Getting back in control!

So I had my lightbulb moment this summer after dipping deep into a stupidly high interest credit card. It is time to finally get the debts under control, the spending down and to finally get some savings/rainy day money, not just a trail of credit cards haunting me. On the face of it we should not be in this position, I have a decent paying job taking in around £2200 a month after tax, the gf around £1k but this is going up once she has her nursing qualification. I think our biggest weakness is we do not budget, do not have money set aside so everything just washes in and out of the joint account or goes on credit. The bulk of the debt was amassed around the time we moved into our house over 3 years ago, and rather than shrinking has just slowly grown, other than one card which has been massively overused of late.

Current numbers:
MBNA Credit Card: £9600 (mostly 0% balance)
Tesco Credit Card: £6000 (shockingly bad interest)
Overdraft on joint account: Regularly approx £2000
Total Debt: £17600

So yesterday was a day of shredding down the bills:

Audible - £7.99/month cancelled ( I have several just waiting and a library card and unread books)
Xbox Live - £5.99/month cancelled - no idea why I even still had this!
PS4 Online approx £7/month cancelled
Amazon Prime £7.99/month cancelled
Apple Music £9.99/month cancelled
Amazon Music £9.99/month cancelled
NOWTV £8.99/month cancelled
Beer52 £22/month cancelled
Old 02 phone contract £35-40/month cancelled (I have a new phone I got before this contract was up so have been running two phones)
Tails.com - £56.55/month cancelled (sent far too much food, too expensive for now)

Gf's car insurance - £85/month with Diamond to £50.70 with Admiral, no cancellation fee since the new provider was in the same company group.

Electricity - SSE Hydro had us on a shocking rate £71/month, now with Symbio for £42.98/month

Total savings circa £200 a month

Next steps:

I would love advice on what people think is best approach for the below. Been reading loads and just a bit daunted at the moment, just glad to have began denting the total bills.

1) Budget plan for food/fuel/luxuries in CASH per month each
2) Decide on accounts and set up for bills / emergency funds etc. I think we need to build up some money to the side for the incidental things that happen in life which usually pushes us into credit usage.
3) Call up both cards and understand % interest and when any 0% expires.
4) Explore best options for debts - should I seek new credit to consolidate or not? I am very worried I will be rejected for new credit.

Replies

  • beanieloubeanielou Forumite
    82.9K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    Forumite
    Happy shiny new diary :)
    If I was you then i would be targeting the card with the highest interest.
    Anything that you can sell to help you along?
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
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