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Hey, sounds like you’ve got in a really good position! I do not think I can give any advice as I’m the opposite currently. But maybe put an amount at the end of the month towards your debts from your extra amounts? Then you’ll know you didn’t “need” it x14.05.2014 Total unsecured debt £15,360.99
20.06.2024 Total unsecured debt £15,087.29
29.07.24 Total - £15,681
12.09.24 - £16,187 oops…..
Oct 24 - £18,325
Nov 24 - £18,185
Dec 24 - £18,131
Jan 25 -£18,3471 -
You are absolutely right @Moneywhizz - the sooner this debt is gone, the sooner I can build up an infinite rainy day fund! It just feels like that is a long way off... but of course will be longer if I don't prioritise it now. This year so far (given that we are getting near the end of the year already) I have only paid off 20% of my total debt - which in some ways is great progress, but I'd rather not have it hanging around another 3-4 years thank you very much!!! Of course, my financial position will be better once bf starts properly contributing towards the bills which will help speed up progress - as so far this year everything has been done solely on my salary.
I also had further thoughts when I'd finished my waffling as I have a couple of interest free periods due to end soon...
One ends later this month - amount is £3,448 on my MBNA card. However, whilst that part is currently interest free, I did previously have to make a balance transfer to that card which charges 3.9% interest (current balance for that part is £2,905). Because that balance accrues interest, that is where the payments I make are allocated. So I think if I balance transfer now, it will effectively move that part rather than the part that will accrue interest soon. So my plan is to wait until my next statement (i.e. after the interest free period ends) before I do the balance transfer to ensure it works as intended and I don't inadvertently start paying a high interest!
I've looked and I currently have a few offers available with a low fee (3%) to move - unfortunately only for 12/15 months which won't give me time to clear before I have to shift again! My current thinking is to use the "misc savings" to cover the balance transfer fee - so I feel like I'm not increasing the debt! (However, on further waffling see comment below!)
I also have my HSBC interest free period expiring next month - that card has been my priority and currently only has £535 sat on it. I will move that one next month I think... unless I think I can come up with a plan to clear it by the end of October. Of course, instead of using the misc savings to cover the balance transfer fee I could use that to pay down this debt - which would mean I "only" have £400 to find. At least if I did have to balance transfer, the fee would be lower as I'd be transferring a smaller amount? Annoyingly, I'm probably going to do the balance transfer from MBNA to HSBC, meaning I won't be able to knock out a debt just yet even if I do clear it!
Then in November the interest free period on my Virgin card runs out!!! Current balance is £825. Balance transfers are great until the periods expire like buses!!! Depending on what offers are available at that point, maybe then I will be down to two debts (until I have further interest free periods expire and have to shift again!)!!!Debt as at 5 June 2023 - £15,600.89
Current debt - £6,450.00
Total paid off - £9,150.89 (58% paid off)0 -
Sorry @birdsfoottrefoil - I was writing a ramble when your comment came in! I've had a busy summer and have built that in to my budget, so made an intentional decision to slow down on the debt payments. I think the problem is now I'm sure what my priority is! But I think it's time for a mind-shift back to getting the debts gone with more intensity! Particularly given the above mess of balance transfers - I don't want to continuously be in this cycle!Debt as at 5 June 2023 - £15,600.89
Current debt - £6,450.00
Total paid off - £9,150.89 (58% paid off)0 -
I think tbh having fewer balances to worry about may be worth it mentally - the juggling itself is a load. I'd probably try to clear that £535 and then close it if you can (is there a reason you'd BT to the HSBC?)
On the bf, sounds as if you have things clear in your mind. May be worth having regular review points/check ins so you can adjust things, review how you're both feeling etc? Given how much money was tied into the toxicity of your old relationship, starting out on your new, positive relationship with a spirit of transparency about feelings about money as well as about money money would probably be good and bring you even closer. Does that even make sense?!Choose kind1 -
Thanks @Hazelnutty - agree re having regular catch ups with bf re money. He is aware of how much I was taken advantage of and actually ex was just oblivious to some extent as I handled all bills - so he didn't know (or really care) how much everything cost! So discussing it openly, rather than just taking control, will benefit us both. Whilst bf is not amazing with money (as in he doesn't have savings and has a tendency to buy what he wants when he wants - but doesn't have CCs), he has run his own house so knows how much everything can add up!
I was thinking (having read it on someone else's diary) about "scheduling" a budget meeting just before he's paid on 27th. That will give us the chance to discuss which of his bills have "dropped off" and so therefore will be paying half of mine/ours and I can tell him the amounts.
