Overspent and What Do I Have To Show For It?

metalhead41

Just a little update today, I received my bonus this morning, so the majority of that (just shy of 1900) has gone on the HP, so that account is now closed and will save me payments of 126.57 each month 🙂.
So that leaves me with the following outstanding:
Bank loan = 4935.50 (monthly payment of 283.97)
Credit card = 6881.53 (fixed monthly payment of 350 but have been adding an extra 300 when possible) 

This gives me a little breathing room now to put that saved money in either my HTB ISA or against one of the other debts.

The remainder of the bonus money (about 800 as taxman took a lot more than expected) will probably be split between the credit card and a new tablet (I know not so money saving but it is on its last leg now). 

Sarahwithlove

Which of the loan and credit card has the highest interest as I would tackle that first. Maybe set up a standing order to the h2b for £50 p/m it's not much but its something and then other £75 can go on the debt? 

metalhead41

Credit card is 0% and loan is 15%ish.
Actually, sorry that's not quite true, the credit card is 0% on the balance transfer but as I had to use it a couple of months ago, what I spent on the is 21%. Based on the most recent statement, that is 1100 that is having the 21% being applied. 
So I should get that 1100 paid off of there and then look at the loan to make overpayments on. 

Sarahwithlove

metalhead41 said:

Credit card is 0% and loan is 15%ish.
Actually, sorry that's not quite true, the credit card is 0% on the balance transfer but as I had to use it a couple of months ago, what I spent on the is 21%. Based on the most recent statement, that is 1100 that is having the 21% being applied. 
So I should get that 1100 paid off of there and then look at the loan to make overpayments on. 

I agree seems most logical thing to do. How long is the 0% do you think you will clear it in time? 

metalhead41

The 0% lasts until Jan 22 I think, so plenty of time to clear it. 

Kitten868

15% interest! Ouch! I think focusing on the loan after the interest accruing part of the credit card is a good plan. Sounds like you're doing really well with everything. Its tricky being diplomatic with balance transfers and not applying for too much. Especially with a mortgage application on the horizon. 
Great overpayments and great commitment to it too. Massive well done on saying goodbye to the HP!
Keep going! XXX

metalhead41

Hello again everyone, how are you all?
This update is less of an update and more of a question before I take action. My credit card company (Virgin Money), have emailed me saying that new balance and money transfer offers are available to me.
If I took advantage of the money transfer offer it is 0% until 31st May 21 (with a 4% fee) , I could use that to clear the Santander loan and then just focus on the credit card alone. However, my question is (and I realise I should really be asking Virgin Money), how does this effect my current 0% deal on the card? Does it overwrite it, or is it in addition to it? If it's the latter, then I think I may very well do this as I can continue paying the 650 towards the credit card and be paid off by October next year and as an added bonus have an extra 280 freed up each month to go into my home saving pot.
Is it worth doing this? I assume other moneysavers have done it in the past. 

metalhead41

Hi again, just a tiny update from the previous post, I spoke to the credit card company whonsaid the offers stack up, with payments going to the one that ends the soonest/has the highest interest. So with that knowledge, I 've taken advantage of the offer and have now paid off the Santander loan.
So now I only have the credit card left to pay off. I can continue paying £650 a month and have it all paid off within the lifetime of the 2 transfer deals AND start saving towards getting out of rented accomodation 😊
There's still a way to go, but the end is in sight... 

Kakiste

Wow well done! Bet that's a really great feeling to be down to just the single debt.

metalhead41

Thanks, I'm still not great on spending and probably order far too much online atm, but the self control is getting better each month and it's nice to know that I haven't even been in my overdraft once now in the last 13 months.