# Trying My best to sort it out



## Modfather (3 Feb 2008)

Hi all i have been reading through the boards over the last while and have seen all the great help that has been givin out by you all, so i finaly decided im now going to try my best to try sort out my own money situation with a little help from whoever is willing 

My self and my Girlfriend have just had a baby 2 months ago and have moved back into my mothers to cut down the cost of rent, so we can try get our own house, we have had seprate loans and about 6 months ago we opened a joint a/c and got a loan to clear off what owed which to be honest i think was a great move because we have everything together and see clearly what is coming on and going out, here how it all goes

Loan with TSB: 14111.48 (429.15 a month)

Savings with TSB:100 a month (which we are putting in more) and also in to a credit union 

Credit Card:500.

Rent:330 (My mother doesnt want us living here for 2 much longer)

Income:3,300 for the 2 of us per month some months better than others but min

We are living off about 150wk and trying to save as much as we can, we are half tempted to try go wit a loan from Tesco because im told its much cheaper APR than TSB.Would this be a good move?

The 100 a month saving is far from whats really being put away,we plan on saving atleast 1500 a month.would we be better to save this or pay it off the loan?

While saving we are just getting enough money to get rid of the loan and pay it off in 1 lump (Then get pushing for a house as she will also be back to work) but i dont really want to save this in the credit union because im not sure if this will stand to use when we apply for house

Thanks inadvance for the help and keep up the good work

PS:i am really bad with APR and decimal points thats why the heading is Trying My best to sort it out


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## Guest119 (3 Feb 2008)

If the interest rates you are paying on your loan & credit card are higher than the rate you are earning on your savings (which they will invariably be), then your first priority should be to pay off all your loans & debts.


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## ClubMan (3 Feb 2008)

Yeah - almost every time somebody has filled in one of these _Money Makeover _templates the first point is that they should be using existing savings to clear/reduce existing debts. I don't really understand why people don't spot this earlier for themselves. 

You really need to post more detailed information about your mortgage (e.g. original and outstanding amount, term, rate etc.) and other loans.


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## Modfather (3 Feb 2008)

That is one of my Questions, im not sure if i should save up a lump sum of my depth and pay it off chunk by chunk or wheather i should save up the full  14111 or pay what ever i can afford each month, what looks better for getting a mortgage?

I am not really conerned about the credit card im hoping to clear that by the end of next month


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## ClubMan (3 Feb 2008)

The quicker you pay off debts* (starting with the highest cost ones) the bigger the bang for your buck. If this means chipping away at them by making accelerated capital repayments rather than waiting until you have the full amount to clear them then do it. If making accelerated capital repayments in additional to the normal scheduled repayments on a loan then make sure to agree things in writing with the lender to avoid any confusion and to avoid the additional amounts not being paid off capital immediately. You shouldn't be so blasé about the credit card - you should clear it ASAP as it's most likely your most expensive debt by far.

* Assuming that they are not fixed rate debts in which case penalties may apply.


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## Modfather (3 Feb 2008)

ClubMan said:


> The quicker you pay off debts* (starting with the highest cost ones) the bigger the bang for your buck. If this means chipping away at them by making accelerated capital repayments rather than waiting until you have the full amount to clear them then do it. If making accelerated capital repayments in additional to the normal scheduled repayments on a loan then make sure to agree things in writing with the lender to avoid any confusion and to avoid the additional amounts not being paid off capital immediately. You shouldn't be so blasé about the credit card - you should clear it ASAP as it's most likely your most expensive debt by far.
> 
> * Assuming that they are not fixed rate debts in which case penalties may apply.



[FONT=&quot]Its not that i am ignoring the credit card, sorry i didnt mean it to come across that way but i have it in the little black book that next pay day its getting cleared and cancelled

I am going to call TSB first thing tomorrow and tell them that we will be putting more than the agreed amount of the loan every month and get them to send something out

Would swapping the loan to tesco be woth while or is there a catch to it, because it seems to easy to be true?
[/FONT]


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## ClubMan (3 Feb 2008)

Modfather said:


> [FONT=&quot]Its not that i am ignoring the credit card, sorry i didnt mean it to come across that way but i have it in the little black book that next pay day its getting cleared and cancelled[/FONT]


Why not clear it now and cut the interest charges if you have the money now!?


> [FONT=&quot]I am going to call TSB first thing tomorrow and tell them that we will be putting more than the agreed amount of the loan every month and get them to send something out[/FONT]


What rate is your _CC _charging? What rate is the _TSB _loan? Deal with the most expensive first.


> [FONT=&quot]Would swapping the loan to tesco be woth while or is there a catch to it, because it seems to easy to be true?
> [/FONT]


Swapping from _Tesco _to _Tesco_? 

As I keep asking - what rates are the various loans to which you refer charging?


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## rmelly (4 Feb 2008)

ClubMan said:


> Swapping from _Tesco _to _Tesco_?


 
TSB to Tesco I would have said...


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## ClubMan (4 Feb 2008)

Check the terms & conditions of the _TSB _loan in case there are penalties for early redemption/switching.


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## Welfarite (4 Feb 2008)

You say you're not good with APR. Basic rule of thumb, the lower the APR the better. Do you know your APR with TSB? Compare it to TESCO. Also, you say you're saving with CU but don't mention a loan. What would their APR be? Lower than Tesco  or TSB?


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