New SOA - next steps

ohdearhowdidthathappen

Grazeley wrote: »

I've just set up my childcare account on government gateway. Will pay funds in on next payday and give it a whirl!
It sounds good!
Assuming I know I need to pay £150 to my childcare next month - I will pay in £120 and the government will pay in £30?
Thats amazing!

Brilliant, I'm glad the tip was of use .
Yes, you've got it right... you pay £120, they top it up by £30. Makes a huge difference, from September, my childcare bill will be £600 and govt will be paying £120 of it :beer:
You can use this account for any OFSTED registered childcare - so school holiday clubs, before/after school clubs, childminders etc... you just set up the payees and credit each one as you need

getmore4less

If not done already I would do a review of the last 12months income debt and spending to see where the money was going to check nothing is missing from the SOA.
A spending diary is essential going forward to keep track.
Also start thinking about thing not on the SOA that will be coming up.

For every £1overspend it require £2 of cutbacks to pay off over the same period.

The biggest problem is the secured loan, check with the broker what you need to do to improve the chances of getting that rate down, it might also be worth looking at longer term next change to free up money for other debt.

Grazeley

getmore4less wrote: »

I am a fan of the long 0% purchase CC, takes a bit longer to load them up but no fees which make BT cards 2%+rather than zero.

Might be worth looking for one later this year to start using to migrate the money from the cards that are going to run out.

If you can overpay the 32k without penalty even a long lifetime BT card may be worth looking at if the min payment won't be too high.

Thanks getmore4less - sorry my brain is mush and I am trying to make sense of your suggestion.

So I could get a 0% purchase CC instead of a 0% balance transfer - how would I migrate the balances from the cards whom the interest free period is due to end ?

Or yes once I have cleared some of the CC debt - a 0% Balance transfer card could be an option to clear the 32k but I dont know how I will pay a secured loan with a CC?

Grazeley

getmore4less wrote: »

If not done already I would do a review of the last 12months income debt and spending to see where the money was going to check nothing is missing from the SOA.
A spending diary is essential going forward to keep track.
Also start thinking about thing not on the SOA that will be coming up.
Yep indeed, have started a spend diary and making note of all things that might crop up so can plan for
For every £1overspend it require £2 of cutbacks to pay off over the same period.

The biggest problem is the secured loan, check with the broker what you need to do to improve the chances of getting that rate down, it might also be worth looking at longer term next change to free up money for other debt.

Sorry what do you mean by this last para, longer term next change?

getmore4less

Grazeley wrote: »

Sorry what do you mean by this last para, longer term next change?

Mortgage over longer term to get the contractual payment lower to divert funds to the other debt.

getmore4less

Grazeley wrote: »

Thanks getmore4less - sorry my brain is mush and I am trying to make sense of your suggestion.

So I could get a 0% purchase CC instead of a 0% balance transfer - how would I migrate the balances from the cards whom the interest free period is due to end ?

Or yes once I have cleared some of the CC debt - a 0% Balance transfer card could be an option to clear the 32k but I dont know how I will pay a secured loan with a CC?

The trick with spend card is you put everything on that and the cash you would have spent goes to the other debts on higher rates or will go to higher rate.

There are super BT cards that allow cash to current account.
Just neet to watch fees, some will be lower if they have interest but initially a low lifetime rate should be better than 12.9%.


Another thought was how much of the credit limits are you using, might be worth finding out if reducing the limits would help come mortgage time.

Grazeley

Had some great advice, so just coming back to update on progress so far, and in case it helps others with ideas on what they can also do :-)

- Joined the 1% challenge and already have the first 1% (£470) ready to pay towards Creation debt and then snowball. Hubby sold an item. Also have £60 in cash ready for the next percent along with a pile of baby etc items to sell. This will go to the next Snowball (Clysdale likely)

- Fixed credit card payments at slightly higher than min payment, rounded amounts to overpay.

- Reduced spending:
> reduced my car insurance from £58 to £39 per mth. Checked hubbys and his is still ok compared to quotes (£40 per mth)
> Changed my phone contract as had ended from £20 per mth to £8 per mth (unlimited mins and text and 4 GB data) was a right ballache as Vodafone messed up but hanging in there with this one!
> Going to take out new Broadband package with either Vodafone or Talk Talk which should reduce from £43 per mth to £27 per mtg (albeit less speed but dont think we actually need all the speed we pay for)
> Got quotes from money supermarket for pet insurance to reduce from £30 per mth - just need to understand different policies so I get the correct one we need
> Changed window cleaner from mthly £15 to 3 mthly (£25, so £8 per mth over the 3 mths)
> cancelled amazon music £11 per mth
> Checking energy with Bulb as recommended by a friend, currently paying £100 per mth
> set up tax free childcare account reducing childcare from £150 per mth to £120 per mth

- Added £50 per mth to Emergency fund, stripped back entertainment from £100 each to £50 each (£10 a week each pocket money) and £100 family fund to £50 family fund (pre planned spending). Stripped back groceries to £300 per mth budget and will start from end of the month after payday and new budget. Reduced presents to £50 per mth (from £60 per mth)

All of the above cuts etc has left me with £130 disposable each month to snowball - will soon be adding to this the £50 per mth I'll save from clearing the Creation debt with my first 1% raised.

Am going to look at options for the secured loan but aware until i clear some unsecured i might be limited... have 10 mths until fixed mortgage term is up need to make some headway by then.

Lots more to do and focus on still too!

ohdearhowdidthathappen

Wow, you've been busy. You're doing great! The 1% challenge and then using it to snowball, sounds brilliant, I might nick that one :rotfl: