Here Goes...Starting Up on a Journey

Superhoopza

End of Aug-24 Update:

Credit Cards and Overdraft: £31,875
Loans: £10,485
Total Debt: £42,360

Emergency Fund: £250

Started Journey Jan-24.
Reduction in debt from previous month: £1,546
Total Reduction in Debt: £14,268

Notes:

• New card approved, transfers to be completed this week hopefully. Last interest bearing debt will be overdraft and loans, no credit card interest after 2 months full payment.

Appreciate all the continued support the community provides.

londoner2019

Just read your diary - congrats on the fantastic achievement since January! I saw maybe last month you mentioned you weren't interested in moving the OD as you'd done some calculations. Is it because the money transfer offers aren't 0%? It would be a great boost to get that last interest-bearing debt gone! Plus ODs can get recalled at any time.

I've bookmarked this diary to cheer you on!

Superhoopza

londoner2019 said:

Just read your diary - congrats on the fantastic achievement since January! I saw maybe last month you mentioned you weren't interested in moving the OD as you'd done some calculations. Is it because the money transfer offers aren't 0%? It would be a great boost to get that last interest-bearing debt gone! Plus ODs can get recalled at any time.

I've bookmarked this diary to cheer you on!

Sort of, there's a 5% transfer fee with money transfers I am eligible for, so to clear my overdraft, I'd pay a fee of £150. My OD is capped at £30 a month, so 5 months worth of capped overdraft. So I don't feel its worth taking another card out, when I don't know I'll get a card with a limit to clear the OD as well as reducing my options further down the line. Also now I've just taken a card out, I'll probably have to wait a few more months to get a card offer again. Just a personal choice.

Thanks for the kind words and good luck on your journey too.

londoner2019

Superhoopza said:

londoner2019 said:

Just read your diary - congrats on the fantastic achievement since January! I saw maybe last month you mentioned you weren't interested in moving the OD as you'd done some calculations. Is it because the money transfer offers aren't 0%? It would be a great boost to get that last interest-bearing debt gone! Plus ODs can get recalled at any time.

I've bookmarked this diary to cheer you on!

Sort of, there's a 5% transfer fee with money transfers I am eligible for, so to clear my overdraft, I'd pay a fee of £150. My OD is capped at £30 a month, so 5 months worth of capped overdraft. So I don't feel its worth taking another card out, when I don't know I'll get a card with a limit to clear the OD as well as reducing my options further down the line. Also now I've just taken a card out, I'll probably have to wait a few more months to get a card offer again. Just a personal choice.

Thanks for the kind words and good luck on your journey too.

Ah ok, understood. Sounds like you have a plan to clear it at some stage. For me, it was a huge bonus to see that OD go and not see a negative balance in my current account, but agree that it's a personal choice. Strip out those motivating factors and focus on the numbers, balances, and interest rates in black and white.

Sarahwithlove

Hopefully in a few months you may get a better offer for money transfer. OD cap only ends up saving you money if you manage to get out of it in those 5 months. It will also boost your chances of offers if you aren't spending every month in your overdraft. 

Superhoopza

Sarahwithlove said:

Hopefully in a few months you may get a better offer for money transfer. OD cap only ends up saving you money if you manage to get out of it in those 5 months. It will also boost your chances of offers if you aren't spending every month in your overdraft. 

To be honest, once I have enough to clear my OD, that will be roughly the balance of one of my other loans so I'd just rather pay that early (even with fees), as the APR on that is over 2x the effective rate of my OD with the cap. That will also mean I can build up my OD amount again quicker (less monthly loan repayments).

Sarahwithlove

Superhoopza said:

Sarahwithlove said:

Hopefully in a few months you may get a better offer for money transfer. OD cap only ends up saving you money if you manage to get out of it in those 5 months. It will also boost your chances of offers if you aren't spending every month in your overdraft. 

To be honest, once I have enough to clear my OD, that will be roughly the balance of one of my other loans so I'd just rather pay that early (even with fees), as the APR on that is over 2x the effective rate of my OD with the cap. That will also mean I can build up my OD amount again quicker (less monthly loan repayments).

Fair enough, one debt at a time! Regarding your loans then and OD could you get a big enough money transfer to cover them and save on the interest? 

Superhoopza

Sarahwithlove said:

Superhoopza said:

Sarahwithlove said:

Hopefully in a few months you may get a better offer for money transfer. OD cap only ends up saving you money if you manage to get out of it in those 5 months. It will also boost your chances of offers if you aren't spending every month in your overdraft. 

To be honest, once I have enough to clear my OD, that will be roughly the balance of one of my other loans so I'd just rather pay that early (even with fees), as the APR on that is over 2x the effective rate of my OD with the cap. That will also mean I can build up my OD amount again quicker (less monthly loan repayments).

Fair enough, one debt at a time! Regarding your loans then and OD could you get a big enough money transfer to cover them and save on the interest? 

The only provider I can get a money transfer with is virgin money but I don't know what credit limit I will get and having got £27k in cards in the past few months, I am surely at the 'edge' of how much credit I will be given.

Superhoopza

Balance Transfers to Natwest complete and MBNA with a big credit limit closed down and got them to not apply any lagging interest. Opens up the possibility to balance transfer to them next summer.

State of play: 2 credit cards on 0% deals until next summer and subsequent summer respectively. 1 credit card used for monthly spending and paid in full each month and one open card with £0 balance as a spare. Will put a couple of small spends on this each month to keep it active.
Overdraft capped at £30 a month
Two outstanding loans

Next target is to build up enough to tackle the lowest balance loan as they are both near enough the same APR.

Let's keep going!

Superhoopza

End of Sep-24 Update:

Credit Cards and Overdraft: £31,313
Loans: £9,785
Total Debt: £41,097

Emergency Fund: £175

Started Journey Jan-24.
Reduction in debt from previous month: £1,263
Total Reduction in Debt: £15,531

Notes:

• Few exciting events coming up for the rest of the year as well as a fantastic enjoyable September. Fortunate enough now to be able to have interest under control and be able to enjoy things as well as reduce debt.
• Looking to pay off my second loan in Oct/Nov which would leave one outstanding.
• Should break the £40k debt barrier in October.

Appreciate all the continued support the community provides.