Aqua auto set Booster payments

A4445

You really need to sort this out sooner a few extra pounds will make little difference. You need to find a way to pay more. Stop paying to your savings and pay it to Aqua and then problem solved.

Your balance will drop quickly. I’m not sure how much you owe Aqua.

Dandytf

Why is sooner urgent when 9 months is quoted from todays letter.
I disagree not with individuals though with mse advice to stop saving.
Only a few months to April
I can possibly increase payments again from Nov'
I'll continue and update this thread if there are any changes before April

Terry_Towelling

Don't forget Dandytf, you don't need to leave the money in the H2S account to get the bonus. Your bonus is based on your highest balance during the first 2 years. As long as you leave the account open with something in it, you could withdraw pretty much all of it now and still get a bonus next year based on your highest balance so far. Yes, the bonus won't be as high but the shortfall could easily be outweighed by the savings in card-debt interest.

This is not a recommended tactic if you plan on saving for the second two year period but could save you a bit of credit card interest and a lot of stress/heartache in the meantime.

A4445

Dandytf wrote: »

Why is sooner urgent when 9 months is quoted from todays letter.
I disagree not with individuals though with mse advice to stop saving.
Only a few months to April
I can possibly increase payments again from Nov'
I'll continue and update this thread if there are any changes before April

Personally I don’t really like to see a balance on my card. I have an Amex cashback Card and a normal cash back card. I often clear these in the middle of the billing cycle. Im not trying to build any better credit history as everything is fine. I know it’s recommended to pay all in one when you have the bill. It’s never made any difference to any applications.

Not being harsh as I’ve had my issues with debt in the past but I learnt my lesson. I can see you have a DMP and you have balances of you cards. It seems you are overspending and in persistent debt. Doesn’t this set alarm bells going off? The suspension of you cards seems a really good idea to stop any further spending.

I appreciate it’s your own finances you must do what you feel is right but it would worry me.

Dandytf

Thanks a4445

I do use credit sometimes.
Working as best as I can with part time wages.
Hopefully purchases will settle down.
Some smaller savings to be made over next year etc.
I'll respond to Aqua positively with H2s -hopefully from April 1st.
No need to re explain sc dmp-one experience of unemployment.
The new term persistent debt-why have credit providers not applied credit reducing limits immediately -as they make a profit which I like successful company's making.
I always keep next 1-3 years or more in mind when making financial costing purchases.
Though I differ from watching every penny and though I did enjoy some years with no credit cards 2012-2015 I think- circumstances do change when I reverted to using credit again.
I hope from 2023 approx maybe I'll be eligible for decent term 0% card-not for spending to move any existing credit across saving interest and using home budget to clear over a few months.
AQua is next years slight concern i'll call them mon or Tuesday let them know my H2s plans and ask if 1st week in April is going to be acceptable, they already know my H2s plans from my 1st permanent debt call some time ago.

Enjoy your Amex card-I thought their apr risen recently.

Dandytf

Terry_Towelling wrote: »

Don't forget Dandytf, you don't need to leave the money in the H2S account to get the bonus. Your bonus is based on your highest balance during the first 2 years. As long as you leave the account open with something in it, you could withdraw pretty much all of it now and still get a bonus next year based on your highest balance so far. Yes, the bonus won't be as high but the shortfall could easily be outweighed by the savings in card-debt interest.

This is not a recommended tactic if you plan on saving for the second two year period but could save you a bit of credit card interest and a lot of stress/heartache in the meantime.

Almost forgot currently 425 is extra payment, though I enjoy the continuous saving style.
I for examples I can save +1K or possibly more, then that could be a considerable repayment to Aqua then saving considerable interest from that time or soon after.
Considering I'm about to withdraw 200-250 or kitchen floor my H2s I don;t think withdrawing and 5-600 for Aqua is right option for me at this time

Terry_Towelling

I know you don't want to be lectured about your finances but you have fallen into the trap of compartmentalising your finances. I.e. you view your savings and your debts in isolation when you should be viewing them as a whole.

Think about the following:-

You have £850 in H2S. Your bonus next April is £425 if your balance never goes any higher. However, you plan to take out £250, leaving £600. If you continue to pay in £50 monthly, it will take you 5 months just to get back to where you are now. Only in the final 2 months of the term will your H2S balance get higher than it is now and then by only £100. This means your bonus will go up by £50.

