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[pearl2009]

Hi people, id like some opinions, please:

I currently have £300 debt on my credit card and car tax coming up in november. these are my options:

-pay off all the debt and cut up the card with november pay (20th) , get my xmas presants bought with december pay (18th december get paid) buy 6 months car tax.

-pay off the minum amount on credit card. buy 12 months car tax and x mas presants in november and pay off card in december.

Pay off half credit card, get 6 months car tax and a few presants in november. pay off half in decmeber and buy the rest of the presents in december.

Im determined to pay off the card by the new year and never, ever get another!

Thank you people, any suggestions welcome.

oh my xmas budget for all presants is £300

[Tixy]

Hi Pearl

Is your credit card charging interest or are you on a 0% deal?

Your options don't seem to add up to the same amount as with b) you end up with 12 months tax and only 6months tax on the other 2, can you afford option b?

As a quick estimate (guessing at your car tax amount):

In A
Nov - Card £300
Dec - Presents £300
Tax £60? (say)
Total £660

In B
Nov - Card say £20
Tax say £120
Presents £300
Dec Card £285
Total £725

In C
Nov - Card £150
Tax £60
Presents £100
Dec Presents £200
Card £155
Total £665

So it probably depends on how much spare you actually have over the 2months and whether you can face doing your christmas shopping between 18th & 24th December.

If you are paying interest on the card in theory its best to pay that off first and you may get more christmas bargains close to christmas as in the last few years sales seem to have started just before christmas.

In some ways it might be better to get 6months tax now and then try to afford 12months next time so that you don't have to renew next christmas which is usually a costly time for most of us.

Just my thoughts anyway.

[imindebttoo]

Hi pearl2009

I agree with Tixy's 'route A' - just make sure you DO cut the card up though!!! - if you don't trust yourself of course.

IIDT

[pearl2009]

hi thanks for the help. my car tax is £150 for 12 months and about £85 for 6. im getting interest on my card atm. i get £1000 a month but have other payments and bills to pay. I was worried about shopping last minute becuase i know it will be so busy! I think I will get 6 months tax atm. I really would like to get the card out of the way now. Xmas is such a pain this year lol!

[dancingfairy]

Do you have to spend 300 on presents? maybe you could make some fudge/christmas cards/hampers/ shop around for deals etc? buy stuff that looks expensive but get it with vouchers or nectar points or tesco points or on sale etc?
Would that help free up some cash?
df

[imindebttoo]

my car tax is £150 for 12 months and about £85 for 6.

It's always been a massive bugbear of mine that 6 months road tax costs considerably more than 12 - I think we should organise a campaign - it's not like it's a consumer product that one 'chooses' to buy is it?

Good luck with the card - definately the right choice. Re Shopping - you may be leaving things a little late in your eyes - but you'll feel much better on Christmas Day knowing you won't have that January surge of bills!!!

IIDT

[pearl2009]

hi, ive just looked at my spread sheet, i think what i will do is:

november
card: £300
Tax: £85
Xmas presses £150 or so

Dec: few more pressies on the weeked, hoping its not too manic!!

Dancing fairy, thanks for that idea! I would not of thought of that, i think making fudge and stuff is cool i think i will give that a go! I have hardly any nectar points and about a tenner on my boots card, but I will definatly use these towards pressies.

thank you for your help and the card wil most definatly go in the bin. Yey debt free in 6 days!

[imindebttoo]

Yey debt free in 6 days!

You lucky !!!!!!!

IIDT

[Nargleblast]

Sounds like a sensible solution. Having done that this month, you can be researching where to get reasonably priced Christmas presents without too much hassle so that come December payday you don't have too much stress and rushing about to do. And at least your revised tax renewal date will be mid year so no more worrying about how to afford a year's tax near Christmas. And treat yourself to a celebratory wake after the demise of the credit card - once they were an essential accessory for a modern lifestyle but now they are more a curse than a blessing.

[MrsTine]

If it makes you feel better we're only buying 6 months car tax too for exactly this reason I hate when these things fall at Christmas In theory I should save for them but this year with a baby etc I'd prefer spending my savings on us as a family than car tax daft I know...

[bluebag]

I have always found it helpful to buy post office savings stamps for £5 a week for the car tax as you can pay with them at post office counters. No interest paid and not suitable for everyone, but personally I find it sure takes the sting out of it.

[MrsTine]

And they make unusual christmas and birthday presents for kids who have just left home and have their own cars They might look confused to start with but they'll think of you lovingly when the day comes to pay their car tax