today I take charge - stop "trying" start "doing"

louby_lou

:T Today I have stopped thinking about clearing my debts and have started doing.

For probably about 2-3 years I have been browsing on this site, looking for means of saving money - often spending as a result of the fantastic bargains people find, however I realise nothing is a bargain if you don't really need it. Over the past 6 months I have stopped using my credit cards altogether. I know this might not seem like much but to me it has been a big big change. I used to spend on them, never knowing the balance and as long as i wasn't paying charges and managed to keep up my minimum payments I was just coasting along. Coasting along paying interest to credit companies that is. No more I say.

Last month I received £2500 in compensation from a car crash I was in over 14 months ago. I was extremely tempted to put this money aside for a nice shiney new car, however realised my current car is still very much alive and ready to serve, and aside from having one that looks nice, I don't really have a business case for it, and that my credit cards are far more pressing matters.

So. I bought myself a few bits and pieces, a new watch and a new bag - which then encouraged me to have a big wardrobe clearout. I now have a very annoying mountain of items to sell, but that is by-the-by. I used the remainder of this compensation to pay off 2 of my credit cards: My Ulster and HSBC cards are no more which pleases me no end. I do wonder whether I should keep them available with a zero balance, or close them. If anyone has any recommendations I would be grateful! (I'm also thinking of balance transferring to them given the APRs I uncovered today...)

Anyway I digress....

Today I thought "you only have 3 credit cards now, you really should stop hiding from them". So - I decided I have been living in ignorance for too long and went looking for the APRs of my cards. I have to say I was shocked and dismayed at what I found.

Halifax One card: 15.95% APR
HBOS card: 17.9% APR
Natwest: 26.9% APR :mad: :eek:

I understood that I had a big balance on the Natwest card and that it would take a long time to pay off - however I didnt really take much action but to pay at the most double the minimum payment each month.

So, I called up these companies and made my case that I would not be using these cards for purchases in the future and would they consider reducing my interest rate. Unfortunately Natwest wouldn't which was extremely annoying, however both HBOS & HalifaxONE cards have been reduced to 13.9%. Not a massive reduction but one I'm happy with for the cost of a phone call. :rolleyes:

With this information I have used the snowball calculator to advise me what should be paid off when to minimise interest payments.

With the £1000 i intend to pay off my debts with each month I now have a Credit Card Debt free date of October 2009 :T

I can't express how happy I am with this, as I feel I've just been procrastinating and allowing these debts to continue for an age. Closing the 2 smaller balance cards gave me a boost which I needed to get to this point, and I'm actually pretty proud of myself for facing up to the real cost of my credit cards.

Not the most earthshattering news I know, but nonetheless I knew there would be nowhere better to tell people my progress

Laura

Bone_Idle

Well done, that's great news! :T

fletch3163

Hi there

Very well done on your actions. You SHOULD be pleased with yourself.

I could have written your entire first paragraph. I too was/am a browser of this site and I too often find reason to spend on the found "bargain". I stopped using on my credit cards just after Christmas and I focussed on paying my Argos card (which I did). I now have 2 credit cards to pay off but am lucky that the 0% doesn't run out until Feb and April.

Back in the Summer (only in date, not in temperature:D ) I stopped spending and started saving. I've become quite miserly but am able to save quite a few hundred pounds a month which I hope to have the bottle to give to the credit cards when 0% runs out so I completely know how you felt re the £2,500.

I wish you the best of luck in your endeavours and shall watch your progress.

halight

Hi well done!!!!!!
Good luck with paying these cards off!!!!!

All the best

jenjade

well done on making possitive movements. The cards you have with no money in but have not closed what is the aprs? is it worth moving the Natwest balance onto cards if they have a lower apr? on could you get a 0% balance transfer??

Well done

louby_lou

Thanks guys - the Ulster card has 13.5% APR and HSBC card has 15.9% APR - i think I might give them a ring and ask them what they can offer me for balance transferring the 2 to maximum. Unfortunately they only have the capacity to take two thirds of my Natwest balance but still that will be saving me approx 10% APR on a large proportion of my balance. I'm on a roll - might as well now I don't want to apply for any more credit so think this is the best step, even though it might be a bit demoralising to have a balance on those cards again! Thanks guys!

Bunnyinthelights

Louby Lou,
Have you tried the snowball calculator?
It may change how you pay off the remaining cards...

And well done, you SHOULD be very proud of yourself.

Baileys_Babe

Well done. Looks like your on track to make your dfd a reality

jenjade

what about making extra cash now you have cracked the cards? have you looked at up your income board

louby_lou

hiya yep used the snowball calculator and shall be living by that for the next 11 months of debt payment. though i think i will more than likely BT some of the natwest debt to the two lower apr cards next week. going to give hsbc and ulster a call tomorrow and see if they will do me a deal. i shall also be moving to london in july next year so going to get rid of EVERYTHING i dont NEED - i have a massive pile of clothing in my bedroom just waiting to be eBayed so today is the day to start! thanks everyone this is really motivating x lau x

dancingfairy

Hi. Congratulations. I would really look at transferring any debt you can away from the Natwest card as that APR is huge. Sounds like you are well on your way now.
Why not post an SOA up as well for any savings that can be found?
Best of Luck
df