A diary of clearing the credit card and gratitude

wantabetterlife
Forumite Posts: 1,290
Forumite


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.
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
2
Comments
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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.1
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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 £10001 -
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 :j1 -
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.GratitudeI am grateful that I am working at home tomorrow so the morning will be a bit more relaxed. Have a good evening everyoneCredit card £4461.15Home mortgage £137117Buy to let mortgage £83,0001 -
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 debt1 -
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 £83,0000
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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 debt1 -
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 £83,0000
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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 postCredit card £4461.15Home mortgage £137117Buy to let mortgage £83,0000
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