Where are we going wrong?

JimmyTheWig

sandhawk2701 wrote: »

Please don't shoot me at this idea I thought of this morning .........
Would we not benefit from moving the Currys(2) debt to the MBNA card as it is lower percentage
The currys 2 debt starts next month it was a buy now pay later term so the debt would only be about £1000 if we paid it off.

Yes, do this. Absolutely do this. Do it now. Don't delay. This is absolutely the best thing you could do.
From what you have said, you can pay £1100 now or £55 a year for 3 years. This isn't 29.5% APR - this is 29.5% FLAT RATE! That's got to be an APR of about 60%.
Seriously, unless you have made a mistake in these figures, do anything to avoid paying this interest to Currys.

sandhawk2701 wrote: »

I have looked into rates on the credit cards A+L MBNA we still have 0% interest on transfers til June 09 but a 3% fee the card after that is 14.8%.
Through the post today, came the statement and two blank credit card cheques.
Could I use a cheque to pay off Currys (2) £1,099.98 that would clear that debt before it starts in May 09.
It reads that the rate is 2.9%p.a until October 2009

The cheques sound like a better idea to me than the balance transfer. Even if you have to pay a 3% fee for using the cheques this is going to be better. I am assuming that after October the interest rate for the cheques goes to the same 14.8% as the balance transfer would.
By continuing with the £110 a month you already pay to A&L and add to it the £55 a month you would have paid to Curry's you could pay this debt off in about a year (*), saving you about £800 in interest compared to paying the money to Currys over three years.

If I were you I would check the interest rate that the cheques go to after October and, as long as it is reasonable, write a cheque today for Currys. Don't delay with this. You don't know when they will start adding interest if you don't pay it off in full by the deadline.

(*) There may be better ways to use this money, but the important thing is to pay off Currys!

RAS

sandhawk2701 wrote: »

Through the post today, came the statement and two blank credit card cheques.

Could I use a cheque to pay off Currys (2) £1,099.98 that would clear that debt before it starts in May 09.

It reads that the rate is 2.9%p.a until October 2009
.

Check this very carefully as I though credit card cheques were much more expensive than that.

1. This could be 2.9% per month.

2. What is the APR after October?

sandhawk2701

Reading it again it says ...
you can write a cheque upto 95% of your available credit limit at a rate of 2.9%per annum (monthly rate 0.2425%) within the promotionaal period stated above. Thereafter it will revert to your standard contractual rate shown below.15.9%
So that makes it 2.9% ?? Is that right??

My head is spinning now

RAS

Hi

yes is is 2.9% APR for the introductory period, and even at the 15.9% rate you would win hand over fist.

Just not used to people on here still being able to get good APRS.

sandhawk2701

Thanks JimmyTheWig and RAS

So it would be a good idea to sent the cheque off to them as soon as possible and up the payments to £110 + £55 we would of been paying to Currys?

I plan to pay off Debenhams on Thursday then I go to town,
made an extra payment of £25 to MBNA today,
and have set up the standing order for the council tax to start on Friday.


I can't believe how much better I feel just making a start on simple things


Thanks to all.x

angelicmary85

It's good to hear that you're still feeling positive! x

sandhawk2701

Cheque's written and in the post!!!

JimmyTheWig

This is brilliant. Well done for getting on and sorting it.
I think this is the most amount of money I've seen someone on here save in such a short space of time.

JimmyTheWig

Now, it is up to you whether you want to do this next bit or not. What you've done is brilliant, and to pay £165 a month off your A&L card (as I suggested) would be great. But I have a slightly better plan.

Lets look at those debts again.
Keep paying the £100 a month for currys(1) for three months then that is finished.
Currys(2) will no longer exist.
We can ignore your mortgage for now. Obviously keep paying it!
And I presume that you have little choice but to keep paying the HP debt at the same amount each month, so keep paying it and we can ignore it.

So that leaves the following...
Description....................Debt......Monthly.. APR
MBNA...........................345.......50....... 17.4
Barclaycard....................700.......50....... 14.9
MBNA (A+L)....................1666.......165...... mainly 2.9 then 15.9
Grattan........................78.84.....25....... ?
Debenhams......................40........40....... 24.9

You're going to pay off Debenhams in full tomorrow. Brilliant.
Then, for now, just pay the minimum on your A&L card. This might be about £50. Use the rest of that £165 to pay off other debts.
I'd say clear the Grattan debt. Firstly that is then out of the way and secondly I don't believe you are paying nothing for the privilegde of owing them that money. Whether in interest or charges you'll be paying for it.
So the first month, pay off Grattan and put any spare from the £165 towards your other MBNA card.

For the next two months put as much of the £165 towards your MBNA card (on top of the £50 that you would normally have paid off of it) and that should then be clear.

Then do you realise how good your SOA would look? Other than your mortgage and HP debt, you'd only owe money to Barclaycard and A&L.
How does that sound?

sandhawk2701

Hi JimmyTheWig

Thank you so much for your input.
Having read your last post we will take your advice and get rid of Grattan , it is 0% no charges either but willing to get rid of it.
Then will throw what we can at MBNA like you said.

The other HP debt is a car loan, would getting a settlement figure help?
Just can't see us getting a better rate on it so plod along with paying it.
It just hurts a bit as its it comes out the same date as the Currys(1) and our electric D/D.
OH gets paid weekly so have to make sure we don't over spend the week before and the week they come out.

Have actually managed a no-spend today which is a feel good factor too.........