Wednesday, 19 January 2011

Countdown To Clearing Debt

This week I received a cheque for a savings investment plan I had and after much thought I have decided to use it to clear my debt sooner. Having decided this I have banked the cheque into my Flexiloan account, which is my smaller debit and also has a lower interest rate than my credit card debit. This in turn made me think about clearing the card with the Flexiloan account, which should save me a little in interest.

Tomorrow my direct debit payment is taken for my flexiloan so I will wait until after that before I use the credit available to clear my credit card. Then I will have only one account to clear and all at a lower interest rate, going from 19.9% to 17.9%.
I have set up a snowball plan on and it says that I will be debit free by the end of April (only four months to go!).

I have been playing around with my budget and have worked out that I can pay all my monthly expenses, spending etc. in my first weeks pay, that leaves me with three weeks pay left to use to snowball my debit. Also the money I have been saving in my jar each week is going towards my monthly gym membership of £36.00. This helps to round off my budget to cover all my monthly expenses in my first weeks pay.

No comments: