January's Big Financial Freeze!!!

mayfair1985

Unfortunately, at the moment, a 0% is about the only thing no one will offer me!

Kerfuffle

mayfair1985 wrote: »

Now, riddle me this batman.....

The OD is charged at £1 a day, up to a maximum of £20.00 a month.

The CC that we have the big balance on is 18.9% APR.

We have a balance of £39andsomething on the CC.

With regards to interest charges, would I be saving anything if I used the OD to clear 2000 off of the CC?

Siouxsie32 wrote: »

How much interest are you paying each month on your credit card mayfair? In theory, if it's more than £40 then it may be cheaper to shift £2k of it to your overdraft and work at paying the rest off, keeping the £2k overdraft until the credit card is fully paid off. Then, since it costs £20 each month regardless of whether you use £1 or £2000 of your overdraft, it might make sense to shift it back to the credit card (depending on the figures) or trying to get another credit card with 0% interest (actually, if you're able to get credit, is it an option to look for a 0% card to shift as much as you can on to? Or is that all a bit much to think about at the moment?). Just thinking off the top of my head, I'm sure someone else would be able to analyse the figures better.

NinjaSavingKat wrote: »

Mayfair - I like Siouxsie suggestion of a 0% CC. Have you looked into this?

I agree with Siouxsie and NSK, the first thing to do would be transfer to 0% credit card if possible.

I put your figures of $3944.00 (taken from your signature) at a rate of 18.9% into the snowball calculator and the computer says that over the month you would pay $57.11 interest. If you paid $2000.00 off the credit card (from the overdraft) you would pay $28.11 interest on the credit card and 20.00 overdraft fee so your comparisons are $57.11 versus $48.11 potentially saving yourself $9.00

The $57.11 divided by 31, the number of days in the month, is $1.84 so the $3944 is costing you $1.84 per day as opposed to .65p per day on the overdraft ($20.00 divided by 31 days).

As Siouxsie says, there would come a point when it is cheaper to pay the credit card interest rather than the .65p overdraft daily rate.

I'll just put a disclaimer in as I'm far from being a financial whizz and I'm pretty sure somebody else could come along and shoot me down, but this is the situation as I see it.

Edit: Sorry, I don't have a pound sign, so you'll have to a dollar signs instead.

Kerfuffle

Kerfuffle wrote: »

I agree with Siouxsie and NSK, the first thing to do would be transfer to 0% credit card if possible.

I put your figures of $3944.00 (taken from your signature) at a rate of 18.9% into the snowball calculator and the computer says that over the month you would pay $57.11 interest. If you paid $2000.00 off the credit card (from the overdraft) you would pay $28.11 interest on the credit card and 20.00 overdraft fee so your comparisons are $57.11 versus $48.11 potentially saving yourself $9.00

The $57.11 divided by 31, the number of days in the month, is $1.84 so the $3944 is costing you $1.84 per day as opposed to .65p per day on the overdraft ($20.00 divided by 31 days).

As Siouxsie says, there would come a point when it is cheaper to pay the credit card interest rather than the .65p overdraft daily rate.

I'll just put a disclaimer in as I'm far from being a financial whizz and I'm pretty sure somebody else could come along and shoot me down, but this is the situation as I see it.

Edit: Sorry, I don't have a pound sign, so you'll have to a dollar signs instead.

Actually that bit is incorrect,

3944.00 = 57.11 interest divided by 31 = 1.84 per day
2000.00 = charges of 20.00 divided by 31 = .65p per day
1944 = 28.11 interest divided by 31 = .91p per day

1.84 versus 1.56 per day comparison

Kerfuffle

citizenkitten wrote: »

kerfuffle - get better soon

Thanks for you good wishes citizenkitten. I'm much better and I think I got off lightly compared to some of the people I work with. :eek:

nannygladys

Hi everyone
Sorry cant help on the OD/CC front, thats what got me my mess in the first place:(

