Finally going to solve this debt once and for all

abaka

The APR would be the same on the loan in wife’s name. But because it would be over ten years instead of 7 it would be lower min payments.

The plan would be that I would feasibly get the same loan again from Nationwide after a month or two as technically the 15k debt would be missing from my credit file (I got this loan when I had more credit card debt so shouldn’t be a problem getting it again when the 15k is gone). However wife has went off that idea now as have I so removing that option now.

The balance transfer fee would be 3.15% but would mean the 4k is not a concern for 33 months and I believe it will be cleared by that point or at the very least down to just a few hundred.

Realistically I’m leaning towards just paying off the cards as they sit right now and not doing any transfers.

If I’m showing as pre approved for the Santander card now, it’s probable I’ll be approved come July at which point my over all debt should be reduced by at least 4-6 grand based on current plans!

I think I need to stop focusing on long term goals and just take each month as it comes. I used to predict that I’d be debt free within 2 years. Then decide I’d spend a few hundred quid as it would only push the boat out a few months.

Now I sit here and realise my entire 30’s has been spent in debt at various levels because of that long term vision but not actually addressing the short term behaviours

Stupidly I did put a charge on my credit card last night. Will be able to pay it off no worries but selected the wrong card on Apple Pay! Will be removing all but one card (emergencies) from Apple Pay!

daisy_1571

But of course, that means I’d be swapping three debts which are interest free to an interest paying debt which in theory means less of my money is going to debt each month

Definitely doesn't mean "in theory", its actually not theoretically. If you aren't paying interest, 100% is paying down. If you are paying interest, your payment won't be paying 100% off the debt.

The APR would be the same on the loan in wife’s name. But because it would be over ten years instead of 7 it would be lower min payments.

Yes, but 10 years of lower payments will very likely add up to more than 7 years of lower payments. Plus you will have committed a portion of your salary for a further 3 years. Salary that could be used for much better purposes ie you and your family.

If I’m showing as pre approved for the Santander card now, it’s probable I’ll be approved come July at which point my over all debt should be reduced by at least 4-6 grand based on current plans!

ooh, thats bold thinking, I wouldn't bank on that ! You could have job/salary changes. There could be interest rate changes. Santander or the wider banking system might decide on slightly different criteria in the way that the 'affordable rules' changed people's mortgage calculations. If you can lock it in for longer now, I'd think more seriously about doing it. There's plenty diaries on here where people have been going great guns paying down at 0% then can't secure a new deal and suddenly most of their higher monthly payments are paying interest and debt reduction slows right down. Plus there's stress coming up to deal end date, scouring websites looking for new deals, hoping for offers from existing providers, applying, hoping and praying etc.

If it was me, whilst its tempting to keep tinkering, I'd try setting up a new bank account (getting a switching bonus of course), move your debt payments over to that account gradually or all at once depending on the rules for the new account. Set up a standing order from your account where the salary/benefits etc goes in to cover the payments (or a couple of standing orders if you get multiple payments in a month) and let it tick over. If you can, set up the incoming payment to be a couple of pound above all the debt commitments and you'll start building up a wee buffer. That way it doesn't matter if you have 1 payment or 17 payments, that account just chunters away each month without much intervention.

Use a third account, with no overdraft facility, and send a weekly standing order from your salary account and use this for your day to day household, food, petrol etc shopping so you aren't caught in the boom and bust of a monthly amount and trying to make it last all month.

Things like that, automating as much as possible, will take a bit stress off you rather than going in and out the accounts all the time tinkering about.

Hope this is taken in the spirit of helpfulness its meant to be but feel free to ignore if I've misunderstood your systems.

Daisy xx

abaka

I am very happy with my current bank and all the payments are just direct debits (minus the one I pay the largest amount to) so think I’ll stick where I am for the minute with how I run my accounts.

I do have a joint back account with wife and I pay a huge lump sum into that which covers all household bills etc so kinda the same way you’re saying.

Hmmm, I get what you’re saying and it’s kinda in the back of mt head. As I have seen offers dry up on me before. At the moment I’m approved for a Santander for 33 months and recently closed a Tesco card so again in 12 months, I might have a few 0 offers for new cards and also have some offers on existing cards.

