Spare weekly money

heppy23

I get paid weekly and normally have a bit of spare money each week.
This money generally stays in my current account and often gets spent because it is there!

I have a capital one mastercard which is at about £1600. This is my only interest bearing debt. For obvious reasons I want to clear that debt.
My credit rating is not good so a move to a 0% card is out of the question until at least June when my defaults start coming of my file. I currently pay £20 a week by standing order to the card. This means I never get a late payment hassle but I am not really getting anywhere with paying it off.

I am crap at saving but need to start saving.

The money I have spare at the end of each week isn't a lot - between £10-50 depending on what has been going on that week.

As far as I can see there are three things I can do so I thought I'd do a poll. I've added a fourth option in case I've missed something.

Thanks in advance!

ms_london

Could you set up a separate account & transfer the money into it each week?

Can you afford to overpay so as to clear your credit card debt? Are you aiming to save too or just pay off your debt? How about posting a SOA?

(cos we're nosy!)

xx

heppy23

I've got a cahoot card that I currently transfer £5 a week into. I can easily set up a bank transfer to move money there. I already have a bill payment set up for the card.

In theory the money I have in my bank account on payday minus the money that has just been paid in is spare. It has survived the week and deserves to go onto bigger and better things.

I know that if I put it all onto the card then one day the card debt will be gone and the weekly payment and interest will stop but I won't have anything tangible to show for it. That is why I thought of the 50/50 option.

I know logically it is daft to save to earn 4% when you debts are several times that % but I am trying to get into a saving habit.
I might get to a point where I might have £x pounds in the save and don't want to buy anything so I might throw that at the credit card.

I don't use the credit card anymore so the balance will only creep down.

skintchick

Pay off the card! What could be more tangible than getting rid of a massive debt?

black-saturn

Definately use it to pay off debts.

piglet6

What you'll have to show for it is a £0 balance on your credit card bill :j (I got one on one of mine this week, and believe me, it is the BEST feeling there is!! ), and the knowledge that going forward the money that is left over in your bank account each week is all yours to do what you want with - spend some, save some, do whatever you fancy because you don't owe it to anybody else...it is all yours!

Pay it off the credit card bill - it may seem like throwing tiny pebbles at a huge rock now , but once it starts to move downwards, it really will gather momentum and the feeling of satisfaction you get seeing the balance on the bill go down is more than equal to seeing little amounts of savings grow in an account. :T

Piglet

silverelephant

I know EXACTLY the dilemma you are in here

You have actually answered your own question in your post about the interest and yes this is what common sense would suggest but never having been a saver (or debt free for that matter ) I know what you mean about getting into the habit of saving too! However I've had to fight with myself long and hard over the last few weeks to "justify" using all my spare money to throw at my debts. The great thing is we have both discovered MSE and all the clever and rational people here are in/have been in the same boat as us and are proof that putting towards your debts really does work.

My problem is (and I'm not suggesting that this applies to you too) that I've always been a spender and until I kick that habit, there's no point trying to start another (albeit more beneficial) one

Hope this helps

jazzyjustlaw

I would save a small amount for a rainy day or off your debts later on say ££10.00 a week and put the rest towards debts. After a few months you could treat yourself even.

heppy23

I am a very good spender!

I just wish I had found MSE years ago when I was in debt properly. I might have saved some money and kept my credit rating intact.

To be honest I think I am going to have to cut the card up. I will have to look at the "available to spend" and not see it as "my money" but money I have had, spent and now have to pay back.

aaarrrggghhh

Alternative suggestion:

Could you pay, say, three weeks of spare money off your card, and the fourth week's use to treat yourself?

heppy23

adammccance wrote:

Alternative suggestion:

Could you pay, say, three weeks of spare money off your card, and the fourth week's use to treat yourself?

Hadn't thought of that. Worth a thought.