Newbie - first post, scarey!

lynzpower

Sorry mate, can you explain to me how using a credit card helps?

I really dont get it.

Tricky_Vicky

La_Tristesse_Durera wrote:

If I see fresh meat reduced in the supermarket I'll buy it and stick it in the freezer. It's made me a better cook - a really good cook!! - and it's more satisfying. For example today, I had a home made burger from a bit of mince, a third of a TTD ciabatta (which was reduced to 20p), and a small portion of chips. My one unhealthy meal of the week!!! But I did it for less than a quid! if I bought that in a pub it would have probably cost £8.

Like I said, with a bit of tinkering, and lifestyle adjustment, you could really crack through this. :beer:

Hey La Tristesse Durera - are you married?;) You sound like quite a catch!:beer:

david_hellier

There is nothing wrong in spending money. You can spend it on what you want. It can be a luxury or a necessity. The problem is OVERspending. Unfortunately our banking system facilitates overspending and our education system fails to teach people how to budget. Therefore it is my view that it's not entirely an individual's fault that they find themselves in so much debt and we need to be more sympathetic and constructive when helping newbies.

Snaggles

lynzpower wrote:

Sorry mate, can you explain to me how using a credit card helps?

I really dont get it.

Me neither - are you intending to pay it in full each month? Because if not you are just getting further into debt. I appreciate it is a 0% card, but you are still increasing the overall amount that you owe, and at some point you will have to pay it back. Even if you move it to another 0% card you will most likely have to pay a balance transfer fee as I don't think there are many cards (if any) that offer fee free balance transfers and ALSO 0% interest.

With regard to the 'harsh words', if you have a read over the posts there are actually very few harsh words in there at all, and as a previous poster said, anyone that is rude or unhelpful is shot down pretty quickly. I think people are just concerned that you don't appear to have had a 'lightbulb moment' in the truest sense of the word (ie the horrible realisation that your lifestyle has to change fairly radically in order to tackle the debts).

You mentioned you have repaid a large chunk of the debt already, and I congratulate you for that - my concern is that it is difficult to see from your SOA that there is any scope to make the sort of overpayments you will need to in order to clear the debt within the next few years, without some major changes. Do you mind me asking how you have cleared such a large amount of the debt already? Was it by reducing outgoings/making overpayments etc, or by some other method, such as sale proceeds from a previous property etc? (Don't feel you need to answer if you feel it's too personal a question - just wanting to get an idea of how you have gone about it in the past to see if any advice given can be tailored to your preferred approach to debt repayment).

You have an excellent household income, and with some re-jigging you could repay the debt fairly painlessly. I re-iterate my previous sentiment that I really do wish you luck and success with this.

barnaby-bear

Snaggles wrote:

Me neither - are you intending to pay it in full each month? Because if not you are just getting further into debt. I appreciate it is a 0% card, but you are still increasing the overall amount that you owe, and at some point you will have to pay it back. Even if you move it to another 0% card you will most likely have to pay a balance transfer fee as I don't think there are many cards (if any) that offer fee free balance transfers and ALSO 0% interest.

It's when it goes a^&e-over-elbow i.e. redundancy, sudden illness and suddenly the servicing of debt isn't that easy, there aren't any savings, you can't get any 0% cards because the income's not there, the credit gets pricier... how long before they are up against the wall if they lost just 25% of their income? Personally I'd want to give my kids more security than that, he's putting golf and eating out above getting rid of debt and providing his kids with security. No lightbulb there.

anniestar

Little bit concerned. Just have an awful feeling that you may be getting yourself deeper into debt rather than having worked out a solution to your problems.

anh1904

Right, I have redone my budget, I have put monthly accruals in for stuff which comes in lumps (like car insurance, tax, repairs etc.) and other stuff which is on Direct Debit is already taken out.

I will not renew the gym membership when it is up, and am removing (temporarily at least) the eating out and going out monthly budget which should realise £150 a month spare cash, and £40 in accruals no longer needed.

The 0% for all purchases attracts no fee, and will allow me to pay off any interest bearing cards in the meantime, it also gives stark visibility of everything I spend, without having to think about any cash purchases. At the end of March, then I will review whether it can be transferred to maximise interest free period.

Each month I can now put
Starting Debt
add accruals (things I know I will have to spend in the future)
add Monthly spending
Sub-Total (debt)

Regular Monthly Income
add Extra income (eg Market Research/Myster shopping)
add Accruals (things already spent before budget had grown to pay)
Sub Total (income)

Then derive a new total debt figure
I can analyse all spending to see where I overshot, and where economies were achieved, and hopefully make visible progress. Putting it on here, even the overspends, will surely be motivation in itself to make progress.

I have also been told that I can safely run my car on a mix of petrol and vegetable oil (there are tax implications) and mixing up to 20% will give no discernable difference in performance. Veg oil is 54p a litre, Diesel is 90, so there will be minor savings here... it all helps.

anh1904

I have studied, and am about to start (probably tonight on the England game) the matched betting method of increasing income, so all receipts will go straight off the bottom line.

I have also found some old handsets from previous mobile phone contracts, and these have been valued at just over £100 in Argos vouchers from the site linked to on the home page, these will be posted asap.

Have registered for mystery shopping with Retail Eyes, and for Market Research with Saros, so hopefully should hear something form one or other soon.

lynzpower

Im a bit worried here

Are you saying that you are going to use a new credit card for all purchases, in order to then pay off your debt? Only you are thus accruing debt at the same time, how are you going to pay this off?

I also should remind you that cash advances off credit cards attract hefty fees, and some cash advances can negate the 0%, ie once youve drawn a tenner off that card, none of the balance is 0%

How are you going to manage this? Or a 20p newspaper? How will you pay for it?

anh1904

The plan, and budget, is to accrue debt on the new card, interest free, at a slower rate than it is paid off other interest bearing cards. At the end of the interest free period, yes it will need paying off, but the overall position will be improved, and hopefully a balance transfer off will take care of it for a further 5 to 9 months.
In the meantime, hopefully I can accumulate several hundred pounds in matched bet profit with mine and my partners names and accounts to use to do it. £75 on offer tonight via William Hill and Corals for starters, so multiply by 2 and there's £150 less the bits to match.
Appreciate your concern, but the cashflow is more of an issue short term, and as long as the total is reducing, its got to be a good thing. If it isn't, I have full visibility of why not.