How to pay off your loans

Action Plan:

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Action Plan Overview

The faster you pay off your loans, the more money you'll have spare each month to spend as you like. Here's how to clear your loans asap so you pay as little out in interest as possible.

		a	Do: Commit yourself to clearing your debts
		b	Do: Get support

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		a	Find out: How much do you get paid?
		b	Find out: How much do you earn from other jobs?
		c	Find out: How much do you earn in interest or dividends from savings and investments?
		d	Find out: How much do you receive in tax credits or benefits?
		e	Find out: How much do you earn in bonuses?
		f	Find out: How much do you earn from overtime?
		g	Find out: What's your average monthly income?

		a	Do: Get all of your paperwork together
		b	Work out: How much do you spend on compulsory expenses?
		c	Work out: How much do you spend on essentials?
		d	Work out: How much do you spend on luxuries?
		e	Consider: Do you need to budget for any big expenses?
		f	Work out: How much do you spend each month?

		a	Do: Check your credit report
		b	Work out: What's your disposable income?
		c	Work out: How much can you afford to pay off your debts each month?
		d	Do: Speak to the loan company
		e	Decide: Should you arrange a low rate credit card balance transfer?
		f	Decide: Should you consolidate your debts?
		g	Consider: Could you cut your interest rate by transferring your loans?
		h	Work out: How much have you saved in interest payments?
		i	Work out: How long will it take to pay off my loans?
			Consider: What is the best way to make overpayments?

		a	Do: Keep a spending diary
		b	Do: Start working to a careful budget
		c	Consider: Can you spend less without noticing a difference?
		d	Consider: How can you earn extra money?
		e	Do: Consider using windfalls to pay off your loan faster
		f	Do: Monitor your interest rate
		g	Do: Review your situation
		h	Do: Keep making payments until your loan is cleared

		a	Work out: How much will it cost to clear your loan now?
		b	Do: Contact lenders if you're struggling with repayments

		a	Find out: Do you have payment protection insurance?
		b	Find out: Could you reclaim PPI charges?

		a	Find out: How much do you have in savings accounts?
		b	Find out: Are you paying more interest on your debt than you're earning on your savings?
		c	Decide: Should you use savings to pay off your loan?