My accountability thread - diary of an in-denial credit card spender

MFWannabe

MissMaud said:

Please could anyone advise me on this - I am overpaying the minimum payments on my credit cards by about £350 a month spread between them all, and I thought this was a good thing to try to knock down the debt by the time it comes for me to remortgage in May next year.  But am I doing the wrong thing? 

If I add on this realistic payment to what I've put in my updated SOA, then I am just about breaking even or at a small loss for the month - assuming I keep on budget and don't overspend anywhere (and I am a compulsive spender, I recognise that as a failing in myself).  

I honestly don't know what is the best way forward here.

Are the credit cards actually on zero percent? When do these end? 

Firstly I would suggest you need to stop overpaying the credit cards by that much and absolutely stop spending on them! All you’re doing at the moment is going round in circles; overpay; have no money left; spend on credit cards
Secondly set yourself a realistic budget living off your salary and build yourself an emergency fund 
Once you’ve done the above then you can see what actual money you have left each month to start paying off your debts 
Why are you worrying about remortgage next year? If you stay with same provider and don’t change term or borrow more then there won’t be any credit checks 

Moneywhizz

I would agree that you should stop overpaying the credit cards, at least for a few months until you see how your budget is working. However it is vital that you don't just see that money as extra spending money. It should be going into a savings account so that you have a bit of a buffer. I suspect that your budget will still need some work, either to increase some pots, or decrease others. For example entertainment if very low while groceries is quite high. There are also other categories missing such as dental/optician/ car replacement, household expenses such as boiler service or repairs. It is a good start though and shows you that you don't have much spare money at the moment. It may make you reconsider keeping two houses or you may decide that you are willing to live quite frugally so that you can do that. It is your choice. 

MissMaud

Thanks all again for the comments and advice.  I agree that I am going round in circles with overpaying the credit cards and then needing (wanting) to spend on them again.  I thought I should overpay because I'm afraid that when it comes for the time to me to remortgage in May, I might not get a new mortgage because they might think I can't afford it with all my debt - does that make sense?

Apart from all of that, what my real problem is, is a propensity to overspend to make me feel good about things, which is something I have explored (obviously unsuccessfully) in the past with counsellors, and obviously I need to revisit that.

I am very grateful to everyone who has taken the time to reply to my ramblings on this thread.  It has really helped, thank you.

Sarahwithlove

Could you set yourself a weekly personal spends limit and use an account such as chase where if the money isn't there your card gets declined? 

I second not worrying about clearing debt to remortgage. If you stay with current provider and take there new offer they don't do affordability checks. It may be something you have to do until debt free. Though I will say when I renewed mine my current provider was a better rate than anything I could get from whole of market at the time. 

I'd focus for now on paying just above minimum. I.e round up to nearest pound. Then have a few months learning how to live within your means and work on the emotional spending. 

Emmia

MissMaud said:

Thanks all again for the comments and advice.  I agree that I am going round in circles with overpaying the credit cards and then needing (wanting) to spend on them again.  I thought I should overpay because I'm afraid that when it comes for the time to me to remortgage in May, I might not get a new mortgage because they might think I can't afford it with all my debt - does that make sense?

Apart from all of that, what my real problem is, is a propensity to overspend to make me feel good about things, which is something I have explored (obviously unsuccessfully) in the past with counsellors, and obviously I need to revisit that.

I am very grateful to everyone who has taken the time to reply to my ramblings on this thread.  It has really helped, thank you.

If by a "new mortgage" you mean a new fixed rate you'd be better sticking with your current provider as there aren't the same checks. 

MissMaud

Emmia said:

MissMaud said:

Thanks all again for the comments and advice.  I agree that I am going round in circles with overpaying the credit cards and then needing (wanting) to spend on them again.  I thought I should overpay because I'm afraid that when it comes for the time to me to remortgage in May, I might not get a new mortgage because they might think I can't afford it with all my debt - does that make sense?

Apart from all of that, what my real problem is, is a propensity to overspend to make me feel good about things, which is something I have explored (obviously unsuccessfully) in the past with counsellors, and obviously I need to revisit that.

I am very grateful to everyone who has taken the time to reply to my ramblings on this thread.  It has really helped, thank you.

If by a "new mortgage" you mean a new fixed rate you'd be better sticking with your current provider as there aren't the same checks. 

