• 

How I got 3 job offers

Finding a job is all about working to a plan.  

CV/RESUME  

Your CV is like a flyer. When you apply for a job , what do you have on your CV that will make you stand out from the crowd? I would suggest to work on new skills that can be added to your CV by reading various articles or watching numerous YouTube videos. I would also suggest to have a resume that can be reviewed and updated periodically.

MULTIPLE APPLICATIONS  

“It’s a numbers game.” In most instances, we may have to do multiple applications in order to secure one job. Most of the applications we make won’t be successful, so applying for multiple jobs increases our odds of finding work. 

LINKEDIN  

This is a great place to find employment. Most of the large employers are here as well as multiple employment agencies. Employment agencies and employers will also search here for staff. In many instances, you don’t have to apply for jobs as you can get many organisations approaching you about the jobs they have available.  

GOOGLE  

When searching for jobs on Google input e.g. “IT jobs London”. Google will list a selection on jobs under a blue banner on the first page, click on this blue banner with, for e.g. “Jobs near London” to see the list of jobs. Google will bring together a large selection of jobs from all over the internet including LinkedIn. In some cases, Google will highlight jobs on that you may not have seen when you searched LinkedIn.  

MY METHOD  

I will always read the job description very carefully to try and get an idea of what the culture is like in the organisation I am applying to work in. In the same way that companies are always looking for employees that will be a good fit for them, we should also strive to find organisations that will be a good fit for us. I will generally apply for every job that is a good fit for me in terms of the following criteria:  

Hours of work  

Location  

Travel Time  

Salary   

Etc..  

I would try to average 5 to 10 applications a day. In the past, I have done in the region of 100 jobs application in the space of 1 to 2 months. This yielded me approx. 5 to 10 interviews and 3 job offers at the same time. When I was made the first job offer, I still had a few interviews lined up. So when the first offer was made to me, I explained to my potential employer that I still had interviews lined up and could I make a decision after my final interview. It can work in your favour telling a potential employer that you have a job offer.

In many instances, you become a more desirable candidate for the position and it could mean that an employer will make a quick decision on a job offer. After the final interview, I had 3 job offers on the table. I was able to secure the job that I wanted the most and in addition the job that was paying the highest salary of the 3 jobs.   

INTERVIEW  

Always prepare for interviews. Spend time to research the organisation that you are going to be interviewed for. I would try to find out about how an organisation works and try to find out about their culture and how staff function in the organisation. Look at possible projects that the organisation may have and discuss some of these projects in the interview. In addition, try to find out about the people who will be interviewing you. If I had secured a job before a future interview, when conducting the future interview, where possible, mention at the end of the interview that I had been offered another position.  

VOLUNTARY WORK  

This is a great option if you are out of work. As it shows any potential employer that you have been active while you are out of work and prevents any long gaps on your resume. It can also keep your skillsets up to date and allow you to learn new skills. It’s also an opportunity to contribute to your own or another community. Where possible, try to find relevant work based on the kind of employment you are trying to find as it will enhance your employment prospects.  

NEXT STEPS  

Do you have a plan in place?

Is your CV/Resume up to date?

Are you upgrading your skillsets?

Is your current job a good fit for you?  

• 

Right to Buy is a scheme for council tenants to buy their homes at a large discount. 

Below are some of the criteria: 

The property is your prime residence and only home 

You are a secure tenancy (This a Legal contract between you and the landlord for the property). 

Your landlord is an organisation live a Council or Housing Association. 

An application can be made single or multiple people who have lived with you and are on the tenancy agreement. Right to buy can be discounts can be upto 70% or in the region of £100,000 but these figures need to verified by each person applying.  

Start by making enquires to get an understanding of how the mechanisms around Right to Buy work so that you can get an understanding of how things work. If you are able to, start to accumulate the information before you are in a position to purchase. 

