A diary of clearing the credit card and gratitude

wantabetterlife
wantabetterlife Forumite Posts: 1,290
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I’m really hoping this diary will help keep me accountable in clearing our credit card. 

The current balance is £4461.16 The credit limit is £4600 and every month on pay day I pay a few hundred off and by the end of the month I’ve maxed it out again. It has become like an overdraft facility and I really want to get rid of it and get control if my finances.

I will update when I make any payments big or small to keep me motivated. I will also try and post something I am grateful for, in an attempt to keep me content with a more frugal lifestyle. 

Today I am grateful for this forum and all the lovely people on here who are so helpful. 
Credit card £4461.15Home mortgage £137117Buy to let mortgage £83,000

Comments

  • Richard1212
    Richard1212 Forumite Posts: 346
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    It is a bad place to be in if you are using your Credit Card like an overdraft every month. If you have ANY savings , use them all to pay off all or as much as you can of the CC ( and then use it responsibly thereafter by paying off the entire balance every month--or better still wean yourself off it for a while altogether ). If you do not have savings, adjust your budget, make cuts wherever possible ( and it is usually possible to cut out certain expenditure---be strict) and pay off as much as you can every month, certainly as much more than the minimum payment as you can.
  • Spinayarn
    Spinayarn Forumite Posts: 184
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    Hi and welcome! It’s good that you recognise the problem and want to clear it. I highly recommend setting yourself a budget and try to overpay your credit card by as much as possible to help get the balance down, is there any way you could transfer it to a 0% card?
    My Debt Free journey - started 1 May 2023. Goal date October 2026 May 2026

    CC1 £180 £0.00
    CC2 £1948.18 £1690.56
    O/D £1400 £0.00
    Loan 1 £6231.57. £5,641.50
    Loan 2 £6993.30  £6684.94
    Car Loan £11257.28  £10,828.57
    Total Debt: £28006.30  £24,843

    EF £1000
  • MatyMoo
    MatyMoo Forumite Posts: 3,118
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    Well done on taking control, I used to be in the same position as you & it’s tough to get out of the cycle but it can be done 😃

    Have you done an SOA or kept a spending diary? Both are really useful even if you choose not to share them. 
    :j Proud Member of Mike's Mob :j
  • wantabetterlife
    wantabetterlife Forumite Posts: 1,290
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    Thank you all for your lovely messages. I am totally sick of this hamster wheel of paying off a few hundred and then adding it back on by the end of the month so am totally committed to getting rid of this for good! 

    £200 from this months pay has now cleared and the outstanding balance is £4261.15 😃

    Sold a fitness tracker online for £26 but will wait to payment clears and then pay that off aswell. 

    Gratitude
    I am grateful that I am working at home tomorrow so the morning will be a bit more relaxed. Have a good evening everyone
    Credit card £4461.15Home mortgage £137117Buy to let mortgage £83,000
  • londoner2019
    londoner2019 Forumite Posts: 130
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    Good luck on your journey! I was exactly in your position. Started with a 2k student overdraft - moved to London on a tiny wage, discovered interest free cards, and all of a sudden I had maxed out 4K. Got another one… and another one.

    it took 10 years to change my spending habits - I recommend you look at your budget and stick to something you can work with. Going through the process of budgeting will be a motivation. 

    And definitely find a 0% balance transfer if you can!
    CC: £0!!!!!! (have paid off £13,000+ over 3 years-ish)

    EF: £1,000/£1,000
    House repairs, future building insurance: £1,100/£1,500
    Safety net savings: £1,000/£3,000 (focusing here next)
    Holiday fund: £1,350/£3,000
    Christmas: £500/£500
    Tickets pot: £93
    Clothes pot: £0
    To partner: £3,300/£11,300 (£8,000 to go - but no rush to pay off)

    Student loan: £6,900 to go (will pay £4,800 through earnings in 2023/24 - aiming to pay off sometime in 2024) - once this is paid, monthly saving potential goes from £500 to £800

    Mortgage overpayment plan: £200 per month (£100 for me, £100 from partner) as our rate has gone from 1.49% to 4.79%!

    DFD: Finally taking back control after a decade of debt
  • wantabetterlife
    wantabetterlife Forumite Posts: 1,290
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    Thanks Londoner … I think that should be me next step as I’m currently paying around £90 per month on interest alone. Do people usually go into a comparison site to find the 0% deals or just type it in to google? I’ve had the same CC for 20 years so a bit out of touch 🙈
    Credit card £4461.15Home mortgage £137117Buy to let mortgage £83,000
  • londoner2019
    londoner2019 Forumite Posts: 130
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    Definitely check out the MSE Eligibility Calculator - it gives you an indication of what you're likely going to be accepted for without impacting your credit report. 
    CC: £0!!!!!! (have paid off £13,000+ over 3 years-ish)

    EF: £1,000/£1,000
    House repairs, future building insurance: £1,100/£1,500
    Safety net savings: £1,000/£3,000 (focusing here next)
    Holiday fund: £1,350/£3,000
    Christmas: £500/£500
    Tickets pot: £93
    Clothes pot: £0
    To partner: £3,300/£11,300 (£8,000 to go - but no rush to pay off)

    Student loan: £6,900 to go (will pay £4,800 through earnings in 2023/24 - aiming to pay off sometime in 2024) - once this is paid, monthly saving potential goes from £500 to £800

    Mortgage overpayment plan: £200 per month (£100 for me, £100 from partner) as our rate has gone from 1.49% to 4.79%!

    DFD: Finally taking back control after a decade of debt
  • wantabetterlife
    wantabetterlife Forumite Posts: 1,290
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    I’ve just realised my credit card is so old it’s in my maiden name, so will need to get in touch with them about that before I can apply for a balance transfer.  
    Credit card £4461.15Home mortgage £137117Buy to let mortgage £83,000
  • wantabetterlife
    wantabetterlife Forumite Posts: 1,290
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    Managed to pay another £325 off the CC so the balance is now £3936.15. Delighted to see it starting with a 3 😃. 

    Today I am grateful for a lovely home cooked evening meal and a bottle of wine. Also the £5 car tax rebate I received in the post 
    Credit card £4461.15Home mortgage £137117Buy to let mortgage £83,000
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