Repayment to Interest Only

getmore4less

Check the phone contracts can't be reduced if not on the cheapest available for the phone that might save a bit, then sell get a basic phone.

Work out the TRUE cost of cash on the cards with ALL fees.

Don't use the cards for cash just do normal spends, fuel, food and use the cash saved on the highest rate card.

have another go at getting the SOA with annual interest rates on all debts.


Why is the car insurance so high?

WellKnownSid

Re: the car, the 50% VT rule is irrelevant - you can potentially hand the car back at any time - the issue you have is that the value of the car as a distressed sale is probably much less than the loan on it.

What is the the car - could you feasibly sell it privately - say to family - for the settlement value of the loan?

Noobie2011

So probably slightly off topic in terms of getting my debts down but maybe more of a way of putting more control around my CC debts,

I have DD set up on all my CC's however as you may know they have dedicated periods when they take the payment rather than a specific day which although not a major issue it can be quite tricky when managing your finances.

So I did enquire about setting up Standing Orders for all my CC as then the payment would be the same every month and also come out on the same day to make it easier but apparently that cannot be done.

So my alternative is to cancel my DD and on the day I get paid as I do with some other payments just pay them manually all in one go and then sorted. This will also allow me to continuous paying the same amount instead of the various minimum that the DD will take.

The question I have is by paying my CC's manually will I be penalized for not paying by DD s you are with other bills and am I actually allowed do that with CC or do some have a rule set up that you can only pay by DD.

Noobie2011

So looks like info I was told is incorrect.

I have checked on each CC site and you can pay by standing order so have got the details of all the CC payments details.

However for instance if my DD is taken on the 28th of the month, will setting my standing order up to be sent on the 28th clear in the same time as the DD as I don't want to be charged a late payment.

Some of my other cards the payment is not until towards the middle of the month so paying them on the 28th would be fine for funds clearing.

getmore4less

I don't think you understand snowballing, MIN payment on everything except the highest debt.

If you use SO you will have to set the payment higher than the MIN

The BIG risk with SO is late payments, the DD system get round this because if they don't take it thats their problem, they should all have an on or after date to cover the weekends and BH so never late.

The first thing to do is make sure the money is ready to go out not spent on something else, easy if you budget.


You are just making things harder for yourself.

Noobie2011

getmore4less wrote: »

I don't think you understand snowballing, MIN payment on everything except the highest debt.

If you use SO you will have to set the payment higher than the MIN

The BIG risk with SO is late payments, the DD system get round this because if they don't take it thats their problem, they should all have an on or after date to cover the weekends and BH so never late.

The first thing to do is make sure the money is ready to go out not spent on something else, easy if you budget.


You are just making things harder for yourself.

I am not taking about snowballing on this latest post. I am more talking about managing my existing finances before trying to t reduce them. We all know it can be simple things like when things are paid in the month that can make a big difference just changing dates. For instance yes I am in control of my finances in terms of paying all my bills however as a lot of the CC's are due for payment in the middle of the month rather than the start there is a risk there that money could be spent as will be sitting in my account waiting to go out. Now if I send a Standing Order off on the 28th for my CC then the money has gone to them straight away and out of my account and don't have to worry about the money sitting in my account for 2 weeks before going out.

In terms of the snowballing thing then yes that is something else I want to do but whether I pay me CC's by DD or SO does not make a difference if I want to start snowballing.

I now know I can pay all my CC by SO but need to make sure when the payment is sent on the 28th it will get to them as quick as the DD do that go out on the 28th

getmore4less

You can only move payments once(to get the effect of changing which pay period) so not worth bothering with in most cases.

Fix the problem which is you might spend the money.

Set ALL DD from one account not used for other spends and do SO on pay day to cover everything that will go out of that account from the account you get paid into.

There may be an advanatge of paying ASAP after pay day but that will depend on how the interest is calculated.


You also have to sort out the issues of weekends and BH with a SO, just setting up for the 28th won't work.

You also need to check the billing periods to make sure your payment falls within the period for that min payment

Noobie2011

getmore4less wrote: »

You can only move payments once(to get the effect of changing which pay period) so not worth bothering with in most cases.

Fix the problem which is you might spend the money.

Set ALL DD from one account not used for other spends and do SO on pay day to cover everything that will go out of that account from the account you get paid into.

There may be an advanatge of paying ASAP after pay day but that will depend on how the interest is calculated.


You also have to sort out the issues of weekends and BH with a SO, just setting up for the 28th won't work.

You also need to check the billing periods to make sure your payment falls within the period for that min payment

Yeah i know it might be extra work but I can manage the ones that are on SO in terms of changing the date every month to make sure it goes out on the day I get paid. I have never used the money that is sitting in my account for DD and at the moment I have about 3 CC's awaiting payment and will not use the money for anything else. I think it is just peace of mind knowing that come payday as much as possible will be paid

ViolaLass

If having CC payments in the middle of the month is a problem, why not move them to a time that suits you better?

Noobie2011

ViolaLass wrote: »

If having CC payments in the middle of the month is a problem, why not move them to a time that suits you better?

Well that's what I want to do but when you set up DD with the CC companies they take the payments at different times of the month for some reason and that time can be a period so any date within that few days period.

That's why to get a fixed day payment each month I would have to either pay manually on a specific day or set a SO up to do this.