Am I growing up, being more mature, and 'doing the right thing'? Well earlier on in the week I was going to treat myself and buy a new camera, but I've decided that I'd be better off paying off some debt, and so this afternoon paid £200 towards my credit card bill.
On my credit card I owe exactly £2,349.26, and the sooner I get rid of it the better. I initially put about £1,500 on my card in 2003 when I went travelling around Canada and didn't have any savings and instead put everything on the card. I then put another £1,500 on my card when my bank took away my interest free overdraft (I still have an overdraft but not completely free) and so using a 0% balance transfer I put that on another credit card.
Altogether I've actually been very good, and not really put anything on my credit cards, but haven't been able to shift the bulk of the debt. I'v been transferring my balance every 9 months or so so that I can keep 0% intrest which most companies offer. This way whatever I pay in is actually paying off some of my debt and not paying off interest. I've so far done this for 4 credit cards.... and I'm running out, or the companies are getting smarter and introducing fees to transer balances (usually around 2% or £50).
I would like to get rid of my debt with 9 months, which may sound a bit optimistic, and taking into account the £200 I've just paid I owe £2,149.26, that would mean paying just under £240 over 9 payments, which is entirely do-able. I may even try and pay a bit more and get rid of it sooner.
There's no point in me trying to save if I'm always owing money to the bank. I think this is the best thing to do, and I may treat myself at Christmas instead as I was doing the Christmas Club at my old pub job and have at £250 saved with them, which is a bonus. I could get that back now but am not going to.
On my credit card I owe exactly £2,349.26, and the sooner I get rid of it the better. I initially put about £1,500 on my card in 2003 when I went travelling around Canada and didn't have any savings and instead put everything on the card. I then put another £1,500 on my card when my bank took away my interest free overdraft (I still have an overdraft but not completely free) and so using a 0% balance transfer I put that on another credit card.
Altogether I've actually been very good, and not really put anything on my credit cards, but haven't been able to shift the bulk of the debt. I'v been transferring my balance every 9 months or so so that I can keep 0% intrest which most companies offer. This way whatever I pay in is actually paying off some of my debt and not paying off interest. I've so far done this for 4 credit cards.... and I'm running out, or the companies are getting smarter and introducing fees to transer balances (usually around 2% or £50).
I would like to get rid of my debt with 9 months, which may sound a bit optimistic, and taking into account the £200 I've just paid I owe £2,149.26, that would mean paying just under £240 over 9 payments, which is entirely do-able. I may even try and pay a bit more and get rid of it sooner.
There's no point in me trying to save if I'm always owing money to the bank. I think this is the best thing to do, and I may treat myself at Christmas instead as I was doing the Christmas Club at my old pub job and have at £250 saved with them, which is a bonus. I could get that back now but am not going to.
I need to stick to this.
5 comments:
Excellent idea mate, keep it up.
I think in this case it's better aiming for the long-term gain, instead of wanting that short-term gain of treating myself.
And I do actually feel better for paying that off.
I dod sometimes wish that I could be one of those people that won't go out for a month just so that they can save money, but I can't.
I still only go out once or twice a week, but if I shut myself indoors for that time I'd save loads of money..... but would go mad.
Great idea, hope you are able to stick to it.
I owe more on my credit cards, do the 0% transfers and have run out of options now. Fortunately, I'm not putting any more debt on the cards and do not plan on putting any Christmas shopping on credit no matter what.
Very sensible.
I owe a scary amount of money largely because I have no willpower. Ever since I turned 18 and could get credit I've been in the red.
I was actually trying to pay it off and was making some progress but now I'm moving to London all the costs have just bumped up my debt again. Grrr...
10 more days until payday....
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