Let's fix this situation

BeckyS · 2 October 2016 at 5:50PM

Dear Diary,

How to start a diary about the fact I'm an idiot who shed blood, sweat and tears to pay off £17,000 of debt (last time I was posting about it (in 2013) was about the last £3k of that) and then got back into £5,677.01 debt (around £3k of it at a ludicrous 34.08% APR :eek:*facepalm*)

Well yeah let's just start it there. Though to be fair the new debt was caused by a series of crises (some my own fault and some unavoidable) over the last year and I'm not quite sure they are over, but if my cashflow goes pear shape again I'll have to find another way to deal with it (Which is what I should have done in the first place). I am swearing off credit cards except for balance transfers.

First things first - I can pay £200/month towards my debts and according to the snowball I've done the interest will be over £100/month right now. Bleh.

So I kicked that into touch straight away by obtaining a 18 month 0% balance transfer card and transfering £1080 of the 34.08% debt over to it. Yes there's a fee but the monthly reduction in interest covers it in one month. I did make a slight boo boo though. The eligibility checker said that I would probably get a £1200 limit and that you could transfer up to 90% of balance so when filling in the amount I wanted to transfer during the application that's what I went with. They gave me a £2100 limit. I assume once my card arrives I'll be able too transfer another £888 from the 34.08% card and get the 0% rate? It's not just in application that you get the special 0% rate? I hope so otherwise I'll be cursing myself.

One way or another I'm hoping over the next few months to get all my interest bearing debt onto 0% cards (I'm spacing out the applications so I don't look overburdened) so all my £200/month (it'll be £232/month once the small amount of rent arrears are paid off) can go to balance reduction.

And once the 34.08% one is clear I'm closing it down so I can't use it. I've already removed it from my purse for the same reason.

So that's where we're starting from. Let's fix this situation and never get into debt again. (And also keep posting this time).

Becka

[Deleted User] · 2 October 2016 at 9:01PM

Hi Beckys,

Welcome to the boards

Pmo2
X

BeckyS · 2 October 2016 at 9:22PM

Thanks PMo2, :beer:

I've been a member for a while but I mostly lurk. Now it's time to get serious.

Becky

little_miss_spendtoomuch · 3 October 2016 at 6:56AM

Good luck with your new journey!!
All the balance transfer cards I've had have let me do more than one transfer so you should be ok to transfer more when you get it. I'm no expert but I have had an awful lots of balance transfer cards

BeckyS · 5 October 2016 at 11:05PM

Been a bit quiet these last couple of days. Been busy with work and trying to keep up with my sleep. I am still here and I haven't forgotten this diary already. :-)

monz · 6 October 2016 at 10:18AM

You know you can do it. You done it before

xx

EssexHebridean · 6 October 2016 at 10:51AM

Happy new diary Becka! Remember that Facepalm feeling over finding yourself back where you were before again, but take heart from the fact that you've caught it this time a LONG while before it got to the stage it reached before, so well done you for that.

On the high interest rate card - have you actually cut the card itself up already? You definitely can't be tempted to spend on it then!

Have you done an up to date SOA to see where you're at regarding any further savings you can make to hammer your debt free date that bit closer?

BeckyS · 6 October 2016 at 9:21PM

EssexHebridean wrote: »

On the high interest rate card - have you actually cut the card itself up already? You definitely can't be tempted to spend on it then!

Have you done an up to date SOA to see where you're at regarding any further savings you can make to hammer your debt free date that bit closer?

I haven't cut the card up yet. I probably should but these days even that wouldn't stop a person spending on a card if they were determined. Unfortunately I know the cvv code... :rotfl:

I'm going to do an SOA this weekend. I need my bank statements to check what exactly is going out but I do need to get a month's expenses together asap because with luck this job will go perm (I hope it does because I hate trying to fix my finances on temp work. It feels risky it's supposed to be for months but what if it isn't. What if something goes wrong) and right now it's week to week which would be a bit awkward when pay went monthly.

I should also see if I can get a better gas/electric tariff. Even ten quid a month would help.

Another thing is moving from a weekly to a monthly bus ticket would save me around £15/month but it's a lot to pay out in one week.

I am considering applying for some part time evening work that's reliable in the three weeks for the run up to Christmas (I did it full time last year). It's walking distance from day work but would mean that between the two jobs I'd be working 60 hours a week which might just kill me (but it is just 3 weeks and I could do with the money).

The new card came through and I was able to transfer another £777 onto it. By the looks of things the next couple of payments will take the balance on the high interest card down below £1000. I'm not sure how long to leave it before applying for another 0% card. Would a month be enough?

That's where I'm at today.

EssexHebridean · 6 October 2016 at 9:31PM

Use the soft-search via Martin's links on the main board to see what you stand a chance of being approved for. You don't want to apply and get turned down as that won't help, going forward.

True enough about the card, but at least it would mean you couldn't spend on it when you were out and about?

Sign up to the MSE Cheap energy club to see what deals there are out there for you on gas & electric. I've been where I am now for the past few years as it can't currently beat the deal it found for me originally! :rotfl:

The part time job thing is a tricky one - only you know if you could cope with it but if you can, just for those three weeks, it sounds like it would make a real difference. What about if you really plan ahead - get yourself loads of easy to heat up meals cooked and ready portioned up in the freezer for example, so you're not tempted by the takeaway fairy, and you don;t have the added stress of prepping meals when you get home shattered.

Bobarella · 6 October 2016 at 9:33PM

Good luck Becky

BeckyS · 6 October 2016 at 9:58PM

EssexHebridean wrote: »

Use the soft-search via Martin's links on the main board to see what you stand a chance of being approved for. You don't want to apply and get turned down as that won't help, going forward.

I just had a look and other than the 0% card I already have they are all showing as 60% chance or below. I think I'll look again next month after my credit report renews to see if chances have improved.

As to the cheap energy club - excellent idea. Another thing for the list this weekend.

Let's fix this situation

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