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  • FIRST POST
    • Pengwern
    • By Pengwern 1st Feb 17, 4:38 PM
    • 109Posts
    • 104Thanks
    Pengwern
    Where has the last 3 years gone?
    • #1
    • 1st Feb 17, 4:38 PM
    Where has the last 3 years gone? 1st Feb 17 at 4:38 PM
    Hi

    Well as you can see I seem to have made some progress over the last 3 years, but either I was not being honest or we have gone backwards over the last 12 months.

    We have a family loan of £7,300 that is interest free and we are currently paying zero. We have 3 credit cards:
    CC1 £450 0% ends in 4 months
    CC2 £1,600 0% ends Sep 2018
    CC3 £5,000 0% ends Nov 2017

    All are on 0% with a good few months left to go. I have in savings the following:

    £4,500 in my name
    £2,200 in our joint account.

    That still leaves us with a balance of £7,650 to pay off.

    So my head says to keep the cash in the high interest (well for current climates) while we are paying 0% on the CC. However my heart just wants rid of them all once and for all. We do not have enough to cover it all but it would halve the debt. However that savings is also our only emergency fund.

    I need to stay strong this month as I currently have £400 food budget for the 3 of us and that is it. I do not have any spare cash for life's luxuries.

    I currently have £300/month over the minimums to pay towards the CC debt. Of that I am currently putting it all towards CC1. The rest are just on the minimum. so CC1 will be gone in 2 months. I am just getting too impatient with it all. CC3 0% offer will end before I have paid it off, so I do intend to use savings to clear it rather than to transfer the balance again. The 0% ends in Nov 2017 so a few more months left to go.

    I need to get this debt sorted and gone as our fixed rate mortgage ends in June and I really do not want to have to fess up to the financial adviser that yes I still have that credit card debt. And no it is not the same as before, I paid that off but just built it back up again.

    Last time it was because of a wedding, this time it was due to me not earning for 6 months. So all in all it could be worse, but still it is frustrating.

    I am hoping that keeping writing this down it will help in some little way and stop me going to sleep every night dreaming of a life without the debt.

    Today was good as I cashed in the 3 Oyster cards we no longer use and that will be £20 heading to my bank account soon.
    May 2013 £20,000
    Sep 2016 £13,700
    Feb 2017 £14,490
    0% CC1 was £450 now £350, CC2, £1,600, CC3 £5000
    Family loan £7,300
Page 2
    • Stb
    • By Stb 10th Mar 17, 11:49 AM
    • 38 Posts
    • 65 Thanks
    Stb
    Hi,

    Interesting conundrum on the credit cards savings front, might be worth your reading the main MSE page about debt or savings, it relates predominantly to interest bearing credit cards but might help you clarify thinking, I would think about these actions maybe:

    1.) make normal payments on CC 1 until pay off date, then clear using small amount of savings
    2.) redirect CC1 payments to CC 2 having paid back savings first
    3.) pay off CC 3 early if you can and be prepared to use savings balance to clear CC3 now if step 4 below is a shocker
    4.) join MSE credit club and get free credit rating and affordability checker if it's good news up payments on CC 3 and remortgage (credit score doesn't guarantee you'll get one but helps you make informed decision) if your credit score today is s shocker look at what systems says you need to do, you have 3 months to improve it. You may have to clear all 3 with savings.
    5.) if credit cards paid off keep the one with longest 0% on purchases and destroy others, save like hell to build emergency fund if you need more you can use the credit card at which point you're no worse off but you haven't paid interest on the outstanding balance after the 0% deal ends. And you have a fixed rate mortgage.

    Some of this I hope might help, check out Martins stuff on MSE for more detail.

    Cheers and let us know how you get on whatever you decide to do?!
    Virgin 0% CC £1092
    Overdraft £0 at 27.02.2017
    Savings target £2000 by year end
    • Pengwern
    • By Pengwern 10th Mar 17, 7:36 PM
    • 109 Posts
    • 104 Thanks
    Pengwern
    Interesting list and one I will ponder on long and hard. So thanks, its always useful to get different perspective on things. I am a member of almost all the free. Credit reports including the MSE one. Thank fully I have a good rating and still have options according to the cc predictor on the MSE site. I have managed to reduce the mortgages 3 months early as I am sticking with the same company. I have looked around and the rates at 1.84% is very competitive for our LTV. Unfortunately the computer says we have 76% LTV rather than our figures which puts us just under 75% LTV this is based on recent sales of our neighnours properties which are comparible in size and condition. I did phone to see if they would adjust but its a computer says no unless we have done work (which we have not). That made us miss a 1.69% rate but we have decided to keep the payments the same and as we are close to 75% we will reassess once we hit that LTV.

