G
I've started to take stock of my financial position, and it isn't looking pretty. I've racked up considerable debt over the last 6 months due to some personal events in my life and basically, it's looking like this:I'm trying not to panic, but rather take some sensible steps to take back control of my finances. I've been sloppy about budgeting over the past 6 months, but will start sticking to a new, stricter spending regime from now, which should free up approx €800 per month to service these debts.
- 6K on my credit card
- 13k owed to credit union
- 2.5k bank overdraft
I'm not worried about the 13k credit union loan, as I'm making regular payments and am planning to pay it off when my SSIA matures (15k in April). However, the credit card and overdraft are worrying .... my plan is to reduce the overdraft to the sanctioned limit ASAP and then start making regular, large payments to my credit card.
Also, I'm often caught out by large annual payments (e.g. car insurance, apartment service charges, etc.) and end up sticking them on the credit card - where they linger for months. How do other people manage to pay these annual / semi-annual large payments?
I'd appreciate any advice/feedback on tackling this.
Are you mad? Why replace a credit card with another. You will only rack up another credit card bill. Why don't you pay off your credit card and overdraft with your ssia and maybe also reduce the credit union loan. It is very easy saying you are going to clear your credit card over the next 6 months but it will be a lot harder if you are going to carry on using it.Am considering consolidating my credit card debt and overdraft into a new credit card - such as the Ulster Bank Zinc card (0% on balance transfers for 9 months) - to give me some breathing room while I get the principle down a bit.
Once I do that, I'm hoping my restrained monthly budgeting will allow me reduce the debt substantially over the next 6 months.
Are you mad? Why replace a credit card with another. You will only rack up another credit card bill. Why don't you pay off your credit card and overdraft with your ssia and maybe also reduce the credit union loan. It is very easy saying you are going to clear your credit card over the next 6 months but it will be a lot harder if you are going to carry on using it.
Why would you not use your SSIA to reduce or clear the debt at that stage?I think it's ok as it is some breathing space and I also have lump sum in april ssia. But then i mite transfer the amount then to another cc account at 0%.
It doesn't really make sense to blow your savings on luxuries/discretionary spending when you have significant debts outstanding. It's obviously up to you though.Was just thinking would like to hold on to the wonga ( ONLY ABOUT 12,000 THO) to spoil meself a bit, holiday, tv system etc etc a car maybe,(youd think i won the lotto wouldent ya!)
Would it not be worth transferring some to a 0%, was going to throw maybe a couple of grand at it, depending on cirmunstances, but i think it's just a state of mind, having saved for so long you dont really want to spend it all on debt.
I don't get this. Why not just clear the debts directly with the SSIA funds? Why involve the CU at all?If I were you I would ask the CU would they loan me an extra 8.5K to clear your other debts and then repay the CU with the SSIA.
Was just thinking would like to hold on to the wonga ( ONLY ABOUT 12,000 THO) to spoil meself a bit, holiday, tv system etc etc a car maybe,(youd think i won the lotto wouldent ya!)
Would it not be worth transferring some to a 0%, was going to throw maybe a couple of grand at it, depending on cirmunstances, but i think it's just a state of mind, having saved for so long you dont really want to spend it all on debt.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?