Paying off my Mastercard

x_toonangel_x

As you can probably tell, I am thick when it comes to all of this - the reason I didn't include my overdraft is because I am easily paying that off every month (The overdraft is at £900 and both my wage £975 and my partners £1000 gets paid into my account) so basically, I use the overdraft, and then it gets paid off on the 1st of every month when we get paid, so is that ok?? Or should I really be trying to get rid of that overdraft? (Sorry, I am not very good at understanding this sort of stuff!)

In regards to the holiday, my mum has paid for it, so I can't not go, plus, I haven't been on holiday for 4 years (I know I am sounding selfish) but I have been through alot these past couple of years and I really need a break

And yes, I cut up my card as soon as I maxed it, because I knew that I just couldn't use it for spending anymore.

I am totally willing to cut back wherever I can, I'm gonna write it all down tonight and speak to my boyfriend. x

Horace

You should also be trying to get rid of the overdraft too - or at least bring it to a level where you can dip into it by £20 occasionally but not by hundreds. Your overdraft should be included in your SOA because it is a debt.

As others have said it depends on whether you want to cut back drastically or just a little bit. You can easily save some money and clear more off the card before you go on holiday.

No need to hit the shops for new clothes either, shop from your wardrobe instead as there are bound to be clothes tucked away in there that are unworn.

skintchick

You aren;t actually paying the overdraft off though - as you use it again each month. You have only paid it off when you aren;t using it AFTER your bills go out, not before.

You've had some great advice on here, but I will just add that I didn;t have a holiday for ten years, and during that time went through a great deal, including a friend being murdered, another being killed in an accident, and splitting up with my fiance, not to mention my depression and drink problem, so you don;t HAVE to have a holiday although I appreciate why you'd like one.

You really do need to throw much more money at the debt.

But on the food - my OH and I spend £50 in the supermarket so I know how you can easily spend that (but having once lived on a tenner a week I also know how you easily not spend that!).

Good luck.

Fire_Fox

x_toonangel_x wrote: »

As you can probably tell, I am thick when it comes to all of this - the reason I didn't include my overdraft is because I am easily paying that off every month (The overdraft is at £900 and both my wage £975 and my partners £1000 gets paid into my account) so basically, I use the overdraft, and then it gets paid off on the 1st of every month when we get paid, so is that ok?? Or should I really be trying to get rid of that overdraft? (Sorry, I am not very good at understanding this sort of stuff!)

In regards to the holiday, my mum has paid for it, so I can't not go, plus, I haven't been on holiday for 4 years (I know I am sounding selfish) but I have been through alot these past couple of years and I really need a break

And yes, I cut up my card as soon as I maxed it, because I knew that I just couldn't use it for spending anymore.

I am totally willing to cut back wherever I can, I'm gonna write it all down tonight and speak to my boyfriend. x

Well done for cutting the card up! Looks like you have nipped this in the bud, and are getting your head round money at a much earlier stage than most of us.

Any time you are spending money that isn't yours you are getting into debt. That may be a manageable debt, but it's a debt all the same. A 0% overdraft can be used as 'savings' to accrue free interest, a fee paying overdraft is a waste of money and should ideally only be used as an emergency fund. Do you know the APR on that £900?

If you need the holiday, then go. Just pay off as much of your debts as possible before you go, and cut that predicted spend down. £600 plus overspend plus interest is an awful lot of money to have nothing but a few photos and a tan to show for it - and that is on top of the cost of the holiday itself. How long would it take you to earn that?