Here Goes...Starting Up on a Journey

enthusiasticsaver

Good news on the pay increase and being able to clear Barclaycard.

Superhoopza

Thanks. After clearing Barclaycard, it will be slow to tackle any more, I predict I can put about £300 a month on average towards my credit card balances (plus the £1250 on the monthly loan payments). My next decision will be whether to tackle the Capital One balance (31% APR) or the MBNA balance (24% APR). MBNA have in the past given me 0% BT offers (some of which are still on promo balances). So the decision is pay off the higher rate card first or work on the far bigger slightly cheaper balance in the hope of getting any offers from them. In an ideal word, once I clear the barclaycard balance, that they offer me 0% deals but given they have froze my interest for 3 months and reduced my credit limit by 10% (for now), I will presume getting any further deals with them will be difficult. 

Superhoopza

Potentially interesting, I tried a soft search on a nationwide credit card which I have a savings account with (nothing in it). They told me I would be declined if I searched because the amount of credit available to me is too high. You don't usually get this level of insight right? It confirms my decision to close my 118 account and use my barclaycard as my current spending card once I am paying it off in full. 

It could also influence my decision of whether to tackle the Capital One or MBNA card first.

MFWannabe

The balance on the capital one card is much lower than MBNA and much higher interest so that’s the one I’d tackle next 

Superhoopza

End of March-24 Update:

Credit Cards and Overdraft: £30,388
Loans: £21,354
Total Debt: £51,742

Emergency Fund: £100

Reduction in debt from previous month: £1,582
Total Reduction in Debt: £5,218

Notes:

• Couple of trips this month so was always going to be an expensive one. This continues for the following two-three months until the summer quieter months.
• Tax rebate of £564 received in month. Another expected in the summer for the 2023-24 tax year.
• Small salary increase and bonus confirmed and will be reflected in April's numbers.
• £4,500 of the MBNA balance has now had it's 0% period ended. It leaves about £5k under a 0% interest which ends this summer.

Aiming to break the £50k barrier next month

Superhoopza

Amendment to the above, unfortunately I miscalculated something. Means I will need to put £1,742 towards debt this month to break the £50k barrier. Going to be tough now but everyone loves an aim.

enthusiasticsaver

Good reduction on debt since January and hopefully as the debt reduces you may get 0% deals. Well done on salary increase and bonus. 

Superhoopza

enthusiasticsaver said:

Good reduction on debt since January and hopefully as the debt reduces you may get 0% deals. Well done on salary increase and bonus. 

Thanks. Resigned myself to probably not getting any deals until at least the autumn. Interestingly enough one of my loans is not showing on any of the 3 CRAs which is good, but also means my balance on my CRAs doesn't reduce my the same amount I'm paying each month (even with interest added).

The end of year aim, is a very very ambitious one but I'll give it a go (may need a 0% deal or two) is to get the debt down to £35k by the end of the year. If I can get it to £37k then that will be £20k cleared in the first year (and highest interest bearing year).

Superhoopza

Just checked and I was 'pre approved' on clearscore for a Santander loan of £8k at 19.9%. Did the same eligibility checker on Santander's website and got offered the same. Requested a settlement figure with my highest loan which was a reasonable settlement figure.

Also it is quoting me that for 3 years at 19.9% fixed, it will cost me £2,453 in interest over the 3 years. I've plugged the £8k figure at 19.9% for 3 years into many different calendars which is quoting me £2,688. Not sure why this is cheaper?

I'll do the maths and decide whether it's worth doing or use this as a positive sign that better deals are coming.

Superhoopza

Given it's a 3 year loan and my other loans are 2 years and the highest being 26% APR, it doesn't work out much cheaper overall. Hopefully a positive sign though that I'm getting more offers.