Fixing the dripping tap - aiming for a debt free life

Catriona_P

Thanks guys. With no knight in shining armour in sight, I'm going to sit down with a calculator in a bit and try and work it all out...

Catriona_P

Ok, so I have made the following calculations, which I hope are correct...

If I transfer £1,500 from my credit card to my current account, the upfront fee is 0.9% of the amount, which is £13.50.

The transfer is interest free until 1st June, and 16.9% after that date. So if I pay off £100 a month (which is realistic, I think more would be pushing it), once the interest kicks in I will have £1,200 to pay back. If I continue to pay back the money by that £100 a month it will take me 12 months from June, so total interest charged during that time will be £104.03.

I also have my other balance on my credit card from my balance transfer last year, which is being paid off 0% interest by £200 to finish November 2013.

My current account's APR is 17.7% so if I can bring down my overdraft by itself of £100 every month, the amount of interest charged during the same period as if I did the credit card transfer method would be £180.08.

By my workings, I'd save myself £62.55 by going this credit card route. So it might be worthwhile if I can stick to it.

If anyone is reading this, do these calculations sound right? I have until the end of March to make a decision so won't rush in, but I'd be interested to know any thoughts.

maddiemay

Hi
I knew there was a calculator somewhere, just found this in case you have not seen it.

http://makesenseofcards.com/btcalc.html

Heading south along M5 tomorrow for a few days in Dorset, where we used to live, will wave madly as we pass C******ham:)

Catriona_P

maddiemay wrote: »

Hi
I knew there was a calculator somewhere, just found this in case you have not seen it.

http://makesenseofcards.com/btcalc.html

Heading south along M5 tomorrow for a few days in Dorset, where we used to live, will wave madly as we pass C******ham:)

Oh cool thanks, don't know that site. Will use it to help me make a decision!

Ah a few days away sounds lovely, hope you enjoy it and the weather perks up! I'll wave back but can't guarantee it'll be at the same time as you :rotfl:

Just under £400 in Textbroker earnings went into my account today, which is great.

Catriona_P

Well, I've done it - transferred £1.5k from my credit card to my current account, which brings my total debt to £3,100. The balance transfer cost me £13.15 in handling fees and is 0% until the 1st June. I'm worried that this won't work and I'll end up in my overdraft again but with an even bigger credit card bill.

I'm considering closing my current account once the transfer goes in and moving, since I hate being with Barclays anyway. Not sure how that will affect me since I could lose that safety net of the big overdraft, and wondering if Barclays can ask me to pay off my credit card bill sooner if I do that.

Really hoping this is it now and my debt will finally start on the downwards trend...

maddiemay

Hope it works out for you, and well done with the textbroker earnings, is it ongoing that you should be able to earn more?

beanielou

Cant imagine Barclays would ask you to pay off the CC just because you shut your account.

Catriona_P

beanielou wrote: »

Cant imagine Barclays would ask you to pay off the CC just because you shut your account.

I hope not, but I don't trust Barclays in the slightest! I'm looking at a First Direct account of thats possible.

Maddie, the Textbroker earnings can be a bit up and down, and to be honest I should be starting to concentrate more on my studies as I have another big exam in July.

Catriona_P

Well I've done it - I've opened up a Nationwide flexdirect account. I like the safety net of a 0% overdraft for a year, I'm hoping by the time my year is up that I'll have no reliance on an overdraft at all, and the sooner the better.

My relationship has taken yet another downwards turn, so I'm looking for an appointment with a solicitor next, at least to find out what my options are.

Catriona_P

Payday so sat here looking at my current account online, and it looks good. For the first time in a long time I'm actually not feeling any dread when I load the page.

I'm about to settle the month's outgoings with my husband and havn't paid the credit card bill yet, so this amount will go down of course, but it will be a major victory if I can keep in the black for the whole month. Fingers crossed.