The Money Thread...

[Poser]

My huge massive monster piece of advice to anyone with a credit card is absolutely to set up direct debits to pay the minimum amount each month.

I suffer from terrible absent-mindedness when it comes to stuff like that. Everything bad that has happened on my credit record has come as a result of missing credit card payments. Not through lack of dosh, just through forgetting.

I now have a DD set up, (though I hardly use the credit card) and my credit record is totally cushdy.

[Moggy]

My huge massive monster piece of advice to anyone with a credit card is absolutely to set up direct debits to pay the minimum amount each month.

If you are struggling then it might not be an option, but try to avoid just paying the minimum every month. Unless you are in an interest free period, it will take you forever to pay off a credit card if you only meet the minimum payment each month.

[JiggerJay]

I'm surprised they let you work in a bank with an IVA.

I'm getting quite into saving atm with mrs Jay. Mainly for a deposit, aiming for £7.5k by the end of next month my credit rating is pretty solid, the only thing that will let me down is my spending at the bookies, although I haven't been on since the end of the world cup.

[JiggerJay]

For those of you that have credit card, do you shop around? And do you use the soft search eligibility checkers to see what you're eligible for?

Nope, was offered a £15k limit, took just £1,500

[Holpil]

I know an independent financial advisor who's previously been bankrupt. Figures, just about everyone is redeemable when it comes to finance.

I use 0% credit cards for big purchases to spread the cost. Car insurance was my last big-ish purchase, even with a credit card fee I saved a fair bit by paying annually, and a bit of cashback cleared the card fee and then some.

[jiggles]

I just took out a 95% mortgage on a new build house, so I've gotten a really shitty deal (variable rate, higher than most, plus an additional percentage for the first 3 years). My aim is now to overpay by as much as I can to drive my monthly repayments down and have a much healthier LTV when I'm out of the 3 year lock-in period so I can shift it elsewhere.

If I can hit £10k overpaid per year, I'll be laughing, and based on current figures, my £780~ per month would be down to about £400. I've just got a pay bump and wiped out a couple of loans to the tune of £350 per month, so it's doable, but I'll need to be very cost-aware for the next 3 years.

[Rex Kramer]

I just took out a 95% mortgage on a new build house, so I've gotten a really shitty deal (variable rate, higher than most, plus an additional percentage for the first 3 years). My aim is now to overpay by as much as I can to drive my monthly repayments down and have a much healthier LTV when I'm out of the 3 year lock-in period so I can shift it elsewhere.

If I can hit £10k overpaid per year, I'll be laughing, and based on current figures, my £780~ per month would be down to about £400. I've just got a pay bump and wiped out a couple of loans to the tune of £350 per month, so it's doable, but I'll need to be very cost-aware for the next 3 years.

I would imagine the BoE base rate would be at least 3% in three years time so getting your LTV down is essential.

[Moggy]

I just took out a 95% mortgage on a new build house, so I've gotten a really shitty deal (variable rate, higher than most, plus an additional percentage for the first 3 years). My aim is now to overpay by as much as I can to drive my monthly repayments down and have a much healthier LTV when I'm out of the 3 year lock-in period so I can shift it elsewhere.

If I can hit £10k overpaid per year, I'll be laughing, and based on current figures, my £780~ per month would be down to about £400. I've just got a pay bump and wiped out a couple of loans to the tune of £350 per month, so it's doable, but I'll need to be very cost-aware for the next 3 years.

I am sure you already have, but check with your mortgage provider how much you are allowed to overpay without penalties. A lot of them will only allow you to overpay 10% per year and will hit you with charges if you go over that.

[Qikz]

I just took out a 95% mortgage on a new build house, so I've gotten a really shitty deal (variable rate, higher than most, plus an additional percentage for the first 3 years). My aim is now to overpay by as much as I can to drive my monthly repayments down and have a much healthier LTV when I'm out of the 3 year lock-in period so I can shift it elsewhere.

If I can hit £10k overpaid per year, I'll be laughing, and based on current figures, my £780~ per month would be down to about £400. I've just got a pay bump and wiped out a couple of loans to the tune of £350 per month, so it's doable, but I'll need to be very cost-aware for the next 3 years.

I am sure you already have, but check with your mortgage provider how much you are allowed to overpay without penalties. A lot of them will only allow you to overpay 10% per year and will hit you with charges if you go over that.

