Debt management needed

rising_from_the_ashes

Ahhhh Steve (((hugs))) for you & your wife - wishing you all the best with your DF journey .... it can be done!

It may take a while and will be hard but you can do it & brilliant if you're both on board from the start.

mocktudorland

Hi MSE's
Thanks again for all the input.
I have adjusted the SOA - Hoilday at £100 was a typo - should have been £10.
Am still aware that items like Food, Broadband, Electricity etc are too high so will need to switch/re negotiate these bills/contracts.

I beleive the next major step along the way to financial solvency will be to work out how to reduce the credit card bills. Any tips re this direction will be much appreciated.

By the way - My wife says its a real comfort to have the advice and support of you'all. So a hug from her to you'all

Best
Steve

rising_from_the_ashes

Ideally say try to get a 0% card and transfer what you can to it ... not sure what your credit rating is like (? any missed payments etc) & with the high level of debt you've got, you may not get one.

Re the assets - are there any things you can sell? £45k would go a long way to helping.

Even if you can't release all of this just now - have a think about what you could sell - clearing some of the cards in full (highest interest ones first) would make a big difference and sometimes getting rid of some of the debts & leaving fewer to concentrate on really does give a mental boost.

mocktudorland

Hi rfta
The £45K is details of estimated Endowment policie due to be maturing in 7 yrs time.

Yes the credit card is the big thing to grasp. I take you point about clearing highest ones first & getting that mental boost.
I have no missed payments at the moment so as such have got a very good credit rating.
It has been suggested that I approach my various credit card companies and ask for a negotiated lower rate. Have yet to do this. I am clear this would effect my credit rating but am not sure of the overall effect.
Best
Steve

eyeopener2

Hi

Although the usual advice is to clear the highest interest bearing card first, it can sometimes be a boost to clear the lowest balance. You have a Barclaycard at £600ish? Clear that and it gives you a psychological boost to hit the higher interest ones after that.

Just my twopenneth.

E2

katsu

Reducing CC bills - get your SOA straight so you know what you have got in the way of funds. Then you can look at things like:

* snowballing - paying mins on all but highest rate, then all leftover ££ onto highest rate card. This is the best approach for fastest clearance at lowest cost.
* payment a day (PAD) where you do things like round the bank balance down and send the loose pennies (or pounds and pennies) to the card.

If you have cards at similar rates, or maybe a number of small outstanding balances you want to clear then consider:
* rather than minimum payments, if you are no longer spending on the card pay a fixed amount - so if min was £5.50 this month, next month it might be £5.45. Set up an SO instead of DD for the £5.50 and each montb the extra pence will go towards reducing the debt. Obviously you still look to pay extra off a debt/debts, but this little tip can help make a dent in balances whilst ensuring minimum payment is always met.

On the food front - work out a weekly meal plan/shopping list then go online to mysupermarket (or just MrT/MrA/S' own website) and put it all in your basket and see what it is likely to cost. Maybe use that as a starting point? Consider if deliveries would save you money on impulse buys and petrol.

rising_from_the_ashes

eyeopener2 wrote: »

Although the usual advice is to clear the highest interest bearing card first, it can sometimes be a boost to clear the lowest balance. You have a Barclaycard at £600ish? Clear that and it gives you a psychological boost to hit the higher interest ones after that.

The Barclaycard is the highest interest one anyway ..... so yup, a good place to start.

eyeopener2

rising_from_the_ashes wrote: »

The Barclaycard is the highest interest one anyway ..... so yup, a good place to start.

Ha, didn't notice that. Yes that would be a good one then. I don't know, I need new specs I think.

mocktudorland

Hi MSE's
Yup the BarclayCard is definately the first on the hit list of Credit Cards

camuk81

Mock,

Really proud of you guys sounds like you have really taken the bull by the horns. The MSE are great for open honest advice without stigma attached. Its great to see you are taking control of everything are on track. You will feel great once you get started on the first one and start making a real dent in everything.