Newbie Debt Nerd

minnie_the_mooch

Just had my "lightbulb" moment . . any advice from you seasoned savers would be gratefully appreciated

Monthly income - £1,100
Rent including all bills - £420
Travel to work - £50
Phone bill - £40 (tied to contract until February 2007)
Food - £120
Clothes - £50
Sundries - £50
Egg Loan - £210 (which is the minimum payment)
Capital One - £160 (minimum payment is £60)

Amount of total debts in sig' . . . .

minnie_the_mooch

My credit rating is absolutely awful! My bank will not allow my a debit card although my overdraft is authorised.

I would really much prefer to pay my overdraft off first as I would like to think that being in the black would get me into the good books with the bank and it would be a real boost to me to see a credit balance there.

However, the advice I'm getting from the snowball site is to pay my credit card off first. What do other people think is the best way of improving my standing with my bank?

brranger

Wow you spend exactly your income

No more clothes for you I'm afraid till you claer alittle debt.

minnie_the_mooch

Well the plan is to spend exactly my income. I find it incredibly scary to cut up my credit card and rely on myself to stick to that budget though. Eeeep!

Sea78

Hi,

I reckon it's still to pay off the Capital One Card asap as you will end up paying so much more on that if you prioritise the overdraft.
Not sure how you improve your relationship with the bank. When I was a student I got into some difficulties and when I went over my over draft i sent the bank letters saying what was happening and when I'd pay back what. i also did this with my uni rent office as I was unable to pay rent. Luckily got good summer job and paid back what I owed. Anyway, bank still refer the letter of apology 5 years later!!! However, other people have written and have no success at all. Just a suggestion?

Also - what is sundries? Is this savings for birthdays? Emergencies? Is food just for you? If so try the old style board for advce/help cutting that right back.

Good luck!

Seaxx

brranger

The reason the snowball site says that is because the cc is costing 8 times as much in real term in interest although only 4 time % wise as its double the balance of the overdraft.

at £50 per month (clothes) repaid to overdraft it will take 2 years to clear with no extra gain where as you cc will reduce you min payments slowly taking you off the knife edge. Imo

minnie_the_mooch

Sea78 wrote:

Also - what is sundries? Is this savings for birthdays? Emergencies? Is food just for you? If so try the old style board for advce/help cutting that right back.

Thanks for your reply

Yeah, sundries is just for emergencies really. What I think I'll do is try not to spend it and check out the old style board and anything that I've not spent at the end of the month I'll transfer onto my credit card. 30% interest is absolutely extortionate and I'm loathe to pay it anymore!!

min xx

beanielou

Hi MM
Is there any way you can increase your income at all?
Ebaying or even a short term part time job could be a big help.
If you are on your own your food is high.
Yes, it is scary with no credit cards to fall back on but for me anyway thats what got me into some of my mess.
You are right to prioritise the Capital *** card as interest is so high.
Good luck with it all.