I still find it ridiculous that they're allowed to do that. You should be able to pay back any debt you have at any time you want.

[Moggy]

I just took out a 95% mortgage on a new build house, so I've gotten a really shitty deal (variable rate, higher than most, plus an additional percentage for the first 3 years). My aim is now to overpay by as much as I can to drive my monthly repayments down and have a much healthier LTV when I'm out of the 3 year lock-in period so I can shift it elsewhere.

If I can hit £10k overpaid per year, I'll be laughing, and based on current figures, my £780~ per month would be down to about £400. I've just got a pay bump and wiped out a couple of loans to the tune of £350 per month, so it's doable, but I'll need to be very cost-aware for the next 3 years.

I am sure you already have, but check with your mortgage provider how much you are allowed to overpay without penalties. A lot of them will only allow you to overpay 10% per year and will hit you with charges if you go over that.

I still find it ridiculous that they're allowed to do that. You should be able to pay back any debt you have at any time you want.

I agree but good luck getting it changed.

They don’t all do it and some only do it to people on a fixed rate. I am tied in to a fixed rate for another 2 years with Halifax and can’t overpay more than 10% per year. Which isn’t a massive problem for me as I couldn’t afford to overpay more than that anyway!

[jiggles]

I just took out a 95% mortgage on a new build house, so I've gotten a really shitty deal (variable rate, higher than most, plus an additional percentage for the first 3 years). My aim is now to overpay by as much as I can to drive my monthly repayments down and have a much healthier LTV when I'm out of the 3 year lock-in period so I can shift it elsewhere.

If I can hit £10k overpaid per year, I'll be laughing, and based on current figures, my £780~ per month would be down to about £400. I've just got a pay bump and wiped out a couple of loans to the tune of £350 per month, so it's doable, but I'll need to be very cost-aware for the next 3 years.

I am sure you already have, but check with your mortgage provider how much you are allowed to overpay without penalties. A lot of them will only allow you to overpay 10% per year and will hit you with charges if you go over that.

Yeah, it's 10%.

[LewisD]

Paying off the last installment of my 5 year long bank loan this month...

I am however still a bit in the financial gooseberry fool however, as i owe a lot on a credit card.
I'm going to try and move that onto a balance transfer card though to try and shift it, because it feels like i'm only paying the interest at the moment, and barely making a dent in the amount i owe.

My outgoings are pretty high, but mostly because we're private renting a place in reading.

• Rent:- £875
• internet/landline:- £30
• Electricity:- £140 a month
• Credit Card:- £65
• Bank Loan:- £128 (last one!)
• His & Hers mobile phones:- £30-ish when combined.
• Food/Shopping:- £160-£180
• Petrol:- £50
• Council Tax:- £160

I've probably forgotten some there, but you get the idea.
Once the credit card is paid off, I can start trying to get some extra money in the black, which will be nice.

That's an awful lot for electricity. I'd defo try switching that. When we moved in we got a bill for £220 for 6 weeks for a small 1 bed flat. Switched and now we're paying £40.

It's money I owe them though
It was £30 a month up until a few months back. Because out house only has one shitty storage heater which puts out as much heat as a kittens breath, I had electric heaters on the go to keep the house warm.

Essentially, our little boy got quite poorly at 24 hours old because he got too cold, so I didn't take any chances with heating the house.

They took a meter reading and discovered we've used a huge amount, so I'm paying them back.

Once we're squared up, I'll switch I think..

[Poser]

My huge massive monster piece of advice to anyone with a credit card is absolutely to set up direct debits to pay the minimum amount each month.

If you are struggling then it might not be an option, but try to avoid just paying the minimum every month. Unless you are in an interest free period, it will take you forever to pay off a credit card if you only meet the minimum payment each month.

Sorry, yes, should have clarified: I have the DD payments set up only to ensure I don't cock up/forget. But I usually pay it off in full each month. To be honest, I only use the credit card at all for Amazon purchases, because it helps my credit record to have that ticking over.

[Glowy69]

I'm surprised they let you work in a bank with an IVA.

I'm getting quite into saving atm with mrs Jay. Mainly for a deposit, aiming for £7.5k by the end of next month my credit rating is pretty solid, the only thing that will let me down is my spending at the bookies, although I haven't been on since the end of the world cup.

Why?

It was coming to the end. I'm no security risk and I don't have a role which advises on money situations.

