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Third Time’s The Charm

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  • enthusiasticsaver
    enthusiasticsaver Posts: 16,062 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Here is another snowball calculator although it can be temperamental. It seems to be working today though.  You just put in details of all your debts and how much you have to repay it every month and it shows you a plan on the best way to repay them and gives you a DFD. 
    https://www.lemonfool.co.uk/financecalculators/snowball-calculator.php
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • Snwps
    Snwps Posts: 230 Forumite
    Fourth Anniversary 100 Posts Debt-free and Proud! Photogenic
    Hi Narola, Thanks I found the app last night off one of your other posts and I love it. Spent all last night inputting my details and playing around with the figures to see the best course of action and how to pay the least amount of interest and get to my DFD ASAP. I'm suprised it's different to how I thought I should tackle it and by using the app has made me realise that if I do it their way I can save about £400 in interest, so thank you for suggesting it.
    Original Debt £37,493.25 @ 25/05/2019 - Now £0 @ 24/02/2023 - £37,493.25 - 100% paid
  • Narola1976
    Narola1976 Posts: 529 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    Morning. So two pieces of good news to start. Firstly, I have heard from the solicitors and they advised that they have received the payment for my excess and a cheque is on its way to me. That’s £250 back. I will use this to further fund my true expense categories, including the birthday fund, and a small payment towards debt. Secondly, the balance transfer has gone through and my HSBC account balance has been reduced accordingly. It’s a great start and I am determined to break this cycle.

    I told DD yesterday that I was only going to get her one gift this year as I was not prepared to go into debt to buy her gifts. That has always been my default position - feeling guilty for having no family around who could buy her gifts at special times as they would if she was living close to them, and then overcompensating. But it only caused me hardship and actually in the end she is also a loser, because I don’t have the money to do other things for her. So it was short sighted. She is understanding but a tad disappointed too. 

    So I noticed that with the BT payment, HSBC has considered the minimum payment to have been covered so they are not going to take the DD. I was wondering what to do? Should I still pay HSBC the instalment anyway or use this to pay Argos which is 1% higher interest rate? I will not be using the money to fund any categories as it is DEBT money, not free money. I am just not sure if I should use this as an opportunity to pay extra on the Argos as it is higher on the snowball list, in addition to the payment I have already made to Argos or pay HSBC anyway. Would welcome some views. 

    Pleased to report I have had 2 NSD so far. No spending expected until Saturday. I have been cooking from stores, having made a meal plan. There isn’t much left in the grocery kitty so I have to be super careful with the food. I was most annoyed with myself. I found some smoked salmon that had a use by date of 1 June. I did not realise the short date and in the past I would just bin it, but now I wonder if it is still ok to eat. It’s still sealed. I don’t eat salmon, its for DD. I was going to attempt a salmon quiche. I hear they are easy to make and now I am so cross with myself. Because it would be a real waste of money to throw it away. That £4 could have bought a tray off chicken for 2 or 3 meals!  On the menu tonight is pork chops and veggies. I shall marinade them shortly and pop into the oven later today.

    Pleased to report Starling paid me a whole 12p in interest for the money I have saved. I use Starling for the saving pots feature. I love that they give you some interest on your money unlike most current accounts. I wish I was brave enough to switch over from HSBC to Starling. But I have had the same current account for 17 years and the consistency is good for my credit history. And while I love Starling, I am nervous putting all my money there. They are relatively new and don’t have the bricks and mortar access of a bank like HSBC. 

    Right off for a spot of breakfast. 
    Starting Total in September 2019 = £38287.77
    Current Total = £25534.10
    33% of debt paid off so far

    Debt Free by Christmas September August July June 2023!
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,062 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I would put the HSBC payment to Argos as that is the highest rate you are paying.

    Great news on the £250 for insurance excess. 

    Re the smoked salmon I would think given it is sealed and only the 3rd you would be able to use it today. It goes green and smells funny if it has gone off. I often make use of food past it's use by date and presumably it has been in the fridge?  Fish, chicken and pork are the ones to be most careful of though. Smoked salmon is a rare treat for us as it is expensive. 

    Good for you in managing your daughters expectations re her birthday. As you say going into debt is not helping her and it teaches her not to make the same mistakes you did. Is it her 18th? 18 is a dangerous age if she has not been educated financially. I drummed into my daughters from the age of 16 the danger of debt as I knew they would be handling thousands of student loan money at 18 and probably be offered overdrafts and credit cards. I think they were both early 20s before they got a credit card and still don't use them bar the odd 0% deal for something big. Maybe get your daughter involved in the budget and encourage her to get a weekend or part time job if she doesn't already work. Helps cultivate a work ethic and teaches them time management and that money does not grow on trees. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • Baileys_Babe
    Baileys_Babe Posts: 6,266 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The smoked salmon should be fine, but check it and use it promptly.

