2019 is the year to do something about it!

Abz12

I used to be a regular on here at reading and have previously had a diary or two but life gets in the way and my debt busting ways turn into spending ways!




I am back again with my third diary with the hopes that this year it will be different and at the end of 2019 i will be debt free.


Most of my debt was racked up by doing up my house but some of it, honestly was me being greedy and buying clothes, some of which i don't fit in to or wear! Im ashamed to say.


I am in an ok situation money wise and can afford to clear all of my debts with money left over but all of my debt is currently on 0% deals and i just don't know whether to leave it or use the money for an extension on my house which could add value and keep paying my debt off month by month. I am really after some advice if possible?


My debts:
Barclaycard - £4,124.85
Virgin - £2,985.81
Nationwide - £1,300
Halifax - £1,750.03
Mom - £1,000


I am owed £1,924.47 by my OH which he pays monthly.


I am currently overpaying my mortgage and my Halifax card.

beanielou

If you put up a SOA we could advise you more.

Abz12

I don’t know where to get one from but here goes with the breakdown.

Pay £1,900

- [ ] Mortgage £500
- [ ] Council tax £90
- [ ] Phone bill £17
- [ ] Gas & electric £124
- [ ] Asda credit card (varies every month as this is a cash back card and is used for food shopping and petrol. Full balance cleared every month
- [ ] Virgin credit card £30 (or whatever the minimum payment is)
- [ ] Bed £47.85 (I now put this on my lowest balance card as it was paid off in Oct)
- [ ] Savings £100
- [ ] Nationwide credit card £25
- [ ] Virgin £46.60
- [ ] Pension £20
- [ ] Lottery £10
- [ ] home insurance £27.91
- [ ] Specsavers £25
- [ ] Bank account £13
- [ ] Rainy day £10
- [ ] Costco £30
- [ ] Gym £11.99
- [ ] Barclays . £92.80 or minimum
- [ ] Window cleaner £12
- [ ] Halifax £17.50 or minimum
- [ ] Weekends £20 x4 £80
- [ ] Slimming world £19.95 (no longer go so this goes towards lowest balance card)
- [ ] Vets sub £30
- [ ] Homeserve £18

Water I pay sixth monthly and this just comes out of my pay, usually about £120
Tv licence is paid annually

I think that’s everything

[Deleted User]

If you search the site there is an app which your put your debts into and it will work out which to clear first etc. Personally I would not be looking at extending my property until I have got rid of my debts and have a decent credit score. I presume you are going to put the cost onto the mortgage?

Abz12

Thank you for replying - I have the money for the extension as cash in the bank but wanted to know whether people would clear the debts before building savings back up to do the extension?

[Deleted User]

The snowball calculator is what you need, Martin would say pay your debts first then think about extending the house; you will pay more in interest on your debts than you will get in interest on your money in the bank. At the end of the day its your decision.

Abz12

I don’t currently pay any interest on my debts they are all 0%. I use the Dave Ramsey method currently.

I have had a NSD today but need petrol tomorrow so will put about £20 in, in the morning.