    Just found out the oil in our rental house is also dangerously low, so we are having to put 500l in before the new tenants arrive! That's £200 to fork out, we should get £130 from out exiting tenants deposit as they did not replace the oil to the level it was when they took on the place. However I am not holding out much hope of getting it as they have made noises to our letting agent they are going to dispute it. I have no idea why they feel they can get away with it, but past experience means I am not hopeful as a deposit is a tenants and as a landlord you have to make a claim on it!! It's in the contract about the oil but I always feel the law is not on our side.

    I just need the new tenants in and paying rent, they move in next week but the 1st months rent is taken up with reletting fees, oil and repairs. Next month we will finally get some cash flowing in. Managed to get the water board to come and inspect the suspected leak. Also phoned insurance company and apart from a £200 excess they would cover the leak detection and repair if it is on our land. So that is slightly good news as a £200 bill I can cope with. A thousand pound bill would be too hard to take.
    May 2013 £20,000
    Sep 2016 £13,700
    Feb 2017 £14,490
    0% CC1 was £450 now £350, CC2, £1,600, CC3 £5000
    Family loan £7,300
    • Pengwern
    • By Pengwern 17th Mar 17, 6:06 PM
    • 109 Posts
    • 104 Thanks
    Pengwern
    So took the day off work and went to wait for a water person to turn up on one of those 4 hour slots. They were very good when they arrived but confirmed the suspicions we had and the leak is on our property. Cut a very long story short the pipe is being replaced next week at a cost to us of £440. Too much really and it will have to come from the savings but I guess that is what they are for. The odd jobs that were needed to be fixed in between tenants came to £470! And the partial months rent has been eaten by re letting fees and inventories. I won a minor victory in the oil battle and got £50 out of the outgoing tenants. Does not cover it by a long way but considering we were thinking of writing the money off it is better than nothing. It also says to me they knew they were trying it on.

    So where are we financially, well not great really as this month we have had so many expenses and we have used some savings. No additional debt repayments made. Next month hopefully we will have no more expenses and a full months rent. It is £5 more a month than we were getting previously, slightly below market rate but it did mean we got tenants in within a week. So that is better than 3 months of no rent and all the expenses of fixing a water leak.

    I also have to confess to buying another dress. So I am in a really bad place I think. I never find anything that fits and a.3 day wedding in the summer I took the opportunity to get an outfit when I saw it rather than fretting about it in the summer. I am having to raid the presents fund to cover some of the cost and the rest will have to be found from elsewhere. But I did not put it on the cc, so my account has £120 to last till the end of the month for food. I need to start raiding the freezer and using up stores wherever possible. My delivery saver also runs out this month and I am switching from T to S. I cannot believe how many items they do not stock anymore and nappies are always out of stock or they send me a substitution of the wrong size!!

    After this months standard payment CC1 stands at £350, so close to it being paid off.

    Let's hope I manage to do better next month. On a positive the dress was the only spend other than food this month so far. Which is much better than the past me. So that I will take.
    May 2013 £20,000
    Sep 2016 £13,700
    Feb 2017 £14,490
    0% CC1 was £450 now £350, CC2, £1,600, CC3 £5000
    Family loan £7,300
    • Pengwern
    • By Pengwern 28th Mar 17, 1:25 PM
    • 109 Posts
    • 104 Thanks
    Pengwern
    Just totalled up the joint account as the last payment for the month has been made. I rounded it down and sent £2.09 to CC1. My present fund has been raided and all I have to spend till payday is £18 for cleaning. I will then have £40 left in my account. So not a great month as no savings at all from my account or the joint one. I have had a lovely few days in the garden and that has helped immensely. A fresh start in April I hope.

    April should see the first full months rent come in and fingers crossed for no more repairs in April. I have decided to let cc run with its standard £100 monthly payment and then a standard £100/ month to the larger cc as that has the least 0% deal left. Any extra will also be sent to the larger cc so I can hopefully get the balance below 50% of the total credit limit. This should make my credit score pick up a bit. It's good but should improve if I drop below 50% of the limit of that one cc. Paying off CC1 will also help but that should take 4 months. I will then reassess where to send that monthly payment.
    May 2013 £20,000
    Sep 2016 £13,700
    Feb 2017 £14,490
    0% CC1 was £450 now £350, CC2, £1,600, CC3 £5000
    Family loan £7,300
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