Trying to clear debt and save for a house.

jenny+luke

Hi,

so I've just paid £484 off my cards. I will NOT be spending no them!! I've totally paid off the one that charged interest. If I pay this amount off each month I will be clear of debt in 4 months. Fingers crossed

anna_1977

If you've both got iPhone 6 then sell them - they'll got for a few hundred each online, buy a cheap handset and pay a card off

Petal88

If you're struggling to figure out where your money goes, maybe you should consider getting the YNAB free 34 day trial? Should be extra satisfying to set up today as it's the 1st of the month as well

redux

I see people on other threads being advised to cut up credit cards, but many of them are in a more desperate situation and I don't think you need to.

I'd suggest use the card you've just cleared for new spending, and pay it off in full each month. This means you're getting interest free credit here too.

Then anything paid to the other cards is reducing overall borrowing.

But I'd even say that while they have the 0% interest offer, don't rush to pay them off, but take advantage. Divide the current balance by the months remaining on the offer to get a monthly amount. But then pay only the minimum for now, and pay the rest temporarily into savings so you are earning interest. This will also help get you used to the feeling that when these are eventually cleared the money is coming from the savings.

And let's look at those savings. If you check another section of this forum, you'll find that the best interest rates of 3% to 5% are on certain bank current accounts, though only up to certain balances for each. If you aren't already in these, and are only getting half a per cent or so, look into TSB, Nationwide and Club Lloyds. All three also have a monthly savings account you can open alongside, same 5% 5% and 4% rates respectively.

chelseablue

Regarding the Sky, we pay £46 a month for ours.


That is for TV (including Sky Sports, but not movies), Internet and Phone (including line rental).


We added Movies on just for Christmas then on 2nd January I took it off because according to my partner Im tighter than scrooge haha

jenny+luke

anna_m wrote: »

If you've both got iPhone 6 then sell them - they'll got for a few hundred each online, buy a cheap handset and pay a card off

thanks for the suggestion, but I don't want to sell ours phones being strict with my budget is the way forward.

jenny+luke

Petal88 wrote: »

If you're struggling to figure out where your money goes, maybe you should consider getting the YNAB free 34 day trial? Should be extra satisfying to set up today as it's the 1st of the month as well

thanks, I'll have a look at starting the trial this evening

jenny+luke

redux wrote: »

I see people on other threads being advised to cut up credit cards, but many of them are in a more desperate situation and I don't think you need to.

I'd suggest use the card you've just cleared for new spending, and pay it off in full each month. This means you're getting interest free credit here too.

Then anything paid to the other cards is reducing overall borrowing.

But I'd even say that while they have the 0% interest offer, don't rush to pay them off, but take advantage. Divide the current balance by the months remaining on the offer to get a monthly amount. But then pay only the minimum for now, and pay the rest temporarily into savings so you are earning interest. This will also help get you used to the feeling that when these are eventually cleared the money is coming from the savings.

And let's look at those savings. If you check another section of this forum, you'll find that the best interest rates of 3% to 5% are on certain bank current accounts, though only up to certain balances for each. If you aren't already in these, and are only getting half a per cent or so, look into TSB, Nationwide and Club Lloyds. All three also have a monthly savings account you can open alongside, same 5% 5% and 4% rates respectively.

Thanks for your suggestions, all good ideas I will certainly look at current accounts.

I think I'm going to split any spare money between debts and savings, that way both are going in the right direction

thank you

redux

About those bank accounts, some of them require regular income each month, of £500 to £1500 for the 3 mentioned. But don't let that put you off, you just shunt existing money around between them. The Lloyds account also requires 2 monthly direct debits, so move a couple across. All discussed in other part of forum plenty of times.

getmore4less

If you want Sky movies get a Now TV box and ad the movies every so often, find some cheap vouchers and and it does not cost a lot.

Anyway your main problem is priorities and missing money on the SOA.

Amount left after debt repayments....... 988

you clearly don't have that much left so it is going somewhere if you put £500 on the cc and are using up the other 488 and then using the cc again(you have big leaks in the SOA)

Go back over 2015 and find out what you really spent and update using that real data as minimum.

car insurance? and car maintenance need to be higher for example.

savings
regular savings standing order.......... 60(actualy 240+)
Help to but ISAs........................ 400

keep the £400 ISA and allocate the other savings on the SOA along with the surplus to emergency fund(missing off the SOA).

as the end of the month anything left goes to overpay the CC

to start budgeting properly you need to look longer term...
eg : Count up the cost of every white good you have and save 20% a year for replacement(this can drop to 10% after a year).

car will need replacing at some point but with only £40 fuel going in do you need one?


The problem you currently have is you are saving money by borrowing it,

solution pay of the debts and save whats left each month if you want to save more cut your spending don't increase your borrowing.