Anything missed? Answers on a virtual postcard!

goolieman

Thanks LSW, but we rent and subletting is a big no no!

Digging Out.. here are my limits if it helps:

Egg £1500 (I have no doubts it would be increased if asked)
Cap One £7550
HSBC £2000
Amex £3200
Mint £2800

So no cards are maxed and room to manoeuvre.
Just not quite sure best way to do it properly.

C

scheming_gypsy

Mint normally hold a bit back on the credit limit so worth giving them a call to see if you can have an increase. If they give you an extra grand you could clear the overdraft / AMEX / HSBC Mastercard in one foul swoop. I had £2300 on my Mint and the minimum payment was £51, so an extra £1500 should have a minimum payment of under £100.

Try and pay as much off it to get it down towards the 2k mark in the x months you have at 0% and you'll still have your overdraft to transfer it all back to if the worst comes to the worst.

DiggingOut

OK, a few thoughts. I think you are pretty much on the right track. No magic solutions, unfortunately.

1. S_G is right, several people have said on the credit card board that Mint doesn't give the maximum credit limit they have available, if you call and ask for more you may get more. This is a must-do, anything more you can get is worth something to you.

2. Can you save on the payment protection on the loans? One possible way to do this is simply to cancel, if DP has good job security and a job where his income will be protected if he has health problems. Another way is to shop around for payment protection insurance, I think Martin has written an article on that. Anyway, something to consider.

3. Mint card. Obviously, you want to minimize interest expense and fees. Interest is higher on AMEX & HSBC card than on overdraft -- but overdraft is causing you fees, which is worse.

The worst card is HSBC, because you are using it. This means you pay interest on every purchase from the date of purchase. You aren't getting the interest free period on purchases because you carry a balance.

So -- highest priority with your Mint card is to clear HSBC entirely (so you can then get interest free period on purchases in future) and to reduce your overdraft to the point where you won't get hit with fees any more. Next is to reduce interest anywhere else you can.

Conclusion: I would use Mint to A) completely clear £1K on HSBC at 17.4%, £800 on AMEX at 17.4%, and £1K of overdraft at 14.8%. This should give you enough of a cushion to avoid any more overdraft fees. If you can get a higher Mint limit, use it to clear more of your overdraft.

4. Not much can be done with the loans at this point (other than trying to save on PPI as mentioned above). Once your card situation is under control, you may be able to do something there (post back for ideas).

5. Try to roll the egg card onto another 0% deal when that runs out, obviously. Maybe DP can get a new Barclaycard with 0% for 13 months?

6. Payments. My take on payments is that you have to focus on your Egg card/HSBC/AMEX/overdraft right now, even if you get it all on 0% -- because 0% periods run out, and you don't know that you'll be able to roll it over to another one. So normal payments on loans, minimum payments on capital one.

If you can't get enough on Mint to clear the overdraft, put everything extra towards that until it is clear. Once it is clear, your extra debt payments can go to clearing the cards.

However, it is a mistake to pay more than minimum payments on a card while it is in the 0% period. Take the extra payments and put them in a savings account. The savings account should be in your name -- if in DP's, he'll have to pay tax on the interest earned. You can fill out a form (forget what it is called) to have the interest paid gross -- the bank can help with that.

This savings account must be untouchable -- it is really a debt payment, it is just letting the bank pay you interest on your debt payments for a short time.

When your 0% period ends, if you can roll it over onto another 0%, just keep building the savings. If you can't, use the savings to pay off as much as you can before the high interest rates hit.

I think that's it, really, I can't think of anything else. No magic, and all this may help some on interest expense, but it won't solve the problem.

The key is to consistently spend less than comes in, and dedicate the difference to solving the debt. Lots of people around here can help with the spending less side of things, a lot more than I can. That is where you are really likely to make progress -- that, or another way to generate a little more income.

Make sure you are getting the right amount of child tax credit.

Once you downgrade your car, hopefully a few more options will open up -- possibly clear HSBC loan, with the help of a new barclaycard?

Take the kids for walks in the park. Try to make DP's time at home as pleasant/stress free as possible. Sounds like he deserves it.

goolieman

Thank you Digging Out, your advice was very much appreciated.
As soon as my Mint card arrives I shall put your pointers into practice.
I shall also get that Savings account opened, it sounds like a fab idea and may encourage me to put in more than I would if I see it building up. ie If I get the urge to buy something I do not need I will put that money in the savings account instead.
I am also going to go for it and see if HSBC will reduce the interest on my card, it can't hurt can it?

In regards to making DP's life less stressful, lol I should get my hands on a copy of Laura Schlessinger's The Proper Care and Feeding Of Husbands!

Who knows if we make a big enough dent in this debt we may be able to afford a Wedding one day..... ::)

Right I am off to properly look at how to cut back and to ring HSBC while at least one of my babies is napping.

Thank you again
C

goolieman

HSBC were very helpful and have upgraded me to a Gold Card to allow my interest on the card to fall to 14% which is a little more competitive. They automatically transfer the balance. So that is good for a bit!
You guys have really encouraged me to get my act together, Thank You
C

DiggingOut

Who knows if we make a big enough dent in this debt we may be able to afford a Wedding one day..... ::)

Don't let money stand in the way.  People throw huge amounts of money at weddings.  Ridiculous, IMHO.  The point is to make a commitment to each other (as well as to family and friends), not to make the wedding industry wealthy.

In regards to making DP's life less stressful, lol I should get my hands on a copy of Laura Schlessinger's The Proper Care and Feeding Of Husbands!

Maybe instead of spending money on the book you could ask HIS advice....

Mrs_Thrift

Good news, C.

Some brilliant advice there from Digging Out. (He does have his uses!)

Stick with it and I'm sure you'll get there. You might even manage that wedding sooner than you think (have you seen the Wedding Tips thread on the Marriage, Babies & Families Board? )

Best wishes

Ms T

DiggingOut

(He does have his uses!)  

I don't think we want to go there.

Mrs_Thrift

vanoonoo

I hope this is taken in the manner in which it is intended

once again it's great to have someone really take their problem by the horns and give it a damn good seeing to. to "see" the advice of others being acted on and getting feedback is bloody brilliant

go go goolieman!

regarding the part time working suggestion (for you not dp) it may well increase your working tax credit type things if you can somehow work 16 hours (I think). my neighbour has set herself up as self employed and does ironing for other people whilst the kids are playing or doing homework or sleeping. This bumps up her tax credits in some way shape or form although I am not an expert, but I know it was worth her doing it in terms of not only the increased weekly income (she charges £6 per hour) but also the top ups from the government.

I'm not a mum so I can't fully empathise on how difficult it is to juggle a busy household and keep kids and partner happy, but it might be worth considering something that is not specifically time dependent for you to do whilst waiting for DP to get home from london (possibly maybe perhaps)

but whatever - it's all looking really positive and I am SO happy to read a thread where the original poster isn't firing back lame excuses

whooooooohooooooooooooooooooooo