Also DD for credit card payments? Nah. I use my internet banking to pay money whenever I can. I hate direct debits.

[Joer]

Managed to get my Sky TV bundle down from £67.25 to £43.50 just now. That's gonna be just for the basic TV and Sports. Still seems like quite a lot though. Next up will be Gas & Electric.

In terms of gas/electricity...who's your supplier(s)? How do you pay? How old's the place you live in? (I'm thinking insulation). Do you know what kind of tariff you're on? When did you last change?

At the moment i'm with npower. My gas is done monthly which is at £40.34 a month, the electric I have one of those key things that I top up when it runs out. Tend to spend about another £40 a month on that at least as well. I've no idea about the age of the property. The tariff according to the bill is a "Price Fix March 2016 DD" which looks like it ends 31st of March 2016 according to my bill i'm looking at. The account used to be in the wifes name which was set up back in 2012, but it was all put into my name when she moved out in March so I imagine that's when they'll say it started. Is there a way to actually pay less for electricity when you've got a key you top up or is it really just a case of you use what you pay for and that's the end of that?

I've also got a credit card which i've been using to build my credit score which according to Noddle. Is at a rating of 4/5 which basically says I shouldn't have to worry about being accepted for anything now. After seeing your mentions of credit cards that offer cash back i've obviously had my interest raised at that. Is there any particular cards that I should be looking out for? I've seen most charge a monthly fee but is there one that doesn't? I've seen one from Capital One which is the Capital One Classic Extra Credit Card which offers 0.5% cashback on all purchases. I'm terrible at maths and just can't do that in my head, but is that 50p back for every £100 I spend? Or am I just that bad at maths?

[Slayerx]

My huge massive monster piece of advice to anyone with a credit card is absolutely to set up direct debits to pay the minimum amount each month.

I suffer from terrible absent-mindedness when it comes to stuff like that. Everything bad that has happened on my credit record has come as a result of missing credit card payments. Not through lack of dosh, just through forgetting.

I now have a DD set up, (though I hardly use the credit card) and my credit record is totally cushdy.

Actually this can be bad when lenders look at your credit file.

Even if you pay just a few more £'s more than minimum payment it actually looks better from a credit scoring point of view.

Also don't buy into credit scores on websites they mean nothing to lenders.

[Glowy69]

This thread is already saving people money.

[Rex Kramer]

My huge massive monster piece of advice to anyone with a credit card is absolutely to set up direct debits to pay the minimum amount each month.

I suffer from terrible absent-mindedness when it comes to stuff like that. Everything bad that has happened on my credit record has come as a result of missing credit card payments. Not through lack of dosh, just through forgetting.

I now have a DD set up, (though I hardly use the credit card) and my credit record is totally cushdy.

Actually this can be bad when lenders look at your credit file.

Even if you pay just a few more £'s more than minimum payment it actually looks better from a credit scoring point of view.

Also don't buy into credit scores on websites they mean nothing to lenders.

I think Poser just has the DD set up as a fail safe, if he forgets to make a payment then at least they get something and he avoids the charges.

[Grumpy David]

After seeing your mentions of credit cards that offer cash back i've obviously had my interest raised at that. Is there any particular cards that I should be looking out for? I've seen most charge a monthly fee but is there one that doesn't? I've seen one from Capital One which is the Capital One Classic Extra Credit Card which offers 0.5% cashback on all purchases. I'm terrible at maths and just can't do that in my head, but is that 50p back for every £100 I spend? Or am I just that bad at maths?

Your maths are correct. You also get a tenner each year too. I have that credit card. It's also good for paying in foreign currencies as they convert using a perfect exchange rate.

I also have a Halifax Reward Clarity card. It's the best card for going abroad with. However if you spend £300 or more in a month you get £5 back. That can be petrol and supermarket shopping quite easily for the month. Once you spent over £300 you then swap cards and use the capital one card.

I never pay on debit card, I have both cards set to direct debit to clear the whole balance so never pay a penny on interest and I only buy what I otherwise would have bought but I get some cash for doing so. No brainer.

[Joer]

I'm with Halifax at the moment and was hoping to stay with them for a credit card just to keep things all in one place but I can't see any mention of that Reward Clarity Card on the site. http://www.halifax.co.uk/creditcards/ has the Clarity Card but not a Reward Clarity Card. Are they the same thing?