Catriona's Credit Card Countdown

edited 15 March 2013 at 9:41PM in Debt free diaries
680 replies 54.5K views
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  • catriona79catriona79 Forumite
    855 Posts
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    Hehe - INFJ here
    Often wish I was P!

    And yes, agreed, personality tests are awesome :)
    * * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
    Barclaycard -£5,867.52;
    mbna1 - 3,009.22
    mbna2 - 1,755.70
    Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.04
  • catriona79catriona79 Forumite
    855 Posts
    Forumite
    Hello everyone, another payday has been and gone! Total debt has gone down and currently is at:

    Barclaycard 1 - £200, new total £2600
    Barclaycard 2 - £150, new total £5900
    First Direct CC - £100, new total £2600
    Lloyds TSB CC - £100, new total £1600
    Ikano bed loan - £94.5, new total £0
    HSBC CC – £411/£411 new total £0

    The new total is :eek::eek::eek:£12700 :eek::eek::eek:


    I've come back from holiday today and it wasn't too bad spend-wise! Very decent in fact. But, I am going to have my garden done in two weeks' time and that's going to eat up all my money this month, together with my car insurance renewal...

    Hope everyone has been doing well?

    Off to fill my face now! No more eating out every night! ;)
    * * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
    Barclaycard -£5,867.52;
    mbna1 - 3,009.22
    mbna2 - 1,755.70
    Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.04
  • dktreeseadktreesea Forumite
    5.7K Posts
    catriona79 wrote: »
    I had a meeting with my mortgage advisor at the bank today and came away with an alternative to this slog. It doesn't even look that costly.

    If I were to borrow £10k as a homeowner loan (a small tracker mortgage), that would be at the rate of 3.69%. Paid over 5 years, that would be £183 a month. The interest would be £967 over 5 years, so about £200 per annum.

    If I overpaid regularly by, say, £300, then that would reduce the term of the loan to 1yr and 10 months and the total interest would be £349.

    Now, I'm thinking its not such a bad deal.
    1. financially... If I were to keep switching 0% cards, then I'd have to pay around 3% anyway, and I don't get the super-long deals anymore, and end up paying the BT fee and only get a 0% deal for 12 months.
    2. Credit rating wise. I have recently been refused a Halifax card. Maybe I could try for the virgin card for 27 months, but what are the chances that I get it? Also, it impacts my credit rating, due to the amount of unsecured debt and refused applications.
    3. Psychologically - the stress is huge. I find myself thinking too much about my debt. I waste about a couple of hours each day thinking about it.

    Maybe, with the Tesco card which has no transfer fees, a new trend has been started and more banks will start offering these deals. But who knows...

    I think it would be so much better to be able to finally live a little and not spend my life thinking about debt. Otherwise I will look back on my 30s and regret not having had fun.
    I could build up a buffer of savings and feel more secure. I wouldn't even need to overpay in months where I wanted to go on holiday. And even if I didn't overpay most months, that's wouldn't be so much of a problem.

    If it was at a huge price, then maybe I'd keep putting all this pressure on myself, but there is not that much in it, really.

    Off to do some sums...

    A £10k homeowner loan sounds quite good to me. Are you sure though, if you apply for it, that you will get it? Nothing ventured, nothing gained, and in one way if you apply and don't get it, you are no worse off, but just in case you didn't get it, how would it affect you them moving onto the next round of 0% interest free cards in the new year?

    I don't see why you wouldn't get it. What is the mortgage advisor saying should be your reason for getting the loan - as a consolidation loan or to do improvements to your house? I suspect your application would go better if you were to get it to build a patio out the back and, say, install double glazing throughout....or even adding a conservatory. Banks love loans given for improving the value of the underlying asset.

    I have a loan similar to this, over 8 years, also at a low interest rate. I never spare it a thought. It's the one debt that I think is value for money.
  • catriona79catriona79 Forumite
    855 Posts
    Forumite
    dktreesea wrote: »
    A £10k homeowner loan sounds quite good to me. Are you sure though, if you apply for it, that you will get it? Nothing ventured, nothing gained, and in one way if you apply and don't get it, you are no worse off, but just in case you didn't get it, how would it affect you them moving onto the next round of 0% interest free cards in the new year?

