A Ditherer's Diary (again)

Naomim

I read something on here about credit card companies not liking people only making minimum payments and it reminded me of something I used to do.

So I started with my minimum payments. If they totalled £200 across 4 cards and I paid £50 to each. The next month the minimum payments would be £49 but I would still pay the £50 giving each a small overpayment. I think I need to do my snowball and see what I can do.

I went Christmas shopping yesterday. I have the money saved up so no credit used. I found myself wandering round the ladies clothes in Primani and had to give myself a good talking to that I wasnt shopping for myself. I did treat myself to a coffee as I've not bought one in the week and needed a break from hot shops.

Going to shove a chicken casserole in the slow cooker and get get xmas decorations up today.

Naomim

EssexHebridean

Oh goodness yes "Stealth repayments" are definitely a thing. Set all CC payments (on cards that are not being used ONLY!) to a few pounds above the minimum, and just leave them. The amount paid doesn't fall over time, so you make more of an impact on the capital balances, and you are already paying that amount out each month so you never notice the difference. Also means that you don't acquire a few extra pounds left over each month that then gets frittered because you forget it's there as it's not in your budget. I'e done that with my current 0% card - that's been getting £105 a month (the initial minimum was £101) plus did get one £1k lump sum and the minimum *should* now be down at just under £70 so that's a pretty big difference being paid each month.

Remember to keep your eyes on your affordability checks via the MSE credit club for potential 0% offers, too.

Here's a challenge for you - see how much impact you can make via savings from your budgets/surveys etc through the remainder of this month to leave your next account in a position where it can be cleared in January. I bet you can do better than you think! :T

enthusiasticsaver

Good plan to target Next first and set direct debit slightly above minimum. As you say minimums only flag out warnings to credit card companies and they can up the minimums if they feel you are in persistent debt.

Naomim

EssexHebridean wrote: »

Oh goodness yes "Stealth repayments" are definitely a thing. Set all CC payments (on cards that are not being used ONLY!) to a few pounds above the minimum, and just leave them. The amount paid doesn't fall over time, so you make more of an impact on the capital balances, and you are already paying that amount out each month so you never notice the difference. Also means that you don't acquire a few extra pounds left over each month that then gets frittered because you forget it's there as it's not in your budget. I'e done that with my current 0% card - that's been getting £105 a month (the initial minimum was £101) plus did get one £1k lump sum and the minimum *should* now be down at just under £70 so that's a pretty big difference being paid each month.

Remember to keep your eyes on your affordability checks via the MSE credit club for potential 0% offers, too.

Here's a challenge for you - see how much impact you can make via savings from your budgets/surveys etc through the remainder of this month to leave your next account in a position where it can be cleared in January. I bet you can do better than you think! :T

I've had a little play with my bank account forecast spreadsheet. It's done until June 2020 using the figures I currently pay on the credit cards. At the moment I'm going to steer clear of looking for any 0% offers. I just don't think there's any chance I will get them until I have a few months of overpayments under my belt.

I do have a question about a credit card though. I have one with a £5k limit and nothing owing on it at all. No offers on the account (I checked). I don't have the physical card as it was only for a balance transfer in the first place. Should I close this account or is it better to have "credit" available even if it's not being used?:undecided

enthusiasticsaver wrote: »

Good plan to target Next first and set direct debit slightly above minimum. As you say minimums only flag out warnings to credit card companies and they can up the minimums if they feel you are in persistent debt.

I think I'm going to put the £80 savings I took from 10yo and pay this against my NEXT card. We've had £50 refunded from Google Play and the in-laws lent us £600 which I'm paying back at £50 a month. I know I could give this money to them but they aren't charging us interest.

NEXT balance £124.15
less £80 from 10yo
less £12.25 Prolific earnings
less £20.00 usual payment
leaves balance of £11.90. I can find this!

I also have £100 ready to pay out from Quidco which I think I'm going to put against the Barclaycard debt as it's the next highest interest charging. Although the minimums will go up in February as the 0% part of the balance finishes.

