Sorting my finances - help please
Discussion
Good evening all
Bit of background, I moved in with my GF earlier this year, which blew all my savings and I had to put a few bits on my credit card. We're only renting at the moment. I earn around £23k a year, she's earing around £18k. I have a loan for a car which is around £170 a month, and after other bills, I'm probably left with around £450 of my own money. My credit card has £3000 on it, and the minimum monthly payment is now around £55 a month.
I'm thinking I need to either get a new loan (as rates are so low), over a longer period, to pay off the card, or get a 0% credit card. However, upon calling my existing loan company up, instead of offering me the 3.7% advertised on their website, at £190, they're offering my 13.6% at £229 a month. So baring in mind my existing loan plus the minimum payments, I'm still gonna be spending the same amount.
The 0% credit card is another option. However, I'm curious to know what sort of minimum payment I'd have to make on a 0% credit card? I know there are fees of around 2.5-4% on the balance transfer. Are there any other terms I need to be aware of? Any recommendations on what card to go for? Are they difficult to get? Will the new loan application effect my credit card application? Do they always offer the maximum amount of months at 0%, or can they offer a shorter period than they advertise?
Any other options or suggestions as to how I can get myself back on track?
Thanks for your time.
Bit of background, I moved in with my GF earlier this year, which blew all my savings and I had to put a few bits on my credit card. We're only renting at the moment. I earn around £23k a year, she's earing around £18k. I have a loan for a car which is around £170 a month, and after other bills, I'm probably left with around £450 of my own money. My credit card has £3000 on it, and the minimum monthly payment is now around £55 a month.
I'm thinking I need to either get a new loan (as rates are so low), over a longer period, to pay off the card, or get a 0% credit card. However, upon calling my existing loan company up, instead of offering me the 3.7% advertised on their website, at £190, they're offering my 13.6% at £229 a month. So baring in mind my existing loan plus the minimum payments, I'm still gonna be spending the same amount.
The 0% credit card is another option. However, I'm curious to know what sort of minimum payment I'd have to make on a 0% credit card? I know there are fees of around 2.5-4% on the balance transfer. Are there any other terms I need to be aware of? Any recommendations on what card to go for? Are they difficult to get? Will the new loan application effect my credit card application? Do they always offer the maximum amount of months at 0%, or can they offer a shorter period than they advertise?
Any other options or suggestions as to how I can get myself back on track?
Thanks for your time.
Trailhead said:
All I would say is that if you're struggling to get the headline rates (which are usually for homeowners with a good credit score) then perhaps it is best to spend your spare £450 a month to clear the debt down over 6 or 7 months and be done with it.
This is the obvious answer. 6 months of living like a monk and your done. A few more things you need to do.
Get on the electoral role for this rented property
Have all your banks etc address for yourself at this same address (not mummy and Daddy house)
Change passport address to the correct one
Change driving licence to correct address
Mobile phone again correct address
All credit cards etc
These are all lowering your credit rating which means the rates you get offered are less.
Aside from that it's 6 ish months and you've cleared the debt - what about her spare cash each month? You bought for you both yet appear to want to pay it all down yourself....
Get on the electoral role for this rented property
Have all your banks etc address for yourself at this same address (not mummy and Daddy house)
Change passport address to the correct one
Change driving licence to correct address
Mobile phone again correct address
All credit cards etc
These are all lowering your credit rating which means the rates you get offered are less.
Aside from that it's 6 ish months and you've cleared the debt - what about her spare cash each month? You bought for you both yet appear to want to pay it all down yourself....
andyjo1982 said:
I'm thinking I need to either get a new loan (as rates are so low), over a longer period, to pay off the card, or get a 0% credit card. However, upon calling my existing loan company up, instead of offering me the 3.7% advertised on their website, at £190, they're offering my 13.6% at £229 a month. So baring in mind my existing loan plus the minimum payments, I'm still gonna be spending the same amount.
