Unsure whether to consolidate - please advise

Dobbibill · 30 June 2017 at 8:41AM

Well done on the update.

In 6 months from your first post, you have done a huge U turn in how you think and approach debt. The results of how it's decreasing month on month is brilliant and a fantastic example to others who think consolidation is the answer.

Keep on keeping on

Reb2016 · 30 June 2017 at 12:34PM

Hi Op

I think you have done really well, I've just had a read through of the whole thread, and find it really motivating. You can see from my signature that I have quite a bit of debt to clear, I did apply for a consolidation loan, and got turned down, and now think it was the best thing that could have happened.
You are proof that there are better ways than consolidation loans.

Reb

zippygeorgeandben · 30 June 2017 at 7:23PM

Dobbibill and Reb2016, even though it's taken you probably a minute to write a reply, it means a lot to me and will spur me on to keep attacking the debt. At the moment it's looking like I might be out of debt in the first or second quarter of 2019. Original debt end date was end of May 2019 and I'm hoping that with this same head on attack I can shave a couple of months off that. When it hits September, I really do need to be sure to attack the debt as that's when my net pay moves to about £2850. I find out within the next couple of weeks whether the rent will go up on my flat, I'm really hoping it doesn't but I can manage perhaps an extra £50/£75 if it does.
Reb2016 - have you started a diary? If so, link it and I'll go and say hi over there!

zippygeorgeandben · 30 July 2017 at 11:53PM

Hello and thanks for clicking on my thread!
It's time for my monthly update of how I have been getting on with tackling this debt mountain.
This month I have paid off £643.99 off my debts.
Tesco - Once again, the monthly payment of £222.61 has been debited from my account. Gosh, still the best part of £6k to go, feels like it'll never end.
Zopa - Once again, I overpaid and £259.03 went off this card this month. Can you believe it? This is now under £1,000 so I'm really happy about that. This debt should perhaps be gone by the end of the year. Hope so.
Sainsburys - I've changed the monthly repayment from the £70odd they were asking to £140. I've calculated that by making this payment every month, the card would be cleared just before the promotion period runs out. If I'd had left it at the original figure, there's a chance I would have been accruing interest.
Halifax - Yes, yes yes I know... haven't paid the holiday off BUT - I'm aware of this and should pay money of loans which are accruing interest monthly.
Sister - Annoyed that the £133.33 hasn't gone out my account this month as I'm sure I set it for the penultimate day of the month to come out. I need to look at this.

I had a lovely letter from student loans this month to tell me that I'll have paid my student loan off in under 2 years and whether I want to now pay through DD as it currently comes out of my salary. Then they tell HMRC how much they've deducted. It's to make sure I don't overpay the loan.

Generally this month I've spent quite a bit. I had a weekend away which cost a couple of hundred and I think it's the euphoria of knowing I've six weeks off (now five!) and going for lunches, catching up with old friends etc.
Not quite sure what the state of play will be on the 31st of August but the debt is reducing! If I can get it under £10k by January 1 2018 I'll be happy.
Thanks for stopping by and feel free to leave a comment as it really does help me stay motivated.

Verbatim · 31 July 2017 at 7:46AM

Hi,
Would you not be better overpaying the interest charging ccs/loans and aiming for new 0% ccs to swap the balances to when the zero periods run out?
Also I think if you posted more often you'd get more replies.
Enjoy your time off!

cjmillsnun · 1 August 2017 at 12:53AM

Agreed, I'd be sticking with the £70 minimum with Sainsbury's CC for now and chuck the other money at Zopa and Tesco. As you have less overall debt, it will be easier to get other 0% cards to transfer the card debt over. You'll end up paying a bit less that way (why should they have money that could potentially be yours

)

zippygeorgeandben · 2 August 2017 at 10:34AM

Thanks for the replies Verbatim and cjmillsnun. It's given me food for thought. I didn't actually factor in that I could shift cards again when I get towards the 0% offer ending. I just don't see that many 0% offers which also include 0% balance transfer fee, that's what I got with the Sainsburys card. I'd then be paying that money to the CC company wouldn't I? But I do see your point though that overpaying the Tesco loan gets me a rebate and overpaying the Zopa loan reduces the final total so it may actually be a negligible difference.
I think I only post once a month unless responding to posts because I don't really have that much to say of interest!

Candyapple · 2 August 2017 at 11:30AM

There are quite a few lenders who offer no fee balance transfer cards, link below:
http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#nofees

Don't forget to use the eligibility checker before applying as well:
https://creditcards.moneysavingexpert.com/?balance-transfer&_ga=2.101841608.81964179.1501666405-1404677910.1501666405

And just in case you haven't already, make sure you have obtained copies of all 3 of your credit reports to check that the info being reported about you is correct and to give you the best chance of being accepted by rectifying any errors before you apply.

The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk

And finally well done on reducing your debt thus far

zippygeorgeandben · 1 September 2017 at 12:16AM

Hello!
It's time for my monthly update.
Well when the clock hits 00:01 it's my first year anniversary of deciding to tackle my debts. I didn't start posting about it on MSE until December when I was looking at consolidating and putting all the debts into one. I'm so glad I didn't. Many thanks to all of you for your advice. I wish I had started a diary many months ago!
My debt on September 1st 2016 was £19766.82 and as of today it is down to £11499.70. I have managed to clear £8267.12 off my debt in a year!
I did a 0% BT on a card with zero fee with an original CC debt.
*I have overpaid the Zopa loan by a considerable amount.
*I have made 4 overpayments totalling £890.44 off the Tesco loan this year.
*I have also been on two all inclusive holidays this year but managed to account for this appropriately.
Plans for 2017-2018 are as follows;
1)I start a new job on Monday which should give me an extra £250-275 per month to throw at debts, probably the Tesco one.
2)To just get rid of the Zopa loan as soon as possible so it's one less accounted for each month, then throw that £49 at the Tesco one.
3)My O2 contract ends next June. I love my handset so will switch to SIM only, saving £20 a month on this.
4)To lose some bloody weight!
2018-19 goals
1)The student loan I'm repaying via PAYE is due to be paid off in about 18 months. If all is going well in this job, that'll be another £250 per month in my net pay.
2)My original DFD was May 2019 but I think I'll knock a couple of months off this. I'd love to be debt free by the end of 2018 but at the moment that might just be out of reach...
Potential pitfalls
I know I'll need a crown at some point this year which will be around the £400 mark I'm sure of it
I don't have an emergency fund if anything should happen and this slightly concerns me as I'm throwing 'extra' money at reducing debts. Wouldn't mind some advice on this MSEers.
Dad's 80th this year could be expensive
My partner is 40 next year which will be expensive.
I might edit this later but for now I'll edit my signiture and say bye!
Thanks for reading

Reb2016 · 1 September 2017 at 12:45AM

You've done so well, that's a huge amount to clear in a year. Looking at the figures you were thinking of paying for a consolidation loan, you wouldn't have paid even half that amount, so not taking the loan has made a major impact.

I've just realised you asked if I have a diary, I do, you can find it here http://forums.moneysavingexpert.com/showthread.php?t=5660404

I think doing a year on round up is a great idea, and I'll steal it for when I get to my first year, if you don't mind, it just shows how far you have come in one year. Threads like yours really do inspire me to keep going.

Reb

Unsure whether to consolidate - please advise

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