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  • FIRST POST
    • HarriettPotter
    • By HarriettPotter 11th Jan 05, 4:51 PM
    • 177Posts
    • 33Thanks
    HarriettPotter
    Advice appreciated-I'm determined to be debt free!
    • #1
    • 11th Jan 05, 4:51 PM
    Advice appreciated-I'm determined to be debt free! 11th Jan 05 at 4:51 PM
    Hi all,

    I have used this site for some time now for information and help with my finances. I have also bought and read Martins book.

    Unfortunately I am a woman with debt – a lot of debt – and I am working hard to get rid of it. I have moved money about as much as possible to 0% cards, low interest loans etc but the system is starting to fail me now as I can’t get credit so easily. I wondered if anyone here could advise me. I’m not being lazy but I think that I need fresh eyes to look at this as I am just going round in circles weighing up what to do next. I have read the book and I know the general rules but now the book is packed away in a box (I recently moved house!) until I get it out and I just don’t know what to do next. Here is the list of debts: (please bear in mind that when I started out making all this better after graduating I owed over £20k so I am chipping away at it…)

    · Egg Loan - £13,451k outstanding at 7.9% – payments are £300 per month
    · RBS card – 0% rate just ended, balance is £3200 – I pay around £90 per month. Limit on the card is £4400. I don’t know the new interest rate but my last minimum payment was £76 of which £47 was estimated interest.
    · FD card – 0% rate also just ended, and I am now paying the minimum payment of £30 per month. The balance is £900 and the limit is £1000. Again I don’t know the interest rate.
    · Barclaycard – I have 0% until September 2005. My balance is £300 and I usually send about £20 per month. The limit is £560
    · I also have an overdraft of £1000 and I pay roughly £8.00 per month interest to have this

    I earn just over £25k and take home around £1450 per month.

    Other outgoings are:

    £670 mortgage and bills etc
    Mobile never exceeds £30
    Petrol £60 max

    I have applied for other 0% credit cards but have been refused a couple of times now. I have recently bought a house so could that have something to do with my credit rating? Its rare that I miss payments but it has happened a couple of times in the past year so I guess that is more likely to be it.

    Anyway – I feel I have a few options:

    1. The Egg loan is a flexible loan so I can take 3 payment holidays a year and could use this to take chunks off other debt?
    2. See if Egg will take on all the debt at the same rate so I just pay one person.
    3. Apply for 0% or a low life of balance credit card.

    I just don’t know. I keep weighing it up but never coming to a decision. In terms of priority I see that the credit cards, the RBS one in particular, are the ones that need dealing with immediately as I feel the overdraft isn’t a huge interest payment and the loan just carries on month by month. The credit cards are what are on my mind the most.

    The other day I had a ‘special invitation’ card information thing through from Morgan Stanley – am I more likely to get this or am I being thick and naïve if I believe the ‘pre-selected’ thing?

    I budget for everything (I have recently made use of the MSE budgeting spreadsheet) that I do buy - which isn’t a lot - and I never spend on the credit cards anymore and have been better off in cash terms since buying the house even though I have no spare income! This is probably because my boyf is so good with money. Usually I would be in a right mess this time of year (i.e. using the credit cards to get me through the month) but this Christmas I did everything as cheaply as possible over a longer timeframe and I should be ok (although right up to my od limit) until payday.

    I save £100 per month in a high interest savings account. Even though my situation is dire I still feel that to live just to pay debts and bills is depressing so my one extravagance most years (not every year – certainly not last year due to buying a house) is to book a holiday and a budget one at that. Currently I have £300 in the savings account which ideally I would like to preserve although I appreciate saving alongside paying debts is not encouraged!

    Sorry if I’ve waffled and if anyone has read this I would be really grateful for your advice. I truly am looking forward to debt free days and I am committed to doing this. I just want to know the best way of doing it.

    Many thanks in hope of your advice.

    HP
Page 2
    • Spendless
    • By Spendless 4th Feb 05, 10:30 AM
    • 20,603 Posts
    • 34,473 Thanks
    Spendless
    To update about the annual charge on the FD visa card. I have just rang them and they have said they are removing the annual fee from the card.

    So as Reaper says there is no annual fee for new holders but exisiting ones need to check.

    What FD have just said to me is if i do get charged to ring them back an they will look at removing the charge.
    I am over the minimum spend anyway on my card but for the posters that aren't i'd suggest ringing FD.
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