In 3 days ...

spendaholic

I've:

* cancelled an online slimming club within their 7 day cool off period - £49.99 + £9.99 per month after 5 months
* reduced my first week's shopping by between £22 & £58
* temporarily increased overdraft rather than draw cash on credit card - £unknown-but-could-have-been-anything
* switched our energy provider - £tbc, but at least £130
* cooked enough food on Sunday to last for at least one other meal - £5-ish
* changed telephone provider & calls on home phone - £2-ish per month
* told a charity that I really can't take out a weekly gift aid for them just at the moment - £2 per week

Not a lot but I expect the savings to increase and the list to grow.

MSE_Martin

Sounds a good start. However are you sure the overdraft is better than the credit card. Often overdrafts charge more interest than credit cards. If thats the case spending on the credit card is a better bet (though get one with lower interest preferably)

martin

Queenie

:T :T Great start!!! Keep up the great work. :T :T

Magentasue

MSE_Martin wrote:

Sounds a good start. However are you sure the overdraft is better than the credit card. Often overdrafts charge more interest than credit cards. If thats the case spending on the credit card is a better bet (though get one with lower interest preferably)

martin

...but isn't drawing cash on a credit card nearly always more expensive than overdrawing?

spendaholic

Hi Martin

We did discuss this at the bank and my biggest problem is discipline. I've found that with my Bank of Scotland mastercard, because it has the biggest apr, I tend to make sure the balance is £0 at the end of every month, and therefore I spend very carefully on it. Anything with 0% tends to get left and left, with me only making the minimum payments.

She has given me (given? hah!) a platinum card with an apr of 13.5% (the overdraft is 15.5%) and she suggested using this to help me out until my wages start to come in. However, this would still mean I won't have enough money in my account to cover my bank loan repayment which comes out on the 28th of the month, if my current creditors don't pay me what is already overdue. If I drew cash on my credit card I'd be paying something like 20% + the £2 admin fee. From the date of the withdrawal and forever - as cash advance interest is charged right up to the date the payment is received and not by the statement due date.

I tried to move from 28th to the 1st, but the powers that be said I either had to pay on the 28th AND the 1st, OR restructure my loan completely. If they did this, the loan would start again at 12.5% instead of the current 7.5%, but at least it woud come out on the 1st.

So we agreed on the overdraft to help me until my first pay day, with the increase only lasting until 19 August. Then we will agree a decreasing overdraft as I shouldn't really need one when I'm getting a regular payment.

I told her I didn't really want the platinum card as well so she suggested I take it anyway and use it for my travelling expenses with the new job (trips to Holland), but try and make sure I pay it straight off as soon as they pay me. As I have the mastercard already I'll probaby cut up the new card when it comes.

Hope this waffle makes sense.

D

Lillibet_2

Well done Spendaholic, a great start. :beer: Is it a cash back credit card or similar, if you are going to put business expenses on it you might as well try & get something back out of it?

spendaholic

Lillibet wrote:

Is it a cash back credit card or similar, if you are going to put business expenses on it you might as well try & get something back out of it?

No <WAIL>. I've only just got to that part in my Money Diet book. I hadn't thought of a cashback card for business expenses. But now I don't want to apply for another card on top of the recent applications I've made ... although I may give it a go anyway ...