Saving/debt advice

AshKitch

Hello everybody!

Mine name is Ash and I am new to the forum. I have always been very rubbish with money, despite earning a reasonable wage have always spent it as fast as it comes in, at times - even faster.

I have amounted around £6000 in credit card debt over the past couple of years and have now decided I can’t go on like this. I also have my first baby due in July, which has also prompted me to get my act together in regards to buying a house, I am 28 years old.

So I have taken a look at my finances, looked at what goes in and what goes out, I’ve been accepted for a new 18-month 0% balance transfer card which I will shift as much as possible onto (around £4500, limit permitting). I also have a current 0% card with £1300 on with another 28 months of 0% on.

I work as an electrician and currently earn £15.89/hr. I do a minimum of 40 hours per work, but have the option of unlimited overtime as we are so busy at this time. With no overtime I take home around £2100/month. I am looking to boost this to around £2400 by working overtime.

I currently have £1200 which goes out for rent, car finance, bills etc. And am looking to pay off £250/month off the new credit card and £50/Month off the existing one (£1300) which should hopefully see them cleared in around 18 months or so. I am then thinking of opening a LISA and depositing around £330 a month into that, and also switching banks to HSBC to receive the £175 bonus (which I’ll either save or pay off more of the credit cards) and then taking advantage of the 5% savings account, which I plan to deposit £250/month into. I should then receive the maximum £1000 bonus on the LISA and also max out the £3000 limit on the saver - netting an additional £125.

All of this totals to just short of £2100/month. Leaving me with ~£300-£350 for living, which I think is enough, at least until the baby arrives. Then I may need to rethink.

I guess I am just asking for advice on whether this seems the beat approach, if those accounts are the best places to be putting my savings, and also if I should just focus on paying or the debts before I save any money.

Thanks

iquit

Hi there, sorry I haven't enough experience to be able to advise you. I would how ever suggest posting on the debt free wannabe forum or the savings and investments forum. You migh get more responses there. Good luck.