Should I consolidate now??

samjl

Both cards are at 19%, I don't use one at all as its a closed card, just repaying it now at an agreed rate of 19% as they tried to increase it to 29%!

So after that has gone I'll just have one active card which I don't plan on using!

Overdraft is 17% I think, I'm never really out of it! £1500 limit, usually in it around £1000-1200 depending on how bad the month is!

Thanks for your advice:D

Poosmate

samjl wrote: »

Both cards are at 19%, I don't use one at all as its a closed card, just repaying it now at an agreed rate of 19% as they tried to increase it to 29%!

lol yeah mine tried to put mine up to 24.9% so said adios to that one! The other one hasn't even tried but I haven't used it for about 18 months (except for one accident).

So after that has gone I'll just have one active card which I don't plan on using!

I decided that when I saw the error of my ways. I couldn't just stop using it overnight though so weaned myself off it whilst setting myself on the journey to debtfreeness. The accident was this past March when my AA membership went on it - oops!

Overdraft is 17% I think, I'm never really out of it! £1500 limit, usually in it around £1000-1200 depending on how bad the month is!

Better rate than your cards so try not to use it too much but concentrate on getting the balance on your cards down.

Thanks for your advice:D

Have you tried the snowball calculator? Here's a link if you haven't:

http://www.whatsthecost.com/snowball.aspx

Feed your figures into that and see what it comes up with.

I must admit, I must be a bit of a freak as I enjoy the pain of being a pauper and not using my credit card but I also love getting my credit card statements too.

I just feel that I will never ever forget this pain I am going through. It's like doing penance and I know if I got a quick fix I wouldn't have learned the lesson.

Hope that helps,

Poo

Poosmate

I would just like to add, I am paying about £20-£25 above the minimum payments on my credit cards and try to make other overpayments too if my strategy permits.

Can I ask if you live at home or if you are a homeowner or in rented? My strategy rests on my monthly household bills in that they are set for 12 months. I work out how much they come to each month and bung that much plus a bit into a current account and pay them by DD/SO each month. There is always a surplus in that acct and when the last bill goes out the surplus is moved either into ISA/Savings acct or paid onto one of the CCs.

Water rates are not taken out of that acct from Dec-Mar (paid over 8 months Apr-Nov) so for 4 months there is an even bigger surplus. Again moved to savings.

Council Tax is paid over 10 months (Apr-Jan) so again the extra (in Feb/Mar) is paid into savings.

Savings is spent on car insurance, tax, MOT, etc.

If I have enough of a cushion I'll pay maybe £200 off one of my credit cards in March. Yay!

It works for me.

Poo

samjl

Poosmate wrote: »

Have you tried the snowball calculator? Here's a link if you haven't:

http://www.whatsthecost.com/snowball.aspx

Feed your figures into that and see what it comes up with.

I must admit, I must be a bit of a freak as I enjoy the pain of being a pauper and not using my credit card but I also love getting my credit card statements too.

I just feel that I will never ever forget this pain I am going through. It's like doing penance and I know if I got a quick fix I wouldn't have learned the lesson.

Hope that helps,

Poo

Thanks for this, that site is really interesting!! Think I'll seriously have to consider snowballing, oddly looks a little cheaper in the long run for me!

i.e. snowballing will cost £4429 in interest (over 4.5yrs), new loan would cost an extra £4550 over 5 years.... small difference in the long run

Decisions decisions!!

InsertWittyName

samjl wrote: »

Thanks for this, that site is really interesting!! Think I'll seriously have to consider snowballing, oddly looks a little cheaper in the long run for me!

i.e. snowballing will cost £4429 in interest (over 4.5yrs), new loan would cost an extra £4550 over 5 years.... small difference in the long run

Decisions decisions!!

6 months is a long time if you're considering a mortgage or about to become redundant etc., something to consider!

I recently consolidated, however it was £10k of CC debt at 29.9% down to 8.8% over 3 years - the choice was easy!

Wish it was as easy in your case

Poosmate

samjl wrote: »

Thanks for this, that site is really interesting!! Think I'll seriously have to consider snowballing, oddly looks a little cheaper in the long run for me!

i.e. snowballing will cost £4429 in interest (over 4.5yrs), new loan would cost an extra £4550 over 5 years.... small difference in the long run

Decisions decisions!!

It is a small difference in the long run but as I mentioned before it's fluid and you may be able to make an over payment every now and then.

For me, keeping my debts seperate and having to keep an eye on them individually throughout the month keeps me focused. If I rolled them all into one fixed term and payment, yeah I'd have a definite end date and I'd know exactly how much I'd be paying for the next x years but I'd have a CC with £4k limit and an overdraft of £1300 available to me - I don't know if even though I've came a long way, I'd have the strength not to use them if an emergency came along. Would I become complacent and spend a little more each month instead of putting it aside to pay for the yearly bills and the unexpecteds? I don't know and I don't want to find out.

Also, by keeping my debt fluid, I have the chance that I'll be able to move some of it to 0% offers as they come along. I have some of my debt on 0% atm. That wouldn't happen with a loan.

It's a long and hard journey but I am always optimistic.

I hope you find a way that's right for you.

Poo