Not quite. Yes it may feel like you are paying the same amount but presently you are paying off only the minimum payment on the card so the loan long term works out better value and leaves you with the same amount of disposable income as you had before but with a guaranteed end date to pay it off. Dont rule this out because it might be hard to get a 0 card and then you might be tempted to spend more. Consider the loan and then get rid of the credit card. The comments of the person above about strengthening your credit rating by making sure all your stuff is at the new address is also sound advice. NordicCrankShaft said:
I never really understood the pints of paying the minimum payment on a credit card especially of you've got disposable cash left every month it just doesn't make sense.
^^^ This. Credit card debt is savagely expensive. Just pay it down asap. Don't get sucked into the culture of "everyone has debt these days". Debt is for suckers.
t. Pay off the CC debt pronto, then everything else after that is yours to keep. It's called being in the black; it's a good feeling and means you're not working to keep credit card people in jobs. The longer you're in debt, you more you'll pay and the less you'll have as a result. Don't spend the rest of your life jumping from one CC deal to another to fend off the inevitable or you'll end up like Greece 
Thanks for the replies. Some more helpful than others. I am thinking of taking the new loan, and then trying to save £150-200 a month, to try and pay the loan back a little sooner.
Being honest, I don't have the self discipline to live like a monk for 6 months, its just not gonna happen. Its just not realistic to not spend any of my disposable, however, I think I can begin to put a good amount aside each month.
I've done a few things already to reduce my outgoings, cancelled the gym I use twice a week, and am gonna start running instead, changed my phone contract so I can half that, and cleared out some of my old clutter onto Ebay. Small things, but I should be at least £60 a month better off.
Being honest, I don't have the self discipline to live like a monk for 6 months, its just not gonna happen. Its just not realistic to not spend any of my disposable, however, I think I can begin to put a good amount aside each month.
I've done a few things already to reduce my outgoings, cancelled the gym I use twice a week, and am gonna start running instead, changed my phone contract so I can half that, and cleared out some of my old clutter onto Ebay. Small things, but I should be at least £60 a month better off.
Welshbeef said:
A few more things you need to do.
Get on the electoral role for this rented property
Have all your banks etc address for yourself at this same address (not mummy and Daddy house)
Change passport address to the correct one
Change driving licence to correct address
Mobile phone again correct address
All credit cards etc
These are all lowering your credit rating which means the rates you get offered are less.
Aside from that it's 6 ish months and you've cleared the debt - what about her spare cash each month? You bought for you both yet appear to want to pay it all down yourself....
Passport address?? Passports don't have addresses on.Get on the electoral role for this rented property
Have all your banks etc address for yourself at this same address (not mummy and Daddy house)
Change passport address to the correct one
Change driving licence to correct address
Mobile phone again correct address
All credit cards etc
These are all lowering your credit rating which means the rates you get offered are less.
Aside from that it's 6 ish months and you've cleared the debt - what about her spare cash each month? You bought for you both yet appear to want to pay it all down yourself....
andyjo1982 said:
Thanks for the replies. Some more helpful than others. I am thinking of taking the new loan, and then trying to save £150-200 a month, to try and pay the loan back a little sooner.
Being honest, I don't have the self discipline to live like a monk for 6 months, its just not gonna happen. Its just not realistic to not spend any of my disposable, however, I think I can begin to put a good amount aside each month.
I've done a few things already to reduce my outgoings, cancelled the gym I use twice a week, and am gonna start running instead, changed my phone contract so I can half that, and cleared out some of my old clutter onto Ebay. Small things, but I should be at least £60 a month better off.
Good start, keep going and good luck and to all those that say debt is for idiots and its good to be in the black my reply would be you only live once. Make it an interesting one and well managed debt is no worse than being in the black but can be so much more fun. Being honest, I don't have the self discipline to live like a monk for 6 months, its just not gonna happen. Its just not realistic to not spend any of my disposable, however, I think I can begin to put a good amount aside each month.