    I don't see why you wouldn't get it. What is the mortgage advisor saying should be your reason for getting the loan - as a consolidation loan or to do improvements to your house? I suspect your application would go better if you were to get it to build a patio out the back and, say, install double glazing throughout....or even adding a conservatory. Banks love loans given for improving the value of the underlying asset.

    I have a loan similar to this, over 8 years, also at a low interest rate. I never spare it a thought. It's the one debt that I think is value for money.

    Hello D,

    I see you couldn't sleep last night? Hope all is well with you?
    My body clock has magically adjusted over the holiday and I don't wake at 4 am any more! It's bliss...

    Re the loan, the mortgage advisor did a credit check on me there and then and she said I'd get it. I said what it was for - to pay off my credit cards, and that was fine too. I've got a quotation and a meeting this Friday to discuss it further.

    Re: new cards, yes that's been my worry... What if I don't get them, then the interest rockets and I'm in trouble... And what if I do get them, but the deal is only for 12 months, at a 3% fee.... Then I'll have to switch again... And all this stress for the sake of 0.69%!


    Another question that has re-surfaced is changing the mortgage to my sole name. When I bought the house, the mortgage was a few thousand over what I could borrow and so my husband acted as a co-owner. I trust him completely with money, but want to remove his name from the mortgage now that I earn more and can be on the paperwork alone. Just in case he wants to buy a bigger house by himself or with a new partner etc. I know he's not desperate to have his name removed from my mortgage but has said that when I'm ready he'd like to do it.
    I have been in touch with the conveyancer who I bought the house through and who was excellent. Now he has had a change of career and is not there any more and I have been quoted ca £600 to get it done...

    "in order to deal with the actual Transfer, Bank and Land Registry the fee will be £400.00 plus VAT and the disbursements will be £20.00 Land Registry search fees and Office Copies; Land Registration fees of £60.00. If you are to pay a fee to the current joint owner there may be TT Fee of £30.00."

    I'm not sure why the searches etc? They did it all 2 years ago and seems a complete waste of money. I wish my old conveyancer was still there. I would loathe to pay all that out on a change to ownership, when that's more than I can pay off my debt and when I need a newer car. Seems like such a waste. Might have to talk to my husband and ask his opinion but also write to another solicitor. Maybe we could just draw up a letter that would set out the percentage of ownership as tenants in common.

    Oh, things just keep coming!...

    Think it's time to get up for work now.

    Hope everyone has a good day
    * * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
    Barclaycard -£5,867.52;
    mbna1 - 3,009.22
    mbna2 - 1,755.70
    Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.04
  • catriona79catriona79 Forumite
    855 Posts
    Forumite
    Bit of a pooh day today already. My partner and I have been bickering and it feels like it's never going to get better. Had a terrible night's sleep and really don't want to go to work! Not good. But only two days and then there's the weekend. And I'm home working on Friday, which is going to be very productive - hopefully- and will make me feel better.

    I've got my appointment with the mortgage lady on Friday and hopefully will get the stuff sorted. Then I can start thinking of an overpayment plan for the mini mortgage and set that. Still not sure what to do, but I really want to get some savings behind me. I think it would actually help, mentally, to be able to do that and would make me feel more secure. We will see what happens. Decision time soon!
    * * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
    Barclaycard -£5,867.52;
    mbna1 - 3,009.22
    mbna2 - 1,755.70
    Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.04
  • cwalcwal Forumite
    127 Posts
    Just thought I'd pop in and say well done for paying off more of your debt!
    Good luck with the mortgage meeting tomorrow, it sounds like a good idea and would take the strain off having to find new 0% cards which I always find is a worry, also if it allows you to make unlimited overpayments then I don't think you can lose as you can just throw any money you can at it.
    To get some savings behind you could you for the first couple of months just make the minimum payment and then save the difference? Even though I have a lot of debt to clear I still saved some money behind me as living on my own I was worried that if anything went wrong I'd be putting more money on a credit card to sort it and that wasn't a good feeling so I can understand where you are coming from.
    Hope the day improves for you!
  • catriona79catriona79 Forumite
    855 Posts
    Forumite
    cwal wrote: »
    Just thought I'd pop in and say well done for paying off more of your debt!
    Good luck with the mortgage meeting tomorrow, it sounds like a good idea and would take the strain off having to find new 0% cards which I always find is a worry, also if it allows you to make unlimited overpayments then I don't think you can lose as you can just throw any money you can at it.
    To get some savings behind you could you for the first couple of months just make the minimum payment and then save the difference? Even though I have a lot of debt to clear I still saved some money behind me as living on my own I was worried that if anything went wrong I'd be putting more money on a credit card to sort it and that wasn't a good feeling so I can understand where you are coming from.
    Hope the day improves for you!