High Rise Flats 

High rise flats are often popular because they are often in popular locations where other types of properties like apartments and houses can be much more expensive. Also, apartments in traditional blocks tend to be larger. 

High rise properties are distributed all over the UK. 

There are only a limited number of mortgage companies that will lend on high rise council flats as they have various concerns:  

The building are made concrete from construction 

Fire prevention and concerns of containment. 

How suitable they are as properties for people who live in. 

Ex-local Authority Block 

Lenders don’t like to lend on Ex-Council authority blocks 

Some lenders consider these types of property to be un-mortgageable as they can have very high service changes. High service charges are very common in these types of properties. Some of the areas of concern are: 

The installation on new lifts 

Renewing communal areas etc 

Many potential buyers are also not keen on this type of property and this reduced demand generally cases the prices of these types of properties to be reduced. This again is another reason why many lenders won’t lend on this type of property. A large range of these types of Ex-local authority apartments are advertised as “Cash Purchase” due to the difficulties in getting a mortgage. 
 

Mortgage 

Different mortgage lenders look at high rise flats differently. Start by making enquires with all the organisations you bank with. Also make enquires with a few mortgage brokers and try to find brokers who specialise in giving mortgage for high rise properties. Some mortgage companies will be more willing to give mortgages in locations like London. 

Additional restrictions is that some mortgage companies will not lend on blocks that are greater than four or five stories high. 

Lenders are also concerned that the demand for council blocks can also change which can affect the valuation as these flats can fall in price. Which could potentially mean the mortgage company could lose money as they may have given mortgages on this type of property all over the country. 

Many lenders make adequate home insurance a priority before the will release mortgage funds to a buyer. Home insurance can also be something that is difficult to secure on a high rise property, as insurance companies are aware that they could end of paying out large sums for these types of properties 

Many high rise flats across the Uk have fallen in a state of disrepair and decay. Which can means that the value of these properties continues to go down. 

Be aware that the problems you experience when buying this type of property, maybe the same problems you experience when you try to sell. So think about an exit strategy. 

My View 

Look to see how long you can own the property for, before you can sell. 

Formula at strategy to possibly sell the property to purchase a property of standard construction. 

Be aware of large service changes 

NEXT STEPS

Start to accumulate knowledge on the right to buy process before you are ready to buy 

Contact your bank and mortgage broker to learn about available mortgage 

THE START  

• 

You own a Buy To Let (BLT) and you want to rent it out. Ensure you have a BTL mortgage and landlord insurance in place. Make sure you are upto date on the current regulations for letting out the property. Make sure you have a minimum of 6 months to 12 months rental income in reserve as well as funds to cover and repairs and maintenance.  

LETTING AGENT  

Choosing the right letting agent can determine whether your BTL property is a success or a failure.  

Choose a letting agent linked to a professional body like ARLA, so that you know they have to meet certain standards and adhere to a code of conduct.  

Make sure you choose a Professional Letting Agent  

Your relationship with a letting agent is likely to be a long term relationship so it’s important to get it right  

What tasks will your letting agent deal with? 

Finding tenants  

Credit reference the tenants  

Taking deposits from tenants  

Get references  

Making the inventory for the property  

Make sure a comprehensive inventory is taken as well as the condition of the property to avoid any issues further down the line.   

Dealing with maintenance/repairs and contractors  

Making sure the property is kept in a good state of repair  

Complying with the legislation  

Most agents have different services such as: 

1 Tenant find  

The agent will find the tenant for you for a fee. You as the landlord will manage the tenant and the property.  

2 Finding the tenant and collecting the rental income.  

The agent will find the tenant and collect the rental income. Everything else will be managed by the landlord  

3 Full management  

The agent deals with everything to do with the letting process from beginning to end.  

Generally, it is best to get a professional letting agent if your BTL is far away from where you live and you don’t like the process of managing tenants. Managing tenants can be a very time-consuming process.   