Hi Emmia, yes this is what I mean, a new fixed rate.  I would be sticking with Santander (my provider since I bought the house) as they have always given me the best deal.  That's good to know about the checks; this is something I've been really worried about.  I just hope I get another good deal when the time comes because it's tight enough already!!

MissMaud

Sarahwithlove said:

Could you set yourself a weekly personal spends limit and use an account such as chase where if the money isn't there your card gets declined? 

I second not worrying about clearing debt to remortgage. If you stay with current provider and take there new offer they don't do affordability checks. It may be something you have to do until debt free. Though I will say when I renewed mine my current provider was a better rate than anything I could get from whole of market at the time. 

I'd focus for now on paying just above minimum. I.e round up to nearest pound. Then have a few months learning how to live within your means and work on the emotional spending. 

Thank you @Sarahwithlove, I have a chase account so that's something I will look into.  I know myself though if I think it's going to be declined on my Chase account, I will just take my first direct bank card with me.  Like you said, I need to work on the emotional spending and what it's doing for me psychologically.  This will not be a quick fix I fear

Thanks for the advice on the credit cards payments - I'm going to go onto my accounts now and change the direct debits to just above minimum payments.  This will give me a bit of breathing space, and since starting this thread and being forced to confront my situation and hear all of everyone's advice, I think I will be less likely to aimlessly fritter money away.  At least I hope so.  

MissMaud

MFWannabe said:

MissMaud said:

Please could anyone advise me on this - I am overpaying the minimum payments on my credit cards by about £350 a month spread between them all, and I thought this was a good thing to try to knock down the debt by the time it comes for me to remortgage in May next year.  But am I doing the wrong thing? 

If I add on this realistic payment to what I've put in my updated SOA, then I am just about breaking even or at a small loss for the month - assuming I keep on budget and don't overspend anywhere (and I am a compulsive spender, I recognise that as a failing in myself).  

I honestly don't know what is the best way forward here.

Are the credit cards actually on zero percent? When do these end? 

Firstly I would suggest you need to stop overpaying the credit cards by that much and absolutely stop spending on them! All you’re doing at the moment is going round in circles; overpay; have no money left; spend on credit cards
Secondly set yourself a realistic budget living off your salary and build yourself an emergency fund 
Once you’ve done the above then you can see what actual money you have left each month to start paying off your debts 
Why are you worrying about remortgage next year? If you stay with same provider and don’t change term or borrow more then there won’t be any credit checks 

Hi @MFWannabe, yes the cards are all on 0% and end on various dates next year.  By the end dates I'll have nowhere near paid them off, but I hope I can get a new deal then.

I see what you see about going round in circles.  I never realised it until starting this thread.  It's been an eye opener.  As I said to a previous poster, I am going to go onto my accounts now and change my payments to the minimum.  I've never thought of having an emergency fund when I'm in debt - I always put emergency spending on my credit cards.  Obviously that's where i've been going wrong.

Thanks for the advice about remortgaging.  I thought that they would look at my account and think I was not a good option for giving a mortgage to.  That's a relief to know. 

Sunshine_girl2

I have read that setting the payment a £1 above the minimum is better than setting it to minimum . 

joedenise

MissMaud said:

Sarahwithlove said:

Could you set yourself a weekly personal spends limit and use an account such as chase where if the money isn't there your card gets declined? 

I second not worrying about clearing debt to remortgage. If you stay with current provider and take there new offer they don't do affordability checks. It may be something you have to do until debt free. Though I will say when I renewed mine my current provider was a better rate than anything I could get from whole of market at the time. 

I'd focus for now on paying just above minimum. I.e round up to nearest pound. Then have a few months learning how to live within your means and work on the emotional spending. 

Thank you @Sarahwithlove, I have a chase account so that's something I will look into.  I know myself though if I think it's going to be declined on my Chase account, I will just take my first direct bank card with me.  Like you said, I need to work on the emotional spending and what it's doing for me psychologically.  This will not be a quick fix I fear

Thanks for the advice on the credit cards payments - I'm going to go onto my accounts now and change the direct debits to just above minimum payments.  This will give me a bit of breathing space, and since starting this thread and being forced to confront my situation and hear all of everyone's advice, I think I will be less likely to aimlessly fritter money away.  At least I hope so.  

It sounds as though you shouldn't really be taking any cards out with you expect your Chase debit card.  That way you won't be able to just use another debit card (or worse still credit card).

Hopefully by paying just over minimum on your CCs you'll be able to just use your Chase account debit card going forward and get yourself better at prioritising what is most important to you to be spending your hard earned money on.