I am an ex student and apart form my student loan i also have lots of debt. I have 3 overdrafts which I owe 1,400 1,250 and 1,500 on as well as two credit cards 800 and 400 pounds.
the only good thing is that they all interest free. the overdrafts decrease by 500 a year and i just keep switch my credit balances.
I have only just got a job earning 20,000 pa. what is the best way to pay of my debt?
2006-10-12 00:53:20 · 19 answers · asked by Bubbles 2 in Business & Finance ➔ Personal Finance
if you really have such little debt and such a decent salary you should be able to pay this off in about 6 months if you are frugal with your money and pay off as much as you can (and then some).
dont go out, no takeaways, and maximum payments. you will be amazed ohow fast it disappears
2006-10-12 01:34:26 · answer #1 · answered by alatoruk 5 · 0⤊ 0⤋
At some point I assume that these overdrafts will no longer be free. Until that point try to clear the debt while it is interest free or transfer to accounts that are interest free.
When you get to appoint where you have no interest free debt, take out a single loan to pay off your debt.That way you can negotiate a loan with competitive interest rate and manage your debt best.
Also while you have interest free loans, you might want to look at maximising your credit interest. Check www.moneysupermarket.co.uk, it has plenty of information on the best deals.
2006-10-12 01:24:01 · answer #2 · answered by rollingergrund 2 · 0⤊ 0⤋
Budget Budget Budget
Work out how much you have to spend on the must items , food shelter etc
Work out what is left then start paying off the most you can starting with the high interest items first.
Not sure how you have interest free overdrafts!! so check what the xposures should be and then start to nail em one by one. Booze fags nights out etc should be down the priority list, sure have anight out now and then but if its every week then find a different hobby or income that you could get instead of clubbing it maybe work.
You know what to do
2006-10-12 01:36:28 · answer #3 · answered by commentator 2 · 0⤊ 0⤋
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2006-10-12 05:17:51 · answer #4 · answered by mrsreginner_sanchezes_company 1 · 0⤊ 0⤋
First step make a budget. It may help if you have someone look at your budget for areas to cut that you may not have thought of cutting.
Unless your credit card rates are very high, I would start paying off the smallest overdraft until I paid them all off. Then I would start with the smaller credit card balance.
2006-10-12 02:47:16 · answer #5 · answered by VATreasures 6 · 0⤊ 0⤋
Why would you want to get into so much debt aside from a mortgage? It is a very wise decision to want to be free from the burden of debt. It is a vicious cycle where your hard earned money is just getting "robbed" from you, you are on a merry-go-round and only when you are really willing to want to be set free from debt, will you be. Firstly unless you believe in God given miracles (like what happened to me over $11,000. in credit card debt paid off by someone God told to get rid of them whatever it takes (the credit cards)...so they paid them off for me), then I suggest you CUT THEM UP and don't use them anymore, I don't care if they are handy if you are in a lot of debt, you obviously (like me) aren't able to live within your means, once you're free things will be different. Even consolidating them into one loan, perhaps a personal loan to pay off all the credit cards, then pay off the personal loan as much as you can as quick as you can, then you can move, you'll need to tighten your belt too, you can do it! God bless. xoxo
2006-10-12 01:33:52 · answer #6 · answered by Moosi 2 · 0⤊ 0⤋
Firmly treat that the income is just 18,000 p.a and plan the expenditure accordingly.. over a period of time, the savings thus generated would pay off the debts... Then if the idea is continued, it will ensure that you do not ever get into such kind of debts...
This is how it is said that even medium-low wage earners of US become millionaires !
2006-10-12 01:28:18 · answer #7 · answered by LearningToLive 3 · 0⤊ 0⤋
Do not get one big loan, that will prolong the time and amount you are in debt. Seek help from the Citizens Advise Bureau, who will be able to point you in the direction of agencies who are there to help you get out of debt, and not charge you for it either!
It worked for me, althougham still paying my Student Loan!
2006-10-12 00:56:31 · answer #8 · answered by tjb742001 2 · 0⤊ 0⤋
Go to www.moneysavingexpert.com. This website is run by Martin Lewis who does a regular slot on Jeremy Vine's show on Radio 2 and also quite a few BBC1 shows like Watchdog. He knows what he's talking about when it comes to debt!
2006-10-12 00:59:21 · answer #9 · answered by alijo_g 1 · 1⤊ 0⤋
negoitate a monthly amount with your creditors depending on the percentage of how much you owe over all. make a realistic budget for living and put aside money every month for paying these debts. your local citizen's advice bureau can advise you on debt and how to deal with creditors
2006-10-12 03:24:08 · answer #10 · answered by minerva 7 · 0⤊ 0⤋