In general everything else is bobbling along. I have a couple of mid month DD's coming out of the account but it looks like we're not going to go over the overdraft and have more spare in the account this month than we did last month. However, I do need to get a new duvet cover for 14yo bed. Looked in Wilko's at the weekend but all very girly think I'll have a look on Groupon.

Also not had so many NSD's Monday was an NSD. Yesterday was £1.50 as I posted a dress I sold on FB and today was £4.32. I bought a jacket potato to have for lunch 32p. The £4.00 was the Christmas TV Times. :eek:

Stay frugal.

Naomim

EssexHebridean

If it were me I think I'd close that empty card as currently it's going to stack up that you have credit availability on there even if not being used? My gut feeling is that this MIGHT go against you, although I could be wrong there.

Wait for the New Year's sales for the duvet cover if you can? Then check online for various options - remember the likes of Tesco & Morrisons also do bedding, as do Primark.

Seriously they are now charging £4 a go for the christmas TV magazines? That is crazy money!

As for Next - hell yes, you can SO do that!

Naomim

Eeek, so the car had a little wobble when I went to collect 10yo from school. Was about to park down a side road and was just turning round and the battery and brake lights came on and I lost power. Looks like I might have to get that emergency fund up and going quick!

Naomim

I have some good news! MrM has confirmed he is getting a £2k (pre tax) Christmas Bonus and a 3% payrise. It's a bit of a surprise as he's had rocky year at work with new Managers. I think I'm going to earmark £500 of the bonus straight for the emergency fund and the rest will knock down the overdraft.

This brings me to another "credit line" question. When we reduce the overdraft, do we ask the bank to physically reduce the overdraft too? At the moment we have £4,650 available overdraft and I don't want it that high but I'm sure they do something silly like credit check you to lower it and I don't want searches appearing on my credit score places.

Last month, I set up Monzo pots for just a few things. I save for Christmas into a savings account and wasn't putting anything by for emergencies, car insurance, car repairs etc. Yesterday I set up lots of pots and a standing order with my bank to transfer it over on the 1st of the month. I'm ridiculously excited about the piggies :j

I did a food shop at Ald! today. It was £79.52 which is average for what I spend when I do my online shop. I guess I did get more for my money BUT there's also stuff I can't get in there and need to get from one of the big boys.

Not so great news, the car did the same today as it did yesterday. I'll have to keep my eye on it and see. It did remind me to purchase my breakdown cover. I was with Greenflag and it was due for renewal on 5th Dec but was a ridiculous price. I cancelled but hadn't purchased a new one despite having earmarked the money on my budget. That's now done so at least if I do breakdown somewhere I have cover :T

I have still been meal planning, this weeks offerings are:

Wednesday - Toad in the hole & mash (I made this last night)
Thursday - Fajita's
Friday - slow cooked ham joint - not sure what with yet
Saturday - Battered Cod & chips (from the freezer)
Sunday - Roast Chicken
Monday - Chicken Pasta bake
Tuesday - UFO - unidentified frozen object :rotfl:

Stay frugal

Naomim

lucielle

Hi I'm coming out of lurkdom. When I had an overdraft I made an arrangement with Barclays to reduce it by 10pw until it was cleared. Even if it meant a credit check I would be inclined to reduce it as they are so easy to use and incredeibly difficult to get out of.

HTH
L

Naomim

Naomim wrote: »

Not so great news, the car did the same today as it did yesterday. I'll have to keep my eye on it and see. It did remind me to purchase my breakdown cover.

So this prompted me to check when our MOT's were due and mine expired in October!! So now I have to get this booked in so it will probably be paid from MrM's bonus. My car NEVER sails through an MOT.

Naomim

SuperMoose

Naomim wrote: »

So this prompted me to check when our MOT's were due and mine expired in October!! So now I have to get this booked in so it will probably be paid from MrM's bonus. My car NEVER sails through an MOT.

Naomim

You probably know this but in case you don't. You can't drive your car without an MOT unless it's going to a pre-arrranged MOT test or to/from a place to be repaired.
Info here:
https://www.gov.uk/getting-an-mot

You also need to chcck your insurance as you might not be covered if you don't have an MOT.