Teetering on the brink

DrunklMunkee

Right, so now that the ‘Mind of Beans’ has been taken off Fast Forward - Do you have a plan of action for the MBNA shuffle??

This is probably one of those times where I would switch from the debts accruing the most interest - to those 0% debts that are ending soonest. Trying to buy back a bit of that time we crave. 

I would have a list of all those 0% deals ending soonest (which, knowing Beans, like I know Beans - you will have tucked away somewhere on a spreadsheet ☺️). I would basically keep going down that list until I have maxed out the new 0% limit. 

Then, time for a cuppa & a recap and possibly another L’Oreal moment.

Your priorities should now have changed. Which debt to concentrate on after the OD; How to apportion overpayments etc - So - time to take stock, re-jig spreadsheets, budgets, overpayments & how to congratulate yourself for getting this far ⭐

Gooooooooooo, BEANS!!!, go Be-ans!, go-Be-ans!

EatingBeans

Proper LOL at the “Your call is important to us…” oh @DrunklMunkee you do make me laugh. 

Sadly @joedenise I fear the credit limit increase is just not going to happen. The date on the letter clearly indicates that it would happen today so I would be very surprised if they sudden increase it at my next statement date instead. 

It’s all ok though (I have clearly had some sleep and currently not in pain so feeling good), after spending over an hour staring at my beloved spreadsheet this morning, I have instead come up with a plan B. 😊 

I mean, (and I daren’t even really whisper this), but realistically there is a tiny bit inside me that would actually kind of be impressed with MBNA if they didn’t raise my limit at this point. I mean, I DO want them to, obviously, but if they don’t, I am going to put it down to responsible lending, as right at the point at which I myself am looking at my finances thinking OMG this is touch and go, I need to turn things around NOW otherwise I am going to be in real trouble, MBNA are also looking at it thinking the same. So that would still prove that me and MBNA are besties right? Either way, win, win. 🤣

DrunklMunkee

OK - so I recently received a credit limit increase from BC.

I wasn't paying it much attention at the time - So don't know which day it was meant to be available. But the day it happened - I received a text message.

I have just checked and that was sent at mid-day 12:14.

Maybe it just takes that amount of time to run the various computer updates that need to happen?? 

DrunklMunkee

And now I have found the original paperwork.

The letter told me it would be increased on 28/01

and I got confirmation on 30/01, via text at 12:14

EatingBeans

DrunklMunkee said:

Right, so now that the ‘Mind of Beans’ has been taken off Fast Forward - Do you have a plan of action for the MBNA shuffle??

This is probably one of those times where I would switch from the debts accruing the most interest - to those 0% debts that are ending soonest. Trying to buy back a bit of that time we crave. 

I would have a list of all those 0% deals ending soonest (which, knowing Beans, like I know Beans - you will have tucked away somewhere on a spreadsheet ☺️). I would basically keep going down that list until I have maxed out the new 0% limit. 

Then, time for a cuppa & a recap and possibly another L’Oreal moment.

Your priorities should now have changed. Which debt to concentrate on after the OD; How to apportion overpayments etc - So - time to take stock, re-jig spreadsheets, budgets, overpayments & how to congratulate yourself for getting this far ⭐

Gooooooooooo, BEANS!!!, go Be-ans!, go-Be-ans!

It is scary how well you know me @DrunklMunkee  ! I sent my last message before your message above showed up in my feed so I think we are typing at the same time and they are crossing over. 

You are absolutely right, my first thought was can I take advantage of any room left on the MBNA 0% offers before I switch tack. I compared each month payment and interest I would have to pay between now and when I would naturally pay off the remaining high interest portion, totalled it up and compared it to the fee if I bounced a payment into the account and then out again. Literally a couple of pounds in it so I am leaving well alone. 

Next thought. The overdraft makes little sense interest rate wise to continue to focus on after this month, but it is a stress point as the pots/overdraft creation to fight the interest is complexity I could do without in my life. So, I have decided that I will continue to focus on the overdraft for the rest of this month (the actual account balance is £289.23 so I AM still paying 39.9% interest on that bit atm), but then I am just going to make it a plan to get rid of the remaining overdraft by the end of 2025. I will have a monthly target to pay down and once I have paid that I will switch to my real target for overpayment for the month. 

