I did a post a month ago, where I admitted I am in some form of chronic debt. And I had a goal in 2024 to pay off my credit card debt, but that didn’t happen. So, I did some extremes on my balance to get it down, but then I had Christmas and a house deposit to save for. So, there was a new plan. Things have changed since that new plan was decided so here is where I am now.
I tried to take advantage of a debt offer with credit
In my last post I described how my bank was offering me 0% balance transfer for nearly two years. Which would allow me to pay the debt off my card, without interest being a pain for 21 months. I later read the T&Cs of this offer, and I needed to be transferring the balance from a credit card with a different company. I only have 1 credit card and its with my credit card company (Barclaycard – great for first time credit card holders imo, not sponsored). So, that entire plan went to dust.
So, I have been paying my usual direct debit to my credit card, and have been dealing with the demand for Christmas presents. Thankfully, I didn’t have a lot to buy, and I used my gift cards for some of them, to reduce the balance. Very handy things. But, my credit card still earns interest, AND my credit limit was increased, which means I will be paying more in interest each month. But this also means I am building trust in credit usage, which looks good on my credit score
My credit score thanks to debt
So, I did a thing. I switched current accounts. I write about that experience here. This made a deduction on my credit score. Why did I switch? Because I felt like my old bank didn’t give enough perks to maintain loyalty (explained further in the post). So, I switched, and I got £180 for switching. Also, the rewards function in my new bank, earns me £3 per month just for existing, so seemed worth it. I used said £180 to add to my credit card balance, plus my usual £180 direct debit. So, a small win, to an extent. Hopefully, the I can use the £3 towards the credit card balance as well, as I can withdraw it once it reaches £5, but that will be a painfully slow process.
Because opening a current account involves a hard search, this does have an impact on the credit score. And this stays on the record for 6 months, so I am not considering anything major with my finances until after May. Which sucks since I want a better credit card which has more perks, but I need to be able to pay of a balance. Because reward credit cards have an obscene amount of interest on them, so you need to be able to pay off the full balance every month. And let’s be honest, I am struggling with a beginner credit card, that I have had for 4 years.
I tried to earn extra cash to solve the debt
I signed up for various focus groups and those weird apps that tell you to play 200 levels of a game to earn £100. One focus group let me participate and I got £50 for it. And I am the kind of person who doesn’t play games, especially ones on the phone, so I made it to level 4 and earned like £1 (which I couldn’t withdraw).
I don’t promote gambling, but one minor success was I went to a social where I won £100 in a raffle prize. It was a social event for young people in my company, the money we gave went to charity, but there was also a cash prize, and I got it. This also contributed to switching banks, because my old bank has minimal branches that were accessible outside of my work hours. So, my new bank is more local so I can deposit said cash way faster.
Lately, my brain has really been going on the side hustle train. Whether I create cheap templates for you guys to use on excel, with clear instructions and guidance. Or whether I just go completely rogue and start a Shopify store, selling things that I think would make really nice gifts, that people have asked me about. If I do start something, I will document it and share it obviously, but that will be when I have a result of if it worked? Much like the whole credit card thing.
Any other notes
I have contributed £1k to my LISA for Nov and Dec, which is great. And that leaves 2 more months, before I reach the limit for the tax year and I am given the additional bonus from the government. So, a win there. I noticed my LISA has been earning interest, even though I haven’t put money in this year, which is great. Because it gets me closer to the goal, even without putting in money actively.
TL;DR
- The credit card plan did not work and that is ok, we just move on with life and credit card debt
- I switched current accounts and now can not do anything with my finances for 6 months, because my credit score has a tainted record
- I tried to earn extra cash, and either failed or gave up, and let luck do it’s thing
- My LISA money earns interest, even without me actually putting in money, which is pretty cool
