retired_brawson33

Ok, that says to me you need the job first before you pay off any loan as otherwise you are getting little benefit from paying the loan off as you have the bank interest to pay.

So, in conclusion from my non-financial advisor advice :-

1. Find a job, any job, you need the income. If it is terrible then who cares, do it and start looking for a new one.
2. Bin the credit cards (hang on to the egg one if you want an extra option)
3. When you have the job, pay off the £3500 loan in full.
4a. Choice 1 here is to then start using the money saved to chip away at the credit card debt, bearing in mind when the interest free period elapses and switching cards to a new interest free period if necessary OR
4b. Choice 2, investigate overpaying you £7500 loan, see if that is an option. If it is do it and you'll pay that loan off quicker but keep the credit card interest free period in mind so you remember to switch. If it isn't then save away with the aim to complete repay the £7500 debt as early as feasibly possible, again keeping an eye on the credit card.

Hope that helps in some way

trotamundos

It does Cockney, it does. Bookmarking this thread as it has all my options laid out for me

retired_kris10nicole

if you ignore any penalty clauses, which obviously change things, why is it better to pay it in full? Your payment plan is simply a calcualtion of paying off x amount in y time. The interest is still calculated monthly, so any overpayment reduces the capital of the loan, which reduces the interest, which reduces the amount you will pay back overall. Your solution would work if you can get an interest rate on your savings higher than that with your debt, but that is unusual (although not impossible).

retired_cc2b14

Uhm, make sure that you find a job in brazil that earns you more than enough money.....you might make that your plan until you actually take any other action

retired_vic1974

egg offer an anniversary 0% interest rate every year on my card. might just be on balance transfers though. Lasts 6 months.

My overdraft costs me around £10-20 a month, and ranges between £500 - £1700 overdrawn. Not sure if there is 1K interest free left over from my student days.

retired_kris10nicole

Hermann, one other thing i just remembered. If you do go the route of saving to pay off the final loan, keep checking your interest rate. They are sometimes very sneaky, and after time slash the rate on high interest accounts, so you may have to move your money.

With all of these suggestions, monitor them regularly, as you may be able to get better deals at a later date.

trotamundos

Will keep a close eye on the rates mate, ta.

retired_pissykrise

You should keep the cc til the interest free period is over because that's the most efficient borrowing you'll find anywhere and you're cash negative at the mo.

Then take as much of your bank credit you can afford without going into overdraft and knock the loan with the highest interest rate on the head. Also use the building society account. There is no point putting cash aside to savings when you are cash negative, as the credit interest you earn will be higher than the debit interest rate you have on your loans.

That's the same for all of us, saving and borrowing at the same time rarely makes sense apart from with mortgage or business lending.

Don't use your overdraft as you'll (depending on the bank) get charged monthly fees plus an interest rate which will be higher than either of the loans.

Finally, spend less and earn more. Simple, really

retired_pissykrise

*should say "the credit interest you earn will be lower than the debit interest rate you have on your loans

retired_kris10nicole

Sorry, just thought of something else. Set yourself a proper budget. Don't leave anything out, and be realistic. You've still got to live, have a social life etc, but there may be things you can do without. if you're living at home it should be easier, as you don't have the rent and bills etc, but you still need to know how much you can spend on going out boozing etc. each month, so you can still enjoy your life but don't end up adding to the debt instead of subtracting from it. I know it sounds obvious, but apparently a lot of people don't do it.