The Mental Debt Struggle...

CRANKY40

Can you do the food shopping on MBNA? That frees up the food cash to go to the Klarna payment. That's what I'd do anyway. I've had my fair share of "oh sh no what have I done now?" moments but there's usually a way round it. 

abaka

The way my payments are set up is I have a direct debit set up for £50 on my Virgin 1 and Virgin 2 (The minimum payments are less than £50 but I'm happy to keep them at £50 each.

My Halifax, My PayPal, My Lloyds, and my MBNA.  I use the app to pay my minimum payment as soon as the bill generates.  I can do these via bank transfers easily enough.  With the Halifax/PayPal and Lloyds I'm only paying the minimum payment anyway and don't even look at them again the rest of the month.

So for example, when my MBNA account generated the bill this month, the minimum payment was £69.71 which I paid straight away and then come the day before Payday, I will be paying whatever is remaining in my bank account (I estimate this to be £162 pound so I'm going to pay £150 off the MBNA account meaning that I've made my minimum payment and made a larger payment in the month but haven't went into my overdraft to enable that.

For example the month before last, before I started taking control of my debt, I did it all wrong.....I budgeted for £450 into my MBNA account and paid the £450 as soon as I got paid but during the month I then spent things/had expenses I hadn't budgeted for so I inevitably go into my overdraft.  I believe that I've traditionally started going into my overdraft less than 2 weeks after being paid (sometimes even the same week).

Obviously I've made more progress on the MBNA based on items I've sold but even if I didn't do that - I'd still be making my minimum payment and then doing a little bit extra on top of it, but not relying on other debt (overdraft) to do so!

Once I clear my MBNA card and do my balance transfer switches between my Lloyds/Virgin cards.  My Virgin card will then become my smallest debt....What I will do then is cancel the direct debit on it and do the exact same thing.  Min payment on billing date and then paying off any extra at month end with what I call "surplus" monies.

Keedie

Yes that actually makes sense @CRANKY40, I didn't think of that. I feel better knowing that is an option so thank you.

LittleMissDetermined

abaka said:

The way my payments are set up is I have a direct debit set up for £50 on my Virgin 1 and Virgin 2 (The minimum payments are less than £50 but I'm happy to keep them at £50 each.

My Halifax, My PayPal, My Lloyds, and my MBNA.  I use the app to pay my minimum payment as soon as the bill generates.  I can do these via bank transfers easily enough.  With the Halifax/PayPal and Lloyds I'm only paying the minimum payment anyway and don't even look at them again the rest of the month.

So for example, when my MBNA account generated the bill this month, the minimum payment was £69.71 which I paid straight away and then come the day before Payday, I will be paying whatever is remaining in my bank account (I estimate this to be £162 pound so I'm going to pay £150 off the MBNA account meaning that I've made my minimum payment and made a larger payment in the month but haven't went into my overdraft to enable that.

For example the month before last, before I started taking control of my debt, I did it all wrong.....I budgeted for £450 into my MBNA account and paid the £450 as soon as I got paid but during the month I then spent things/had expenses I hadn't budgeted for so I inevitably go into my overdraft.  I believe that I've traditionally started going into my overdraft less than 2 weeks after being paid (sometimes even the same week).

Obviously I've made more progress on the MBNA based on items I've sold but even if I didn't do that - I'd still be making my minimum payment and then doing a little bit extra on top of it, but not relying on other debt (overdraft) to do so!

Once I clear my MBNA card and do my balance transfer switches between my Lloyds/Virgin cards.  My Virgin card will then become my smallest debt....What I will do then is cancel the direct debit on it and do the exact same thing.  Min payment on billing date and then paying off any extra at month end with what I call "surplus" monies.

This is by far the best approach I think

Keedie

abaka said:

The way my payments are set up is I have a direct debit set up for £50 on my Virgin 1 and Virgin 2 (The minimum payments are less than £50 but I'm happy to keep them at £50 each.

My Halifax, My PayPal, My Lloyds, and my MBNA.  I use the app to pay my minimum payment as soon as the bill generates.  I can do these via bank transfers easily enough.  With the Halifax/PayPal and Lloyds I'm only paying the minimum payment anyway and don't even look at them again the rest of the month.

So for example, when my MBNA account generated the bill this month, the minimum payment was £69.71 which I paid straight away and then come the day before Payday, I will be paying whatever is remaining in my bank account (I estimate this to be £162 pound so I'm going to pay £150 off the MBNA account meaning that I've made my minimum payment and made a larger payment in the month but haven't went into my overdraft to enable that.

For example the month before last, before I started taking control of my debt, I did it all wrong.....I budgeted for £450 into my MBNA account and paid the £450 as soon as I got paid but during the month I then spent things/had expenses I hadn't budgeted for so I inevitably go into my overdraft.  I believe that I've traditionally started going into my overdraft less than 2 weeks after being paid (sometimes even the same week).

Obviously I've made more progress on the MBNA based on items I've sold but even if I didn't do that - I'd still be making my minimum payment and then doing a little bit extra on top of it, but not relying on other debt (overdraft) to do so!

