Income - £2600 (comprised single salary, child benefit and maintenance)
Essential bills (not including travel and food) - £1500
Remaining balance £1100
By the end of 2023 living costs and a house move left me £800 overdrawn. I've taken out an interest free credit card (purchases and balance transfers) with an interest free period of 16 months. So this month I let my salary pay my bills and am doing all spending on the credit card, which has brought me out my overdraft completely. Next month I'll revert back to using my current account to pay off the credit card in more manageable pieces.
I've worked out that by the end of this month my debt will all be interest free but total:
Credit card - £1800
Utilities (on a 12 month repayment plan due to a house move)- £350
Other interest free repayment plans (due to end in march) - £130
Total - £2280
It's all technically manageable but I want it gone asap because I can forsee at least 2 very large bills coming in this year.
My plan is to clear the sundry debt of £130, and make a similar payment to the credit card then the following month the £350 then block off the credit card in big bites totalling the two previous debt amounts. Does this seem like madness or manageable? I've never been in this much debt before, although appreciate to many this isn't a big amount of debt and it's making me anxious.