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Help!!! I want to be debt free!!

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Comments

  • Snaggles
    Snaggles Posts: 19,503 Forumite
    Pregnancy as a money saving tool......I like it! :D
    "I wasn't wrong, I just wasn't right enough."
    :smileyhea
    9780007258925
  • Chez2k
    Chez2k Posts: 76 Forumite
    No probs. :cool:
    I think I will use this post as my get debt free diary.
    Will have to have a read of other people's and see what they write in theirs.

    Chez
  • Chez2k
    Chez2k Posts: 76 Forumite
    That snowball site is really good.
    I will definately use that and keep it as a guide.
    I'm gonna print it off and keep it in my diary.
    Thanks for letting me know about it.

    It has calculated that it will take me 42 months to get debt free. That's quite a long time.... so hoping that it can all be paid up before then.
  • Snaggles
    Snaggles Posts: 19,503 Forumite
    The fab thing about the snowball site is that if you pay off little extra bits here and there, you can re-input the new figures and your debt free date will have moved a bit nearer.....it gets addictive though, trying to move it forward as much as you can!
    "I wasn't wrong, I just wasn't right enough."
    :smileyhea
    9780007258925
  • I'm a big fan of what Martin calls the credit card shuffle as it was doing this that got me the maneuvering room I needed when I first started tackling my debts head on.

    Something you can do quite quickly is give the Credit Card companies a call & ask if they can reduce the interest rates on your current debts.

    Some of them will & some of them won't & it seems to depend on the individual on the other end of the phone sometimes. Even if they say no you havent lost anything.

    Regardless of how successful the above is you should also ask if HFC Mastercard will do you a 0% or low apr deal for balance transfers. Again regardless of whether they accommodate you on that you should transfer entire Mint balance onto the HFC card as possible (a little unorthadox I know but bear with me).

    After the next statement confirming the Mint balance is cleared give them a ring & ask if they'll increase your credit limit &/or do you a a 0% or low apr deal for balance transfers this could then be used to pay off the Barclaycard & possibly the egg card .

    After the next statement confirming the Barclaycard balance is cleared give them a ring & exploit their existing custome loophole (explianed here) this could then be used to pay off the majority of the Debenhams card.

    There is also the existing loophole (explained here) with the egg card where they offer a 5 month 0% balance transfer rate on the anniversary of the card so its worth getting this clear in time to get a statement confirming its clear before that anniversary is due.

    Basically you keep moving card balances around, snowballing & increasing credit limits until you manage to get all or at least as much as possible of the high interest debt onto 0% or low aprs meaning much more of your money is actually paying off debt & less of it off interest & you don't need to apply for new cards etc.

    Hope this helps.
  • Chez2k
    Chez2k Posts: 76 Forumite
    Hi Sunderland,

    Thanks for the tips.
    On my next day off i'll ring round and see if any of them will lower my apr. Worth askin I guess.

    I will definately bare in mind what you have suggested about moving the amounts onto the different cards. The only problem with this however is that a couple of months ago when I tried to increase credit limits to try and do this I was refused by all of them low ones. So not sure if they will allow me to do it now?

    But thanks for the advice, I have taken it all on board.
  • Chez2k wrote: »
    The only problem with this however is that a couple of months ago when I tried to increase credit limits to try and do this I was refused by all of them low ones

    The difference is that a couple of months ago your cards were all pretty much loaded up & they were all making good rates of interest at your expense & you were only paying around the minimum each month so there was no incentive for them to expose themselves to more risk.

    When you're doing the credit card shuffle you only target the card that you've cleared & theyre no longer making any money on. Added to that your shuffling of the debts into lower APR's & your snowballing means your overall debt will be coming down each month so you become less of a risk & they are more likely to consider it.
  • Chez2k
    Chez2k Posts: 76 Forumite
    Well, week and a bit since I first posted. So far nothing much has changed.
    I am currently waiting for my next monthly invoice to come from my Ikea card to come and then that can be paid off and the account closed down.
    One more thing settled on my credit check.

    I am waiting for pay day now.... one day away so that I can get my account back to the level it should be. I hate the end of the month because I always seem to struggle to keep the balance below the overdraft limit.
    I'm sure i'm not the only one who finds this??
  • Chez2k
    Chez2k Posts: 76 Forumite
    Thought I'd come and do an update on things. Will let me get it all out as well.

    Since the last time I posted I have managed to clear and the close the Ikea card. But like an idiot I have had to use a couple of the cards which has sent my balances up slightly.
    I also got a letter from Virgin yesterday telling me that my interest rate was going up to 29.9%from next month. So that has caused me a lot of worry.
    I phoned to see if they would reduce it back down, but they told me they couldn't so I have sent off a complaint letter today so fingers crossed.


    Anyway.... I've done an updated SOA.


    Monthly Incomings:

    My salary: £891.59 (after tax, NI,etc)
    Bonus: Vary every month so not included in SOA. (Between 300-500 per month)
    Overtime: Again varies - 30-100 per month

    Monthly outgoings:
    Graduate Account Fee: £5.00
    Dental Plan £11.00
    Mobile £40.00
    Blockbusters £14.99
    Petrol £50
    Car expenses £9.12
    Rent £425
    Food £50

    Totals £605.11


    Debts

    Debenhams cc £1819 (limit £2000) APR 17.9% (Minimum payment 71.97 last statement)

    Barclaycard £1575.07 (limit £1600) APR 19.9% (minimum payment £34)

    HFC Flexi Loan/Mastercard £2290 (Limit £3000) APR 25.9% (Minimum payment £65)

    Egg card £484.23 (Limit £515) APR 21.9% (Minimum payment £9.00, but I pay £20.00 every month)

    Mint Visa £1748.60 (Limit £1900) APR 23.3% (Minimum payment £39.00)

    Virgin £3877.23 (Limit 3900) APR 14.9% - going up to 29.9% next month (Minimum payment 67.44 last statement)

    HFC HP (Dixons) £117.45 (interest is already calcuated on the amount, so does not accumulate over time). (£14.85 every month)

    Barclays Graduate O/D £1850 (when full - currently £1896.05) Interest free


    I am starting snowballing in from the start of next month and have worked out the payments. I am going to increase the payment a lot to clear the balances.

    The snowball worked out that if I follow the payments it has set out I will be debt free in 32 months.

    If anyone has any suggestions or advice it will be greatly accepted.

    Thankyou

    Cheryl :p
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