My life in debt 7 February 2018 at 10:30PM in Debt free diaries 46 replies 5.8K views

PositiveBalance

deux_x_m wrote: »

I'm struggling a bit with enthusiasm at the moment. Still plodding away, just feeling like it's never ending. Maybe it's because I'm focusing on my overdraft. Silly but it just isn't as satisfying for some reason as seeing a credit card balance drop. I'm sure it will click into place once the overdraft starts to reduce.
On the plus side the credit checker now shows me with an 80% chance of success with a HSBC balance transfer card.

Hi deux,


Paying off your OD next is very smart as this is the only one of your debts that can be recalled in an instant. At least with the others, you have a set deal, albeit eye-watering interest rates.


The more debts you pay off and the less of your overall available credit you use, the more you rehabilitate your credit score and the more attractive you appear to lenders, so it doesn't surprise me that you are now up to 80% chance of success with the HSBC balance transfer card.


How much do you have left to pay off your OD? Perhaps getting rid off this will really get you into the 90%+ chances of getting a new CC. If so, I would apply, but wait until it's almost a certainty if possible, even if you have to wait an extra month for the OD being closed to show on your credit report.



Keep going! You are getting there! :T

deux_x_m

Thanks PositiveBalance - it's appreciated.

Sadly the OD is not going to be cleared until January. It is at £3665 at the moment. Having said that we're 1/4 of the way through this year already!!
Tempting as it is to apply now, I'm going to do as you suggest and hold off and see what happens once the OD is beaten. I may check every now and then though - just in case!

Kitten868

80% chance? Id go for it! Give you some space to tackle the overdraft? A lot of credit cards tell you before they credit score you now. X

Igamogam

I bit the bullet and put my 3K OD on a 0% card......best thing I did.

deux_x_m

Payday today which included a chunk of overtime. After paying my monthly payments to my cards I am now under £40000!!!
This is obviously still a huge amount but even so I am under the £40000 mark and that has given me a big boost. Even when this month's interest is added (statements all due on the 1st) I will still owe less than £40k.
Assuming i keep going as I have been then at the end of the month (pay month not calendar month) I will have paid 20.81% of my debt. I may yet get to below £35000 by the end of the year.

[Deleted User]

Well done on being under £40k :j

deux_x_m

Still going, although not with great success in the last couple of months. Unexpected household and motorbike costs, along with two kids who are growing out of clothes and shoes at an astonishing rate have taken their toll. To be positive I have managed to pay off another couple of hundred since my last entry but I had hoped for more.
Hopefully I should be back on track this month.
My current target is the overdraft. Its under £3000 and should be paid off in March. The plan was to roll on to my Fluid credit card as this has the highest interest. However in an unwelcome development Barclaycard have been in contact regarding persistent debt. I had been paying them the minimum to concentrate on other debts. I've been paying the extra they have asked but obviously this has slowed down paying off what I wanted. I think I'll probably pay off the Barclaycard after the overdraft.
Fluid also sent me a persistent debt letter this month, but as I already pay £50 over the minimum each month and the card has been frozen since Feb '18 I'm not specially bothered. They can always reduce the interest if they are that bothered

deux_x_m

Hello lovely overtime in this months pay! And hello not so lovely servicing and MOT bill for my motorbike for an uncannily similar amount.
I suppose that it good that I was able to pay without using a credit card (first time ever?), but it was a bit of a kick in the teeth as I had anticipated paying a chunk off my overdraft this month.
Still, another month closer...

Kitten868

Have you tried any balance transfers since? Or enjoying watching your chances rise?

I think clearing the overdraft is a massive boost as the money you are allocating all your payments from is in the positive and your allocating real money thats yours. That's how it works for me anyway. So I can totally understand why you want to do it that way.

I know this is a long, hard slog but you are getting there. I also feel so down hearted about trying to do it with kids. I could just live on baked beans and wear tshirts with holes in but you have to keep paying out for kids and I find it so unpredictable. So you're doing the hard version and should be proud.

Keep going!! Xxx

deux_x_m

I haven't looked at balance transfers in a few months, as I assumed it wasn't viable for a little while yet.

However I was off work today and playing with my spreadsheet, so thought I'd have a look. Both MBNA and Fluid showed as a 95% chance of success - which is lovely but I already owe money to both of these. There were a couple of short term offers that then went to high APR again at 95%. Next was Natwest with a 90% chance. However I bank with them, and would prefer some separation. Tesco came in next with an 80% chance.

What the hell - nothing ventured, nothing gained right? Right - application accepted with a £6600 limit at 28 months 0%!!!!

See you later Fluid debt with your 25.9% interest (assuming it all goes through without a hitch). This will save me about £1500 in interest which is just amazing. It also means I should be able to clear my overdraft a month early, in February, and pay off one of my Barclaycard before the end of next year.

What a boost to this journey!