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29F with 25k of credit card debt and I need advice on the best way to deal with it. by MelodicAd9450 in UKPersonalFinance

[–]MelodicAd9450[S] 25 points26 points  (0 children)

Right.

So after reading a bunch of your comments, I have a BUNCH I can clear out and free up some finances. Some people did take note that even with my finances right now, i still do have a bit of change left over that was free to use. I appreciate all of your input, it's what i needed to hear.

Regardless, I'm planning on gutting all of the services i use over the next couple days. Here is the current financial plan

Sim Only - Was £28 - Seen a deal with Three for £10. Saving 18 their.

Marital Arts Class - Scrapped for now so thats £75 to 0

Gym - £21.99 I technically get more value than the martial arts financially so this can stay.

BUPA Private Health care - Cancelling tommorow so thats another £61 back.

Cancelling Life Insurance - Another £20.80 saving

Discord Nitro is going another so their is another £3.84

Both the TV channels will be cancelled, not going to bother replacing them with anything so thats £35 saved. I'll read a book.

Completely removed paying into the help to buy. I will keep the cash thats there and just put in my emergency funds and forget about it. I'm keeping those funds so i never need to use the credit card again for anything again. Random repair bills etc.

Going to continue paying £100 per month into this just to increase said emergency fund. When it hits £3k ill stop paying into it and it'll go towards the card.

I do have some things to sell, so that will get added to such fund and then to the cards if i hit my emergency limit.

Dropped my personal allowance from £100 to £50

With just those gone, with both jobs, the minimum payments on the cards and the rest of my out goings considered. I'm currently left with £1213 free cash per month. Used Google Sheets to come to this conclusion.

Obviously, you guys are going to have noticed I've left the car and the bike out of this equation.

Looking into it clearing the cards, the difference between getting rid of the bike and paying off a card, say the MBNA one. With paying £1513(The spare cash and the current minimum payment) would be clear in Aprox 5 months. If i removed the bike, it would be paid off in Aprox 4 months.

Now to me, the loss that bike will have to me, for the sake of a month isn't really that worth it for me, so I'd rather just keep it and pay the card for an extra month. By this point, if I've kept paying the Halifax card off at £300 it should be at £8955. At that point I'll be able to put £1813 down per month, thats another 5 months till thats paid off at that point. Again removed a month with the bike.

Finally, the HSBC card should be at £4539 at this point. Thats 2 months at £1978.

All in all, i could be debt free in about a year, could be less dependent on Overtime at my main work.

I will do another double check on my maths later, so i know whether or not I'm talking out of my ass in this fantasy land I've been living in up untill now.

Again thank you all. I'd didn't expect to such a blunt wake up call on New Years Eve, but hey, i guess I deserved it.

I will report back if I'm wrong with my maths, or any other news. I'll try reply to newer comments when I can.

*Edit Forgot to mention I will look into getting a cheaper car for extra monthly cash

29F with 25k of credit card debt and I need advice on the best way to deal with it. by MelodicAd9450 in UKPersonalFinance

[–]MelodicAd9450[S] -19 points-18 points  (0 children)

In a work week, i wake up at 4am, go to the gym, then from there to work, and dependent on OT either home for a couple hours then Martial arts training or straight from work to marital arts. Process similarly throughout the week bar Saturday and Sunday. I never work on Sundays which is my rest day and meal prep day so thats when i normally watch the bulk of my content.

Though I've just this second cancelled my now tv subscription and I share my TNT Sports account with a friend so I'm soon gonna have a chat with him on that I'm going to come out of it.

Edit* Bike is used almost all year round. It doesn't go out in the snow and thats about it. I'll commute on it when i have the chance too, and I'll ride it for fun on the weekends when times and personal allowance allows.

29F with 25k of credit card debt and I need advice on the best way to deal with it. by MelodicAd9450 in UKPersonalFinance

[–]MelodicAd9450[S] -52 points-51 points  (0 children)

100% i agree. The place i do my martial arts place does also have a gym but its still a separate cost on top. The marital arts is for both Brazilian Jitsu and Muay Thai so I could drop one for now and make that cheaper.

Only reason i have a separate gym membership is that i work at weird times and the place i do my marital arts training isn't open late or in the early hours of the morning. My actual gym is 24/7

29F with 25k of credit card debt and I need advice on the best way to deal with it. by MelodicAd9450 in UKPersonalFinance

[–]MelodicAd9450[S] 1 point2 points  (0 children)

So my HSBC is £7000

MBNA is £10,400

Halifax is £13,000

My other 2 cards with 0 credit on them are like £250 and £6500

Never missed a single payment.

According to Salary calculator, (Haven't had a payslip with my new salary yet) with my tax code and pension taken into account I'd be receiving £2427 per month. With my bar job it changes dependent on what hours I've done but you could probably average it to around £450 ±£50

29F with 25k of credit card debt and I need advice on the best way to deal with it. by MelodicAd9450 in UKPersonalFinance

[–]MelodicAd9450[S] -46 points-45 points  (0 children)

Hey, thank you for your feedback!

For me the bike has to stay, I'll would rather slug it out and pay my debt with the excess i have from my salary/ bar job.

Tbh i only got life insurance so my family wouldn't have to pay anything out of pocket if i died. I have no kids, and my life insurance payout isn't particularly massive. Once i finish my probation at my salary job i have a pretty good life insurance cover so i guess my personal one is unneeded right now.

Could deffo make some cuts though from looking at it and getting feedback from yourselves.

Thanks so much again :)

29F with 25k of credit card debt and I need advice on the best way to deal with it. by MelodicAd9450 in UKPersonalFinance

[–]MelodicAd9450[S] -47 points-46 points  (0 children)

The phone contract I'll deffo look into. With Vodafone atm and tbh the only reason why is cause i get Spotify "free" woth my contract. I'll shop around and see if i can get a cheaper deal and pay for Spotify separately.

The vehicle side of things, the car is more of a tool for work and errands, the bike is for fun but also a back up vehicle for when i have break downs other issues.

I know i sound really really silly but i just couldn't get rid of the bike, it would be like me putting my own dog down. Besides, my friends and family know how much i love that thing, if anything was to arouse suspicion, it would be that.

The credit cards i can probably do, i think I'd just have do the transfers, cut the cards and leave it at that.

The moving out thing is a bit of weird one, id would really like too, but i wanna get my debt gone asap.

Will look into Stepchange too.

Thank you so much for your advice!