So is it better to pay a professional to manage the process or are you willing to spend your valuable time managing the tenants and property yourself?  

The letting agent can also manage the tenancy agreement. The most common tenancy agreement in an Assured Shorthold Tenancy (AST)  

NEXT STEPS  

Treat your BTL like a business.  

Take care of your tenants  

Make sure your lettings agent makes all the necessary reference checks on the property.  

Many sure you have some sort of rental guarantee in place in case there are issues with things like non-payment of rent.  

Ensure your property is maintained to a good standard  

That all boilers are serviced annually and have the necessary gas safety certificates.  

Make sure you have a BTL mortgage for your Property   

 Ensure you have landlord insurance  

Tax Return – As an owner of a BTL property you have to submit a Tax Return each year. Know the tax implications in your country of residence.  

• 

This is my favourite mortgage product. An offset mortgage is a mortgage that has a savings account built into it, which saves you money on the interest that you pay. The mortgage is offset against your savings. This product used to be more commonplace but now, not many lenders provide it, and the ones that do generally require larger deposits. Many people don’t even realise that this type of mortgage exists as a product.

Financial Position

This mortgage product will not be suitable for everyone. But it’s a product to consider if you are in a position to.  

As mentioned previously your savings, sit in a savings account that is linked to the mortgage. This savings account pays no interest.  Below are illustrations for the offset mortgage.

Example: 1  

Mortgage Balance: £100,000

Linked savings account:  £30,000 

Interest will be charged on £70,000 of the mortgage 
Most offset mortgages allow you to withdraw money from the savings account linked to the mortgage. 

Example: 2

Mortgage Balance: £100,000 

Linked savings account: £30,000 

Amount withdrawn from linked savings account £20,000 

Interest will be charged on £90,000 of the mortgage 
Most offset mortgages will also let you make overpayments on the outstanding mortgage balance. Which will reduce the principal and the amount of interest you need to pay.  

Example: 3

Mortgage Term: 25 years

Mortgage amount: £100,000

Interest rate 3%

Monthly repayment £474.00

Linked savings account: £30,000

If you kept the monthly repayment at the £474.00 for the duration of the mortgage you could pay off what you owe in 20 years 08 months. Over this period the amount of interest you would save on the mortgage is £24,804. Your tax savings would be £4,445.You pay off the mortgage in 15 years and 5 months by applying the £30,000 from the linked savings account to the mortgage.

Example 4

In this illustration, we are paying an extra £200 per month into the saving account

Mortgage Term: 25 years

Mortgage amount: £100,000

Interest rate 3%

Monthly repayment £474.00

Linked savings account: £30,000

Monthly savings deposit £200.00 If you kept the monthly repayment at the £474.00 for the duration of the mortgage you could pay off what you owe in 19 years 07 months. Over this period the amount of interest you would save on the mortgage is £31,118. Your tax savings would be £3,826. You pay off the mortgage in 10 years and 1 month by applying the accumulated savings of £54,200 (The monthly savings in 10 years and 1 month is £24,200) to the mortgage. 

The interest rate that you receive get on an offset mortgage is typically much higher than the interest rate you will get on a savings account. So, the savings you make on the mortgage is higher than the return you can receive from a typical savings account. 

In addition, you don’t have to pay any tax on any money in the linked savings account. This is an additional benefit over a standard savings account. 

CONCLUSION 

Advantages 

You can reduce the term of the mortgage 

Lower monthly payment as you increase the savings element. 

You can take money out of the linked savings account without having to re-mortgage 

You don’t have to pay tax on the savings in the mortgage. 

Disadvantages 

Generally, you will need a larger deposit to get this mortgage 

Generally, interest rates are higher 

Generally, you will need significantly large savings to make it worthwhile.

NEXT STEP

Contact your mortgage company/broker to see what offset mortgages are available to you

Is this a product that could work for you?

