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The original was posted on /r/ukpersonalfinance by /u/Fractorc on 2023-08-11 16:13:35.

Right so seems i’m being a bit ridiculous by not paying it off quickly. I increased my paypal direct debit to £1000 each month, and will to the best of my ability keep out of my overdraft next month. A car can wait.

I know the general advice for this is, if you can afford to do it, yes. But hear me out.

I earn 60k p.a. and which after some deductions works out to just over 3k pcm.

I currently have a £2000 overdraft (of which i’m £1000 into) with Santander and a £2700 debt to paypal credit, along with a £200 capital one card which is paid off in full each month.

I have around £800 of non-negotiable monthly expenses, meaning I have 2.2k each month to play with. While I could spend it all on repaying debt, and thatd logically be the smartest thing to do, I’d like to think I’m human, I like to live a little bit

I have just passed my driving test, which was running me down about £500 a month. This money is now going to go towards saving for a car, which I will buy outright and likely finance the insurance.

My paypal credit minimum payment is around £100 pcm, at a modest (>10% for sure, possibly over 20%, id need to double check), and I make a £250 payment every month.

Assuming my credit card is maxed, I keep my overdraft under £1000 (for 0% APR), and the paypal credit payment doesnt change, this takes my “disposable” income down to just shy of 1.2k.

I live in London, so that 1.2k can get eaten very fast from only a few days out in the city so I try to avoid it where possible. Especially if drinking is involved.

Should I bite the bullet now, sacrifice saving for a car now and repay my debts or is my current repayment and saving plan smart?

Just looking for some advice here, as i’m aware once the repayments are gone, that money now becomes mine again and can be repurposed

ETA: In an ideal world I’d pay it off now. My partner currently goes to university in another city, and the plan was for me to get a car asap so I’m not spending money on train tickets every few weeks. I can help out my parents more with a car, e.g. by taking them grocery shopping, as well as for social use