    Good morning cwal :j

    I had a bit of a carp couple of days with the boyfriend, and so been hiding under a rock!

    I had the mortgage meeting with HSBC and have to say the woman was so snooty - it's unbelievable. She didn't smile once or say anything friendly or even slightly light hearted for a whole hour!
    She warned me of the usual - securing unsecured debt on the house and risking losing the house. She also pried a lot into mine and my husband's relationship and told me our joint account (that I no longer use but he does, as he's had it since he was a teenager) should be closed, because I may be liable for anything in it. In the end I ended up being aloof with her, told her that I absolutely trusted my husband (which I do! - he is a wonderful, honest and genuine man) and was not worried about it. Maybe I misconstrued her behaviour, but I thought her people skills were completely atrocious. She treated me as if I was nothing! But I can do haughty too! I'm just very surprised at the behaviour because the manager and the mortgage clerk at the branch are lovely.

    So, after all that I went out last night with my girlfriend and felt better about things.

    Re the loan, I think it may be a good idea! But I'll have at least another week to sort it out. Though I may, just once apply for a 0% credit card, perhaps the Tesco one, with 27 months no interest, and if I get that, maybe go with it and transfer some of my debt to it. Only because of the MSE call to fix mortgages etc.
    If I can't get a card, then that's also a good indication that the loan would be the best solution, and then I will not feel guilty at all about taking it on, as it will still be much cheaper than the 18% of interest that the cards will carry.

    Phew! Off to apply!
    * * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
    Barclaycard -£5,867.52;
    mbna1 - 3,009.22
    mbna2 - 1,755.70
    Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.04
  • edited 6 July 2013 at 11:39AM
    catriona79catriona79 Forumite
    855 Posts
    Forumite
    edited 6 July 2013 at 11:39AM
    Well, some news from me. I applied for the Tesco 0% for 27 months card, got accepted with a credit limit of 3000, BT limit 2850. I've transferred the whole of my Lloyds card and 1250 of the FD card to it now, and for a fee of £90, that will be paid off in 27 months. Which is good! I may even pay just over the minimum payment for a few months, while I clear the FD card.
    I'm going to finally be able to close the TSB card, woo hoo!! That's really good - the credit limit/ exposure on that is a killer, it's £6k, I'm sure it's been stopping me getting 0% cards elsewhere!
    What remains on the FD card now will be realistically ok to pay off too, within the 0% period. Or so I think! Off to play with the spreadsheet! Ah, exciting times! I'm glad I've sorted this out, it's made me feel better!
    * * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
    Barclaycard -£5,867.52;
    mbna1 - 3,009.22
    mbna2 - 1,755.70
    Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.04
  • catriona79catriona79 Forumite
    855 Posts
    Forumite
    Well, with all the good news about the card etc there's been some awful developments as well... My boyfriend and I have broken up yet again. I'm so tired and fed up of this roller coaster, but so sad and lonely as well...
    All I want is to stay in and wallow, but I'm going to make myself go out and see friends for a drink. It's a beautiful a nod sunny day after all!..
    * * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
    Barclaycard -£5,867.52;
    mbna1 - 3,009.22
    mbna2 - 1,755.70
    Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.04
  • cwalcwal Forumite
    127 Posts
    Sorry to hear about you and your boyfriend (sending hugs), I hope going out for a drink in the sunshine cheers you up a bit...

    That's great news about the Tesco card!! I lucked out getting a Barclaycard last Dec with their 24 month 0% deal, it was a huge relief to be accepted and I know it always feel great to close a card (even if you transfer the balance)

    I have just been to the supermarket and am mad at myself as managed to buy a magazine and makeup which I did not need and I could have put the money towards my debt instead - I still have a long way to go with this budgeting malarkey..... :)
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