• 

We all lead busy lives and we want quick and effective ways to get things done.  To make things work and stay on top of them we have to be organised.  
The system that you are able to maintain is the system that works for you.

The Key 

The key to any workable system is simplicity, something not too time consuming, and one that fits into our weekly routine based on our available time. If a system is too complicated, we may not be able to maintain that system. 
Your incomes need to be greater than your outgoings so that you can control your finances. Working on a plan to keep everything under control will get you to a position where you don’t use credit cards. Practical Guide to Eliminate Credit Card Debt

Method

Implement a system to have a separate account for each area of finance we have to manage, by getting a savings account that is linked to a current account, will enable the transfer of funds between them.  Separating out our paycheck gives us a clearer picture of all our finances and makes all areas easier to take care of.  

Set aside a certain amount of money each month in your main current account as your disposable income.  The illustration below, shows the break down of expenses and how they can be split across 4 accounts:

Salary (Paycheck)  £2300 (Per Month)

DIRECT DEBITS (MONTHLY)	AMOUNTS
Mortgage/Rental Income	£1000
Car Insurance	£100
Electric	£70
Gas	£70
Water	£40
Total	£1280

FOOD & OTHER EXPENSES	AMOUNTS
Food	£300
Other Expenses	£200
Total	£500

WHAT’S LEFT	AMOUNT
Remaining Funds	£520

4 BANK ACCOUNTS	AMOUNTS
Current Account 1 (Expenses)	£500
Savings Accounts 1 (Savings)	£300
Current Account 2 (Direct Debits)	£1280
Savings Accounts 2 (Contingency)	£220

NEXT STEPS

Get an easy to manage system in place that fits into your routine  

Have different account for different areas of your finance  

How do you currently manage your income? 

• 

For most of us, the problem starts at school. So if we don’t learn to manage money at home, where will you acquire these skills? 

Before the introduction of credit cards (Practical Guide To Eliminate Credit Card Debt) generally, people would have to save for the things they wanted to buy. We now live in a, “buy now pay later” society.

Too Much Debt

As a global society we are carrying too much debt, the average household debt in the UK is around £60k. The average debt for an individual is around £30k. We need to have an indication of how debt we are carrying. We buy multiple things we don’t need and can’t afford. Many of us today believe we can’t live without credit cards. In the UK many of us are living in homes we can’t afford. 

We have to change the way we look at debt and create a situation where we are living off the income we earn and are not spending on credit. We need to change our mindset to the way we look at money and formulate strategies to deal with this issue and move forward. A mindset is a frame of mind, a way of thinking that forms the habits we have.

Refer to the article on (COMING SOON – How to Manage Your Salary) 
We need to reduce our expenditure and attempt to find some breathing space in our budget so that we can start to reduce our debt and put ourselves in scenarios where we are not creating new debt. 

Additional Income 

As part of the process, consider ways we can bring in additional income. For me, my second job was learning how to manage my finances effectively, so I spent a significant amount of my own time reading books on how to manage money and debt. Also, look to see if you are able to get a promotion or salary increase at work. An alternative is to see if you can search for a better job. 

If you are not already on LinkedIn, sign up to it, it is a fantastic place to find employment. All the large employers are on Linkedin. In many instances, you apply directly to the employer. Multiple jobs are also available with employment agencies via LinkedIn

COMING SOON – HOW TO FIND A BETTER JOB 
Also, see if you have any hobbies(or interest) that you can use to generate an income. I currently invest in property and I’ve created this blog about property, money management, and learning techniques. I enjoy reading and learning about all three subjects. I started to learn about money management because of the amount of debt I was carrying. 

Below is an affiliate link, if you purchase this book I will get a commission.
My favourite book on general money manage is:

America’s Cheapest Family

NEXT STEPS 

Formulate a strategy to reduce and clear your debts.
Explore ways to generate an additional income, like blogging or getting a better job. 

Are we on the path to learning strategies to eliminate our debt? 

