Help needed

Money_mad_money_bad

Triggles wrote: »

IMO there are 2 schools of thought on this. First is to pay that £375 extra per month on the highest interest debt first. Second is to pay off a few little debts and then start throwing money at the highest interest. I would do the second. If nothing else, it's a spur to keep going if you see a couple debts taken care of.

For example, the very first month, you could take care of the Marks and Spencer debt, with about £45 left over to put towards the Sainsbury. Then the next month, you'll have £383 extra (adding in the amount you used to then pay to M&S debt) towards the Sainsburys debt. The third month, roughly £150 will clear the Sainsburys debt and you'll still have £245 to start paying on another debt. Each time you pay off a debt, add the amount you were paying on it to the amount you pay off the next debt.

In that way, you'll be able to pay off 2 debts in 3 months, which can often be a huge boost to encourage you to keep going. Plus each debt you pay off gives you more ££ to pay towards other debts.

The sticking point, however, is if you actually HAVE that £375 extra per month. Do you? Or is it being spent? If you don't have it, keep a spending diary and find out where it's going.

I like your train of thought on the 2nd option Triggles. I've always figured the best method was to pay the largest debts first but with having so many cards it would free up cash to pay off the other debts and agree act as a source of motivation. It may also enable me to do bank transfer down the line as my credit rating may improve with not having so many cards. At the moment I can't see to obtain any good balance transfer offers and my applications on a couple of times in the past 6 months have been rejected.

I will put a spending diary in place. I admit I am partial to spending time in starbucks (not cheap) to study and read as I get a bit stir crazy in the flat and get less distracted because I flat share with some one and it's only small. I only have a couple of drinks but they no doubt add up over the month and year! I'll just have to become more disciplined!

Money_mad_money_bad

RAS wrote: »

Do not touch a loan.

What are the limits on the cards you have above?

The limits on these cards are...

Description....................Limit......Debt......Monthly.. .APR
HSBC............................11500....10866.....271.6.... .23.9
creation........................4200......3095.78...90.45.... .31
natwest........................1150.....1006.85...10.17.... .0.
marks and spencer...........1000.....330.77....8.26......7.05
sainsburys.....................800....542.8.....12.49.... .8.25
barclaycard....................2500....1587.78...35.72.... .6.732
Post Office....................2500....1780.46...47........25.7 7
Santander......................1900...1805.73...40.08.... .29.9

Money_mad_money_bad

Bobarella wrote: »

Hi MMMB

How has today been? Any small changes you are pleased with, whilst sorting out the big stuff?

Bob

Well, I was admitted to hospital with a collapsed lung last Tuesday, the discharged only for it to collapse again so I've been in hospital till Sunday night. So on the plus side I've spent very little. Apart from the car park prices. You'd think they'd let you off if you were a patient in need of emergency treatment. Suppose they've got to make money on their car parks somehow!

Money_mad_money_bad

theoretica wrote: »

I rented for a while from an older 'empty nest' lady which was excellent for quiet.

Have you looked on the Old Style forum here? There are excellent ideas there for eating well on a tight budget.

I'll look into this forum. As really need to make improvements here. The problem is I love to cook especially as I don't get to do much else, but Jamie Oliver's and Nigella Lawson recipes ain't that cheap!

Money_mad_money_bad

Money_mad_money_bad wrote: »

The limits on these cards are...

Description....................Limit......Debt......Monthly.. .APR
HSBC............................11500....10866.....271.6.... .23.9
creation........................4200......3095.78...90.45.... .31
natwest........................1150.....1006.85...10.17.... .0.
marks and spencer...........1000.....330.77....8.26......7.05
sainsburys.....................800....542.8.....12.49.... .8.25
barclaycard....................2500....1587.78...35.72.... .6.732
Post Office....................2500....1780.46...47........25.7 7
Santander......................1900...1805.73...40.08.... .29.9

I should make the point that I have not been allowed to shuffle on these cards therefore despite their being room on some cards I can't take advantage of it, hence why I'm having to pay high rates on the HSBC and creation cards.

Money_mad_money_bad

quidsy wrote: »

Have you tried a snowball calculator.? It will tell you who & how much to pay first & when, if you follow the plan, you will be debt free. I found it incredibly helpful just to see a light at the end.

Good luck

Just done it. Been in hospital so haven't had the chance but it's telling me I'll be debt free by April 2016! The calculator results are based on approaching the lowest balance transfers first. Therefore the M & S and sainsburys cards will be paid off by July and September respectively.

Obviously with cut backs on the car and groceries, assuming all incomings are equal, I'll be able to make larger voluntary payments plus hopefully I'll be able to obtain improved balance transfer rates over time. Future annual wage rises will also expedite the process further so I'd like to think I can pay this off a lot quicker. For now a summary of the calculator looks like this:

Debt now: £23,292.82
End of 2013: £20,008.11
End of 2014: £12,567.98
End of 2015: £3,328.14
April 2016: Debt Free!

jackieblack

If your figures are just for one person then £160 on groceries seems an awful lot, even for someone who likes to cook.
I cook alot, everything from scratch, (but I often adapt recipes to use similar/cheaper ingredients to those used by multi-millionaire celebrity chefs!) and feed my lot well on less than £25 per person/per week.

Money_mad_money_bad

jackieblack wrote: »

If your figures are just for one person then £160 on groceries seems an awful lot, even for someone who likes to cook.
I cook alot, everything from scratch, (but I often adapt recipes to use similar/cheaper ingredients to those used by multi-millionaire celebrity chefs!) and feed my lot well on less than £25 per person/per week.

Well usually it's £30 a week, but I stretched it £40 to account for the occasional toiletries and lunch from work purchases.

bargainbetty

Money_mad_money_bad wrote: »

The limits on these cards are...

Description....................Limit......Debt......Monthly.. .APR
HSBC............................11500....10866.....271.6.... .23.9
creation........................4200......3095.78...90.45.... .31
natwest........................1150.....1006.85...10.17.... .0.
marks and spencer...........1000.....330.77....8.26......7.05
sainsburys.....................800....542.8.....12.49.... .8.25
barclaycard....................2500....1587.78...35.72.... .6.732
Post Office....................2500....1780.46...47........25.7 7
Santander......................1900...1805.73...40.08.... .29.9

You say that you are not allowed to shuffle - quite often you will find that they won't let you do a balance transfer unless the account is fairly clear.

Have a look at the terms and conditions, and ask about low-life-of-balance rather than 0%. Not easy, but easier to get than 0%. If you could throw everything possible at the M&S card, clearing it in full, they might be more willing to offer you a balance transfer if they think they will get some interest on it. You could take a big chunk of the Santander 29.9% debt with that. Do the same with Sainsburys, and work your way through.

Definitely check out the snowball calculator. If you want a place to sit quietly, go to a library rather than Starbucks. Free, often with internet connections, warm and toasty. Take your own coffee in a reusable thermal mug. You'll save a fortune.