Feel so alone

Popstess

Thanks Rolls, I have put some money to one side for Christmas so can afford to buy my son some presents. Yes I could use that money to spend on debt instead but I am not going to do that.
I've been beating myself up over my debt and stupidity but I am trying to think of the positives.

The positives are I am still managing to pay all my bills and mortgage and all the minimum payments of my debts. Also most of my debt is on 0% interest except for my Tesco cc but that one does seem to be quite low interest.

rolls99

Popstess wrote: »

Thanks Rolls, I have put some money to one side for Christmas so can afford to buy my son some presents. Yes I could use that money to spend on debt instead but I am not going to do that.
I've been beating myself up over my debt and stupidity but I am trying to think of the positives.

The positives are I am still managing to pay all my bills and mortgage and all the minimum payments of my debts. Also most of my debt is on 0% interest except for my Tesco cc but that one does seem to be quite low interest.

Keep plodding away and as someone mentioned before, I agree, in the future there's no reason you wouldn't get 0% offers from the likes of your Barclaycard etc when the balance has been going down for a while, which you can hopefully use to assist in neutralising interest elsewhere if needed. in the meantime you're on the way

Popstess

I am on the way to debt freedom and I can't wait!

On a lighter note I popped into the shop with a friend just before closing, I picked up a tiger bread for 10p, a bag of my fave salad for 5p and two cheese straws for 5p.
Cheese straws made a lovely supper for us, the tiger bread I will have with soup for lunch tomorrow. And the salad will have with our fajitas on Tuesday

rolls99

Popstess wrote: »

I am on the way to debt freedom and I can't wait!

On a lighter note I popped into the shop with a friend just before closing, I picked up a tiger bread for 10p, a bag of my fave salad for 5p and two cheese straws for 5p.
Cheese straws made a lovely supper for us, the tiger bread I will have with soup for lunch tomorrow. And the salad will have with our fajitas on Tuesday

Cracking bargains there
Apart from deal hunting (and finding something you need/want) at a good price it is just a bit addictive seeing just how much less you can pay for stuff!

Popstess

Definitely! I just wish I could bring in some extra income to throw at this debt!

rolls99

Popstess wrote: »

Definitely! I just wish I could bring in some extra income to throw at this debt!

If I've missed any reference.... but, have you looked into the likes of the cashback sites?


In any event, in relative terms don't forget as you're not adding to the debt you're already "paying" extra to it!

Popstess

Yea I'm using cash back sites but as I'm trying to limit my spending at the moment I'm not getting much cash back lol.

Yes you are right I'm not adding to my debt so that's a positive.

rolls99

Popstess wrote: »

Yea I'm using cash back sites but as I'm trying to limit my spending at the moment I'm not getting much cash back lol.

Yes you are right I'm not adding to my debt so that's a positive.

Another "idea" you might want to think about; on the not "adding" to your debt theme....


(I hope some others can chirp in on this for "more and better" advice!!)


You have (at least) Barclaycard with 0% on it at the moment.


Assume you are paying £140 per month to this as minimum payment. As the debt is 0% it's always going down - but, you have interest on the Tesco.


If you are able (and stick rigidly to your budget already set) - (if there's available credit) - how about this:


Spend £100 on the Barclaycard for Groceries; you then KEEP this £100 from your budget, and, still Pay your usual payment to Barclaycard.

To make sure this works, add on, say a fiver to the payment; this "Gives" you £100 cash which you can use to throw at Tesco or Very.


Since you are already making the £140 (minimum payment) anyway to Barclaycard, you don't need any "new" money to cover the payment.


Your minimum payment to BC will go up but only by a couple of pounds since you're only spending £100.


You then make your normal payment to Barclaycard (plus a fiver say) - which will effectively "pay off" the £100 - and still bring your 0% balance down.


Obviously this won't bring the main balance down as fast as it was, but, for the moment you are still saving money because it's at 0% and no interest.


So the £100 can pay down Tesco (or go to Very, and stem the high APR when that kicks in).


This way, you can get a "Free" extra payment to any more expensive debt - BUT - your "Spend" on Barclaycard (because you already have a balance) will NOT be "interest free for a month" or whatever - you will be charged interest on it from the day you spend.*


So the best option is to time the spend a couple of days before the statement, or before you pay the statement; then that is the least number of days.


Since your payment must cover interest balances first, you'll pay it off immediately with the payment you normally make; you could do this each month, even with £20, £50 or whatever while your 0% lasts at least, or just to gain an extra few quid in the bank.


You are basically "holding" the balance at 0% for another month or so.


Key point - you are NOT "Adding" to your debt here if you use the £100 to pay down Tesco (or Very). and even at that, Barclay ultimately is a lower APR than Very!


*If you've no balance on the card, when you spend you get an interest free period as long as you clear it on the next statement. Often, cards with a 0% balance don't give this. The 0% deal still stays for the 0% balance, but, if you spend on the card, you don't get that period where they don't charge interest.


However, interest on £100 for a few days is not a huge amount and provided you "cover" the payment with an extra fiver or so you should be OK - BUT - don't jump in before others can perhaps add some information - I am not 100% sure how it will effect your 0% - but it's an idea to think about!

Popstess

Gosh thanks rolls god that in depth explanation, that's certainly somethings to have a think and try and get my head around.

In other news I have just applied to switch to a lower rate mortgage offer as mine has just come to the end of its fixed interest period. Keep your fingers crossed for me that they accept it would be a saving of £34 a month for 2 years if they agree

rolls99

Popstess wrote: »

Gosh thanks rolls god that in depth explanation, that's certainly somethings to have a think and try and get my head around.

In other news I have just applied to switch to a lower rate mortgage offer as mine has just come to the end of its fixed interest period. Keep your fingers crossed for me that they accept it would be a saving of £34 a month for 2 years if they agree

Everything crossed for you


Regarding the "Spend" on the Credit card:


Say you have £4000 at 0%. That "Should" be a ring fenced amount - so
your statement says "0% until January 2017" or whatever.


So, taking this, and Very, you owe £5000 in total. (£1000 to Very)


You make a payment to Barclaycard of say £140, and your balance lowers by this amount;
you owe £140 less to Barclaycard (so your debt drops).


BUT Very is still sitting at £1000.


Say your shopping budget is £100 a week.


For one week, spend £100 on the Barclaycard.


This "Frees up" £100 from your shopping budget.


Pay that £100 to Very which takes it down to £900


In the meantime you pay your regular Barclaycard payment.


You will pay standard interest rate on your £100, but
because you are clearing this off by paying £140 (i.e. pay in more than you spent)
then the interest is minimal.


Your 0% balance will not attract any interest, but, it will only drop by the amount "Over" what youve
spent minus that and any interest - so about £30-£40 (about £100 less)


That doesn't matter because for the moment it's not attracting interest.


Obviously you need to be aware of when the 0% ends but, it is still cheaper than Very so
all things being equal you'll save money if you can't attack Very another way


What you wind up with, is having paid down Very (and avoided their higher interest).


You could do this each month, which will mean paying, over time, interest on £100 for a few days.


You still have the same shopping money as if you spent it anyway (i.e. minus the £100 to Very)


If you could manage this for ten months, that means Very is done and dusted then you can concentrate on cards.


At any rate, Barclay is still a lower APR than Very too.


Although you are "borrowing" on the Barclay, your overall debt (by paying Very) is still dropping.


Remember, tho - stick rigidly to the £100 (or whatever works) but you're effectively
Transferring Very onto Barclaycard at £100 a month and paying a small amount of interest.


but Please double check your 0% isn't affected; it shouldn't be but best to make sure