• 

What is Your Motivation to Buy a Property?

A Home of your own

Leave your parents’ home

Leave rental property behind  

Build a pension for your future 

What Elements do you need to get a mortgage? 

Work towards having a good understanding of how mortgages work, as this can save you large sums of money

What is a Mortgage?   

Essentially a mortgage is a loan that is used to buy a property and is paid back over a number of years.   

You have to raise a sum of money which forms the deposit you pay towards the purchase cost of the property.   

Typically mortgages can be anything up to 25 or 30 years   

The mortgage will be secured against the property until it is repaid in full.   

Organisations that offer Mortgages 

Organisations like banks or building societies offer mortgages.   

These organisations can potentially repossess the property if you don’t keep up with the monthly payments.   

The typical residential mortgage is given on a capital and a repayment basis. This means that you gradually pay back the amount of money you have borrowed plus the interest you owe on the property.   

Contact organisations you that bank with plus a few mortgage brokers (for comparison) to get an idea of how much you can borrow. This is generally 5 times your income or combined income if you are a couple. This will give you an indication of the maximum amount of money that you can borrow. Only get a Credit Score for an Agreement in principle when you have decided on a mortgage product. 

Credit Score

A credit score is a number generally in the range from 300 to 850 that shows how creditworthy a consumer is. Someone’s credit score is based on their credit history. 

Credit history

The number of open bank account you have  Total amount of debt  Your history of repayments  Lenders use credit scores to determine who will qualify for a loan, what interest rate they will be paying, and how high the loan/credit they are going to get will be. 

Objectives 

A mortgage can be held by one or more people.    One of the objectives to consider when getting a mortgage is to get a mortgage with the lowest possible interest rate. This will mean it is cheaper for you to own your home, over the period of the mortgage. Generally when you buy a property, the larger the deposit you put down, the better the interest rate you get. If you put down a 10% deposit you will have a 90% Loan To Value (LTV) mortgage.  The LTV is the percentage of mortgage borrowing in relation to how much the property you are buying is worth.

Fees 

Generally, you have to pay various fees when taking out a mortgage.    Arrangement Fee – Paid to the lender for arranging the mortgage.  Broker Fee – Paid to a mortgage broker if you use one.  Valuation Fee – Paid to the lender to organise a valuation on the property.  Legal fees – Fees paid by a borrower. The legal process is handled by a solicitor. The process is also called conveyancing.  Depending on the lender there may be other fees included 

Examples of Types of Mortgages   

Fixed Rate   

The interest rate is fixed for a set period of time on the product. For example 2 years, during this period the interest you pay will be the same every month   

Most homeowners generally go for fixed rate mortgages so that they can know exactly how much they have to pay towards a mortgage each month.   

Tracker Rate   

This product has an interest rate that will rise or fall as it tracks a certain rate. For example, tracking the base rate plus 2%, this will cause your monthly payments to vary as the interest rate changes.  The base rate (Bank of England) is the bank or interest rate. This is the level of interest that all other banks charge borrowers. 

Standard variable rate   

This product unlike a tracker mortgage does not track above the Bank of England Base rate at a set percentage.  The interest rate you pay is set by the lender.  

Offset Mortgage – (COMING SOON!!!) 

The Mortgage

One of the first objectives will be to save your deposit to purchase your property. This is typically 5 to 10% of the purchase cost of the property. Generally, the higher the deposit you pay the lower the interest rate that you can get on your mortgage product .

When you go to a bank you are limited to the mortgage products offered by that particular institution.  

Mortgage Brokers can look at the whole market so they have a larger range of products to choose from than banks. In some instances they can get you a better mortgage from your bank than you can get yourself, this is because they are able to bring a large amount of business to the bank. Some mortgage brokers charge a commission and others don’t.  

