Want to get out of my credit card

Brookside88

id suggest doing the free trial of YNAB (online budgeting software - google it) it's been a game changer for me. I've clawed my way out of the joint account overdraft in the last 2 months when we've been in it consistently for the last year. Also managed to save enough to pay for my car insurance in full within the last 4 months. it sounds like you're sensible with money but just need to be a bit more organised

EssexHebridean

Brookside YNAB can be great for some people but the OP currently is totally new to budgeting like this by the sound of things - they need to learn how it all works and at this stage learning the ropes manually means they'll have a better understanding of the process. A budgeting app may well be a great way forward for them in the future, just probably not right now.

Sncjw

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1192
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1192

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 16
TV Licence.............................. 12
Satellite/Cable TV...................... 29
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 665


Assets
Cash.................................... 4000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax clarity card...........429.......429.......20
Total unsecured debts..........429.......429.......-


Monthly Budget Summary
Total monthly income.................... 1,192
Expenses (including HP & secured debts). 665
Available for debt repayments........... 527
Monthly UNsecured debt repayments....... 429
Amount left after debt repayments....... 98

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -429
Net Assets.............................. 3,571

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I have taken off the groceries and clothes as I usually use my cc to buy them.

I haven’t added water rates as I don’t have any. I don’t live in Scotland. I just haven’t had a bill for it. The water isn’t inliced as far as I know in my rent.

I have put 429 as minim payment as I pay it off in full and this was the bill from last months spend. A bit higher than normal due to Christmas.

I have put 4000 on for cash for my isa

theoretica

What is your normal food and clothes (and what else?) credit card spend?


This month you pay off the £429 and use your £98 for spending before putting as little as possible onto the credit card. Next month your credit card bill will be significantly smaller because of this £98 and it not being Christmas, so after paying it you will be able to do all, or nearly all your spending on the debit card and definitely ditch the credit card the month after.

MovingForwards

Contact the water company and get an account set up as you do not want to get hit with a huge bill.

Also, are you claiming single person discount if you live alone?

Nothing wrong in putting a bit of food shopping on your CC and paying it off in full each month, shows responsibility and builds your credit history. Just don't go mad and earmark in your bank account what you have spent so it doesn't hurt when it comes out.

As your outgoings are £665 pm set up a standing order or transfer a bit out the moment you get paid into your ISA.

How do you get to work? Walk? Cycle? Bus? As nothing has been allocated. If it's cycle allocate £5 or £10 pm for repairs.

Maybe have another savings account to put that and gift money into to use when needed.

Also nothing for medical/ dental / clothes / haircuts? That's probably another £20 a month.

Sncjw

I have a Single person discount.

I have a cc bill of around 250 for next month.

I have a disabled bus pass and I get free travel on the metro so that’s covered.

I explained above my cousin does my hair and I rarely buy clothes for me and it’s included In credit card anyways.

I have three savings account. One a regular saver, another savings for save the change and another for a reserve but the rate isn’t good.

I get free prescriptions due a health issue.

I do have an account with the water company and they post letters but I haven’t had a bill due.

enthusiasticsaver

That soa looks ok. I always analyse my credit card bill each month to see where the money is going so you could do that for that £429. Ideally you would have a savings pot for Christmas so you could just pay the bill out of that.

I would be concerned about the fact you have not been billed for water and worry they suddenly give you a huge bill so would look into that further by contacting them. As far as I know no one in England gets free water so not sure why you have not been billed but unless it is included in the rent at some point you may have to pay that. You really wont want to sort that out just as you move out of the flat when or if you eventually get your own place. How long have you lived there?

Sncjw

I have lived here for 7 months

getmore4less

A few points.

Plus I put money into an isa account.

Add a line in the main section under the emergency fund for ISA savings
(and others if you have places you put money like the regular saver.

Then in the asset section split out your cash asset by adding lines for each of the accounts you put money into

Description....................Debt......Monthly.. .APR
Halifax clarity card...........429.......429.......20

if that is paid off in full then the spends that go on that are being counted twice, remove it from the SOA if you are intending to always have it paid off in full and put back the categories where you are spending .


It takes a while to get an SOA reflecting reality.

Every penny needs to be allocated to something either a spend or saving

once you have all those transfers to savings included the money left over will start to be more realistic.

I would start a spending diary so you can see if you have missed something.

Have a think about the last 6 month and where all your money went that might jog your memory of something you have forgotten.

---

You said in the first post you will need some clothes this year even if it is just a few pairs of knickers put something down, I would aim for around £10pm if it is just knickers and something for work, maybe make it £15pm and have some left over for next year or a treat.

have a good think about anything you might need this year and put it down.

---

picking up on this post.

What I have left over varies depending on how much I spend on the card. Plus I put money into an isa account. This 250 is for next months bill. I’ve paid 450 for last months bill this month.

Looking at the SOA if things like rent council tax and a few others are DD there is less than £200 accounted for on the rest of the items yet your CC is over that 2 months in a row.

have a look through the CC bills and see what you have missed on this SOA.

I would go back 6 months of CC bills.

getmore4less

The CC is just a cash flow tool.

You put spends on it and pay them off from income

Unless you can't pay it off in full(debt) it is not a spending category of its own.

The budget is all about the plan

The allocation of you money is to what you spend it on, not where you get the money from.

You have income and then a list of things you spend it on and places you save till you have allocated it all.


When you pay off the CC in full you are not paying the CC you are paying for the things you bought on it and it is those that need to be on the SOA.

All the CC does is allow you to keep the real cash in you bank a bit longer.