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Want rid of small debt

Hello,

firstly thanks for all help i regualry read these boards and its good information.

I have a debt which is probably seen as quite small but want rid of it. Its on a credit card and its £2,500. I pay £100 quid a month off it every month but something seems to come up which means i have to use it.

I am in the process of switching cards to the Halifax one card from MBNA. I am off to Las Vegas in Septemebr so trying to save spending money as well.

Is there any help you guys could give to help me reduce this?

Cheers for your time.

Comments

  • onedayiwill
    onedayiwill Posts: 390 Forumite
    Hi,
    something seems to come up which means i have to use it

    Like what?

    If you are still having to use your credit card you are overspending (spending more than you can afford), or are not budgeting properly which means things like car repairs, quarterly bills etc always come as suprise and have to be paid with the card.

    If you post up your SOA (state of affairs - list of income, outgoings, debts etc) folk may be able to help you cut back on your spending so that you can live off the money you have and stop spending on the CC. Then your payments will actually start to pay it off....
    Pennies make pounds.
    Official DFW Nerd Club - Member no. 358 - Proud To Have Dealt With My Debts!
  • Guru86
    Guru86 Posts: 242 Forumite
    Stuff that comes up is the girlfriends/friends birthdays which means presents and then nights out.

    At the moment normally get a monthly intake of £1200
    Money to PArents £160
    Car Finance - £185.50
    Fone - £30.00
    Contact Lens - £13.00
    Credit Card - £100.00
    High Rate Saver - £150.00
    Savings for car stuff - £150.00
    Holiday and spending - £200.00
    Left over £200.00 ( which normally goes on petrol for car jounreys)

    I appreciate i am in a better position then some but still would like to reduce it as trying to look for a house next year.
  • onedayiwill
    onedayiwill Posts: 390 Forumite
    I assume "money to parents" is for your lodging.

    First, how much have you got in your High Rate Saver? Can you use this pay off your CC? There seems little point in saving £150 per month, when you could be using this to pay off the credit card.

    £200 on petrol is HUGE!! Where are you driving to? Are the journeys necessary? Would public transport be cheaper?

    Holiday & Spending - well, presumably your holiday is booked, so you might as well go and enjoy yourself. :D But do you have realistic target of spending money to save? Could you lower it and still have a good time?

    Fone - mobile? Can you go to pay as you go or a cheaper contract?

    Birthdays, gifts, christmas etc should all be included in your budget so they don't come as a surprise. That way, you put money aside monthly and so it is ready when the birthday comes up and you haven't spent it and need to the CC.

    Cut up the credit card. You will manage without if you don't have access to it! It's very surprising how that can work.
    Pennies make pounds.
    Official DFW Nerd Club - Member no. 358 - Proud To Have Dealt With My Debts!
  • onedayiwill
    onedayiwill Posts: 390 Forumite
    Forgot to say ... go to https://www.whatsthecost.com and enter your credit card info and monthly payments - check out the difference in the time it takes to pay it off at £100 per month (your current amount) and £250 per month (current amount + current savings amount).

    Your savings can build up quite quickly once you are debt free and living to a sensible budget. Living to a budget doesn't necessarily mean "no fun" - for me it actually helps me have more fun because I am not wasting money on things just for the sake of it. It helps me pay off my debt. And when I am debt free, it will help me save for things I want to save for.
    Pennies make pounds.
    Official DFW Nerd Club - Member no. 358 - Proud To Have Dealt With My Debts!
  • onedayiwill
    onedayiwill Posts: 390 Forumite
    Oh oh oh. And don't forget as well as cutting back, increasing your income will help you pay the debt quicker ... can you do any of the following:

    - extra hours at work?
    - second job?
    - selling things on ebay or amazon that you no longer want/need?
    - cashback and survey sites?
    Pennies make pounds.
    Official DFW Nerd Club - Member no. 358 - Proud To Have Dealt With My Debts!
  • Guru86
    Guru86 Posts: 242 Forumite
    thanks for all the advice i will try this out.

    Unfortunatly because of th eline of work im in i am not allowed a second job.
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