Feel so alone

Popstess

Synonymous wrote: »

Hi Pops, well done on making your first steps to becoming debt-free, you've come a long way since your first post already.

I was just reading Rolls's ideas and your comments on matched betting, and I had a few thoughts I wanted to share.

You are doing really great in a short period of time, but remember as a debt-busting newbie the temptation to spend is always hovering close-by. Everybody falls off the wagon sometimes and that's totally normal. If I were you I would carry on as you are, chucking all of your spare money straight at the worst debt - once that money is gone on the debt you can't be tempted to spend it on something else - which is a possibility if you start borrowing from Peter to pay Paul with your other cards. I'd suggest that unless you are earning amazing interest on the money you're saving to pay your Very account, to start overpaying it now - then you can't be tempted to spend it - Very really is going to incur huge interest when it runs out.

If you start juggling payments too much you could slip up and miss a payment just through error rather than lack of funds, and it will hit your credit file just the same and your chances of getting good 0% BT deals when the time comes. Be careful not to change too much at once, and to find your feet in this debt-busting malarkey, even though it's so tempting to try and do everything at once to get rid of it.

Matched betting is still gambling, and having looked into it myself in the past I decided it would take too much time to be confident enough in my knowledge that I wouldn't lose money through an error as much as anything else. Even using free sign up offers you will still probably have to speculate your own money initially which could have gone straight to your debt. Perhaps focusing your energy on ways to make money that have less risk and more chance of results would be better? You said clothes were your addiction - can you Ebay some items - especially coming up to the party season - that way the things you have to show for your debt are helping you to pay it off

You might have already, but I think a definite calculation of how long you have until the Very deal ends, and how much you need to per week/month to cover this could help - then if there is a deficit you know exactly how much money you have to find/earn to get there.

Also, don't forget about that loan - even though it's fixed it is still your next highest interest rate and paying it sooner will reduce the interest you pay overall (just like overpaying a mortgage). Have a look at some calculators and see how overpaying it just a little bit per month could help in the long run. After the Very account of course!

Sorry for the long post, but last thing - one of Ninja Saving Kat's key principles is pay your debts first rather than waiting to see what is left at the end of the month. So if you do start saving £xx on the gas and electric or the mortgage, set up a standing order and send that surplus straight to your debt - that way you wont miss it or splurge in another area instead.

(Hope none of this sounds too militant - I tend to take a hard, practical line on debt as NSK does!) I'll join you counting down til payday so I can fiddle with my spreadsheets and write the next budget

Hi Synonymous :hello:
Thank you for all that advice it's really helpful. I think I probably am trying to bite off more than I can chew really. Looking at my first post I've been tackling things for less than a month so I think I need to be more patient it's just so hard it's like dieting (which I'm also rubbish at) you have to be patient consistent and stay on track!
Must keep going.....must stay on track.....
I don't have any savings to use to pay off my debt I have started an emergency fund but there's only £20 ish in it and my reason for starting it was in case I get any emergencies in the future I can use that instead of CC's of overdraft.

I can see what you mean about paying debts first but I'm not sure if I can as I genuinely don't know how much I'll have left out of my "spending" budget each month. Maybe after this month I will see how much is left at the end and next month I could use that as an overpayment to my debts. I'm just a bit worried about running out of money and ending up in my overdraft.



No no you haven't I really appreciate all the advice I really do. I can't talk to anyone in real life about my debts because I'm so ashamed.

Yes I think I need to put some more stuff on eBay too. Good idea!

I probably need to take a second job at the evenings or weekends but I'm worried about my son because I already use all available childcare while I work full time through the week. I'm also worried about tax if I get a second job (eg bar work) would I even benefit? Or would most of it go to the tax man?

Sorry long rambling post

Popstess

joedenise wrote: »

I agree with Synonymous. It is far better to pay off what you can as soon as you can from your high interest borrowing - as he says if you're saving it to pay it off when the 0% runs out and you want money for something else it's too easy to just "borrow it" from those savings. Much better to just pay it off the Very account.

