Joining the club

yellowmoon

Yes I see what you mean. My mum does not need the money right now. I ought to throw all extra at that highest interest rate and due to snowballing mum will get her money much earlier anyway.

I had an acceptence letter from M&S yesterday so the card, rate and credit limit should arrive next week. Hopefully 3.9% as advertised! Then I can max it out from my 5.9% cards and not use it. I was pleased to hear Martin talking about this card on radio 4 Saturday lunch time. I felt pleased that I had noticed the good deal in M&S before Christmas when the assistant suggested one.

yellowmoon

Can anyone give me some opinions on this to help me think it though please?

I've asked if I can overpay my loan which is my highest interest rate. The answer was - No! I've tried snowballing but it doesn't allow for this option.

If I overpay it is taken as a lump sum which lowers my monthly payment, not the term! Thus making me keep paying them interest for same period. So I'm thinking to keep up my minimum payments on my other cards and save up to pay it in full asap. I know there would be a temptation to spend the money - that's one snag. But I can't bear them having doing this, it is so wrong to prevent you from paying them back.

At a push I could do it in 10 months - It could be my challange !!

taxi73

Hi there ...here's what I'd do...pay my loan as normal every month...nothing gained by paying it off early!!!...I would pay min on all other credit cards except the one with the higher interest and throw the most at this one...try the snowball calculater without the loan

yellowmoon

I've received my M&S card with £6000 limit so I've transferred over the Lloyds and £1000 of Capital One. That's £6000 now down from 5.9% to3.9%. I think I could be saving almost £100 over the next 12 months on that, as I will only make the min. payments of 3% (£180 ish I think) per month. Then I can concentrate any money left over from min. payments on saving to pay off my Loan at 6.9%.

Thanks for the Post taxi73. My credit cards are getting better and I'll soon have one less - that feels good too.

Off to change my signature now Yipee !

sanfrancisco

I'm sorry but I don't think you have had your lightbulb moment. If you really wanted to get rid of this debt, which will not be easy, you could make massive inroads. This is what you could do:

Total Debt = £ 26,319.43

mort 805.01 - go to interest only TEMPORARILY
council tax 137.00
bldgs ins 22.83 - is this the cheapest (confused.com)
conts ins 3.00 - is this the cheapest (confused.com)
food etc 70.00
tv lic 11.41
gas 75.00 - have you uswitched?
elec 79.50 - have you uswitched?
life ins 12.66 - cancel (if you have no dependents you do not need it)
phone 60.00 - cancel
water 33.62
hols 150.00 - cancel
gym 40.00 - cancel
m fone 15.00 - Just have PAYG mobile £10 quarter
union 15.00
clubs/AA 6.00
car ins 20.00
petrol 100.00 - walk more
MOT etc 27.00
car tax 16.00
teeth/eyes 13.00 - cancel in the short term
training fees 35.00
hair cuts 10.00 - cancel
gen. spending 20.00 - cancel
gifts 100.00 - cancel

Total 1,877.03

and then Loans and Cards

Capital one 58.23
Natwest Loan 103.00
Lloyds card 103.00
Am Ex card 71.00
Mum 30.00
Total £365.23

Grand Total = £2,242.26

Total of all income = £ 2,486

Leaving me with £243.74 per month to work on these.

Extremely roughly, but I make about £450 in savings you could make. Add this to the £243 spare, and £365 you already put toward debt, and this makes over £1050. OH MY GOD. This time next year, just one year, your 26k debt, could be halved!!! This is without you increasing your income (Ebay, rent a room) etc.

All your friends that go on holiday 5 times a year will be in debt, probably more than you, and just think in 2 years you could be DEBT FREE, and advising them what to do. If you really get yourself together, you could be truly debt free. Total freedom, move country, get a new job, no worries. NOW THAT IS A CHALLENGE!!!

P.S. Please note I am not having a go at you (well, I am a bit), but it's not meant nastily, I just think some people are so used to living a certain lifestyle that they can't see ways to change and cut back. I should know, I used to be like it! I am now debt free, and I (and others on the forum) cannot explain the mental freedom. Good Luck. Keep posting.

yellowmoon

Thanks sanfrancisco! I know it's meant well.

I can do more - I'm hoping that by using this forum I can do just that. It's easy to just coast along and that's why I've ended up owing so much. With support and the truth I can't fail to do better that I have been doing on my own. I'll check out your suggestions and although being debt free in 2years seems to good to be true, why not try. I'm working all weekend but every chance I get I'm going to put more savings into action.

sanfrancisco

Great stuff yellowmoon. Pleased to see. Don't feel too overwhelmed (easy to I know), as long as you are moving in the right direction that is the main thing. Just take one thing at a time. The best thing you can truly do, is to just not spend. So simple, but so hard!!! TWO YEARS IS ACHIEVABLE, if you want it enough.

yellowmoon

Just reporting my diary so far to keepme focused:

January 2007: to 18th = £109.00 in total

the main spending appears to be petrol. £15 lasted 5 days, then next £15 only 4 days - I'm going to see how many days I can get out of £30 which I have put in today. I need to use the car for work or I wouldn't be able the do the hours I need - it's a thirty minute drive each way.

Also, NTL have been charging me for dial up as well as broad band - £14.99 per month. I didn't cancell the dial up when I up graded so I had both!
Not pleased with NTL for not asking me clearly. I asked them why they had not cancell the slower service when I had opted for their faster service - why would I bother to upgrade! Aparrently " some people keep dial up for their children" I was told. Still not happy but it's cancelled now. I will be switching providers though I think that it is a con and told them so.

whatatwit

yellowmoon wrote:

Just reporting my diary so far to keepme focused:

January 2007: to 18th = £109.00 in total

the main spending appears to be petrol. £15 lasted 5 days, then next £15 only 4 days - I'm going to see how many days I can get out of £30 which I have put in today. I need to use the car for work or I wouldn't be able the do the hours I need - it's a thirty minute drive each way.

Also, NTL have been charging me for dial up as well as broad band - £14.99 per month. I didn't cancell the dial up when I up graded so I had both!
Not pleased with NTL for not asking me clearly. I asked them why they had not cancell the slower service when I had opted for their faster service - why would I bother to upgrade! Aparrently " some people keep dial up for their children" I was told. Still not happy but it's cancelled now. I will be switching providers though I think that it is a con and told them so.

:T :T :T well done, you tell the robbing gits.

Kazonline

Well done yellow moon - you are doing so well.
It can be overwhelming when you see just how much you can/need to change. One option might be to write down each thing you want to change onto a piece of card/paper and then juggle around until they are in your order of priority. Here's a link to the Snowball site http://whatsthecost.com/snowball.aspx
Have a play with that, first put in the repayments you can currently afford, then the payments you could afford by making the adjustments Sanfranscisco suggested - you'll be amazed at how much money it'll save you in interest! An added bonus of making overpayments is I believe it improves your credit rating - great when you want to renegotiate the rate on a mortgage for example.
If you get tempted to splurge on something, don't forget to use the tool on that site that tells you the 'true' cost of that luxury based on the effect it has on repaying your debts. It's enough to make anyone think again
Best wishes,
Kaz x