Which to pay against first

RAS

amat6219 said:

Yes I’m with First Direct and have £250 interest free OD, but always seem to go over that limit up to £500 as well (usually charged about £2 / month) 

This month's challenge, should you wish to accept it, is to ensure that the First Direct OD stays within the £250 limit, without replacing it with other debt.

amat6219

RAS said:

amat6219 said:

Yes I’m with First Direct and have £250 interest free OD, but always seem to go over that limit up to £500 as well (usually charged about £2 / month) 

This month's challenge, should you wish to accept it, is to ensure that the First Direct OD stays within the £250 limit, without replacing it with other debt.

Challenge accepted!! 15 days until pay day and am currently at £220 but no more bills due out, and I have £70 worth of vinted sells to come in - I CAN DO THIS! 

star00786

Hey well done to reaching out for help you have been given some fab advice. It’s all very daunting and scary right now but it will get better. 

Maximise your income so have a good clear out and sell what you can.
meal plan and freeze what you can so no waste. 

Have a look at your local area to see if they have schemes such as buying foods nearly out of date super cheap. 

Are either of you able to do any work on the side? Over time, earn from a skill etc. 

Holidays we invested in a tent and we have had some fab holidays within our budget. 

If you’re with sky you can get free National Trust days, local schemes for kids to do and libraries! Maybe host a play date and you can never go wrong with parks and beaches etc with kids. 

Hope this helps 😊

enthusiasticsaver

Well done on cutting up credit cards and I am cheering you on to stay within the free £250 overdraft limit so you do not have additional charges.  You can do this. I like the fact that you are resolved not to overspend on entertainment or holidays until you have the debt situation sorted.  Lots of free ideas for young kids on council websites. Take food with you rather than use cafes. 

amat6219

I'm getting closer to the £250 OD limit now (£247) but can't think of anything I need to pay out between now and payday (week on Friday)... 

I have done a household budget to the penny and have already become so much better with groceries etc., had a delivery a few days ago (pretty much all tesco value stuff) and if we stick to the same every 10 days or so then I will be dropping £150-£200 a month off what i'd budgeted for.

Holiday clubs are the next concern for the 6 weeks holidays! I have usually just paid on card and not thought about it, but now I have budgeted out to include for it and will have to work around (with family, annual leave etc.) other than that

We have decided picnics on the beach at not much cost is what the plan will be for family days in the summer holidays, and i'm actually really looking forward to it! 

Hoping to clear 1 credit card (£180) and 1 loan (£496 - been given settlement figure of £485) this month then try to clobber the big / high interest debts. 

Thanks so much everyone for the support and advice! I was in a very bad place a couple of weeks ago and very flustered, now feel like we have somewhat of a plan and I can see a light at the end of the tunnel (very small and faint, but nontheless!!) 

Martico

Good stuff amat!

MEM62

amat6219 said:

Or pay every spare penny to the high interest card?

Absolutely this! 

You will also need to understand your budget intimately to identify where you are over-spending so you have more cash the throw at the debts.     

kimwp

amat6219 said:

I'm getting closer to the £250 OD limit now (£247) but can't think of anything I need to pay out between now and payday (week on Friday)... 

I have done a household budget to the penny and have already become so much better with groceries etc., had a delivery a few days ago (pretty much all tesco value stuff) and if we stick to the same every 10 days or so then I will be dropping £150-£200 a month off what i'd budgeted for.

Holiday clubs are the next concern for the 6 weeks holidays! I have usually just paid on card and not thought about it, but now I have budgeted out to include for it and will have to work around (with family, annual leave etc.) other than that

We have decided picnics on the beach at not much cost is what the plan will be for family days in the summer holidays, and i'm actually really looking forward to it! 

Hoping to clear 1 credit card (£180) and 1 loan (£496 - been given settlement figure of £485) this month then try to clobber the big / high interest debts. 

Thanks so much everyone for the support and advice! I was in a very bad place a couple of weeks ago and very flustered, now feel like we have somewhat of a plan and I can see a light at the end of the tunnel (very small and faint, but nontheless!!) 

Great work, all sounding very positive!

RAS

amat6219 said:

I'm getting closer to the £250 OD limit now (£247) but can't think of anything I need to pay out between now and payday (week on Friday)... 

I have done a household budget to the penny and have already become so much better with groceries etc., had a delivery a few days ago (pretty much all tesco value stuff) and if we stick to the same every 10 days or so then I will be dropping £150-£200 a month off what i'd budgeted for.

Holiday clubs are the next concern for the 6 weeks holidays! I have usually just paid on card and not thought about it, but now I have budgeted out to include for it and will have to work around (with family, annual leave etc.) other than that

We have decided picnics on the beach at not much cost is what the plan will be for family days in the summer holidays, and i'm actually really looking forward to it! 

Hoping to clear 1 credit card (£180) and 1 loan (£496 - been given settlement figure of £485) this month then try to clobber the big / high interest debts. 

Thanks so much everyone for the support and advice! I was in a very bad place a couple of weeks ago and very flustered, now feel like we have somewhat of a plan and I can see a light at the end of the tunnel (very small and faint, but nontheless!!) 

This is really amazing. Don't beat yourself up if you need an extra pint of milk, though.

Looks like clearing the loan first would be wise. Then you've got a little flexibility if you can't completely clear the credit card this month.

You might be better ensuring you can stay inside the OD limit and not clearing absolutely all the credit card, than the other way round?

thelegendofyrag

Once you clear your FD Overdraft, have you ever banked with NatWest? They offer £200 to switch currently.
Are you getting childcare vouchers or claiming tax free amount to put towards it?

I cancelled my Sky and TV License a few years ago and only every watch Netflix and Amazon Prime now, this could save but check overall saving if you get these services through other packages.

Do you have a spreadsheet detailing your income and outgoings monthly? This can really, help. I update mine daily when payments have gone out.

Is £100 on entertainment realistic? I've read that you have now downplayed this but with two kids myself i know just going out for lunch a couple of times a month can easily cost £100. As others have said yours are young, so don't really need much £££ picnic and parks etc.

Can you save on energy? Octopus do £50 referrals and have very good tracker rates currently, they do not charge to exit tariffs either and you can move between their tariffs easily when rates start changing towards winter.

Good Luck!