Worried and nervous about credit card debt

AngryDog

ss3n08 wrote: »

Thanks angry dog, I felt that was a bit harsh.

Yes my car will be paid off by about September (2 year loan) which will free up about 1/5 of my pay and things will get cleared very quickly then. I am worried about the period April to September really.

that will be a bonus come september.

Well, your over draft costs you £6 a month. I wouldnt worry too much about that one.

Your Credit Card is the one to concentrate on. Right now on 0% anything you pay off it comes off the debt. making £100 extra payments where possible to that will help. If you're paying £100 a month now and thats the minimum payment, then when interest gets applied you should still be paying £100 a month as it would still be the minimum payment.

You could use the car less if possible as well?

You could also I guess keep putting the £100 away until April, then use it to cover your shortfalls (if there are any?) If no shortfalls, start paying the £100 a month on your credit card.

antonia1

Hello and well done on deciding to become debt free! I recently had a similar thing - debt at around £3500 didn't seem stupidly high and wasn't getting higher so ignored it for a while. Now looking to be debt free by Christmas next year.

It is worth doing a full SOA, even if you end up putting 0 in lots of the categories - it reminds you of yearly spends so you can budget properly. From the info you've given. I'd definitely say that the £200 groceries can be reduced - I've just got mine down from around that to £80 per month, and I'd really recommend doing it in stages (like drop to £150 then £120 then £100). The comment about the pet was way too harsh, and having insurance is very sensible with a dog. Your mobile bill seems high, can you switch or are you in contract? Also petrol is high, are these all necessary journeys?

MrWillyWonka

I would have to agree that getting rid of the dog is silly. Pets are family, simple as.

One thing that will help you is the Snowball Calculator. Enter all your debts and be totally accurate with the APR and payment figures. This will give you the best way to pay off your cards.

Boris_Allen

MrWillyWonka wrote: »

I would have to agree that getting rid of the dog is silly.

Not really. In fact you can kill off two birds with one stone and save yourself a week's food bill as well

ss3n08

Boris_Allen wrote: »

Not really. In fact you can kill off two birds with one stone and save yourself a week's food bill as well

...hilarious!

I only travel to work and back but it an hour and a half commute daily hence the high petrol bill. Unfortunately I am locked into my phone contract but that will end in September along with the loan on the Car (kerching!) I am definately going to Tesco PAYG, I used to be with them and tbh just got carried away with a flashy phone that I still only use for texting and phoninh my mum. I have unlimited minutes and last month used a full 17 of them.

remote_control

I rang my mobile phone provider half way through my contract and they moved me down to the next cheapest tariff, saving me £5 a month. Its worth a try.

Obviously keep the dog. Der.

MFWannabe

I would put the £100 per month you are currently saving towards your credit card now; meaning you will paying £200 per month off your card; this means it will be down to £2100 by the time the 0% is due to end. Try to get another 0% card to transfer this debt to when nearly due to end; don't forget if the 0% ends in April then apply for a card in March to give yourself plenty of time.
If the worst comes to the worst and you can't get another 0% card at least you will only have 6 months from them til your car loan ends and then you'll be able to also put the £200 you currently pay to your car loan also to your credit card; meaning then you could be paying £400 per month off your card!!
Also try to cut down your food bill, £200 does seem a lot. Write down everything you spend; keep your supermarket receipts to see exactly what you are buying and if you really do need it

ss3n08

The food bill terrifies me, My OT works bank so he is home and will eat what I consider an evening meal for lunch so I wonder if thats how we get through it.

MFWannabe

So you are not just buying food for yourself then? OH needs to contribute towards food bill if he eats this much for lunch; does he also eat evening meals with you?

ss3n08

Yeah we pay half each for everything and he does eat an evening meal too. I think maybe we will experiment with him eating less or I cook a bit more and he has that the next day rather than cooking something for himself.