    As a general rule, we rarely have smoked salmon due to the cost and even then I would often buy trimmings or wait until it was on a very good offer, as you say that money could have been spent buying meat for 2 - 3 meals, which is worth considering when money is so tight.
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  • Narola1976
    Narola1976 Posts: 529 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    Thanks @enthusiasticsaver. Grateful for all the advice. I will certainly make the payment to Argos. And OH has said he will eat the salmon today, assuming it is OK to eat. 

    DD is really very good. I have been drumming into her about the importance of making good financial choices for years. I have been open with her about the mistakes I have made and the impact this has had on me and us generally. While she doesn’t know the amount, she knows its excessive. We talk a lot about finances and the other day we discussed pensions and how important it is to start early. We discussed the mortgage and interest rates and what this could mean to be mortgage free in 5 years. She understands priority debts. Currently she has a part time job and earns a respectable £600 a month. She has been working since 16 years. And with her good work ethic has had little increments in her salary. Not bad for a 17 year old who only works 15 hours p.w. She also has a Starling account and uses the savings feature for her budget. So she has pots for everything, savings and normal expenses. She has a Help to Buy ISA and is saving for uni and also trips to see family. She has never met anyone from her father’s side of the family. I am very confident that she is much more financially savvy than the average 17 year old. In fact just yesterday we talked about her needing to start to save for her new mobile phone in 2 years. So she now has a pot for that. I never want her to make the mistakes I have done, and I think me being open and her seeing the impact of my decisions on us as a family have helped her to develop an understanding. 

    Once again, my thanks for your contributions. This is the most open I have ever been, it is scary to be so open, even though it is anonymous. But reading so many other people’s journeys and listening to people who have more knowledge has been worth the vulnerability I feel.
    Starting Total in September 2019 = £38287.77
    Current Total = £25534.10
    33% of debt paid off so far

    Debt Free by Christmas September August July June 2023!
  • Baileys_Babe
    Baileys_Babe Posts: 6,266 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    @Narola1976 you should be so proud of your daughter and her money management skills and of yourself for educating her and being open with her about the impact of your decisions.
    Fashion on a ration 2025 0/66 coupons spent
    79.5 coupons rolled over 4/75.5 coupons spent - using for secondhand purchases

    One
     income, home educating family 
  • Narola1976
    Narola1976 Posts: 529 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    Thanks Baileys_Babe.

    So been playing with the snowball app. Now that I have this money which I can use on another debt since it does not look as if HSBC will take the DD, I was looking to see what impact it would have on the DFD if I paid Argos, as I intended or another smaller debt £235.20 balance which is not interest bearing but it does mean I will be able to clear the balance completely. And psychologically that will feel much better knowing that in the space of a few days I have cleared 2 debts. So I input the figures for both and strangely enough, the DFD did not change whether I paid Argos or this other private debt. It stayed exactly the same. So I am leaning towards paying off the smaller amount. If it had made even 1 month difference I would pay Argos, but it won’t. So I feel clearing the smaller debt completely will be much more helpful overall. And that means that next month, I can tackle Argos as it is my next smallest balance. I will not do anything yet untilI am sure HSBC is not taking the DD, just to be on the safe side.
    Starting Total in September 2019 = £38287.77
    Current Total = £25534.10
    33% of debt paid off so far

    Debt Free by Christmas September August July June 2023!
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,062 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Getting rid of another debt will certainly give you a boost so I would agree in getting rid of that rather than putting it to Argos this month if it has no impact on your DFD.  Dave Ramsey advocates smallest  debts first in that you quickly see progress. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    The 365 Day 1p Challenge 2025 #1 £667.95/£301.35
    Save £12k in 2025 #1 £12000/£8000
  • Narola1976
    Narola1976 Posts: 529 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    Morning, well after all that debate, it appears the decision has been taken out of my hands. I checked my bank account as I do every morning, and it shows the DD for HSBC still pending for payment tomorrow. When I had checked the account itself, the minimum payment had shown as 0. Oh well, I am glad I waited before using the money elsewhere. It makes no real difference I suppose, but it would have been nice to clear another debt 2 months early. 

    So another CC payment today, snowball updated. Once all the payments have been made, I can calculate my percentage of debt paid and update my “100 steps” journey. I am looking forward to that. I think it is important to track progress so that you have a visual representation of your achievements. 

    Well not much else to say, so I shall end off here. A good day to you all.
    Starting Total in September 2019 = £38287.77
    Current Total = £25534.10
    33% of debt paid off so far

    Debt Free by Christmas September August July June 2023!
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