Also re the balance transfer - HSBC has the best BT offer available to me, which is why I was thinking of transferring there! Was thinking the same re getting the current HSBC balance cleared asap - as it will at least be one less "balance" to think about even if I'm not reducing the number of debts. I currently have 3 CCs but 5 balances - is it too much to set myself the target of getting this down to three by the end of the year???!?! Meaning I would need to clear £1,360 which is the current HSBC and Virgin balances. Might be too much as would also have to pay the minimum on the MBNA... Maybe we'll call it an optimistic target, especially given my slow progress so far this year!!!Debt as at 5 June 2023 - £15,600.89
Current debt - £6,450.00
Total paid off - £9,150.89 (58% paid off)2 -
Just playing devils advocate here. Could you use a pot or pots to clear the hsbc, transfer the whole mbna balance onto that card. Pay the minimum until the pots have been repaid?
LTotal Debt Dec 07 £59875.83 Overdrafts £2900,New Debt Figure ZERO !!!!!!:j 08/06/2013
Lucielle's Daring Debt Free Journey
DFD Before we Die!!!! Long Haul Supporter #1240 -
Appreciate your comments @lucielle - I could definitely borrow from a pot to clear the whole HSBC, so that's an option for me to consider! However, there is actually a third balance on the MBNA card - meaning the whole amount is just over £9k and none of my other cards have a limit that high!
Actually, I just checked to see if I could transfer both the balance that the interest free period is ending AND the interest incurring balance - however, again none of my limits are high enough. However, possibly worth me considering transferring as much of the interest incurring part as possible maybe? Currently costs be approx £10 per month - which is the only interest I pay across all my debts as everything else is interest free.Debt as at 5 June 2023 - £15,600.89
Current debt - £6,450.00
Total paid off - £9,150.89 (58% paid off)0 -
Hard to keep track of all of the buffers / funds and balances. My suggestion would maybe be to have a single buffer of £200 - you're unlikely to need £100 in every category for the same month, freeing up £200 to clear some debt.
I would also set a total amount that you want in your misc pot and use anything over that for the debt to try and reduce one of the balances.
Obviously different things work for different people but it sounds quite complicated in terms of numbers of pots/funds and you could probably combine some to keep things simple! You've done a fab job so far though so feel free to ignore these suggestions if they don't work for you, everyone's brain works differently!1 -
I think it should definitely be your aim to simplify your cards and also the amount of buffer funds you have. The less accounts and cards you have the easier it is to keep track of things. It seems like a good suggestion to use some of your buffer funds and your extra fund to put towards clearing the two smallest cards. If you do that, and maybe use some of the money that your boyfriend will be paying you soon it might be possible to do that before the end of the year. That would be a great start to the new year and you can always replace these funds first, before overpaying your debts, if you don't feel you have enough of a buffer.1
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Thanks for your comments @FacelessNumber and @Moneywhizz. I appreciate when written down it sounds VERY complicated! It seems to work well for me, but I will think about how it can be simplified.
What it looks like in reality is that my grocery money sits in one account, personal spends in another account, bills come out of a different account - each with a £100 buffer (which effectively acts like an overdraft). What this means is that I only need to look at the balance of each account to see how much I have left for the month - rather than having everything sat in the same account but not knowing what belongs to what budget without consulting my spreadsheet. Then all my sinking funds are sat in (yet another) account - which I do have to refer to my spreadsheet to know what belongs where. Basically, it appears I collect accounts!!!
Had a good money chat with bf last night! It happened naturally as I had a council tax letter arrive as I've lost my single person discount. So we had a bit of a generalised chat, but said we will sit down before his payday (27th) where we will discuss which bills he's contributing to next month (i.e. those of his that he isn't having to pay on his flat) and what the amounts are. It sounds so weird to have to write that I had an adult, mutual discussion about money!!! (I.e. that should be normal!)
Other than buying some cookies for my netball team mate who's off to uni, yesterday was a NSD as cookies will come from the "gifts" pot. We lost at netball and I played rubbish - still had fun though and that's the most important thing! Plus it helps that even with two games left, the team behind us in the league table can't overtake us so it didn't really matter!
On to today - which looks a little different as working from home today...- Update spreadsheet
- Do a few loads of washing on 30 degree quick cycles
- Hang washing on airers
- Lunch from stores
- Walk to chemist with pooch at lunch
- Tidy table (which I still didn't do last night!!!)
Debt as at 5 June 2023 - £15,600.89
Current debt - £6,450.00
Total paid off - £9,150.89 (58% paid off)1
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