I don't think it gets much worse than this. Feel totally beaten
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So - we've established from your other thread that consolidation is not the way forward, yes?!
If I were you, I'd go through the SOA with a fine toothed comb, and also run a spending diary for a month at least so I can see where every penny goes. That should mean that a) you can get your budget to a state where it's an accurate reflection of what you are actually committed to spending, and b) you track down where frittering happens - that stuff that's not included in the SOA and so eats into the surplus you *should* have. Those things then mean that when your SOA says you have X-Amount surplus, you actually have it.
From that point, I would view the next few months as a time to throw every penny of surplus at the debts - prioritising the highest interest rates OR 0% cards about to fall off-deal onto a higher rate if that is more appropriate. At the same time, I would also go back through the SOA and work out where you can make savings "painlessly" - that might be by using a little less electricity, by turning the thermostat down a couple of degrees and putting on a jumper, by forgoing some treats when you do your grocery shopping, or by walking rather than taking the car. It varies from person to person. Every penny you save can then either go to debt, or if you prefer, you can view that as "money you didn't know you had" and that can then become your entertainment budget - there's great motivation to save money in one place when you know it's going to be used for fun elsewhere!🎉 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 -
Good advice EHI’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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Yes, very good advice EH.
I'm not convinced consolidation is off the cards yet though. The OP has just had some alternative advice over on his other thread.If you know you have enough, you're rich.
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Yes, very good advice EH.
I'm not convinced consolidation is off the cards yet though. The OP has just had some alternative advice over on his other thread.
HI
I don't think we are going to take the consolidation loan. As tempting as it is, I do worry that I will fall in to the trap that everyone has referred to in recent posts.
I was thinking that I could call up the CC companies for the cards that are about to increase to 27.9% and ask them if they could consider a lower rate of interest? If not, I will balance transfer elsewhere. Have I got any chance of being successful with this tactic????0 -
A lot of people saying it won't be fun... this does depend on your idea of fun. Have a think about what makes you really happy... if it is giving and receiving then think how you can do that without spending (massages, compliments, time - all free). That may sound corny, but if you spend the next few years thinking you're 'depriving yourself ' of everything you love then yeah, it'll be a miserable, long, hard slog. If you sit down with your partner and think about what makes you genuinely happy you can then go about looking at finding the lifestyle that you both want and that is sustainable. I wish you the very best of luck!0
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worriedDan wrote: »HI
I don't think we are going to take the consolidation loan. As tempting as it is, I do worry that I will fall in to the trap that everyone has referred to in recent posts.
I was thinking that I could call up the CC companies for the cards that are about to increase to 27.9% and ask them if they could consider a lower rate of interest? If not, I will balance transfer elsewhere. Have I got any chance of being successful with this tactic????
Well you've got nothing to lose by trying.
If you're even the slightest bit concerned about falling into the "consolidate and run up more debt" trap then it really REALLY isn't for you. I suspect focusing on sorting things out will, financially, be the making of you and your family as it will give you time to totally re-evaluate things and form new habits.SkintTeacher wrote: »A lot of people saying it won't be fun... this does depend on your idea of fun. Have a think about what makes you really happy... if it is giving and receiving then think how you can do that without spending (massages, compliments, time - all free). That may sound corny, but if you spend the next few years thinking you're 'depriving yourself ' of everything you love then yeah, it'll be a miserable, long, hard slog. If you sit down with your partner and think about what makes you genuinely happy you can then go about looking at finding the lifestyle that you both want and that is sustainable. I wish you the very best of luck!
^^^^
Yes! Brilliant post! :T🎉 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 -
Hi Dan,
I had credit cards stuck on 27-29% when I started snowballing. The card companies wouldn't help out at all with reducing the interest rates, one even used me asking about reducing interest as an opportunity to try to sell me a consolidation loan with them instead, which I declined! Doesn't hurt to ask though, I did, it could have been a different answer with a more understanding bank.
Once I got to grips with it and after a short while of chucking as much as I could at these cards I was offered short 0% deals for existing customers even on these ones that had balances on them, when I had reduced the amounts on them a bit. Then I was able to juggle bits of balances around them for a while until I started getting accepted for 0% elsewhere and getting longer 0% periods and could finally get it all on 0%. During that time I kept everything open to take advantage of whatever offers I could get until I was able stop shuffling between the less generous cards and close them.
So even in the absolute worst case scenario where you can't get a better deal and can't even get credit elsewhere to start with, it is still possible to manage it. You should find that once you reduce the balances by a chunk everything gets a lot easier in terms of finding better rates. It doesn't take so long .
I did have a few late payments at some points in my history and I was using almost the maximum of my available credit, on a really low income so that was what I was dealing with at the start. I had to get my overall credit utilisation down as soon as possible before I could get better terms. You sound like you have a fair whack to hit your debts with and a good income so I'm sure things will be looking up really very soon now you're tackling it. Don't feel trapped by interest rates anyway or too nervous about them, things do change as your situation improves.0 -
worriedDan wrote: »HI
I don't think we are going to take the consolidation loan. As tempting as it is, I do worry that I will fall in to the trap that everyone has referred to in recent posts.
I was thinking that I could call up the CC companies for the cards that are about to increase to 27.9% and ask them if they could consider a lower rate of interest? If not, I will balance transfer elsewhere. Have I got any chance of being successful with this tactic????
I've tried this before and they said no, but it's definitely worth asking.
Another time I was contacted about an increase in % from 17 to 23 or something, and when I rang them to complain they said they would keep it the same if I stopped using the card and just paid it off. Which is what I did, until I could get it shifted. So it might be worth saying that to them, you accept the 0% deal is over but want a smaller interest rate for not using the card.
You're making some good decisions here. Keep going. Once your budget and everything is in place and you see it working, you'll feel better.If you know you have enough, you're rich.0 -
Lots of people giving sound advice here to the OP. May not want to hear/read some of it but perfect sense being made by those who have been there, done it, and bought the T-Shirt at a ridiculous APR. Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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Well done on facing up to your problem. It's really not as bleak as you first thought. You actually have quite a bit of 'spare' income at the end of the month that you can use to pay off your debts.
My two pieces of advice, for what they're worth echo those of others:
1. Get back into your pension scheme asap, you'll be grateful for it in the long run
2. Stop the spending on the credit cards. Between you you've got way too many and what you have got should be paid off in full each month. You've obviously become very reliant on them, and that's a very slippery slope.
You'll be back on an even keel in a few years, good luck.0
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