The Three C's - Coffee, Clothes & Credit Cards

DrSpendingLittle

Debt goals look good, Sarah! It will be nice to finally get rid of those credit cards. Glad they're 0% for that time too.  

Sarahwithlove

Yes I just want it gone. I've been looking at cars today as mine is becoming expensive to run. But it's not realistic whilst I have the card payments to make. Just have to hope I can get another year or two out of it. I forgot how high interest loans are, even a bank one is over 6% I'll just have to keep dreaming and staring longingly at cars for now. 

Sarahwithlove

Not sure how I'm still awake after only getting just over 2 hrs sleep last night. Today is going to be a NSD for me wahooo. Hopefully tomorrow should be as well. No plans to spend anything anyway. 

I've been reviewing my pots and I'm just wondering how much everyone else saves up for household expenses? I.e white goods, minor repairs etc? I had put £1k away but it seems alot at the moment especially with my 1k emergency fund as well. I'm thinking about dropping it to £500 and then the other £500 can go towards another pot. 

FootyFanDan

I like how you have set yourself really achievable targets, the time will fly by.

twiggy86

Sarahwithlove said:

Not sure how I'm still awake after only getting just over 2 hrs sleep last night. Today is going to be a NSD for me wahooo. Hopefully tomorrow should be as well. No plans to spend anything anyway. 

I've been reviewing my pots and I'm just wondering how much everyone else saves up for household expenses? I.e white goods, minor repairs etc? I had put £1k away but it seems alot at the moment especially with my 1k emergency fund as well. I'm thinking about dropping it to £500 and then the other £500 can go towards another pot. 

I'm tagging @foxgloves as I believe I've read on her thread the logic behind her pot amounts re white goods - hope that's ok Foxgloves and you don't mind answering! 

Sarahwithlove

Urgh seems my last post didn't save. 

OK so hear we go again. 

I have been thinking about the car situation again. I know it's not very MSE friendly but I am wondering if it will be more cost effective to do it now. 

Pros 
Cheaper to run as hybrid and 1ltr vs 1.5
Cheaper to insure about 150-200 a year 
Mot and service not due until Jun 25
Current car needs work doing to pass MOT so cost approx £700-1k which could go towards new car cost. Car has become more expensive repair wise as it's got older. Now 11 years old.
Current car worth more now then in 12-18 months time. 
New car is 2021 plate so hopefully not cost too much in next few years. 

Cons 
Hybrid so more to go wrong with it 
Requires more debt 

I could p exchange my car now, then use 1k saved for this year's car expenses, 3k loan from dad and 3.5k money transfer at 3% on 0% until Feb 2026 and remainder on Natwest which is 0% until Dec 25. 

I would then have all my sinking funds full still and could pay £150-200 a month off debts on stop of my DDs. I would still be on plan for July's VM to be gone before interest but Natwest would most likely need a balance transfer of remainder in Dec 25 and same with Bcard in 2026. I would probably continue to have debt for a few years but I think balance transfer is probably more cost effective for me than taking out a loan. Also my mortgage renews next year and if anything like last time my current provider will be cheapest so won't need to do credit checks. I also would probably get a better rate if current rates are anything to go by so have more to pay off debts. 

I can't make up my mind. My current car is probably worth about 2k-2.5 is it worth paying out another potential 1k on it to keep it running g when it's not cost effective for me anymore? I could look at getting something cheaper and older but then I'd have same issues as I do with current one. I'm also limited due to my back in that I need a small suv type that's higher up for getting in and out of. 

Thoughts please? 

Sarahwithlove

OK 2nd alternative. 

Would only need from my dad so payments can remain at 100 per month. Has mot until July 25 with no advisories. £100 a year cheaper insurance, tax is £35 vs £180. Low mileage, 1ltr again which is fine as i dont do many miles anymore. But is only a year newer than current car 

joedenise

Personally in your situation I'd probably go for the new car as it will be cheaper in the long run and certainly more reliable.  At the end of the day only you can know what you will be comfortable with.

From what you've written I think that's your current thinking anyway!

Sarahwithlove

joedenise said:

Personally in your situation I'd probably go for the new car as it will be cheaper in the long run and certainly more reliable.  At the end of the day only you can know what you will be comfortable with.

From what you've written I think that's your current thinking anyway!

Yes that's my thinking though I'm tempted by the cheaper second option that would be £5k less and has all same benefits other than it's not as new. Which I suppose in itself comes with risks. 

badmemory

The other side of the arguement is better the devil you know & that could be helped by a reasonable warranty