balance of my loan. not sure if this is right.
Sorry I'm just kind of ranting and saying everything I'm thinking and doing at the moment, but i never really like to talk about this so it builds up.
This year is the first year where i really try to knuckle down on my savings and cutting costs to try and get my loan paid off earlier.
I basically took out a loan a couple of years ago, i think it was December 2004. £16000 over 6 years. Originally I took it out thinking I would still be with my partner, and that my loan would be paid off by the time she finishes university so we can then both look at moving out together, unfortunately...things never work out as they're planned. We broke up and i have a new girlfriend now, so I'm trying to get rid of this loan as quick as i can really. I have 4 years to go and settlement is approx £12000 i think.
But basically at the start of this year i decided i really want to knuckle down, I've opened up a separate bank account to my regular one so i can put money in to there to save up which i can not touch or have easy access too. That was my first step.
Secondly, my phone contract was up, I've taken out a cheaper contract....gone from £40 a month down to £25.
I've also got my car insurance up for renewal in February so that will be another saving over last year.
And i am currently thinking of replacing my Alfa Romeo (petrol guzzler) with a more economical and cheaper to run diesel car. It might mean spending £500 on top of a part exchange value but i feel that the long term savings on petrol will help.
I'm also thinking about buying a bike to use to cycle to work some mornings, not only will it keep me fit but also let me stay off the roads during rush hour :j
And finally i am also thinking of cancelling the ppi on my loan to lower my monthly costs to enable me to save more, and from what I've heard the ppi i have paid can be refunded and put towards the balance of my loan. not sure if this is right.
Sorry I'm just kind of ranting and saying everything I'm thinking and doing at the moment, but i never really like to talk about this so it builds up.
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Comments
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Hi and well done on the savings so far.
For changing your car insurance, there's a couple of more ways to save money - use a comparison service (like https://www.supermarket.com) to find the cheapest providers, then use https://www.quidco.com - hopefully you'll find you one of those providers there and you'll get cashback for doing it.
Look out for a bike on freecycle - save you paying for it!
Cancelling PPI on your loan is a good idea and will save some more money.
With the savings you're keeping to pay off the loan early, you might be better having a high interest account rather than another current account - it'll earn you more money that way. Every little helps!!
Good luck - you're definitely on the right road.Back on the DFW Wagon:
CC - £3,300 on 0% til 04/2020
CC - £4,500 on 0% til 02/2019
Loan - £12,063.84 as at 4/1/180 -
Hello and welcome.
If you cannot fine a bike on Freecycle, some companies run a 'bike to work scheme' where you can purchase a bike from Halfords and spread the cost over a year but don't pay vat. I beleive this is a government back scheme. You might try looking into that.
Also, if you intend to pay off your loan early but careful of any 'early repayment' penalties. My bank had a 2 month interest penalty for clearing the loan before the full term. The way round this was to pay almost all the loan off and leave a final months payment in the account which was taken as a normal monthly payment. As a result of this I hadn't cleared the account in one lump sum as was therefore able to get round the penalty.
Hope this is useful to you.
Regards,
FatJock0 -
You sound very determined Markwilliams82 and I´m sure you´ll manage to pay off the loan and cut your costs considerably. If you post your SOA, I am sure other DFW´s could help identify areas where further savings could be made.
Good luck to you!0 -
I am very determined! The loan and debt i have because of my loan really gets me down at times. I want to be able to move on from my loan and start getting on with my life, at the moment, my loan repayments take up so much of my income i cant even consider moving out with my partner.
Sorry to sound dumb Valentina2, but what are SOA's?0 -
markwilliams82 wrote:Sorry to sound dumb Valentina2, but what are SOA's?
Have a look at this thread
http://forums.moneysavingexpert.com/showthread.html?t=107280
It explains pretty much everything you need to know.0 -
Sorry for the delay but been busy with changing my car to something more economical and cheaper to run;
Monthly Incomings:
My salary - £917
Total - £917
Monthly Outgoings:
Loan - £312
Rent - FREE :-) still living at home rent free for the moment
Food - £45
Car Insurance - £39
Petrol - £70
Phone Bill - £25
Total: £491
Loan Details:
Nationwide - £16,000 over 6 years including protection, so amount payable is £22,526. The final payment date is November 2010, and the current settle figure was approx £14,0000 -
Sorry, what are your living costs, rent etc??? Debs xx0
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Sorry still living at home, and I get away with living here rent free for the time being. its a benefit of being an only child in a house hold where both my parents work.0
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Did you shop around for your insurance? I've been amazed at https://www.confused.com it does exactly what it says on the tin, and cut my insurance from £36 pcm to £19 pcm!!
Other than that, my inclination would be to set yourself a weekly 'spends' limit, diary it, and bung as much as you can to your loan! DFD, here you come, well done!! Debs x0 -
joeblack066 wrote:Did you shop around for your insurance? I've been amazed at https://www.confused.com it does exactly what it says on the tin, and cut my insurance from £36 pcm to £19 pcm!!
Other than that, my inclination would be to set yourself a weekly 'spends' limit, diary it, and bung as much as you can to your loan! DFD, here you come, well done!! Debs x
Yeah I have, Virgin have quoted me the best, plus they do the repayments with 0% interest. So the £39 a month is the cheapest I've got, considering everywhere else has offered me in the regious of £45-£60 a month. Never really thought about virgin until i got my phone contract with them, and hearing they do 0%.
Sorry but whats DFD? Debt free d......?
just guessing and curious 0
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