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  1. #21
    DF Moderator BIG-TED's Avatar
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    Default Re: Keeping credit cards or getting a loan?

    Well done, it's hard to see the woods for the trees when in debt.
    Only have a Mortgage now, If i need something i'll save for it.
    If you buy it on the tick or load up a card then item never seems as good as when you save and buy it out right, the novelty of the must have item wears off quick, it ends up collecting dust or sell it cheaply and end up paying for something long after you last used it.

    Ted
    Run your wife a nice hot bath, light some candles & pour some wine. Then you've at least 40 mins on the xbox plus a clean wife.

    When wearing a bikini, women reveal 90 % of their body... men are so polite they only look at the covered parts.

    Thanks to BIG-TED

    BigBrand (3 Weeks Ago) 


  2. #22
    DF PwNagE dpSparhawk's Avatar
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    Default Re: Keeping credit cards or getting a loan?

    Nice one BB.

    here are a few other tips.

    Try to avoid purchasing services that require you to pay ANY kind of interest. For example, car insurance. Try and pay it all off in one payment and THEN, set up a standing for the full payment divisible by 12 into a savings account then when it comes to renewal time, you have either the vast majority of the next years insurance, or you have more than you need.

    Same for VED. Put it away over the year in 12 payments into a savings account, that way you never have that big hit at the end of the year when your VED is due.

    I do this for car insurance, VED, Tyres and Annual service. Monthly standing orders into a savings account.


    Try to keep just one Visa credit card. Buy fuel on it and if you've saved for something, buy the item on it, boost your credit rating and of course have visa insurance on items over 100 but pay off the balance immediately.


    Save for something before buying it. That way, it'll be a true test as to whether you really need it and if you do, when you come to get it, you've already got the cash.

    2 Thanks given to dpSparhawk

    Ashley (3 Weeks Ago), BigBrand (3 Weeks Ago) 


  3. #23
    DF PlaYa grrrd's Avatar
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    Default Re: Keeping credit cards or getting a loan?

    Quote Originally Posted by dpSparhawk View Post
    Nice one BB.

    here are a few other tips.

    Try to avoid purchasing services that require you to pay ANY kind of interest. For example, car insurance. Try and pay it all off in one payment and THEN, set up a standing for the full payment divisible by 12 into a savings account then when it comes to renewal time, you have either the vast majority of the next years insurance, or you have more than you need.

    Same for VED. Put it away over the year in 12 payments into a savings account, that way you never have that big hit at the end of the year when your VED is due.

    I do this for car insurance, VED, Tyres and Annual service. Monthly standing orders into a savings account.


    Try to keep just one Visa credit card. Buy fuel on it and if you've saved for something, buy the item on it, boost your credit rating and of course have visa insurance on items over 100 but pay off the balance immediately.


    Save for something before buying it. That way, it'll be a true test as to whether you really need it and if you do, when you come to get it, you've already got the cash.
    Congrats on the debt free - it is a wonderful feeling! I will echo the above, but i would say get a credit card with cashback. I purchase everything on a credit card but set it up to be paid off in full each month. This gives me a shitty 0.5% cashback (still free money) but you also get the payment protection that debit cards do not give you.

    Always pay off in full each month!

    2 Thanks given to grrrd

    Ashley (3 Weeks Ago), BigBrand (3 Weeks Ago) 


  4. #24
    DF Jedi BigBrand's Avatar
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    Default Re: Keeping credit cards or getting a loan?

    Quote Originally Posted by Rhinoz View Post
    Well done m8, it's the best feeling in the world when you come out the other side.
    Absolutely, it's safe to say since I was 16, I've been in debt one way or another. Usually racking up a credit card and paying it off with my bonus each year, and never really tackling the problem of managing money.

