Debt and Budget (Reset) plan

shell16

Quick update!

Just managed another £25 payment to my CC2 balance, im now less than £10 away from dipping below £1K balance woohoo!!!

shell16

Ok so I'm a little torn!!  My dilemma.....

CC2 balance I want gone as will mean another Credit card paid off in full - following snowball method.  CC2 0% expires on 30/9/22 so I have 9 payments left.  I usually pay £105 per month minimum which will leave me short of payment in full by the expiry date assuming I will have a balance of no more than £999 at the end of this month.

I'm paying an average of £180 additional payments to CC2 at the moment every month on top of my usual payment of £105.  I'm thinking I will now do the following from January 2022...

CC2 payment - £111 per month x 9 = £999
CC3 Payment - £100 + £174 = £274 per month

This will enable me to start tackling the CC3 balance earlier rather than waiting another 3 to 4 months if I continue to pay £285 on CC2

CC3 - I have a balance of around £1358 on 25.5% and £4534 on 3.9% so I would like the higher interest tackled asap.

EssexHebridean

That sounds logical. Makes sense to maximise the 0% period to let you start tackling one with what is, it must be said, a fairly chunky interest rate.  It may also be that in the new year it’s worth looking for possible 0% BT options for CC3 as well - certainly for the higher interest amount. I’d give it a clear 3 months from getting CC1 cleared and closed before you even start looking though. 

shell16

Thanks @EssexHebridean. I think I'm going to start tackling CC3 debt from January 2022. I do want my CC2 balance below £1k (it will just make me feel better!!). My original intention was to Clear CC2 and then transfer my CC3 balance with the high interest to CC2 as I'm always getting 0% offers from them. I'm not keen on applying for a 'new' credit card as I have 3 at the minute. CC1 is Virgin, CC2 is Lloyds and another Barclaycard(latter has nothing on it but no offers of 0% either since I cleared it around 5 months ago). It's my longest standing card of around 26 years!!

CL21

That seems like a good plan. I like the snowball method but I think you have to be flexible within that if you need to and you’ll still pay off CC2 within the 0% period. I checked when my balances are going to end and one of them is March so will move then to an empty CC which currently has an offer on although the transfer fee % seems quite high at the moment - not sure if that’s because it’s Christmas and they know people will be looking? 

shell16

@CL21

Yep I'm in agreement.  Seems the sensible thing to do just paying CC2 usual (ish plus an extra £6) payment. I can then tackle CC3 split amounts as part of balance is at 25.5%!
Ireally would like Barclaycard to offer me a 0% deal though!!

On a least positive note, just found out DD2 has covid!! Boooo!!!

CL21

Ah booooo! Bloody covid. Hope she recovers soon. 

I reckon there might be some deals in the new year. Hope so for you as that’s a v high interest rate. Could you call Barclaycard and ask? 

shell16

CL21 said:

Ah booooo! Bloody covid. Hope she recovers soon. 

I reckon there might be some deals in the new year. Hope so for you as that’s a v high interest rate. Could you call Barclaycard and ask? 

Thanks @CL21 I will give them a call in the new year, really strange nothing from them though in so long since I cleared the card?

EssexHebridean

Oh no to covid - hope she doesn’t get it too badly.

shell16

EssexHebridean said:

Oh no to covid - hope she doesn’t get it too badly.

Thanks @EssexHebridean.
She isn't too well,  like a really bad cold, headaches. Only 10 years old too 😩