Here Goes...Starting Up on a Journey

Superhoopza

End of May-24 Update:

Credit Cards and Overdraft: £29,307
Loans: £18,816
Total Debt: £48,123

Emergency Fund: £160

Started Journey Jan-24.
Reduction in debt from previous month: £1,003
Total Reduction in Debt: £8,505

Notes:

• Sizeable trip this month so savings were always going to be lower this month. Few big things on this month too so don't expect big savings until July
• Getting the £18k 0% offer from Nationwide means I can clear 3 further cards, so will only carry a balance on one card incurring interest, a balance at 0% on Nationwide and a card for monthly spending which will be cleared in full each month. Saving £300 a month (after I clear cards for two months and clear trailing interest), again benefit expected to be seen in July or August. I think it will also knock around 6 months off my target of when I'm clearing the debt. I've started the process to complete the balance transfers, been told it could take 10 working days to complete. Hopefully that's just them covering themselves and not the likely timeframes.
• End of year aim of getting to £35k total debt feels more achievable, even if still ambitious.

Appreciate all the continued support the community provides.

enthusiasticsaver

Excellent progress.  Well under £50k now. Getting that Nationwide card was a real bonus and not paying interest on all but one card will help.  Enjoy your trip this month. 

Superhoopza

All bar one of the balance transfers have gone through. 

Superhoopza

More good signs, Virgin Money have pre-approved me on their own site for all their cards, which are differing in balance transfer, money transfer and purchase transfer rates and times all for 0%, credit limit to be determined though. Natwest have also pre-approved me for £10k for all their cards on their site, including a 0% balance transfer fee card. It means I can get the last of my interest bearing credit cards (besides my overdraft capped at £30 fee per month) onto 0% deals. It leaves me exposed in 15-18 months but the balances of the 0% cards will of come down and also a good sign I'm getting 0% deals. It would mean I can close down a couple more, potentially using them to shift 0% debt in 15-18 months time.

With the money transfer potential from Virgin, I will look into whether it is worth doing that to pay off any loans. It probably won't be though after paying 1-2 months interest for early settlement, plus a money transfer fee. Unless people can suggest otherwise in regards getting around the settlement fees. I made a thread about it but didn't really get any answers.

vampirotoothus

Hi, it's probably worth running through the snowball calculator and see what that suggests re transferring loans to CC. I think most loans have the interest front-end loaded, but it may be worth asking for settlement figures, so you have the facts to hand and go from there. You are doing well V x

Floss

Is there any benefit in shifting your O/D via a money transfer card? 

Superhoopza

Floss said:

Is there any benefit in shifting your O/D via a money transfer card? 

Nope probably the last option. As I'm paying a £30 max cap, which if I max my OD each month means an interest rate of about 13%, so I'd be better using that money towards reducing a loan balance.

Superhoopza

vampirotoothus said:

Hi, it's probably worth running through the snowball calculator and see what that suggests re transferring loans to CC. I think most loans have the interest front-end loaded, but it may be worth asking for settlement figures, so you have the facts to hand and go from there. You are doing well V x

Thanks for the kind words. I've worked out roughly what I'm paying each month on interest on the loans and looking at the balances it seems they are not front ended but settlement figures I've asked for have included 2 months interest. I'd then have the balance transfer fee. Will look at it all in a couple of weeks when I have more time and if I'm still getting the same offers. When my balance transfers get updated on CRAs, my offers may change.

Superhoopza

End of June-24 Update:

Credit Cards and Overdraft: £28,467
Loans: £17,547
Total Debt: £46,014

Emergency Fund: £160

Started Journey Jan-24.
Reduction in debt from previous month: £2,109
Total Reduction in Debt: £10,615

Notes:

• All balance transfers to Nationwide complete. It leaves one card carrying an interest occurring balance so all excess money is going to that card.
• Two cards closed, high interest subprime cards.
• Nice to hit £10k total debt cleared in 6 months, shows the potential of what can be saved and put towards a nice holiday and house deposit in a relatively short period of time.
• Annual car insurance due this month so savings won't be as high this month coming.

Appreciate all the continued support the community provides.

lucielle

Have you set up saving pots for different things so you’re ahead of the game next year? Like car insurance, MOT etc 
L