There are certain mortgage products that are only available to first-time buyers  

Most people that apply for a mortgage are in full-time employment. If you are self-employed or have your own limited company, you need to speak to a Bank or Mortgage Broker to see what the criteria is to get a mortgage.  

Mortgage Example:  

Salary £50,000

Maximum loan amount £250,000 ( 5 x Salary)  

Deposit 5% = £12,500  

Mortgage = £237,500 (95% LTV)  

In the example above at the maximum loan amount the property purchase cost is  £250,000 

Getting a Mortgage  

Generally you will need to be:  

Employed   Have a Deposit   Have a Good Credit Rating  

Credit Score 

Contact a good credit reference agency to make sure that you have a good credit score. When possible before you go to get your mortgage try to clear all your overdrafts, loans, credit cards, debts, etc… Any outstanding debts can have an effect on how much money the mortgage company will lend you.  

Research 

Do your research in advance so that you can have an understanding of the types of mortgage products available. This will enable you to choose the best type of mortgage product that suits your financial circumstances   

NEXT STEPS

Make sure you fully understand how your mortgage product works, as you can save a lot of money by doing this. 

Contact the organisations that you bank with to get more information.   

Also contact a good mortgage broker   

Is it time for you to find out more about mortgages?   

Are you able to afford to buy a property in any of your desired locations? 

• 

For me, everything is about finding balance in your routine. “The Routine that you are able to maintain is the routine that works for you”.  In order to get what you need done, you have to prepare your body and mind for the day ahead. 

Developing your routine 

During my last job, I was getting up at 5.00 am each morning. Decide on the time you are going to wake up each morning as part of your routine. Avoid checking any messages or emails first thing in the morning, or anything that may put negative thoughts in your head your, focus on the task at hand. 

My very first task each morning was exercise followed by a shower and then breakfast. I then did a few hours studying and working on my business and personal development, before leaving home at 8.00 am to get to work at 9.00 am. Work out what your routine will be, below is an example of my routine. 

Mondays, Wednesdays and Fridays 

Light  exercise for 30 mins which include: 

Walking 

Running 

Stretching 

Crunches 

Press-ups 

Walking warm down 

Shower then breakfast 

Work on projects before going to work 

Tuesdays, Thursdays 

Walking for 30 mins 

Shower then breakfast 

Work on projects before going to work 

I work from a paper-based timetable to plan my week and my weekend. I finished work at 5.00 pm and was generally getting home between 6.00 and 7.00 pm. The only thing I generally did in the evenings with regards to work, was organise my information to work on my projects for the following morning. I didn’t push myself to get things done in the evenings as I was too tired and needed to rest. As human beings we have to remember that we are biological and non-logical, so we have to take care of our emotional well-being. 

Below is an example of my routine that I followed for the weekend. 

Saturdays, Sundays 

Walking for 30 mins 

Shower then breakfast 

I would study from 5.00 am to approx. 12.00 pm so that I would have the rest of the day for anything else that needs to get done.  

NEXT STEPS 

Prepare your body and mind for each day 

Have a look at your weekly routine and examine if it works for you 

Does your routine allow you to do the things you need to get done? 

• 

For most people employed in a permanent job, buying a residential property is probably the most expensive purchase they will make in their lives, so ensure you do your due diligence. Implement a plan of action to achieve this.  Attached is a property viewing checklist to help you with your viewings. 

 
Viewing Checklist (Coming Soon) 
 

Target Area  

Get to know your target areas as well as possible. If you don’t know them, talk to people with local knowledge or Estate Agents. Know the neighbourhood and what amenities are available. Take into consideration how far the property is from the main road, public transport and other amenities. Also, consider how long it will take to get to work and how long it will take you to get home. If you have children or are planning to have children, you may consider whether there are good schools in the area and whether the property is within the catchment area of these schools.    