Once Very is paid off, he suggests starting on the loan but before doing that you need to check with the finance company whether you are actually able to do this as, like mortgages, they sometimes have an Early Redemption Charge on them. I've certainly had loans like that in the past and it's just better to let them run their course.

Denise

Hi Denise :hello:
Thank you for the reply
Ah yes I had a look at my halifax loan and it doesn't look as though I would be charged for overpaying but not 100% sure. I'm not in a position to over pay that just yet anyway to be honest.

My priority is my very account before my BNPL's finish.

Actually I probably need to have a go at the snowball calculator again.

Popstess

Synonymous wrote: »

That's a good point Denise - some wont let you, as you say, some early redemption charges don't kick in until you overpay a certain amount, such as a percentage of the total loan, per year. But definitely check either way and then you know for sure what your options are. Even if you could overpay I would send a bit extra to it but also be planning what you're going to do when the 0% ones run out, know what each interest rate will go up to etc. You never know if you'll get the 0% deals, and if so how high/low a credit limit you will be offered.

Forgot to also say, the quickest way to stop paying for your premium Halifax account would be to ask them to downgrade it to a Reward Current Account - there's no fee and you still get the £5 reward if you pay in £750? a month and have at least two direct debits going out. Should be able to do it same day and you can put that monthly fee to your debt, then you can decide later if you want to switch fully elsewhere. Going in branch would be easiest way to sort it unless your existing account is online only.

Oh great thank you I will give Halifax a ring as soon as and ask them to change my account to a reward account rather than the ultimate reward account that I have ATM.

Popstess

I'm so sad right now, I'm sat here crying I can't sleep (again) I have work in the morning and I have to chair and important meeting. I k is I'm going to be exhausted. I'm lying in bed crying I just feel so so unhappy. I know I've only myself to blame for the mess I've got myself into so I guess you could say I'm just feeling sorry for myself.

Please tell me there is light at the end of the tunnel and things will get better for me.

PurpleFairy26

I couldn't read your last post and run. I'm sorry you're upset there will be down points in your journey but there is light at the end of the tunnel. Be proud to be dealing with your debt and look back at how far you have come in the last month. And even when the totals don't seem to be going down too rapidly, just remember at least they are not going up. Imagine how much they would have increased if you had not made the changes this month.

Hope your meeting is ok, be kind to yourself.

f0xh0les

Just breathe, you are having a wobble. It is normal.

Take care of yourself today.

rolls99

Popstess wrote: »

I'm so sad right now, I'm sat here crying I can't sleep (again) I have work in the morning and I have to chair and important meeting. I k is I'm going to be exhausted. I'm lying in bed crying I just feel so so unhappy. I know I've only myself to blame for the mess I've got myself into so I guess you could say I'm just feeling sorry for myself.

Please tell me there is light at the end of the tunnel and things will get better for me.

Popstess as others have said - all perfectly "normal". Since your first post, you are yet to receive your pay for this month and so it's early days.


But whatever, you are already in a far better place than you were. Nothing (in terms of what you owe) has changed here except that you now have a far better handle on it and are at the "pre take off" stage.


The chances are, over the next month or two, you will need to "crunch the numbers" again, (and probably more than once) but you've already done it.


This will help refine things and keep track. Even if that's all you do and you make no, or very few "alterations" it is still a massive positive compared to doing nothing and spending without thinking.


You deserve credit thus far and I am sure from now on too.

rolls99

joedenise wrote: »

I agree with Synonymous. It is far better to pay off what you can as soon as you can from your high interest borrowing - as he says if you're saving it to pay it off when the 0% runs out and you want money for something else it's too easy to just "borrow it" from those savings. Much better to just pay it off the Very account.

Once Very is paid off, he suggests starting on the loan but before doing that you need to check with the finance company whether you are actually able to do this as, like mortgages, they sometimes have an Early Redemption Charge on them. I've certainly had loans like that in the past and it's just better to let them run their course.

