I need some help, how much to pay off per month?

redballoon_2

Hi all, this is my first post.
I have a credit card bill of £5100

I have worked out our budget and figured we could easily afford to pay £150 per month to pay off this debt. do you think this is too low? i think the debt will be cleared in just under 3 years!

I currently have a HSBC mastercard and a barclaycard platinum. I am going to do some transferring between the cards so the debt is just a "balance transfer" not a mix of that and purchases.

i have applied for a 0% capital one card and have been approved, just waiting for the card. i don't want to apply for another one as i have been refused credit cards in the past, but i think that was down to me not being on the electrol role after moving house.

wigginsmum

Depends how quickly you want the debt paid off. If you're prepared to make the sacrifice, tighten your belts, chuck whatever you can at the debts and think about the amount of interest you won't get charged in the long run.

Jules

fairylights_2

Our credit card bill has gone from over £7k to only £1433 through a lot of hard work, soul searching and tight tight tight budgeting. We started off on £150 payments until all the service provider changes and things kicked in and now we pay £250 a month. We also cancelled the payment protection and it's quite liberating that each month's interest is now so low compared to what it was this time last year - at one point we were only denting the actual debt by £8 a month after interest and ppi!

If you want advice on where to find extra pennies from your budget, ask here - there's so many ways to cut costs I wouldn't have considered before I first came here!

redballoon_2

hi thanks for your message

"If you want advice on where to find extra pennies from your budget, ask here - there's so many ways to cut costs I wouldn't have considered before I first came here!"

How do i cut costs then?

fairylights_2

Well, where do you spend your money?

You need to write down whatever you spend money out on each month - home ins. council tax, water, power, phones everything. If there are ways to cut the bills, people on here will advise. What are the APRs on your debts? are you paying off in the right order? There's a thread on here that lists how to do a statement of affairs so that you can see if you can shave your outgoings ... http://forums.moneysavingexpert.com/showthread.html?t=107280

robnye

redballoon wrote:

hi thanks for your message

"If you want advice on where to find extra pennies from your budget, ask here - there's so many ways to cut costs I wouldn't have considered before I first came here!"

How do i cut costs then?

you would need to list incomings/outgoings, then mse members would give suggestions for each outgoing........

it is worthwhile...... 'a problem shared is a problem halved'

skintchick

And play around with the snowball calculator to inspire you

https://www.whatsthecost.com/snowball.aspx

redballoon_2

Thanks. i only have one debt on one credit card and it will be at 3.9% once i have done some transfers so all of the debt is a balance transfer.
i think it's cos it's xmas i have overspent, but i can use my overdraft to help so wo't have to add to my credit card.
i have changed my home phone to tesco cos i get points and my gas and electric to powergen as i get tesco points with them too.
i have a nectar card and collect points from BP feul occasionally.
i am a member of ciao which gives me £30.00 every few months depending on how much work i do on the site and a member of freefivers.
i get food from tesco for points and use vouchers, BOGOFS and all the deals if we need them.
i have calculated we have £400 left per month thats after everything, all bills and giving £160 to my savings, and £170 on spending per month on going out.

HGLTsuperstar

OK, I'll start the ball rolling and sit back and let everyone finish it, "£170 per month on going out".....

fairylights_2

I was thinking £160 pm savings wasn't going to make what you'd pay out in debt interest ....

ms_london

redballoon wrote:

i have calculated we have £400 left per month thats after everything, all bills and giving £160 to my savings, and £170 on spending per month on going out.

You can obviously afford to repay more than £150 a month then, but are chosing not to. Thats a personal decision, but debt does tie you down. So it depends on what you want to do in the next few years as to how slowly/quickly you should pay your debt off.

If I had £400 left each month after £160 in savings and £170 on going out, I wouldnt care. Well actually I do have that NOW, but I am debt free, so the money is all mine - yippee!!

Its up to you & what you feel comfortable with at the end of the day. There's no law saying you HAVE to be in debt, so why not clear it and be free!! Its a fab feeling!!