Currently, the biggest and most looming ends to the 0% deals all sit on the Barclaycard, so to avoid the minimum payment for that skyrocketing I am going to focus on that one next. Plus, there is a slight hope that if I focus on that one for a which then they might start offering me 0% offers again (they are less likely to do this than MBNA but paying down a chunk did trigger this on Barclaycard last time), then I could use that card for a credit card shuffle. 

Of course, fingers crossed MBNA does raise my limit at some point and I can have the joy of rethinking this all over again! 🤣

DrunklMunkee

Hey @EatingBeans,

That sounds great - careful forward planning - both plan A & B. Well done 🥳.

I did think about the new CA as well, The way you explained your new bank account set-up, sounds like they have “transferred” the 2 DDs that were in place (not your fault that EDF couldn't handle the transfer 👍) - so I am quietly confident you have ticked all the necessary boxes to qualify for the £175. If not - then it is no huge problem. Frustrating…. Yes,  but not a problem. You haven’t lost anything other than a little bit of time, and you haven’t really lost that. You have merely exchanged it for ‘experience points’ in the Game Of Debt Repayment.

Have they mentioned the free overdraft at all? - This would really help with getting that last bit of the interest-bearing element of TSB OD down to nothing.

DrunklMunkee

Oh,

and I just want to be sure....

You are aware that you don't have to transfer the whole outstanding balance to the card you are repaying?

Say - you had £1200 on BarclayCard as your next 0% that is going to expire.
but you only have £900 available on MBNA

You don't have to transfer the whole £1200. You simply transfer the £900 and Barclaycard will apply it to the £1200 and leave £300 as interest bearing.

So - there is no need to go over your limit on MBNA.

If that makes sense. 🤔🤔

DrunklMunkee

In fact....

Do NOT EVER go over your MBNA credit limit, because this is one of the things you must not do, in order to keep your lending at 0%.

1 ALWAYS pay the minimum
2. Never exceed your credit limit

👍👍👍

EatingBeans

Hey @DrunklMunkee
CA wise, no, no mention of the overdraft. Tbh even if the did give it to me I wouldn’t use it. I hate overdrafts, they really mess with the flow of my spreadsheet if nothing else! 🤞for the £175 though. Again, not going to be the end of the world if I don’t get it, I was just really quite excited at the prospect of finding a new way to get free money! I think I am just particularly sensitive about calling energy companies. Hmm, maybe I should have used the internet DD instead? In fact, I might just add that one to bouncing around with that CA too. It would still leave enough DD’s on my main CA to gain Rewards on that account. Yep, that’s my new plan. (Makes note!)

And no worries on the whole going over the limit thing with the credit cards as it won’t even let me enter a number to transfer that would take me over my limit. 

Oh and I do indeed know I can just transfer part of a credit card balance. It’s kind of the reason I have soooo many 0% offers ending at all different times. Those bits of balances that I previously transferred are all now sitting as little balances all with slightly different terms as the offers that they gave me differed slightly when I took them out. Despite it making it ridiculously confusing to keep track of, I am kind of grateful in a way because instead of (for example-not real figures), having say £5000 all ending in one month and the amount sounding ultra, ultra scary, I instead have something like £1000 in month one, another £500 in month two, £1500 in month three and £2000 in month four. The balance still rises by £5000 in a very short space of time but it’s not so overwhelming in month one or two, giving me a sense that I can pay it off if I try, (so I try really hard), and by month three, I almost certainly wont have been able to stem the flow BUT the balance would be lower,  than if I’d have just been hit with £5000 in one go and just gone and hid in a corner rocking slowly. I guess it works in a similar principle as to the suggestion to tackle the smallest debt first, it’s psychologically easier to tackle. It works for me anyway!

ellen_vannin

The Bank of England decision today to cut interest rates by 0.25% might not immediately be of benefit to you.
But might in the long term.