I want to stop drowning

debtaghh · 9 June 2017 at 7:51PM

glass_half_full wrote: »

Hi debtaghh,
From a financial point of view reality_check is right, you would pay off debt with savings in fact Martin Lewis has posted about this http://moneysavingexpert.com/savings/pay-off-debts
For me though, having an emergency fund has been essential in getting myself of using CCs. So if your savings are your EF then I would keep them.

Thanks, I know what you mean about the interest. That's why I didn't know what to do.

I'm quite pleased with myself , it's only small but I was in the mood for chips from the chippy but I resisted and made potato slices instead! I've had another nsd and found 5p on the floor...every little helps.

reality_check · 10 June 2017 at 8:09AM

glass_half_full wrote: »

Hi debtaghh,
From a financial point of view reality_check is right, you would pay off debt with savings in fact Martin Lewis has posted about this http://moneysavingexpert.com/savings/pay-off-debts
For me though, having an emergency fund has been essential in getting myself of using CCs. So if your savings are your EF then I would keep them.

I am never financially right and make my own rules rather than listen to tried and tested methods so probably best to listen to all the others advice :rotfl:

debtaghh · 10 June 2017 at 8:24AM

reality_check wrote: »

I am never financially right and make my own rules rather than listen to tried and tested methods so probably best to listen to all the others advice :rotfl:

:rotfl: I think for the sake of my mental health I'll keep some money in the savings as I know i'll just really worry and stress if I used it and once I start using the cc I think I would be scared. I normally would say you shouldn't waste money on interest but think you do need to look at each individual situation. It's hard as I hate the thought that I will be paying £40 minimum and £20 will be interest :mad:

reality_check · 10 June 2017 at 9:24AM

Does your credit card ever offer money transfers? I am with Barclays and every month they have balance transfer offers or money transfer ones. I don't have a penny in savings, and 2 weeks ago my boiler died and had to buy a new one...the deal was 1.9% so for every £1,000 for example cost me £19.00, if you have this then this could be an option?

But I do know what you mean with having no available cash would make you feel uneasy, I am tempted to switch banks for the £150 you can get, but I have a £2500 overdraft and although I don't use it (anymore!) I am relutant to switch because I know if !!!!!! really hits the fan I have that money there, albeit at a £35 charge a month x

debtaghh · 10 June 2017 at 9:59AM

reality_check wrote: »

Does your credit card ever offer money transfers? I am with Barclays and every month they have balance transfer offers or money transfer ones. I don't have a penny in savings, and 2 weeks ago my boiler died and had to buy a new one...the deal was 1.9% so for every £1,000 for example cost me £19.00, if you have this then this could be an option?

But I do know what you mean with having no available cash would make you feel uneasy, I am tempted to switch banks for the £150 you can get, but I have a £2500 overdraft and although I don't use it (anymore!) I am relutant to switch because I know if !!!!!! really hits the fan I have that money there, albeit at a £35 charge a month x

Thanks for your reply. Barclaycard used to always offer me money transfers and I would do exactly that. Take a money transfer and then pay them back but I think they realise I do that and don't offer me it any more even though I have available credit.

Hope your money situation improves too x

Supersaver88 · 10 June 2017 at 1:16PM

Can't you keep an emergency fund and clear the rest of those savings and get rid of this debt asap! That interest rate sounds a killer!
You'll reap the rewards later on with all the extra money not being spent on your debt and the added motivation and new behaviours you have I'm sure will mean it won't take you long to get those saving back up :money:

enthusiasticsaver · 10 June 2017 at 1:51PM

In general the rule is if you have savings and debt then you use savings to clear debt BUT and that is a big but, this excludes an emergency savings account. How big the emergency account is though depends on circumstances and it is perfectly acceptable to keep just a few hundred aside if you don't have a car which is likely to need repairs within say the next 6 months or emergency house repairs which are likely to be expensive.

Xmas you know you will need money for but if you have not booked a holiday then I would use those savings and delay booking a holiday and just do days out. I love holidays and would have loads if the money was there but when it was tight if we were doing a home improvement project or saving for a new car then we would skip it for one year and do one the following year and just do a weekend away in a travel lodge or a staycation (helped by the fact we live in Cornwall).

So in short I would say if you have more than say £500 in savings why not use some of them to reduce the balance which will incur interest?

debtaghh · 10 June 2017 at 8:38PM

enthusiasticsaver wrote: »

In general the rule is if you have savings and debt then you use savings to clear debt BUT and that is a big but, this excludes an emergency savings account. How big the emergency account is though depends on circumstances and it is perfectly acceptable to keep just a few hundred aside if you don't have a car which is likely to need repairs within say the next 6 months or emergency house repairs which are likely to be expensive.

Xmas you know you will need money for but if you have not booked a holiday then I would use those savings and delay booking a holiday and just do days out. I love holidays and would have loads if the money was there but when it was tight if we were doing a home improvement project or saving for a new car then we would skip it for one year and do one the following year and just do a weekend away in a travel lodge or a staycation (helped by the fact we live in Cornwall).

So in short I would say if you have more than say £500 in savings why not use some of them to reduce the balance which will incur interest?

Thanks, I have just under £1000 so I could use some which will help with the less interest and I won't feel stressed as I will keep some savings too. I think I will do this as that way I am clearing some of the balance.

debtaghh · 10 June 2017 at 8:47PM

I have been out all day but still managed to hang my washing out which is great as I hate having to waste money on using the tumble dryer.

Today hasn't been a nsd as we needed fuel and milk but I didn't waste money on anything else like I normally would.

I think this time I really have had my 'lightbulb moment'. My son would like to stay at a specific hotel for his birthday instead of having a party or many presents but on offer this hotel costs £120 for one night. In the past I would have booked this without thinking twice where as now I think that is such a waste of money and haven't booked it ( this is really good for me). Even other things like the no chips yeserday and on days like today when we get home late I would have got a Mcdonalds but instead we had cheese and beans on toast.

debtaghh · 12 June 2017 at 7:14AM

Morning ,

I was hoping for a nsd yesterday but wasted £11:mad: I did make three sales and have used that to pay more off the cc as it was unexpected income. I think today will be a very expensive day as child benefit has come in and I have numerous bits to buy including birthday presents. I also need an electric toothbrush ( dentist recommended it) there are so many to choose from and they range in price, I have no idea which one to get.

Today's list:

Check finances and spreadsheets
Make payment on cc
Hoover
Pick up prescription
Doc appointment
Hang washing outside
Buy bday presents
Look at meal plan
Sort dd2 next stage out
Recount coins

I think that's it for now.

Have a good day everyone.

I want to stop drowning

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