However, Think I might apply for it tomorrow as it means I have all my Cards tied up on 0% for long enough distances where I should be able to clear them.

abaka

Great start to Monday. I went ahead and applied for the Santander. Pre-Approved. However they've asked for Documentation showing Proof of Address and Valid Photo ID. The annoying thing. My name I've used my entire life is spelt on way, and the spelling on my passport is a different way. We're talking the difference between one and two "N's". All my cards/banking and any utilitiy bills are registered in the one N spelling and my passport and driving licence are two.

So that card is likely to be rejected. Over the years I've had cards from Barclays/Lloyds/Halifax/MBNA/HSBC/Nationwide/Tesco/Capital One/Virgin and never had this issue. Guess Santander will be a provider I'll be avoiding in future lol. As none of my ID matches as all utility bills/mortgages/bank statements etc will show the one N including my mortgage. Frustrating I can be approved to borrow 80k for a property with one letter being out but can't get a 5k credit card lol.

Frustrating as I'll have a hard search on my file for no reason. I might just leave the card where it is. I'm sure I'll have a better offer come July for 0% deals.

Just frustrates me

daisy_1571

I would have thought that would have been more of a problem many times over the years, the whole point of id is its meant to match 😂

Perhaps its something you could look at doing and gradually get everything into the one way of spelling, presumably the way your birth certificate has it? Its likely to be a problem going forward so perhaps could mess up a more critical 0 % when you really need it?

In the above I was trying to suggest a way you werent getting bothered by the multiple payment dds which you'd said was annoying at times in an earlier post. Sounds like you have a good system already.

Daisy xx

abaka

You'd imagine so but it's never been a problem. I've had wayyyyy too many credit cards to count over the last 15 years and all have been in the same name. I've had 3 current accounts in my life, all in that name. Three different loans with 3 different lenders and all in that name and also my mortgage. Let's just say if I was fraudaulent - I've spent a fair bit of money already in the false name.

my annoyance isn’t so much with multiple DDs. Just more it would be better to have less “contractual” payments. So instead of paying 3 providers each month I pay 2. Fingers crossed this time next year I’ll only have 2 credit card debts left though so just gotta push on to make sure that happens

MFWannabe

https://forums.moneysavingexpert.com/discussion/comment/82128070#Comment_82128070

have you submitted the proof of id? You won’t know if it’s unsuccessful or not until you do?

abaka

I have - I've submitted it and waiting for 48 hours before I hear back. I did phone Santander and it's in the queue for a human underwriter. Maybe common sense will prevail and they'll see my 15 years of strong Credit History and realise the details are all the same. In the meantime, I've made some payments and updates to my accounts:

Credit Cards:

Virgin - 3929 (Interest free until July 2027)
Virgin - 950 (Interest free until Feb 2028)
Halifax - 2473 (Interest Free Until Feb 2028)
Barclay - 7290 (Interest free until 31 March 2029)

Loans:

Nationwide - 15,480 (7 Year loan, 6 years remaining) - £245 per month
Credit Union - 2173 (10 year loan, 6 years remaining - £70 per month (split with wife)
Credit Union - 21,240 (10 year loan, 9 years remaining) £300 per month

Total:

£53,614 £53,535

Savings / Emergency Fund:

£4091 / £4000 *This will get a bit of a battering this month as I'm about to start my wife's Birthday shopping next month and car is going to mechnaic this week for a check engline light*

abaka

Grrrrr, got myself quite depressed there.

I was running costs and tbh my debt free date is realistically going to take me most likely 6 years to pay which just feels soul destroying to be 46, and spend the next 6 years of my life tackling these, but what is the alternative :(

Over the next three months - I'll be paying off potentially £900 a month, but come January, my second born will be starting daycare and the current £140 I pay into Childcare costs will jump to £340 which drastically slows down my debt free date.

Obviously these are estimates and as the amount lowers on the 3 loans, I'll be paying more towards actual debt and my wages are likely to increase each year also and I won't be paying that astronomical daycare costs for more than 3 years due to school etc but still soul destroying that on today's modelling I'll be doing this for 6 years.

I suppose I should be thankful that this is still on my terms and I'm not in either formal or informal debt arrangement. But 6 teas

Makingabobor2

I appreciate all curcumstances are different, but after many years of transferring debt etc etc, the only way we actually syarted to get out of debt was with a DMP.. Have you considered that route? Was the best decision ever