Walk around the neighbourhood to get a feel of the area. Also, look at the census data to get an indication of the makeup of the type of people that live in the area and what type of employment and education they have. If you can, visit the area at different times of the day in order to get a good indication of what the area is like. Pay attention to traffic levels during the morning (travel to work, school runs etc) and the same in the evenings. If possible speak to local people, as well as anyone involved in a local neighbourhood watch or local law enforcement to get more details on the area. Try to find out what your potential neighbours will be like. Also consider viewing the property in the evening when the neighbours may be at home to see if there are any noise issues.    

Start looking at properties as soon as possible so that you can get to know the area. Get a feel of what properties are worth and what they are selling for in the area. This can save you tens of thousands of pounds (dollars). In some instances, properties can be overpriced based on the current selling prices of existing properties. It is also possible that properties can be under the market price. Once you really know your areas you will have an idea of what types of properties sell quickly, as well as what types of properties take a bit longer to sell.   

Look at multiple property details (pictures etc..) in the areas that you are interested in to get a feel for the dimensions and layout of properties. This will also give you an indication of what is possible with regards to modifications of the layout.   

Estate Agents

Register with local agents so that you can view properties and they will alert you when new properties come on the market. It is also good to visit a few estate agents in person so that you can build a relationship with the people who could be finding your dream home. If you have met them, you are more likely to come to mind if a property that suits your criteria comes up.   

Some properties are sold even before they come on the market. So it is important to build good relationships with estate agents and let them know that you are a serious buyer.   

Ensure that you let the estate agents know your criteria   

Let them know what budget you are looking within to buy your property   

Inform them of the types of properties you want   

Let them know the types of properties you don’t want   

Have an idea of your preferred layout for the property   

Decide on any must-have features e.g. a garden and inform your agent of these 

Websites

Register with Websites like Zoopla, Rightmove etc… so that you will get alerts when new properties come on the market.   

Viewings

Bring the full property details with you – Go over these before you go to do the viewings  

Viewing checklist (coming soon)   

Take pictures if possible   

From the pictures make a list of any repairs that may need to be done. Also if you are able to, make estimates of what it would cost to make those repairs   

Remember everything you miss on your viewing could cost you money further down the line.   

NEXT STEPS  

Know your target area   

Look at properties as soon as possible so you can know what properties sell for   

Register with local estate agents   

Register with property search websites   

 What location can you afford to live in  

What type of property can you afford   

(Coming soon How to get a Mortgages) 

• 

You need to be on the path to educating yourself about how to get out of credit card debt. The more you know about credit cards generally the more options you will have to get them reduced. Use this knowledge to accelerate your debt reduction.    

There are two general methods used to pay off debt which are known as the debt avalanche and the debt snowball methods.  

Debt Avalanche

With this method, you make minimum payments on each card and apply any funds that you have leftover to the card with the highest interest rate  

Debt Snowball

With this method, you pay off your smallest debt first and then move up to your next largest debt, without taking the interest rate into consideration.  

Spreadsheet

Start off with a spreadsheet so that you can see a clear picture each month of where you are with your credit card debt. Review and update the spreadsheet a few times each month, especially just before you get paid.    

MAY 2020	CARD BAL	IR	MIN PAY OF BAL	MIN PAYMENT FINANCE CHARGE	TOTAL MIN PAYMENT	FIXED PAYMENT (Cards 0% AFTER BT)	DIRECT DEBIT DATE	DATE BT* FIN	NOTES
Credit card 1	3000.00	30%	30	75.00	105.00	120.00	05 May 2020	01 Oct 2020
Credit card 2	2000.00	30%	20	50.00	70.00	80.00	10 May 2020	01 Dec 2020
Credit card 3	1000.00	25%	10	25.00	45.00	245.00	15 May 2020	01 May 2020	£200.00 Extra to lowest debt
TOTAL	6000.00		60	150.00	220.00	445.00
					BAL AFTER MIN PAYMENT	BAL AFTER FIXED PAYMENT
					5780.00	5555.00

Spreadsheet Explained

May 2020

This column shows the 3 credit cards  

Card Balance (Card Bal)

This column shows the outstanding debt on each card and the total credit card debt of £6000  

Interest Rate (IR)

This column shows the interest on each card  

Minimum Payment of Balance (Min Pay of Bal)

This column shows the portion of the minimum payment that goes to the reduction of the debt. The total of all the minimum payment is £60  

Minimum Payment Finance Charge

This column shows the Interest that is charged on each card and the total of all the interest charges £150.00.  

