30k Journey

jamie2017 · 1 June 2017 at 6:24PM

Managed to get a credit limit increase on MBNA (2k to 8k) and a money transfer offer. Moved £7600 from MBNA at 6.9%, with no transfer free, into the loan account.

The loan account is 18.9%, so now £7600 has gone from 18.9% to 6.9%.

My Barclaycard is also 6.9%.

When my credit rating increases a bit more I will seek a zero percent transfer card, but right now I cannot get that.

jamie2017 · 6 June 2017 at 1:35PM

Did a snowball calculator, looks like June 2021 ie 4 years to clear the debt and that is aggressive finance wise. It feels like a big black tunnel of hopelessness right now. Anyway...

Silver_Queen · 6 June 2017 at 1:44PM

For about a year I earned minimum wage with high outgoings and commuting. The way I funded my "fun" was to sell things. For me, it was a case of weighing up whether I'd rather have the "things" or have good experiences. However, if you regularly use things there's no point selling them because you'll miss them and end up buying them back again for more.

Something that you might want to attempt is to put all of your not-often-used gadgets in a box and hide it away for 28 days. If you find that during those 28 days, you end up taking it out of the box and using it, then keep it. If the gadget stays in the box, you probably don't need/want it. Then you can sell it and not worry that you'll miss it!

mobo1980 · 6 June 2017 at 8:28PM

Hi Jamie and good luck with your journey !

You have realised you need to change so can now move forward

I have been in debt since I was 18 paid it off then got in debt again (silly me) but am now going forward - the debt WILL start going down now

(I'm 37 now)

Grocery wise do you have your own place ? live with anyone else ? I get by on 100 a month for 2 adults and a dog (don't live in London though!) I also have built a good store cupboard buying things when on offer etc !
Good luck I will subscribe !

Mobo xx

jamie2017 · 7 June 2017 at 12:45AM

Living with 1 other guy in London, when the rent comes to renewal I will look into moving to somewhere cheaper but I do love my flat, my housemate and the area. I am spending around £150 a month on my own on groceries!!! I have targeted to get this down to £100 this month. Next month I will look to reduce this some more.

Honestly a lot of money goes on things like protein powder and supplements etc. Those things are not cheap...

I am going to setup 2 of those IKEA boxes and stuff some bits in there. See if I touch it over a 1 month period, if not it's being sold.

When I finally pay off my debts, the only thing I am keeping is an AMEX charge card that must be paid in full. Everything else is going!! Shocking really that a credit card offers £16,000 as a limit. When you get that amount you think I wont ever use it, and then overtime it creeps up and up.

I was only earning low 20k a few years ago when I moved to London, and my rent was £850 a month, so I overspent just living. No excuses I should have budgeted and it is my own fault.

I am hesitant to buy extra groceries for storage as my housemate will eat them haha, if he sees I have pasta / rice etc and he doesn't have any he will use it. I don't wanna be that guy who asks him to replace it. I get around that buy just buying what I need weekly.

mobo1980 · 7 June 2017 at 7:32PM

Wow ! London prices are soo high ! ,it's just so tempting putting a few bits here and a few bits there on it though , exactly what happened to me and before you know it it's overwhelming.

Totally understand where you're coming from with the groceries - no point stocking up for someone else to get the benefits !

Mobo xx

Reb2016 · 8 June 2017 at 11:21AM

I think you are doing really well, you know where your problems are and are already taking action to sort them, so I'm sure you will get there.
I started getting in debt 20's and have only just had my LBM, now in my 40's I hate to think how much I have spent on interest charges over the years, so it's wonderful that you have had your LBM, you will save so much money over the years.

Reb

jamie2017 · 11 June 2017 at 2:17PM

Closed down my AMEX Gold Charge Card as the renewal was due and it costs £140 eeeeek!!! No fee to pay. Kept the BA Amex and a Gold Credit Card but reduced the credit limits to £1000 & stored them away.

Opened up a Monzo pre pay card to try and manage my spending separate from my bank account.

I am shifting away from using credit card for day to day spending. Using YNAB makes it manageable (so wasn't overspending) but I am hoping monzo gives me a lot more control.

Also alongside this I am trying to get in better shape so I went to a weight watchers meeting today (budgeted for).

I really wish I had a better credit rating and could get 0% deals to get everything interest free, sadly I've had way too many credit searches as I switched homes and it seems BT, British Gas, Virginmedia (for a price comparison) and EDF (switched for better deal) all hit me with a full credit check. Also EE, and MBNA (got credit limit rise to transfer 18.9% balance to 6.9%) are showing as credit checks.

Anybody know how long for multiple credit searches to stop affecting your applications? Never missed a payment on anything.

Swampy3k · 11 June 2017 at 5:09PM

Well done Jamie on having the lightbulb moment! I am in a very similar boat to yourself with 30k debt but started using YNAB last year. 13 months later it's amazing the difference in my spending! I actually quite like to sit and look at YNAB and try and make the pennies stretch further.

Don't feel guilty about having a few luxuries. a PS4 can be a good way to 'escape' for an hour or two from when you feel the pressure is on. Just don't be buying any games! or swap 2 oldies for a new one or that kind of thing.

Try joining your local facebook selling community. great way to sell some stuff and avoiding the ebay seller fees etc.

all the best!

mobo1980 · 14 June 2017 at 8:42AM

Well done on closing a card and reducing your limit on another - you're making progress already

Mobo xx

30k Journey

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