Taxis back to basics...debt and mortgage free before 50(feb 2014)

hypno06

I definitely agree about having a savings account and as you know it is something I have just started working on because I was concerned about the "what ifs" that crop up from time to time.

And you only have to look back at your own situation to know how crappy it is when "stuff" happens and you don't have the money there to pay it, and no alternative but to pay it......

turfy6

Ive just realised exactly the same, I now have some envelopes with cash in marked for all the other stuff that crops up when you least expect it. Even if you dont have the whole amount for something at least its something towards it.:j
The only thing i havent worked out is how to strike the right balance, we'll get there in the end.

lucielle

That's a good payment made to the cc, well done you.
L

taxi73

Thanks everyone...Getting the right balance is definitely the hardest thing to achieve and I'm glad I'm not the only one that feels that way.I'm finding it a struggle to actually work out what to pay off first...
My head tells me to pay the ones with interest first..they are 6.9% LOB though..My heart tells me to pay the 0% ones first because they are high balances and the more I have left at the end of the 0% the more it will cost me as they will be 17.9% ish...so I don't know if I'm doing right...IYSWIM!!!!
So my Virgin is my PAD....DHs halifax is all the change,his pension and DDs board money etc as extra...in months gone by I'd have been happy to pay the LOB off first knowing that I'd get another 0% card but in this current climate I've been turned down.

taxi73

Work was quietish again today but was busy last night for DH.I've managed to hoover up and get the washing finished sice coming in.Also did a bit of shopping so £20.76 now used out of septembers budget.Hoping for a busy day tomorrow.

Seaxwyn

Hi taxi. I have always prioritised the interest-bearing debts rather than the 0%s, and I now think that is a mistake as you end they 0% period without having paid much off and then have to pay a balance transfer fee to move it somewhere else. So my new policy is to pay the 0%s first.

Keeping_Motivated

Taxi for what its worth i think you are right (in your circumstances) to pay the larger debts despite them being on 0%. I know it goes against the grain of how MSE would usually do things but as your other cards are reasonable rates and knowing the potential interest rates the larger debts could accrue (if they went to 'normal' rates and no 0% deals available) then you would be saving doing it the way you are doing.

You are doing really well reading what you have achieved so far, keep at it.

Keeping_Motivated

Seaxwyn wrote: »

Hi taxi. I have always prioritised the interest-bearing debts rather than the 0%s, and I now think that is a mistake as you end they 0% period without having paid much off and then have to pay a balance transfer fee to move it somewhere else. So my new policy is to pay the 0%s first.

I hadn't thought of the balance transfers but obviously yes even if a 0% deal is available the fee would be larger when transferring a large debt so more evidence that Taxi is doing the right thing in her circumstances I think.

Taxi when do your 0% deals end?

taxi73

Thanks Seaxwyn and Keepingmotivated....that was exactly what I was thinking...they have ages yet..March and June next year...but being SE I never know what's coming in from one week until the next so I thought I'd pay what I can when I can...whilst also saving money in the EGG account for the big things and tax.

ZTD

taxi73 wrote: »

Thanks everyone...Getting the right balance is definitely the hardest thing to achieve and I'm glad I'm not the only one that feels that way.I'm finding it a struggle to actually work out what to pay off first...
My head tells me to pay the ones with interest first..they are 6.9% LOB though..My heart tells me to pay the 0% ones first because they are high balances and the more I have left at the end of the 0% the more it will cost me as they will be 17.9% ish...so I don't know if I'm doing right...IYSWIM!!!!

Calculate it both ways. See which is cheaper.