Obviously you can then throw the whole £1425 (£950 saved + £475 bonus) at your Aqua card. You will also then have £50 a month more available to pay towards your debts. All this is good.

Now, look at your Aqua debt (which by next month will probably be sitting at around £2300). Imagine (if you will) the last £550 of it. How long will it take you to get the debt down to £550? Certainly longer than the end of the H2S 2 year mark.

During those 7 months to next April, that £550 portion of your debt will accrue interest at 30.35%. That comes to roughly £100 in interest. So, you will be saving in H2S for the next 7 months to earn yourself £50 more in bonus but you will be paying out double that in interest to Aqua. That doesn't sound sensible.

The best strategy for you is surely to pay your £250 floor bill from H2S and then take out £550 of the remaining £600 and throw that at Aqua. You should then increase your monthly payments to Aqua by the £50 that you are no longer putting into H2S.

Come next April, you will have £50 in H2S plus the bonus payment of £425. You take that out and throw that at Aqua too.

Now, I know what you are thinking; your method means you will pay £1425 to Aqua next April and my method means you will only pay £1375 to Aqua over the 7 months to April. But looking at it like this doesn't show you how much interest you will have saved over those 7 months.

A quick calculation suggests you will save about £145 in interest from the combination of the £550 lump sum repayment and the 7 extra repayments of £50 per month. So your Aqua debt will be £95 less next April and your repayments in the interim will be substantially above the minimum requested and you won't get pestered for being in persistent debt on that card.

If anyone disagrees with the maths please say so because I have been in a bit of a rush with my calculations.

MovingForwards

Look at OPs other posts, you won't get him to see logic.

A4445

Terry_Towelling wrote: »

I know you don't want to be lectured about your finances but you have fallen into the trap of compartmentalising your finances. I.e. you view your savings and your debts in isolation when you should be viewing them as a whole.

Think about the following:-

You have £850 in H2S. Your bonus next April is £425 if your balance never goes any higher. However, you plan to take out £250, leaving £600. If you continue to pay in £50 monthly, it will take you 5 months just to get back to where you are now. Only in the final 2 months of the term will your H2S balance get higher than it is now and then by only £100. This means your bonus will go up by £50.

Obviously you can then throw the whole £1425 (£950 saved + £475 bonus) at your Aqua card. You will also then have £50 a month more available to pay towards your debts. All this is good.

Now, look at your Aqua debt (which by next month will probably be sitting at around £2300). Imagine (if you will) the last £550 of it. How long will it take you to get the debt down to £550? Certainly longer than the end of the H2S 2 year mark.

During those 7 months to next April, that £550 portion of your debt will accrue interest at 30.35%. That comes to roughly £100 in interest. So, you will be saving in H2S for the next 7 months to earn yourself £50 more in bonus but you will be paying out double that in interest to Aqua. That doesn't sound sensible.

The best strategy for you is surely to pay your £250 floor bill from H2S and then take out £550 of the remaining £600 and throw that at Aqua. You should then increase your monthly payments to Aqua by the £50 that you are no longer putting into H2S.

Come next April, you will have £50 in H2S plus the bonus payment of £425. You take that out and throw that at Aqua too.

Now, I know what you are thinking; your method means you will pay £1425 to Aqua next April and my method means you will only pay £1375 to Aqua over the 7 months to April. But looking at it like this doesn't show you how much interest you will have saved over those 7 months.

A quick calculation suggests you will save about £145 in interest from the combination of the £550 lump sum repayment and the 7 extra repayments of £50 per month. So your Aqua debt will be £95 less next April and your repayments in the interim will be substantially above the minimum requested and you won't get pestered for being in persistent debt on that card.

If anyone disagrees with the maths please say so because I have been in a bit of a rush with my calculations.

All that maths makes my head hurt :rotfl::rotfl:

In layman’s terms just pay it off! :rotfl::rotfl:

Terry_Towelling

MovingForwards wrote: »

Look at OPs other posts, you won't get him to see logic.

I hear what you say and have indeed been trying for sometime (along with others) on many past threads to convince Dandytf to see things 'in the round' - without success. However, I do also understand his position from a psychological point of view. There is comfort to be had from having a pot of cash to your name.

As long as Dandytf is moving his 'balance sheet' generally in the direction of more assets and fewer liabilities, a few hundred quid over a few years will probably pale into insignificance when looking back in the decades to come - as long as the decades are kind.