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Sholly

meerkatpie said:

Sholly said:

I got an online quote a few years ago from We Buy Any Car. When I took it to the office they offered quite a bit less than they had online, so I took it to the dealership of the new car that I wanted and traded the old car in (for more money than We Buy Any Car offered) and drove away with my new, cheaper car and a cheque for the difference, and paid that off my debt. I didn't have finance on the car so a bit of a different situation to yours, but I think it's a great idea to free up some cash if you can

That's what I was thinking, they might offer me a little less, but you know it might be worthwhile taking it to the garage I bought it from to see if they offer anything similar?

There's no harm in asking 🙂

Sarahwithlove

We buy any car generally offer less than you would get from a car place. Worth looking around for somewhere that has a run around you might be interested in and asking if they do anything similiar. 

meerkatpie

Sarahwithlove said:

We buy any car generally offer less than you would get from a car place. Worth looking around for somewhere that has a run around you might be interested in and asking if they do anything similiar. 

I've had Arnold Clark suggested to me, I am off work soon so I thought I might go to see what they could do

meerkatpie

Hi Everyone!

It is time for my monthly update and I am afraid it is not a good one.  

You know, I have been so on track but this month has just gone from bad to worse!

Unfortunately, a couple of things have gone wrong this last few weeks, coupled with it being my birthday, I have had a complete blow out and my debt certainly hasn’t gone the way that I have wanted it to. 

Regrettably the psychology behind money is one of the biggest issues for me, that buzz when you buy things just for that split second makes things feel better, but then you feel bad for spending and the cycle continues. I’ll be honest, I didn’t even want to update this month because it hasn’t been the most positive of them all, but I need to face my fears and crack on because it will get better! There is no point in hiding when I have one month of not paying off my debt properly. 

Here is where my debt is at now:

Barclaycard - £6,264.41

Car Finance - £12.501.25

So my total debt is at £18,765.66, which is a £424.18 increase. 

Now, I have decided to move all my debt to my Barclaycard, this was £350 higher until my direct debit went on Friday evening, so I have spent quite a bit this month. The reason why I have transferred everything is that I have cut up my MBNA card (although I have left it open for my credit utilisation on my credit report, not sure whether it is worth cancelling so any tips would be great) and my Barclaycard offered a 25 month interest free period. This just took the pressure off when my MBNA card was out of its 0% period and a chance for me to say ‘enough is enough’, what is on that Barclaycard is final, no more credit card spending. 

I have a £350 direct debit set up which should allow me to clear my card in about 18 months just with that payment, although the plan now is to fill up my LISA again to the maximum over the next 4/5 months, then absolutely smash the Barclaycard with everything that I have. I’m putting in plenty of overtime and extra work, so once my direct debits have been taken and I allocate my spending money, I have a fair bit left over, so with a bit of focus and determination, I think I am on track to be debt free by June 2022. That is assuming all goes to plan but I am so angry with myself for spending (it didn’t even go towards anything good!) that I don’t know whether to cancel my other credit cards just in case, or at least lower their limits. I have my MBNA, Barclaycard, Santander and Tesco. I am a little attached to my Santander card as it should cost monthly, but I get it for free. Aside from that my MBNA card now serves no purpose and the Tesco card I use just for fuel, but really, do I care about those extra club card points?

I know worse things have happened, but it is a step back for me. 

So this month, I have added money to my LISA and I will keep doing so until it is at the maximum again. Whilst my debt repayments were going well, my direct debit can take care of things for a little bit whilst I try and see some more of my money. I feel like I need to take a little break to fill up my savings. 

I hope everyone else is keeping okay and I am sorry for the long post, but fingers crossed I can be back one track soon! 

meerkatpie

So MBNA have just increased my credit limit, it was fast but I am assuming that it is because I 'paid it off' with the balance transfer.

That's now at £10000, so my limits are:

£10,000 with MBNA, nothing used. 
£8,500 with Barclaycard, £6,264.41 used. 
£2,200 with Santander, nothing used. 
£2,100 with Tesco, nothing used. 

I'm really not sure whether this is too much credit in my name. It isn't far off my annual salary and whilst I hope I won't use it, it is always there and could just spiral. 

Does anyone know the impact closing them might have on my credit score?

Of course my Barclaycard has a balance so removing some will higher my utilisation. But I am considering closing my MBNA and my Tesco card. 

Sarahwithlove

Your credit score will probably drop a few points but mine recovered two months after that. So unless your planning to get new credit in next few months I would say should be OK. Only thing I would say is that by having them still open your likely to get offers sent to you if they were needed in future. How long is the 0% period on your barclaycard? Will you have it paid off in time? If so then I would consider closing them or reducing the limit. 

meerkatpie

Sarahwithlove said:

Your credit score will probably drop a few points but mine recovered two months after that. So unless your planning to get new credit in next few months I would say should be OK. Only thing I would say is that by having them still open your likely to get offers sent to you if they were needed in future. How long is the 0% period on your barclaycard? Will you have it paid off in time? If so then I would consider closing them or reducing the limit. 

That's one of the reasons why I posted it here because I wasn't sure whether it is wise to keep them for the offers. But I hope to not need them!

The 0% on the Barclaycard is until July 2023, I have a £350 direct debit set up so I hope to have it paid by December 2022 with a bit of wiggle room should anything happen.

I just feel like it is so much credit and I kind of want rid of it as strange as that sounds? 

The psychological impact it all has is more than I ever thought!

Sarahwithlove

Yes that's understandable. I closed all mine as soon as cleared and just took the hit on my credit score. It only took a couple months of repaying my other card to bring it back up again. 

meerkatpie

Thank you, I think that is my decision made in that case.

I would rather the temptation not be there! I will close them down.

Aspiration

Well done for taking control and doing what makes you feel more comfortable!!