Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 11:11 PM
    • 482Posts
    • 534Thanks
    zippygeorgeandben
    Unsure whether to consolidate - please advise
    • #1
    • 3rd Dec 16, 11:11 PM
    Unsure whether to consolidate - please advise 3rd Dec 16 at 11:11 PM
    Hello everyone,
    First of all, I can't believe I still remembered my username and password. It's quite a while since I've logged into MSE!
    Anyway, here are the facts.
    I currently have three debts I am paying off
    1) £5727.54 loan(started at £11k)with Zopa @ 4.8% - I pay £230pm
    2) £7568.74 loan(started at £12k in 07/2014)with Tesco @ 4% - I pay £222.61pm
    3) £4211.19 credit card with Virgin Money @ 0% until June 2017 - I pay £200pm (which is more than the £50pm they ask for)
    Total debt equals £17,507.47.
    Total monthly payments are £653pm

    I wish to reduce my monthly direct debit outgoings to give me more flexibility for stuff I want to buy.
    After having a brief search, Sainsbury's have a loan for £18k (so this covers all the debts written above) @3.1% which would mean me paying £323.89pm.
    TSB have a loan for £18k @3.5% which is £328pm. I'd be paying £1621 in interest for this deal.
    Both these loan repayments per month are roughly £330 less than I currently pay off per month at the moment (which as I've said above, are £653pm)

    I can't seem to find the wood for the trees here. What would you do?
    Would you just continue to pay the three original debts off? I can afford these repayments (just) but it doesn't give me lots of flexibility.
    Or would you consolidate all three debts, pay them off, and take out a new 5 year loan where the monthly payments would be reduced by over £300?
    Or is there another option I should consider?
    Thanks for reading,
    Ben
Page 2
    • -taff
    • By -taff 9th Dec 16, 10:40 AM
    • 7,021 Posts
    • 4,435 Thanks
    -taff
    I'm agreeing with Reading Tim. It's not rude to poiint out that you're in debt, looking for a consolidation loan and looking to live beyond your means otherwise you wouldn't have so much debt. Out of interest, what was the 12k loan you're currently paying back for?

    As above, you are borrowing more money to pay off debts you're incurring that you can't afford. In total, you're debts are roughly 17,000 pounds.

    When you apply for laon, they'll take that into consideration and be asking, do you earn enough to be 36,000 pounds in debt. They have no guaranteee you're going to use it to pay debts.
    • zippygeorgeandben
    • By zippygeorgeandben 13th Dec 16, 11:19 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    @taff - hey sorry I did not reply to your question regarding the 12k. My partner had to stop working due to being diagnosed with non hodgkin lymphoma and it just put a bit of a strain on rent and bills. He then didn't go back to work and did an MA last year which of course, isn't cheap. Don't get me wrong and don't give me sympathy as some of the money went on holidays together, household purchases etc.
    I love re reading this whole thread as it reminds me of what I've got to pay and gives me clearer direction.
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Jan 17, 11:24 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Hello everyone,
    Nothing to report really - just saw it was exactly a month since my original post so it's another £653 off the £17k or so debt!
    • zippygeorgeandben
    • By zippygeorgeandben 5th Feb 17, 2:22 AM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Hello everyone,
    Two months since my original post and I've paid another £653 off this month.
    I also knocked off another £417.87 of the Virgin CC. This amount was the total of my April, May and August paper statements. Trying to clear as much of this as possible before the 0% ends in July.
    I'm so pleased I decided to tackle my debts and this thread definitely now probably deserves to be in the DFW instead of taking out loans.
    Currently
    1) £5267.54 loan(started at £11k)with Zopa @ 4.8% - I pay £230pm
    2) £7123.52 loan(started at £12k in 07/2014)with Tesco @ 4% - I pay £222.61pm
    3) £3393.32 credit card with Virgin Money @ 0% until June 2017 - I pay £200pm (which is more than the £50pm they ask for)
    Total debt equals £15,784.38.
    Total monthly payments are £653pm

    Thank you for reading.
    • Money Rollercoaster
    • By Money Rollercoaster 5th Feb 17, 2:33 PM
    • 238 Posts
    • 549 Thanks
    Money Rollercoaster
    By all means stick this in DFW, but here's my twopenneth.


    I had a very similar amount of debt, and like you it was part CC and part loan. The only way I could get clear of it was budget months ahead and be ruthless about paying as much as possible off each month (to the extent that sometimes I did feel absolutely miserable). I made a resolution at the end of 2013 to keep on top of my bank balance and transactions and I've stuck to it. As it stands I can tell you how much spare money I should have left in my account at the end of this November and all the months in between.


    I would focus on paying off the credit card. Ignore the loans for now. It might be that you need to swap CC providers when your deal with Virgin comes to an end and you might wish to save a credit application for that time, ideally to another zero % (zero fee) deal.


    By all means, when you've got the CC licked, then I would look at the loans. The Tesco one at 4% isn't that bad really, the zopa one is perhaps on the high side, but you've got to remember that providers don't give you the 3% headline rate unless you're their target and almost certainly those rates are for debts of £7,500 or more - you don't really want to get into applying for larger loans than you need just to get those rates.


    What you can do, when the CC is clear, is look at making overpayments to the Zopa loan (with the highest interest) - you need to advise them that you want to make regular overpayments ... that £200 a month you pay to Virgin would help clear off the loan quicker, with savings in interest.