I've done a few things already to reduce my outgoings, cancelled the gym I use twice a week, and am gonna start running instead, changed my phone contract so I can half that, and cleared out some of my old clutter onto Ebay. Small things, but I should be at least £60 a month better off.
andyjo1982 said:
Being honest, I don't have the self discipline to live like a monk for 6 months, its just not gonna happen. Its just not realistic to not spend any of my disposable, however, I think I can begin to put a good amount aside each month.
If you dont have the discipline to pay loans back, then you shouldn't be using credit imo.Moving the CC balance around between 0% offers (assuming you can get them) is just kicking the can down the road and avoiding the inevitable reality of facing up to the fact that you are living beyond your means.
They only offer balance transfers to get you in and then kill you on interest later.
eliot said:
If you dont have the discipline to pay loans back, then you shouldn't be using credit imo.
Its not that I don't have the discipline to pay the money back, I just don't have the discipline to do nothing for 6 months solid as suggested above. Please don't misinterpret my words and make up conclusions. At least I am actively trying to do something about the mess I've created and recognise I have a problem. andyjo1982 said:
Its not that I don't have the discipline to pay the money back, I just don't have the discipline to do nothing for 6 months solid as suggested above. Please don't misinterpret my words and make up conclusions. At least I am actively trying to do something about the mess I've created and recognise I have a problem.
How are you going to pay off CC Debt then?Are you driving a type r?
Why isn't the Lady chipping in her part of this join cost?
Total salary is £41k and the debt has been built up by buying joint kit for the property.
Given the rent and on costs identified in the post it's also clear that on the OP's salary alone it would be cleared in 6months. That leaves her entire post tax salary for not living like a monk for 6 months.
Also know it's a bit late now but you should have bought the big white goods sofas etc on the 4years 0% they always offer.
How about asking both banks of mum and dad they pay it off 50:50 and then you pay your parents back the £1.5k to your folks and she pays off her folks the same - I'm sure the timescale can be extended to 12 month.
Total salary is £41k and the debt has been built up by buying joint kit for the property.
Given the rent and on costs identified in the post it's also clear that on the OP's salary alone it would be cleared in 6months. That leaves her entire post tax salary for not living like a monk for 6 months.
Also know it's a bit late now but you should have bought the big white goods sofas etc on the 4years 0% they always offer.
How about asking both banks of mum and dad they pay it off 50:50 and then you pay your parents back the £1.5k to your folks and she pays off her folks the same - I'm sure the timescale can be extended to 12 month.
Tonker - thanks for spelling things out for me, can always rely on you to say it exactly how it is .
I don't want to go into specifics about my relationship, and I kinda knew this thread would probably descend into me getting slaughtered for being a bit careless with money.
However, all I asked for was a bit of financial advice with regards to either taking a new loan or a 0% credit card.
Once again, thanks for the replies, I have enough replies and responses to make a decision.
. I don't want to go into specifics about my relationship, and I kinda knew this thread would probably descend into me getting slaughtered for being a bit careless with money.
However, all I asked for was a bit of financial advice with regards to either taking a new loan or a 0% credit card.
Once again, thanks for the replies, I have enough replies and responses to make a decision.
andyjo1982 said:
Tonker - thanks for spelling things out for me, can always rely on you to say it exactly how it is .
I don't want to go into specifics about my relationship, and I kinda knew this thread would probably descend into me getting slaughtered for being a bit careless with money.
However, all I asked for was a bit of financial advice with regards to either taking a new loan or a 0% credit card.
Once again, thanks for the replies, I have enough replies and responses to make a decision.
What car do you drive?. I don't want to go into specifics about my relationship, and I kinda knew this thread would probably descend into me getting slaughtered for being a bit careless with money.
However, all I asked for was a bit of financial advice with regards to either taking a new loan or a 0% credit card.
Once again, thanks for the replies, I have enough replies and responses to make a decision.
What is your decision?
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