Once I clear my MBNA card and do my balance transfer switches between my Lloyds/Virgin cards.  My Virgin card will then become my smallest debt....What I will do then is cancel the direct debit on it and do the exact same thing.  Min payment on billing date and then paying off any extra at month end with what I call "surplus" monies.

This approach is so methodical and makes so much sense, thank you for breaking it down for me! I think I'll have this approach with my Barclaycard, and set aside extra money to pay amounts and then see where I am with the amount available at the end of the month and make the payment from there to bring it down without stressing myself out and leaving myself short each month.

I've just set up a Monzo pot for PADding, and I'll move my ideal overpayment amount into that pot and try my best to budget without dipping into it.I've got some serious budgeting to do this week before I get paid. I think if I do this monthly and then review on a weekly basis, it'll be easier to actually judge what's coming out and when and how much I can chuck at the debts.

abaka

Yep - Even if you plan to make an extra payment of £100 and by the time the end of the month rolls round you can only pay £20-30....That's better than being £70 into your overdraft!  Part of my issue previous was that I was going about 2-300 into my overdraft each month but literally budgeting every single penny of my wage for my debt repayments so was always ending the month majorly in the red....and that eventually was translated to CC spend!!!  Vicious circle that can only end if you take control of your finances!!

At this point I literally reforecast my budget every day when I spend....even if it's just something as simple and cheap as buying a bus ticket or a can of coke, I will look at what that means to my grand plan.

Keedie

You’re so wise @abaka! And these nuggets of wisdom is part of the reason why I love this forum so much. 

I’ve got a spend heavy month coming up as I’ve got a trip to Blackpool which is not going to be cheap as we’re going to the Blackpool Pleasure Beach to go on all the rides. But at least I found out about the Easy Pass so I’ll be able to virtually queue using their disability scheme. As last time I could barely walk by the time I’d stood around all day. And usually the VIP queuing costs £25 extra, but it’s free if you have proof of a disability. 

I’m working out all of the ad-hoc extra spends for this month. But I’m glad that I’ll only be paying the minimum on my debts and that I’ve cancelled that payment to my mum. As it means that if I budget carefully, I won’t end up in an overdraft. I doubt I’ll have any extra this month to PAD as it’s an expensive month, but if I can even pay £1 extra I’ll count that as a win 🤣. 

abaka

My overall debt position would attest to me not being very wise..luckily I’m learning.  And like you I’ve learned from mistakes but also from posting here.  I am really enjoying the forum.  No judgment and support plus having it in writing makes me feel more accountable! 

Sarahwithlove

Hi Keedie just caught up on your diary. Well done for taking control. Having a budget really does help. Have you considered having one of your bank accounts as a bills account that all your DD's can come out of? I have one that my wages go into, then I transfer spending money to my Chase account for every day spends/food etc. Then I transfer my savings pots into my starling account for my spaces and whatever is left over is for my DD's and any possible overpayments on my card depending what's left. Its about what works for you, but as you have different sources of income at different times you may find it easier to transfer a weekly spending amount so there is enough in your account to cover DD's if any money is delayed for any reason etc. Also do you have accounts that give you rewards or benefits? My bills account is with santander for cash back on bills, my spends is chase as get 1% cashback on card payments for a year. 

Keedie

I feel more accountable too @abaka. Having it in writing and knowing how friendly and supportive people are and the help and advice you get, makes it comforting and you don't feel so alone with your debts, even though it's still a personal journey.

Thanks for reading @Sarahwithlove and for your great tips. I'm setting up my Chase account this week to be put in the waiting list, so by the time I get to the front of the queue, I can start to use it for my next payday. That will definitely be my spending account. I looked at their website and found the multiple accounts a bit confusing - do you get only one debit card? Do you prefer Chase or Starling? Sorry for all the questions, it's just that I know I need to open one, and as Chase has interest on round ups and cashback, it seems like the most sensible choice, but I know that Starling is still very popular.

I have all my income going into Monzo and all of my direct debits comes out of there too. I have a pot for all direct debits related to bills and one for debt repayments. But it's just a bit messy having everything in one place, so it does need to be separated out. Monzo has really helped me, as the direct debits come from both pots, it tells me how much I need to put in there to cover my bills, how much I need to add if I'm short and shows what's coming out a few days in advance and whether the direct debit is higher or lower than the previous month. And it helps me with recurring card payments, as my Kindle Unlimited for example, I've set it up as a subscription and so it holds the money aside so I can't spend it or withdraw it from the cashpoint. So I think with better money management skills, I'll keep it as a my bills and repayments account. But where I've fallen down, is that I've been spending from there as well and that's where the danger is, as I end up dipping into the pots when I've overspent.

I like the idea of having a weekly allowance going to a separate account as that would really help me to keep on top of things and will take into account the different amounts that I get paid at different times. I've started working out the dates that I will get each payment and the value, so that I can work out from each payment, how much needs to go into the Monzo pots to cover my direct debits and how much needs to go into my sinking funds, spending and savings. Things are just really tight at the moment, so I need to have a clear picture of exactly what is happening before I receive my salary on Friday.