Paying Debt off - Who is good at maths?

[Untowards]

Hi All.

 

I was lucky enough to get a bonus at work, £2000 after tax. I am trying to work out what debt

to pay off first.

 

I have a loan that I pay £165.92 (14 payments to go) the settlement figure is: £2170.08

I also have an overdraft of £2000, I pay £45/46 a month (This just covers the fee/charges)

 

So in total I pay around £212 a month just now.

 

I think if I pay the loan off, I would have to pay around £250 a month to pay it off the overdraft

in about 10 months?

 

Is that correct? And would that be the least costly?

[citizenB]

That sounds like a pretty good plan to me

 

Was there any Payment Protection Insurance on the loan ?

[Untowards]

Hi, No just the loan without PPI

[citizenB]

That's a shame, it would have been good if you could have reclaimed some PPI as well !

[dx100uk]

you indicate the OD is fees/charges

 

might be an idea to investigate these further?

 

as some could be unfair under bcobs?

 

dx

[Untowards]

Its with Halifax £1 a day overdraft fee and £15 a month account fee, I asked to downgrade so that it would save me the £15 but they said i wasnt allowed as I until I paid off my overdraft.

 

Didn't want to push it incase the said I had to pay the overdraft back straight away.

[theoldrouge]

does the £15 per month inc addons such as AA and phone and travel ins, all probably useless and misold

[Mike_hawk]

I'd settle the O/D first, will show you a saving over the period

 

Settle the loan now and the 'rebate is a paltry £152.80

 

Settle the O/D now and the saving will be circa £450.00 over the 10 months you were hoping to clear it in

[fkofilee]

Sorry youre NOT entitled to downgrade?!?!?! Thats BS...

Simple you have the right to downgrade your account at any point!

[caro]

Pay the OD and use the money saved every month to pay the loan off early.

 

Have you got it in writing that you can't downgrade until the OD is paid? Why did you have that type of account?

[Untowards]

Thanks I will pay the overdraft first if it saves me money and also close it off or go in and get it downloaded.

 

It was over the phone I asked and they said it was not possible, I originally had it as my main account and all the extras where benefical and I use to get a £5 back before they changed the T&C's.

 

Then I moved bank/house/job and ending up using a large overdraft etc.

[caro]

Was it a condition of having an overdraft to have this account? Depending on the circumstances, it may be worthwhile you claiming the account charge back, at least from when you asked to downgrade. Put it in writing so you have a paper trail if needed.