Total Minimum Payment

This is the addition of the DEBT REDUCTION & INTEREST CHARGE, which together gives the total minimum payment of all cards. The total of £220.00 (£150.00 of the £220.00 is interest) is the addition of all the minimum payments. After the £60 debt reduction is applied the total minimum payment is £5940.00. If all the cards where on 0% (after a balance transfer) the debt would  be reduced by £220 to £5790.00. 

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Fixed payment (Cards 0% after balance transfer)

This column shows each card at 0% after a balance transfer. The minimum payment on each card has been fixed above the minimum card payment set by each credit card company. You can do this by contacting each credit card company and asking them to fix each card above the minimum payment at a set level. As shown in the spreadsheet for credit card 1, the minimum payment set by the credit card company is £105. You contact the card company and fix the minimum payment to £120.00. In the column titled ‘NOTES’ an additional £200 has also been applied to credit card 3 which has the lowest debt. You would continue to apply an extra £200 each month to credit card 3 until this debt is clear. Remember the more you can apply to a credit card debt the quicker it will be cleared. Once this debt is clear, you now apply the available £235.00 to credit card 2 (fixed payment on credit card 2 will now be £315) and so on until all 3 cards are clear.  

Direct Debit Date

The date each direct debit payment is taken for each card.  

Date Balance Transfer Finish (Date BT FIN)

This is the date that the balance transfer offer finishes for each card. This information is recorded in the spreadsheet so that you don’t miss the date the balance transfer offer ends for each card. Once a card comes to the end of its balance transfer period, the card reverts back to its normal interest rate.  
   

Stop Using Credit Cards

The first thing you need to do is stop using your credit cards. Generally every time you use them you are creating more debt. The money you are spending doesn’t belong to you and will have to be paid back. Most people use credit cards like they are an extension of their salary, this gives you a false impression of how much money you really have.     

Get all Cards To 0%

You need to get all your cards on 0% interest. Most people are not able to get out of credit card debt because they are servicing the interest on the debt and not really reducing the principle. Once all your cards are on 0% you can start to see significant reductions on your credit cards 

Using Balance Transfer for Existing Cards

A balance transfer is when you move a credit card debt from one credit card company to another.  You will be generally charged a fee which is normally 3% to 5% of the total balance being transferred. This fee normally has a minimum charge. Generally don’t spend on a card that has a balance transfer debt. Any purchases made on this card will incur instant interest. Verify this with your credit card company. 

New Balance Transfer

Look to try and transfer your debt onto clear cards (cards with no balance) that give you an offer of 0% interest on transferred balances. 

Generally, you need some breathing space in your budget to start to attack the credit card debt. £200 per month is a good figure to see some impact on your debt. Obviously the more you can apply to your debt the quicker you can reduce it. If you don’t have much flexibility in your budget, look to see what subscriptions (e.g. online TV streaming), etc… you can cancel to free up funds that you can apply towards your credit card debt.    

My view

Here I’m just sharing how I have dealt with my personal credit card debt. It’s always good to do additional research so that you can gain information and develop more strategies to tackle your debt. You have the most to gain from clearing your cards, so put the time into learning the necessary skills.    

Next Steps

Don’t use an existing card with a credit card debt on it 

Balance transfer high Interest cards onto cards with 0% 

Fix minimum payment on cards 

Use a spreadsheet to track your credit card debt 

How would it feel to clear all your credit card debt?