Denise

A couple or a few points:


To tackle debt, there's a need to:


1) Not add to the debt
2) Understand incomings and outgoings
3) Budget accordingly


In whatever order you prefer.


While I wholeheartedly agree that "every spare penny" should attack expensive debt, while being technically correct, it does not take into account "unplanned spends" - for instance, say a puncture on the car or anything else for that matter.


If you do not have some sort of spare money sitting for this, then you have no choice but to use credit of some sort to pay for something. It's therefore imperative to have cash aside for such things - with even a little bit extra.


In fact there's an argument to build a regular amount into your budget for this, even with debt.
Of course there might be a temptation to spend, but, that might be there anyway: as for spending on credit, well, if there is also spare money there is a choice: use the money or use credit: if the money isn't there, there's no choice.


The great thing about this forum is the number of people with good ideas (and every one is valid) - however - Synonymous and Joedenise - I would say this: assuming (all things being equal) tackling one debt (costliest, or potentially costliest) at a time is a "best option", just suppose this.


If the Very account was now at 30-odd % and there was space on any credit card at a lower APR to clear it - would you suggest - just like a "credit card shuffle" - to pay Very off with a card?


This would be good financially since it would mean less interest. As with any "credit shuffle" - and other than interest at the lowest you can get it, for less cost that doing nothing; and, because the debt is shifted, it stays the same overall. You wouldn't say "don't pay Very off in case you get more stuff on it" (although of course you aren't - but the option is still there) - and so while, as you say "temptation" might be there, that's something that's an unknown until (or if) it happens.


Since Very seems to be the main issue looming, it's a case of knowing all the promo periods, current interest rates and payments, and planning around that.


My suggestion regarding the Barclaycard to "pay" Very - however it's done - would perhaps cost some interest (using the method suggested) but I'm sure there are other options too - but what would be the "lowest interest charge" to basically kill off the Very account using available credit now, or what is available in a few months?


Another point is that ignoring "shuffling your debt" which isn't really "adding" to it substantially, using credit in and of itself is perfectly fine.


The issue is using it having not planned for it. Even when in debt, using what you have available (or bits of it) to manipulate things and set the groundwork up in my mind is practical.


To chuck "all available" at debt immediately while tempting and undoubtedly cheaper, doesn't address "spending money" for irregular expenses (if it's not budgeted).


No one bats an eyelid at balance transfers (even paying fees) for 0%, or lower interest to shift debt; similarly, "spending" on credit for a month or two and paying it down is considered normal.


Provided it's calculated, budgeted and planned I see no reason not to manipulate any credit you have, including even spending a little if needed - to establish the course to being debt free; it's not the same as spending willy nilly in an unplanned way; and whatever the endeavour, as we all know the foundations have to be there to begin with and that's why most things seem to take a while to get going - but by getting a good plan (preferably one that's a little pliable), and getting it set, the project will flourish. If getting the "pliability" means being a little creative with shifting and using what credit you have, I'd say why not?

12_month_challenge

Hi Pops

I hope you're ok and still not sad

I agree with the above replies and totally agree that you are having a slight wobble. I've had many of them since I started.

Remember we are only just out the starting block and we both know that its gonna be an up and down struggle but you are going forward not back Even a small step forward is better than backwards one

Keep your chin up and when you get paid this week and you make payments (however small) it will hopefully boost you up again.

Sleep well tonight
x

pennystretcher

Hi from me too and well done beginning your DFW journey.

Worth giving Tesco a call to ask about the interest rate and see if you can lower it?

Read this article (Step 2: Call and ask them to cut the rate) before you call them though
http://www.moneysavingexpert.com/credit-cards/cut-credit-card-interest

You can always tell them that you've seen that AA does a no fee 0% for 22 months (see below) and unless you get your interest rate reduced (always try to haggle for 0% at least for a few months) you will transfer your balance away from their card account..
http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#aa22