What should I do?

kathfisch

What made you bottle it?

The interest earned on your savings is less than you're paying on your debts so it makes sense to pay the debt off with the savings. Are you worried about not having the 'security' of the savings? Perhaps keeping a little bit back in case of emergencies might make you feel better?

If its the amount that's scaring you... why not do one payment for £1000 now. Then next week some more... and some more after that (if Natwest will let you). I know this might make me feel better... the mind works in strange ways :rotfl:

Best of luck x

Risinfromthegutter

Yeah i might try that.

Im scared that i may not b able to afford to get through the next few months! I have tended to have to dip into the savings to pay for the necessities recently.

Ive just bought a house and my mortgage starts next month, although it is a fairly similar amount to the rent i was paying previously the first payment is pro rata'd so its like one and a half times the usual amount. Also its my partners birthday on the 2nd and my mums on the 3rd! Then my sons birthday and my sisters the month after... not to mention christmas!

I feel like i work for nothing, I haven't been able to spend any money on something for myself for what seems like an eternity! I wouldn't mind some new clothes or a CD once in a while.

Anyway im rambling on sorry!

Ill get back on online banking and see if I dare do it this time!

If at first you dont succeed...

kathfisch

Risinfromthegutter wrote:

Yeah i might try that.

Im scared that i may not b able to afford to get through the next few months! I have tended to have to dip into the savings to pay for the necessities recently.

Ive just bought a house and my mortgage starts next month, although it is a fairly similar amount to the rent i was paying previously the first payment is pro rata'd so its like one and a half times the usual amount. Also its my partners birthday on the 2nd and my mums on the 3rd! Then my sons birthday and my sisters the month after... not to mention christmas!

I feel like i work for nothing, I haven't been able to spend any money on something for myself for what seems like an eternity! I wouldn't mind some new clothes or a CD once in a while.

Anyway im rambling on sorry!

Ill get back on online banking and see if I dare do it this time!

If at first you dont succeed...

Well there's no point in paying off so much that you can't afford to live and end up getting more into debt to pay for those things you've mentioned.

Have you done a Statement of Affairs (sorry if I've missed it ) and/or a complete budget so that you know where you stand? You need to have as clear an idea as possible of your incomings vs outgoings and how much (if any) of that savings you will need.

If or when you do have a budget, try to make sure there's a small allowance in there for treats - money just for you that you can spend how you want without feeling an ounce of guilt. Perhaps only £5 a week, it makes a huge difference in keeping you 'on the wagon'!

Kath

Risinfromthegutter

Thanks Kath

Ive done a SOA before, and if I do a budget I am always paying out more than im bringin in, but somehow i manage to just get through each month (often without dipping into my savings). Everything that I do pay out is a necessity i.e. council tax, utilities, insurance, rent/mortgage. The only things i can do something about is the dreaded pieces of plastic! I think roughly i will save about 60 - 70 pounds a month by paying off my Nat West card, i suppose this could go into the savings account for a few months to boost it up.

Whilst on the subject of credit cards, once I have paid off my NatWest card would you advise cancelling it or leaving it open and see what interest rate they might offer me for transferring my MBNA debt? Thats at 6.9% until Jan 07.

Verbatim

I would leave it open if you are strong willed enough not to use it at all. After 4 months or so having NOT used it at all ring and ask for "closures". I did this and was offered a 0% deal, albeit only for 2 months, with 2.9% thereafter for 4 more months. I was told to try again in a month or so as they sometimes can offer better deals.

NB it's ONLY closures that can offer the best deals not the ordinary customer services staff who answer the phones and you'll only be in a strong position to ask if you haven't used the card for a while:you won't seem desperate and have available credit/choices.

Risinfromthegutter

Even if i am tempted to use it, I wont be able to, it was snapped into a thousand pieces months ago!

I will try that if i have the patience to wait four months.

Although i may be able to get a 0% card by then.

Kevicho

Risinfromthegutter wrote:

Thanks Kath

Ive done a SOA before, and if I do a budget I am always paying out more than im bringin in, but somehow i manage to just get through each month (often without dipping into my savings). Everything that I do pay out is a necessity i.e. council tax, utilities, insurance, rent/mortgage. The only things i can do something about is the dreaded pieces of plastic! I think roughly i will save about 60 - 70 pounds a month by paying off my Nat West card, i suppose this could go into the savings account for a few months to boost it up.

Whilst on the subject of credit cards, once I have paid off my NatWest card would you advise cancelling it or leaving it open and see what interest rate they might offer me for transferring my MBNA debt? Thats at 6.9% until Jan 07.

Few points, cancel the cards, after 4 -6 months youll be able to get a much better deal, then again what does the interest rate go to after January? Also take into account any fees etc

With regards the whole "Ive done a SOA before, and if I do a budget I am always paying out more than im bringin in," - well thats the whole point of budgeting, have you done all you can in regards to cutting back on non essentials, moving to cheaper services, and making sure you are getting all the money due to you?

That £70 will probably bring your monthly budget inline, post an updated SOA so we can see if we can find you some more help

It doesnt sound like you are too sure about your situation

Risinfromthegutter

Here is an updated SOA

Monthly Incomings:

My salary - £837.00 (approx) after ded'ns
Benefits - WTC - £25.00

Total - £862.00

Monthly Outgoings:

Mortgage - £330
Council Tax - £94
Gas/Electric (dual) - £80
TV License - £11 (I pay 33 a qtr)
Phone - £PAYG (as and when i can afford to!) rarely!
Travel costs - £80
Life Insurance
& other ins.
related to mortgage - £47
MBNA CC - £21.00 (Minimum) (2800 balance)
NatWest CC - £78.00 (Minimum) 3300 balance
Partner's mum - £70 (loan for car)
Water - £33 (in arrears til Oct then £21)

Total: £844.00

:mad:

My MBNA cc was initially supposed to go to 16.9% in January but I had a letter this week saying it was going up to 1.8......% a month, which i reckon will make it around 21.9/22.9%

Risinfromthegutter

In addition these are my credit cards:

MBNA -

Oustanding balance - 2840 (approx)
Credit limit - 4400.
APR - 6.9% until January 2007
Monthly payment - 22.00 (approx)

NatWest -

Outstanding Balance - 3340 (approx)
Credit Limit - 3500.
APR - 16.9%
Monthly payment - 78.00

MINT -

Outstanding balance - 0
Credit limit - 700
APR - 0% until December i think.

I have cancelled this card as of today.

I have savings of around 2800 and an interest free overdraft of 750.00 (which i have never been out of!)

all_hours

Risinfromthegutter wrote:

In addition these are my credit cards:

MBNA -

Oustanding balance - 2840 (approx)
Credit limit - 4400.
APR - 6.9% until January 2007
Monthly payment - 22.00 (approx)

NatWest -

Outstanding Balance - 3340 (approx)
Credit Limit - 3500.
APR - 16.9%
Monthly payment - 78.00

MINT -

Outstanding balance - 0
Credit limit - 700
APR - 0% until December i think.

I have cancelled this card as of today.

I have savings of around 2800 and an interest free overdraft of 750.00 (which i have never been out of!)

Haven't you transferred some balance from natwest to MBNA?

If you haven't then don't!! With that change in interest you should leave the balance on the NW and pay off the MBNA with your savings.