Havana said:All great advice!! Follow it!!! I was in a similiar situation a while ago (about 10k in debt) and came on here and got similiar good advice. It took me a long while to get into a frame of mind to make the changes but finally I did it and while I still have some debt (€4000) its one loan, one repayment, low interest rate and will be gone in 18 months!!! Its feels so good and such a relief and managable!
And the Credit Card is gone!!! That is the best thing. Considered for a while keeping it and having a low limit, but decided NO! Tried that before and doubled my debt on it. So get rid totally. Reduce your CU shares to €1 if they require you to save with them.
And good luck. You will do it!
As mentioned several times previously - list your debts by the interest rate (APR) that applies and then start with the most expensive one. Try to clear your credit card balance(s?) before you exit the 0% period and go back onto the normal high rate.Jamjam said:Can we just clarify what would be my best bet with the 3000K I am getting in July?
abbie said:I calculate that you have approximately 1,000 euros left over based on the 2,300 you earn or 1,400 based on the 2,700 you earn - I don't understand why you are getting so worried - some people live on 1,000 a month (including their bills)
Yes - I disagree with this. Applying subjective personal preferences to dealing with debt is a dangerous approach in my opinion. Much better to adopt a stringently objective analysis. Such an analysis will consider the costs and benefits of all strategies and, when it comes to debts, will generally dictate that the loan(s) with the highest overall cost should be tackled first.mell61 said:One other item you might want to consider is if you have Eu3000 to pay off against debt, do you want to reduce the number of debts... would it help your frame of mind to only have fewer outstanding debts? so would you prefer to pay off overdraft, visa and most of your MNBA and only need to concern yourself with CU and BOI. paying off highest interest first is a good idea, but sometimes you may find that only have 2 debts instead of decreasing balances on 5 may help you focus. Its a personal preference I have, others will disagree.