Here Goes...Starting Up on a Journey

Superhoopza

lucielle said:

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

Hi, what do you mean savings pods? Do you mean like mini emergency funds?

lucielle

Yes something like that. I have a Lloyds account and I can open savings accounts (pots) and name them accordingly car, oil, emergency fund you get the idea. Then I put so much per month into each one. The interest rate isn’t great but it’s good to know I’ve got them. Some people put a sum each month into a different account and have the ‘pots’ on a spreadsheet so they know how much is in each one. Just whatever works for you. 

L

Superhoopza

lucielle said:

Yes something like that. I have a Lloyds account and I can open savings accounts (pots) and name them accordingly car, oil, emergency fund you get the idea. Then I put so much per month into each one. The interest rate isn’t great but it’s good to know I’ve got them. Some people put a sum each month into a different account and have the ‘pots’ on a spreadsheet so they know how much is in each one. Just whatever works for you. 

L

Once my debt is paid off then yes good idea, but for now I'd rather put any money I have towards reducing my interest bearing debt (24-30% APR) than the money sit in a savings account (pot) earning 5%. I have access to credit if/when I need to pay for outlays like this.

enthusiasticsaver

How much of that £46k is interest bearing? You got a Nationwide 0% deal recently didn’t you? Hopefully that means before too long you might get more offers. 

£10k reduction in 6 months is awesome. 

Superhoopza

enthusiasticsaver said:

How much of that £46k is interest bearing? You got a Nationwide 0% deal recently didn’t you? Hopefully that means before too long you might get more offers. 

£10k reduction in 6 months is awesome. 

All of the loan debt and £7.5k with MBNA will be interest bearing (£5k of it is on 0% until end of July).

Yeah should have more 0% deals soon.

Thanks!

Superhoopza

End of July-24 Update:

Credit Cards and Overdraft: £32,720
Loans: £11,186
Total Debt: £43,906

Emergency Fund: £100

Started Journey Jan-24.
Reduction in debt from previous month: £2,108
Total Reduction in Debt: £12,722

Notes:

• Hoping to get one more balance transfer card from a provider to clear the last interest bearing debt. Will look to apply for one this month as eligibility checkers seem positive.

Appreciate all the continued support the community provides.

dawnybabes

You’re doing brilliantly 

Sarahwithlove

Did you close your barclaycard in the end? I recently got offers on mine. I find virgin, barclaycard, mbna and Tesco are the ones who regularly send me emails about offers. So when you get them down to £0 on it you may find you get some as well. 

You've done brilliantly so far this year and hopefully be able to keep going with it at a similar pace. 

Superhoopza

Sarahwithlove said:

Did you close your barclaycard in the end? I recently got offers on mine. I find virgin, barclaycard, mbna and Tesco are the ones who regularly send me emails about offers. So when you get them down to £0 on it you may find you get some as well. 

You've done brilliantly so far this year and hopefully be able to keep going with it at a similar pace. 

Thanks very much. Nope didn't close Barclaycard but haven't had any offers from them or other providers. Waiting to be added to the electoral role in the new place so currently I'm 'not on the electoral role', i.e. my addresses aren't matching up. So waiting for a few weeks for the electoral role to inform the CRAs, then hoping to get a £10k natwest card.

Superhoopza

More good news, got accepted for a 23 month 0% interest (3.49% balance transfer fee) with Natwest for £10k. This will allow me to move my last remaining interest bearing credit card debt onto 0% and I went with the longest option of 23 months to allow me to focus all my attention on saving enough to clear my loan balances. I'm already down to 2 out of 3 loans and hope to clear the next one by around January/February 2025. I'll still incur interest on my last interest bearing card for 2 months as I have to pay in full for 2 months to remove this. I'll then close this card as it has a very high limit which also adds the possibility of being able to open it again when I need to shift the remaining Nationwide balance in 12 or so months time.

It will mean I went from paying about £800-£900 a month interest to now paying just interest on the overdraft of £30 a month capped and the loan balances, which this month will be £200.

Hopefully shows to people that with a tough few months, better money management and planning, offers can come around to ease the burden and that the first few months are always the hardest.