Clearing credit card debts tips?

MOGGYMALONE

I have two credit cards and i'm trying to pay them off as soon as possible - going to make an overpayment of £680 off one later this evening !!! ))) as you can see i'm very happy about this - this is an overpayment so I'm well pleased at saving that amount to use for paying it off the card (£3300) but I also have another card which is 0% with about £1600 on it.

Am trying to clear the one with the higher interest rate first though - isn't that the best way? - or do you reckon it would be worth changing the first (higher interest rate) card over to a 0% if i can get one??

or shud i merge them together?

Any tips greatly appreciated - I'm so determined to get rid of these bloody cards! and never again use them!
Thanks, moggy

camuk81

Go for the higher apr and you'll be amazed at the interest you'll save. I did a calculation earlier and by challenging my debts head on I've reduce the debt free date by 3 years but saved over £5k in interest.

Thats £5k on debt not on interest

[Deleted User]

Well I always think about them at least once per day.

I always try to make at least one overpayment per month.

I make money to pay them off

I always make sure my payments are roundes, and don't leave pence so that I can see clear direction.

I haven't done so bad, I have now been going 6 months! :-)

MOGGYMALONE

Thanks both - i think once you see a bit of progress it helps to keep you going doesn't it. I can hardly believe how much i have saved recently by following some of the tips on here. I realise now how much i have wasted! well done you guys too for your hard work and keep going! moggy

[Deleted User]

Moggy - Good Luck!

You have made an excellent start, this is the best motivational tool I could think of.

P.S - I am just posting to show off my ever changing siganture (Just Jokeing)

Hope it works as well for you as it is for me

Just realised your signature changes on all posts old and new- Doh!

edgex

when does the 0% deal end?
would you be able to transfer existing balances onto it?

camuk81

Moggy the best advice I can say is take a long look at your finances do a statement of affairs and feel free to share so we can help see if there is any other ways to cut back.

I also keep a spending diary on my computer I input everything I have to payout and now I know I have £75.15 till my husband gives me his share of the house keeping money.

Its also changed a lot of my habits. I challenge things more often. Recheck my bills. Once challenge a woman who short changed me out of 98p at tesco on a refund and once drove back to greggs to pick up two doughnuts that I'd be charged for and never received.

please-let-me-be-lucky

Have a look at the 'Extra payment every week' thread over on debt free diaries. Its amazing how much we have all managed to reduce our debts by with just little extra amounts. Personally, I 'round down' my bank account to the nearest £5 or £10 every friday and you can see by my signature how much this has reduced my credit card debt by just since January. And the best part is, I haven't noticed the 'missing' £££'s.

LandyAndy

When I was paying off cards I had an Excel cash flow forecast that forecast daily income and expenditure over the next 18 months. It was really helpful in showing just how much overpayment you could pull forward and still stay in the black at the bank.

camuk81

LandyAndy wrote: »

When I was paying off cards I had an Excel cash flow forecast that forecast daily income and expenditure over the next 18 months. It was really helpful in showing just how much overpayment you could pull forward and still stay in the black at the bank.

A true excel fanatic like me!

MOGGYMALONE

Thanks for all your help folks - it is very encouraging. I am amazed at how i have saved over £500 by just cutting back on groceries for example by switching to value brands. I have stopped buying magazines and newspapers. I started using soapnut shells instead of washing powder and sold some old clothes and have done a big clear out of stuff i am gonna sell on ebay so that will all help to come off the bill. I don't know why i didnt think about making interim payments all along - I guess i thought it wasn't worth the bother to pay even small amounts. I also have lots of money boxes into which i collect £2 coins and £1 coins and it does really all add up!
Your posts are very encouraging too so thanks and keep up the good work. will report back on my sucess as i progress moggy