Countdown from £28k...

IrishSean

Low debt utilisation should trigger better 0% shift deals (if you need them next year). Can't see you running up debts on those cards so can't see it would hurt keeping them open esp if you've had them a long time.

You're not in your OD, no?

Again, if you can stay out of it it should show up as part of your available credit which drives your utilisation figure down, triggering better offers (apologies if that's not how it shows on your credit file). 

@ 40% it's going to be an expensive way for a lot of ppl to borrow I can see why ML calls ODs the new 'debt danger'

Pff, banks, huh?!😕

ryanm8655

Thanks for the replies.

Not in overdraft, no. But in the past I used it as my emergency fund (until it just became my fund) so it'd be symbolic to get rid of it. 

I can't see myself needing any 0% deals going forward, so perhaps I should just close them. They're about 5 years old. I've already closed my oldest credit cards.

The main thing I am thinking about is when it comes to buying a house/flat eventually. Would it be better to have lots of credit available with low utilisation? But that's thinking quite far ahead...

IrishSean

That seems to be a balancing act; when applying for a mortgage

credit history + low credit usage (pref none) + some small lines of credit open
seems to be the golden ratio.

Weirdly having some credit in use but a bigger amount available is more attractive to credit card companies, esp. for balance transfer offers.

They're scored differently: the important part for you is if they see in the last 6 years you've had high credit utilisation & u apply for a mortgage you'd want to get rid of (starting with the youngest) your credit cards. A bank's worry would be "he's a lot of credit available on CCs, he's been in relatively high debt before, if he takes on a mortgage then CC balances increase he might not be able to pay his mortgage"

That's a banks thinking, obvs, not mine! You're in totally different mindset to debt now than before.

In short, keep 1 or 2 oldest cards open (for section 75 protection spend if nothing else) & close the rest if you know you won't need unsecured debt deals like 0% shift.

👍👍👍

ryanm8655

Sounds a sensible approach. I have my BA amex that I use for regular spending to get the points anyway. A zero fees credit card for use abroad might be useful longer term (more protection if cards gets defrauded etc.) but again that's a long way in the future.

Good news, just sold one of my rarer colognes/aftershaves for a bit of profit. That's £70 added to the debt clearance/emergency fund this month. Got some others I can list next week as well.

Thanks,
Ryan

IrishSean

👍😀
N1; I got a disappointing valuation for some memorabilia I have in the attic; I might e-bay it with a reserve & see what it fetches.

Am also wondering what some of my rarer CDs might be worth; i've some classical ones with low serial numbers which are meant to be worth more (early days of CD production)

ryanm8655

I may spend tomorrow listing stuff. Meant to be visiting a mate for a socially distanced catch up in a park but not sure I’m going to get my work finished on time...

Spent a bit more today. £18 in WHSmiths on a birthday card and 3 kids magazines. No idea how that came to £18...£5 for a birthday card

Also bought a jumper in the John Lewis sale. Went in to swap a shirt where the seam had come loose but they could only do a refund as it wasn’t stocked in store. Then I’d have to buy it again online (it’s now £40 more expensive...). I elected to keep the shirt and get it stitched myself and they gave me a £15 gift voucher. Bought a navy blue, cable knit Ralph Lauren jumper for £32 after the £15 gift card was applied (reduced from £169). Have wanted one of those jumpers for years but just couldn’t justify the price tag. The good thing is that Ralph Lauren don’t change their styles, so it’ll be £169 again soon. Can’t wear it at the moment but will be good for winter. Did pick up a load of other bargains but put it all back as I didn’t need it.

Will offset the costs with selling some bits. Most annoyed about WHSmith tbh ha. I haven’t bought the kids magazines for a longtime (used to do it every time I came down) and we’ve got a long car journey at the weekend, so it’s a bit of a one off treat to keep them occupied in the car.

Payday tomorrow and then the debt clearance can happen. Will likely be up until midnight finishing work (my own fault as wanted to enjoy the last day of sun) so may well get it done before I go to bed.

IrishSean

Mate i'm edging towards fore-going my July salary savings & clearing my remainder. If I keep July spending keen then I can use any sales of attic stuff I make to balance the OD early Aug. i'll ask for an OD 0% extension too, worst n'wide can say is no😂 

Will get me to DFW faster; I think i've just reached the point of not being bothered doing the debt shuffle any more. If I had any uptick in my small share holding that would help but in real terms I should only be about £1k max behind what i'd want to save by end of 2020. Anything from the likes of Prem Bonds would be a bonus too. 

It's been useful getting the advice & encouragement on the forum: if anything it makes me want to be in debt again less than ever!

I'll still follow ur diary to completion tho
💪😀

ryanm8655

IrishSean said:

Mate i'm edging towards fore-going my July salary savings & clearing my remainder. If I keep July spending keen then I can use any sales of attic stuff I make to balance the OD early Aug. i'll ask for an OD 0% extension too, worst n'wide can say is no😂 

Will get me to DFW faster; I think i've just reached the point of not being bothered doing the debt shuffle any more. If I had any uptick in my small share holding that would help but in real terms I should only be about £1k max behind what i'd want to save by end of 2020. Anything from the likes of Prem Bonds would be a bonus too. 

It's been useful getting the advice & encouragement on the forum: if anything it makes me want to be in debt again less than ever!

I'll still follow ur diary to completion tho
💪😀

That sounds sensible if you can get rid of it quickly. Can still set yourself savings targets instead. You’ve done so well to change your mindset.

Having ventured into other areas of the forum fleetingly, this is definitely the friendliest. Can see why people stick around even after they’ve cleared their debts...

Payday today. Have cancelled catch up with friend as I have a few work meetings I can’t get out of. So will probably spend the afternoon selling some bits instead.

Debt update to follow but I think I’ll be down to £13.2k.

Naomim

ryanm8655 said:

Spent a bit more today. £18 in WHSmiths on a birthday card and 3 kids magazines. No idea how that came to £18...£5 for a birthday card


Will offset the costs with selling some bits. Most annoyed about WHSmith tbh ha. I haven’t bought the kids magazines for a longtime (used to do it every time I came down) and we’ve got a long car journey at the weekend, so it’s a bit of a one off treat to keep them occupied in the car.

Kids magazines are usually about £4-£5 a pop. It's disgusting the amount they charge, usually for a bit of tat on the front.  Gone are the days of the Beano or Dandy for 10p a week.  Have spent many an hour in front of the kids magazine section with a dithering child because of the tat they can't decide they want. 😒  But it's a nice treat, especially for a long road trip.

IrishSean

£13.2 is class!
You'll be sub £10k by the autumn, then two thirds gone shortly after.

My LBM was as much using MSE to work out future costs; parental contribution for uni, cars etc. We ran a 3rd part car ins. quote for the soon to b 15yo. It was for an 11 yo micra, in his name @ 17 he'd be looking at £2896😂
Obviously we'd be putting the cubs on as named drivers first but its sobering to realise the sort of costs over the horizon😱
Is why I have a savings plan; if I got 'pension house' paid quickly it would contribute to those costs hugely. May 2018 I was -£29k so it's def a turnaround.