Please help me get a plan together to manage our debt.

[Deleted User]

penaltychargenotice wrote: »

The barclaycards are being overpaid slightly - I think the smaller balance by about £5 a month and the larger one by approx £30.

Then swap it round.

The overpayment should be going to the higher APR card, not the higher balance.

Reducing the payments to the larger balance by £25, and increasing the payments to the smaller balance by £25, will reduce the repayment time by 4 months, and the interest by £799, and that's just those two debts in isolation.

In reality, clearing those debts 4 months early, will allow you to pay extra toward other debts, sooner.

Just be careful, not to go below the minimum contractual payments.

[Deleted User]

penaltychargenotice wrote: »

Do you mean another CC?

Possibly but, if not, to one of the lower APR cards.

Using up all the space on the lowest APR cards (to reduce the balances on the highest APR cards), will reduce the amount going toward interest, and increase the amount going toward actually clearing the debt.

[Deleted User]

penaltychargenotice wrote: »

If I took hubby off the car insurance it would still be £940 over a year.

That's still a saving of £560pa, which is over £46pm.

penaltychargenotice

Unfortunately all the credit cards are nearly full. There isn't lots of space on one really.
I will talk to hubby tonight about the car (and everything else).

penaltychargenotice

Just thought I would update.

I have had a chat with hubby. I think he does understand how near to the edge we are and we are going to make joint efforts to get on top of things. Credit cards are going away and as part of managing the finances I am going to keep a tight control on spending.

I've calculated that we can survive this month, we will be able to pay all DD's and CC minimum payments and then our shopping bill will be £50 for the next three weeks. When the next payday comes I will divide everything up into the pots/accounts.

thecassman86

penaltychargenotice wrote: »

Just thought I would update.

I have had a chat with hubby. I think he does understand how near to the edge we are and we are going to make joint efforts to get on top of things. Credit cards are going away and as part of managing the finances I am going to keep a tight control on spending.

I've calculated that we can survive this month, we will be able to pay all DD's and CC minimum payments and then our shopping bill will be £50 for the next three weeks. When the next payday comes I will divide everything up into the pots/accounts.

Great news that OH is onboard

It's going to be a bit tight and not very fun while you get everything sorted but you're on track now to get it all good. With both you and OH tackling it together it'll be much much easier.

asparagus1968

that's great news, it'll be so much better as a team,wishing you lots of luck:)

smiffy64

Hi Penaltychargenotice

i found the first 6 months the hardest to get into a routine and i still have a hiccup here and there. found the best way with the credit card is to cut them up asap if you still need one for emergency then put in a plastic container with some water and put in the back of freezer. sounds mad i know but sometimes you are tempted for other things that are not an emergency but then regret it later. but if you have to thaw it out for a non emergency you will more than likely do without it. good luck and keep chipping away at the cc's

supersaver1000

You sound very much like us. OH would spend on our current account debit card and I'd get a shock later as it messed up totally my not very well planned budget. In February he purchased about £35 of coffees from the service stations for himself and his colleagues. (A weekly food shop for me these days!). And that was the last straw for me. I luckily managed to get myself to the point of having a bit of spare cash on the budget each month and have opened up a Ffrees pre-paid card account and pay that amount in each month and which he now uses for his spends for the month. It's his money to budget with and have complete control spend or save etc. and I don't get any nasty surprises. My DD thinks its hilarious he has an allowance at his age but it works for us and we are both happy.

He has also just given up smoking so should be an incentive as will save more money. We saved up Tesco vouchers and he went on the Allen Carr stop smoking course - so far so good - and it cost one-third of the actual cost.

I have also got an NHS Blackcard which I am planning to load up each month and use for our food once I have more cash saved up. (Although this doesn't allow cash withdrawals like the other card- but it's not really a problem as I use the supermarkets who all take cards and give a cash back amount too.

I'm not saying I'm perfect but OH doesn't seem to realise that all those small amounts of £5,£10,£20,£30 have added up to many £ks that have become a huge problem. I'm not sure when our debt free day will be but I feel more in control now

Good luck. Don't give up! :T:T:T

penaltychargenotice

I have not had the courage to destroy the CC's yet! But I know I need to. At the moment they are all nearly full but as we pay off I obviously need to remove the temptation. I think I will freeze them all today as a start.

Your hubby sounds like mine supersaver. Just not really aware of how all the little things add up. Hopefully the allowance idea will work for us. He has a separate account with a debit card and we have agreed an amount to go in for his spends. I think I can manage to budget everything else by keeping tight control. I panicked this morning when he said he needed a haircut because I know there is no room in the budget this month but then I remembered he has his allowance so it will come out of that.

The thing that scares me a little is having to say no to things now. Even little things like some car journeys. Can't afford £30 of petrol every weekend for a jaunt so will have to restrict this. Just need to man up I suppose!