Let's fix this situation
Comments
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Well apparently C@p1 would pre-approve me for a 6 month 0% bal transfer card but high interest card is also C@p1 (and after 6 months this one is actually slightly higher) so I'd have to transfer the average interest card onto it and the high int card onto the average interest card one but it would still save me interest.
And it's only 6 months (but by that time I could likely either get another 0%) card or shuffle it back to the average interest card.
A quandry! I can see a bunch of pros and cons to this idea.Sealed pot Challenge 9 member #558
Debts to be listed soon0 -
Good luck with everything. You sound very practical in your thought process. Hope its going well. Sounds like you are making progress. xx2017- 5 credit cards plus loan
Overdraft And 1 credit card paid off.
2018 plans - reduce debt0 -
I would suggest better to sit tight and wait and see if you can get a longer term card that would enable you to leave the debt on it for a while - otherwise you're going to potentially find yourself in a worse situation in 6 months if you can't then get a card to transfer it to.
Turn every spare penny you can divert to paying down the high interest rate card for the time being while you explore other options, would be what I would do.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Yeah, that's good advice. I think that's what I'll do. It's slated to be paid off in less than a year now anyway and hopefully I'll be able to get another card before then. (Since ironically everytime I get a new card my utilisation will go down which will improve my credit score).Sealed pot Challenge 9 member #558
Debts to be listed soon0 -
At least you have started to fix the situation before it got as bad this time. Can I suggest that an emergency fund might also be an urgent necessity for you so in future crises you don't need the credit card to bail you out. A savings habit is a really good way to go once the debt is cleared.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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enthusiasticsaver wrote: »At least you have started to fix the situation before it got as bad this time. Can I suggest that an emergency fund might also be an urgent necessity for you so in future crises you don't need the credit card to bail you out. A savings habit is a really good way to go once the debt is cleared.
Yeah, I definately need to build a buffer. Since June 2014 I've used all my old emergency fund (before I| hit the cards). A full emergency fund isn't on the cards until I'm out of debt but if I can just get a month's money together I'll feel much more relaxed. Even a couple of weeks would help.
I think there's about £100 loose in my current budget (I'll know better after I work through the SOA this weekend). I'm debating if I should pop it into an emergency pot or pay it off the debt. I'm leaning towards the former as I need to be able to survive at least a few weeks without pay.
BeckaSealed pot Challenge 9 member #558
Debts to be listed soon0 -
I'm glad for you that you caught it early this time.
Re cc/emergency fund: at 34%, I'd say pay off the cc asap. Maybe every amount you have left you can split 80-20 cc-ef?Are you wombling, too, in '22? € 58,96 = £ 52.09Wombling in Restrictive Times (2021) € 2.138,82 = £ 1,813.15Wombabeluba 2020! € 453,22 = £ 403.842019's wi-wa-wombles € 2.244,20 = £ 1,909.46Wombling to wealth 2018 € 972,97 = £ 879.54Still a womble 2017 #25 € 7.116,68 = £ 6,309.50Wombling Free 2016 #2 € 3.484,31 = £ 3,104.590 -
I'm glad for you that you caught it early this time.
Re cc/emergency fund: at 34%, I'd say pay off the cc asap. Maybe every amount you have left you can split 80-20 cc-ef?
There's logic to both positions since you save interest by not having one but you ensure you break the card habit by having one.
However I'm not really talking about an emergency fund at all. It's more about being in a position to go from weekly to monthly pay without going backwards. Say I got no pay after next Friday (when I'll be paid for this week) I'd be in crisis the Friday after. I'd like to be able to live month to month rather than week to week.
I do have thoughts on this that don't involve saving. Moving all DDs that can be moved into a single week after what are currently the lull weeks. It would probably mean bottoming out the overdraft the first month but then I could build up the money over the next three or four weeks. However I am concerned about making sure I have enough money to pay everything in one week the first time.
It might be simpler to split them across two weeks first (it's currently three) which would also help.
Did that even make sense?Sealed pot Challenge 9 member #558
Debts to be listed soon0 -
SoA - like I thought about £100. This isn't 100% accurate because it's based on last month and the mobile phone one is due to go down.
--
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1248
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1248
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 332
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 34
Gas..................................... 34
Oil..................................... 0
Water rates............................. 37.5
Telephone (land line)................... 38.99
Mobile phone............................ 79
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 130
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 87
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 11
Buildings insurance..................... 0
Contents insurance...................... 10.77
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Washing Machine Rental.................. 21.66
Total monthly expenses.................. 963.04
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Cap 1..........................1066......40........34.08
MBNA...........................2324......58........17.88
BC.............................1913......44........0
Rent Arrears...................279.05....32.16.....0
Total unsecured debts..........5582.05...174.16....-
Monthly Budget Summary
Total monthly income.................... 1,248
Expenses (including HP & secured debts). 963.04
Available for debt repayments........... 284.96
Monthly UNsecured debt repayments....... 174.16
Amount left after debt repayments....... 110.8
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,582.05
Net Assets.............................. -5,582.05
Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.Sealed pot Challenge 9 member #558
Debts to be listed soon0 -
SoA - like I thought about £100. This isn't 100% accurate because it's based on last month and the mobile phone one is due to go down.
--
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1248
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1248
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 332
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 34 I reckon you could reduce this and your gas - at least a little. Are you reading meters regularly? Is either account in credit? (Although the account that will pay for your winter heating should be, at this time of year.
Gas..................................... 34
Oil..................................... 0
Water rates............................. 37.5 If it's just you then a water meter will save you some on this
Telephone (land line)................... 38.99 Ouch - is this just phone & internet?
Mobile phone............................ 79 Glad to hear this is going down!
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 130 Try managing on £100 next month. I've only been spending £20 more than that per month for two of us
Clothing................................ 20 You could put this on hold for a while and manage with what you have?
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 87
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 11
Buildings insurance..................... 0
Contents insurance...................... 10.77 Have you price compared to see if you can get this down at all?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20 I hate to say it, but you may need to consider whether this is a luxury you wish to forego for now.
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Washing Machine Rental.................. 21.66 OUCH!! Is this the best deal you can get?
Total monthly expenses.................. 963.04
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Cap 1..........................1066......40........34.08
MBNA...........................2324......58........17.88
BC.............................1913......44........0
Rent Arrears...................279.05....32.16.....0
Total unsecured debts..........5582.05...174.16....-
Monthly Budget Summary
Total monthly income.................... 1,248
Expenses (including HP & secured debts). 963.04
Available for debt repayments........... 284.96
Monthly UNsecured debt repayments....... 174.16
Amount left after debt repayments....... 110.8
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,582.05
Net Assets.............................. -5,582.05
Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.
OK - this is not so bad. Look at it this way - if you could save £100 across all your monthly expenses, plus what the mobile is going down by, you could potentially have that hideous APR Cap1 cleared in 4 months, or thereabouts. Personally, if it were me, I'd then throw everything at the rent arrears the following month and get that gone. You then have in the region of £300 plus a month to throw at the other debt with interest being charged....🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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