Elmer's moneysaving mission

ElmerFudd

That's the problem. I don't like the idea of being tied to a set payment for 4 years. It makes budgeting that much harder. I am not 100% sure I would not run up the debt again on the cards again which is why I would cancel the cards once I have paid them off. I would leave myself with just one with a lowish credit limit on it.
It's possible I will pay the debt off quicker than I think if I stick with the cards, but then again I'm not sure. The other thing is the large APR is actually pushing me to find solutions to getting rid of the debt so I'm even more confused now!!! I'll see where I am in a few months time when I can apply for another 0% card. I'll keep lowering the credit limit and the balance on the Lloyds and see how it goes from there.

Woowoo

Good plan, there's is no sense rushing into anything and then being stuck with your decision for 4 years.

For me I would never consolidate again, as I would feel like I was handing the power back to the bank again - this is a personal thing though and I understand that it can work out much cheaper and a better option for some people to take a loan.

ElmerFudd

Definitely. I think the main reason why I get confused by it a bit is that deep down I know consolidating is a bad idea.

Moneymash

Hi Elmer,

I know it's tempting to go the loan route. I know all to well the pain of seeing interest on a cc statement. A loan is less hassle, the length and monthly payments are fixed and of course the interest would be lower than your CC. However, in one of your posts you said you couldn't be sure you wouldn't run up the CC again. That was my problem. I was pre approved for a £13,800 loan at 14.1% apr (this was back in Oct 08) I'm not sure why at the time I thought this was a good loan apr, but of course it was lower than my CC aprs. At the time I had 4 cc and a loan at 6.1% apr which I was paying £146 per month on and had a year to run. However even this small loan repayment meant I couldn't overpay on my CCs. So I did a stupid thing I got the loan (the bank tried to get me to take a £15,000 luckily I said no) but my payment term is 72 months so if it does take that long to pay it back (luckily I can overpay and do an early settlment, when I have the money) I will pay about £7000 in interest :eek: Guess what due to various circumstances I have run my cards up again. I lost my job and am now in a much lower paid job.

If you get the loan and can be strong and go ahead and cancel the CC then that's something. Also if you get the sort of loan that means you can overpay and an early settlement fee that isn't to harsh, then go for it.

If you get the loan, pay off the card and don't use it for a while I sure the CC company will increase your CC limit and lower your Apr then you've got to remain strong and not use it although it will be tempting and if any emergency occurs (God forbid it doesn't) be very careful. The loan is a line of credit, which allows the paid off CC to be yet another line of credit. It strikes me as one step forward two steps back.

Have you used the snowball calculator I found that quite sobering.

ElmerFudd

Hi Moneymash. I have used the snowball calculator which is one of the reasons why a loan would be quite tempting (even just to pay off the big card). I know that all these debts can be eventually paid off as long as I stick with it but I wish I didn't have to pay the credit card companies so much in the process. Oh well. Live and learn.

On the plus side the loan payment went in over the weekend, however it's showing up as £28 more than earlier in the month (I hope they haven't rearranged things and that the payment will clear and be sub 3k). I also paid £500 to the bad card so hopefully that will clear soon. Figures will be added here in a week or so .
Council tax and water rates are paid for next month and money put toward the pet insurance, contents insurance, and mobiles.
Left to pay for June: Rent, CC's, loans, food etc, main phone.

Woowoo

Morning Elmer

Well done on the payment

ElmerFudd

Morning Woowoo. May be able to throw a little more at the card later on in the month/ next month but figured it would be better to hold off on some of that money in case anything comes up (I have potentially a couple of extra payments to make).
All things considered that means that card is down to £9500

ElmerFudd

Current debts as of late May 2011:

Credit card 1: APR 24.9% = £9500
Credit card 2: APR 6.95% = £7680 (some at 0% for 9 months ends Jan 2012)
Credit card 3: APR 6.95%= £1230
Credit card 4: APR 0% for 9 months (ends Jan 2012) = 930
Total on CC's = £19350

Loan 1: £2900
Loan 2 (student loan): £8200?? (will try to give them a call this week to get an exact figure)
Overdraft: £1500

Positive thing is that we have managed to drop down the bad card by about a grand in just two months!! The trouble is once I get my overtime from work paid to me (whenever that will be) I have exhausted all ways to get more money short of getting another job. Looking forward to a possible pay rise in October but other than that I am out of options. Now it's the long road. Any extra income will have to go to overpaying.
Haven't found any money for a week or so. Hopefully will find some again soon!!
Also payday soonish so I'll be happy to see if I have any extra in my pay packet

ElmerFudd

I've just realised that now everything has settled down after all the transfers my credit card debt total is only £350 over £19000. This means that all being well I can get this figure to under £19000 by the end of next month. That would be amazing. Also can't believe the "main" loan is under £3000 now. Not long til it's all paid off. I can't wait.
Oddly I had an offer for 0% for 9 months over the weekend on a card that's fairly close to its credit limit. Bit pointless really. Would have been nice if it was on the Barclaycard!! Despite the knowledge that I can't really do anything about it I am curious if I can raise my credit limit with them and possibly lower the bad card a bit more. Nothing ventured nothing gained I guess. Looking forward to lowering the credit limit on the bad card soon!

ElmerFudd

Forgot about Halifax...just received a letter about the addition of the Base rate. Time to cancel I think
Also need to call Lloyds and either get rate reduced or cancel card (either way need to call one or the other to cancel).

Edit: just found 2 pennies!!! £14 extra from pay packet also goes toward the dribblers challenge. A ways to go but anything is a bonus