    I know it's just the start, but I feel like I'm so much more prepared now, and informed about how I can impact my credit, and how to budget properly. Making lifestyle changes, like going home a few hours early from the pub, and limiting how many times I can go and do things. Ensuring I've got enough to pay bills, and what I need to that month, I guess jut better budgeting.

    it was hard don't get me wrong, I worked a lot of hours overtime, I worked "unofficially" for 45 days straight at one stage (although the weekends were 2-3 hours, not full 8/9 hour days. So i was able to tackle the debt that was costing the most each month.



    Quote Originally Posted by Ashley View Post
    Well done, must feel great.

    I've got about 1300 to pay and I'm done too.
    Thanks bud, it really does. Amazing how far money can go when you're thinking about it and not frivolously spending.

    What's your plan for your final 1300, is that an year end objective, or 6 months etc?

  5. #25
    DF Jedi BigBrand's Avatar
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    Default Re: Keeping credit cards or getting a loan?

    Quote Originally Posted by BIG-TED View Post
    Well done, it's hard to see the woods for the trees when in debt.
    Only have a Mortgage now, If i need something i'll save for it.
    If you buy it on the tick or load up a card then item never seems as good as when you save and buy it out right, the novelty of the must have item wears off quick, it ends up collecting dust or sell it cheaply and end up paying for something long after you last used it.

    Ted
    You're very right there mate, buying shit on tick was just a compulsive decision, now I have savings I have to think about if I really want it, most times, I don't. Being aware is half the battle!

    Quote Originally Posted by dpSparhawk View Post
    Nice one BB.

    here are a few other tips.

    Try to avoid purchasing services that require you to pay ANY kind of interest. For example, car insurance. Try and pay it all off in one payment and THEN, set up a standing for the full payment divisible by 12 into a savings account then when it comes to renewal time, you have either the vast majority of the next years insurance, or you have more than you need.

    Same for VED. Put it away over the year in 12 payments into a savings account, that way you never have that big hit at the end of the year when your VED is due.

    I do this for car insurance, VED, Tyres and Annual service. Monthly standing orders into a savings account.


    Try to keep just one Visa credit card. Buy fuel on it and if you've saved for something, buy the item on it, boost your credit rating and of course have visa insurance on items over 100 but pay off the balance immediately.


    Save for something before buying it. That way, it'll be a true test as to whether you really need it and if you do, when you come to get it, you've already got the cash.

    Thanks mate, some really great information there. I'm a little lucky that my MOT, TAX, Insurance are all due April 1st, which is a few day after I get my annual bonus, so I always cover those.

    I've got 3k in savings (premium bonds) and 500 in a Esaver for quick access. I need to get a new washer this weekend, so it;s great knowing I can just buy it and replenish the account afterwards.

    Does amount of credit impact you? I have a Lloyds CC, which is who I have my other accounts with, and it's zero balance but with 14,500 credit limit. I was thinking of reducing that, but not sure if the more credit available but unused looks better to potential lenders?

    I plan to start buying things like fuel or weekly food shop on the credit card but paying it back in full each month from putting that money from my account each time I spend.

    Thanks to BigBrand

    dpSparhawk (3 Weeks Ago) 


  6. #26
    DF PwNagE dpSparhawk's Avatar
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    Default Re: Keeping credit cards or getting a loan?

    I've never checked into my credit rating as fortunately, I've never been declined so can only assume it's good. The using of a CC and paying off to maintain a good rating is something I've heard for years. I guess it makes sense. If you're borrowing but paying back straight away or very soon after then it should always result in a positivie score.

    14.5K limit on a CC? Personally, I'd reduce that down. Take it down to 5K perhaps and if you're not using that amount take it lower. I'm not overly trusting and 14.5K available on a CC would frighten me. If it was to be hit with a fraudulent transaction, it could be problematic for a little while.

    I have one CC and the limit is 2K and currently Zero balance.


    I'd go with the Food and Fuel purchases on yours and when you get home, schedule a payment to go to pay it off in a couple of days from the data of use.

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