Anyway had my second spend day of the month as I needed to put fuel in my car, so whilst I was at it I had a small spend of £4.25 on food etc and £40.00 on diesel:eek: still it was budgeted for and is needed so as long as I dont have to do too many long journeys I should be OK. The food spend includes deod, hay lettuce and bedding for Rosie and only hayfever tabs and milk for me:rotfl:its a good job I dont cost much:)

It is sooooooooooo cold here, but Im not putting the heating on until tonight, but if I breathe out you can see my breath and Im sat in my front room!!!!!!! oh well, think of the money Im saving:D

Day two of work down, just three to go until my next days off, Im still eating rice for my breakfast break and I must say its keeping hunger pangs at bay better than w**tabix so Im going to try pasta on Monday, because I still have plenty of that in the cupboards, anyway going now as BM has just pinged and finished, might just pinch the end off it to have with a cup of coffee to warm me up

Good to see everyone doing so well, its only posting on here everyday that keeps me carefull

Jxx

Kerfuffle

Well I'm finally off the starters block.

I've updated my signature accordingly and I'm happy to say that I've managed to transfer 459.53GBpounds to my various pots.

304.16 to repay an interest free loan from Bank of Mum and Dad
83.87 to the 'Save 12K in 2013 challenge'
71.50 to overpay my mortgage.

I agree with nannygladys, just the very act of reading, lurking and posting on this thread keeps my goals in the forefront of my mind.

Thanks to everybody who contributes as this keeps the motivation going. :T

his_missus

Oh nannyG, I know you want to save on heating costs but please don't put your health at risk for it, keep yourself warm x

PS I had a nanny gladys when I was a little girl - not a real nanny, just a friend of the family adopted as a granny for me as we lived away from my parents families.

ETA: kerfuffle - that's a lot to pay off, well done!

Kerfuffle

his_missus wrote: »

Oh nannyG, I know you want to save on heating costs but please don't put your health at risk for it, keep yourself warm x

PS I had a nanny gladys when I was a little girl - not a real nanny, just a friend of the family adopted as a granny for me as we lived away from my parents families.

ETA: kerfuffle - that's a lot to pay off, well done!

Thanks his missus, I'm trying a different tact this year. Last year I calculated my budget and anything left over was paid to loans etc, and in the end not a lot got paid. This year I'm prioritizing paying as much as possible to loans and living on the leftovers. Basically if I haven't got the cash (because it's already gone) then I can't spend it. This is why the DDD thread last month and the JBFF this month are so good for me and keep me focused.

Iwillsucceed_2

Good evening to you all I hope you each had a fantastic day and I wish you a great weekend.

15 minutes only...

I would like to apologise in advance to all of you for not taking part as often as I could in this thead as many of you do by commenting in each others post quoting, motivating, encouraging etc. I am afraid I have set a time I would spent when I come to this forum which is 15 minutes only and on Friday to report how I am SUCCEDING.. Hope your understanding.

I would like to share the fact I have never used e-bay so I cannot sell anything but I would like to make this up by having extra NSDs. So far adhering to the NSD challenge is good but I am craving a glass of wine and I challenged myself a zero alcohol month

Today reporting my 11th NSD IN A ROW!

Positive regards,

I will SUCCEED!

wannabee_in_credit

Evening everyone!
It's just taken me over half an hour to catch up on the posts I've missed since last Sunday. Unfortunately, back at work and no spare minutes during the week at all. By the time I get home, make dinner and see to the kids I'm generally straight off to bed. And every day this week has been exactly that.
Anyway, pleased to see that everyone is doing ok. Well done to all the SW losers, and good luck to bb - fingers crossed for good news next week.
The non stop work this week means I've had 5 nsds and nothing much else to report (no time for extra money making etc). I lost 2lbs in my first 4 days on SW and it's going well so far.
Will definitely need to spend over the weekend. No food in the house and the car is almost down to fumes...
Hopefully I'll be on here and properly catching up again before work snatches me away for another week.