    Anyway, these are just my thoughts based on past experience. I found it better to focus on one thing at a time, reducing the number of debts I had to keep track off and you might find that helpful too. Don't forget to budget though, it really is crucial.
    • zippygeorgeandben
    • By zippygeorgeandben 5th Feb 17, 2:47 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    HI Moneyrollercoaster,
    Thanks for the reply. (I actually tried to private message you but you've opted not to receive them).
    This morning I have applied and been accepted for a 25month 0% interest on balance transfers and 0% transfer fee credit card. It's the VirginMoney I'm transferring. They have made a £6500 limit but when I activate the card I'll be reducing this as I have no intention of spending on it. I will keep to that also.
    The interesting thing is though is that I got these loans which definitely weren't a necessity yet paying for 2 people's holidays in August went all on the credit card which is extremely unlike me. EDIT: Actually I did spend some of the money on a hobby collection of mine which actually became an addiction I'm trying to sell this collection off but it's not that easy to do. The value is about £5,000.
    Like I've said in a previous post, I know I have interest on these loans but I've never paid interest on credit card balances and I want to keep with that record. I note down everything that I spend on my Macbook daily and what it was. I have £600 each month to spend once all debts have gone and I try to make as much of a dent as I possibly can. I'll admit though that £100 per month since September has gone towards my Easter holiday fund which you might scoff at however I've managed to dent my debts still, get through Christmas and when it comes to booking this April holiday, it won't be using a credit card.
    Once again, many thanks for your reply.
    Ben
    Last edited by zippygeorgeandben; 05-02-2017 at 2:49 PM. Reason: Adding extra information
    • zippygeorgeandben
    • By zippygeorgeandben 6th Mar 17, 3:39 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Hello everyone,
    Just popping in for my monthly update.
    Any of you wanting a brief summary of what my thread is about well in December I was looking at possible consolidation to reduce monthly payments. I'd been budgeting since September and doing well. I got various advice/food for thought from the many posters on here and instead of consolidating, have decided to face my debt HEAD ON and try and spend less than I earn and therefore reduce the debt.
    Since September I have paid nearly £4k off my debt which includes overpaying on the Virgin CC. I'm waiting to get a balance transfer CC to shift the Virgin debt to a 24 month 0% interest with 0% fee so I can hammer away at the debts even more.
    This really ought to be in the DFW pages now i feel.
    Thanks for reading and it's great to look back on personally to see how I was thinking about my debts just a few months ago.
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • Money Rollercoaster
    • By Money Rollercoaster 6th Mar 17, 4:13 PM
    • 238 Posts
    • 549 Thanks
    Money Rollercoaster
    Hey, pleased to hear you're making headway. You must feel so much better having looked at it in the eye!


    It's a real brain ache when you realise you're in a pickle. I remember consolidating (more than once) and I can even remember shifting money that was sat at 0% or low interest rates, just for the sake of tying off loose ends. Rational thought sometimes just goes out of the window.


    Go start yourself a DFW thread and we'll all pop in there and cheer you on ...
    Living Life @ 174 BPM >> CC Balance (0%) -£1,950 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -£20,264.29 - Target DFD Oct 2020
    • zippygeorgeandben
    • By zippygeorgeandben 6th Mar 17, 6:49 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    MoneyRoller - thanks for the reply. I keep thinking of starting a DFW but I enjoy reading others' diaries and contributing with words of advice/encouragement etc I don't think I'd find the time to start my own!
    I keep piggybacking on Exerbusi2 diary, he doesn't seem to mind!
    Thanks once again. I'm like a dog with a bone with my budgeting in 2017.
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • Hillwalker17
    • By Hillwalker17 8th Mar 17, 1:54 PM
    • 57 Posts
    • 84 Thanks
    Hillwalker17
    Hello,

    Just stopping by to say well done on the last 6 months. You seem to be doing very well. I can sympathize with you looking to initially consolidate, I just did it with a £10K loan to pay off other stuff. Sometimes paying one person feels better than paying 2 or 3.

    Anyway, stick with it. You've done great so far and it won't be long before it's all gone away

    As for a debt diary, maybe asked to get this moved to there and you could use this as yours. I just started one and it feels like a great place to write stuff down / vent / organize
    Ex Gambling Addict - Last bet made on 15/03/2017 - 29 Days
    Slowly building an emergency fund - £1000/£6000
    • zippygeorgeandben
    • By zippygeorgeandben 9th Mar 17, 7:46 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Thanks for taking the time to post a reply Hillwalker17 - I'll have to search your username and see what you're up to on these boards. Hope you pay off your debts.
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 16th Mar 17, 3:44 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Hell everyone,
    Quick update - I've got myself a Sainsburys 0% on BT credit card for 24 months with 0% fee.
    I've transferred the VirginMoney debt over (as that runs out of 0% in July). I'm going to pay the minimum each month of £76 off this Sainsburys 0% and throw the extra money at the Zopa loan.
    Thanks for reading.
    PS I give permission for a moderator to move this thread as it does not really belong in the 'loan' section anymore.
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • StopIt
    • By StopIt 16th Mar 17, 3:53 PM
    • 215 Posts
    • 181 Thanks
    StopIt
    Amazing stuff, well done.


    Remember to update your signature accordingly!
    • zippygeorgeandben
    • By zippygeorgeandben 16th Mar 17, 4:17 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    I know stopit about the signature! When everything is sorted in the wash at the end of this month, then I will do! My sister has just agreed to lend me £2k and I'll pay her back £133pm for 15 months. I'm going to use that £2k to hit that Zopa loan hard, and fast!
    Thanks for replying.
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • Money Rollercoaster
    • By Money Rollercoaster 17th Mar 17, 1:24 PM
    • 238 Posts
    • 549 Thanks
    Money Rollercoaster
    Hey ... pleased you're making some headway. A change is as good as a rest, eh? You maybe jumped a little early for the switch from Virgin to Sainsburys, but at least it is sorted and you've got 2 years grace and it was fee free (which I guess might not have been the case, had you waited)


    Don't forget to make sure Zopa know the overpayment is coming ... if they are anything like Sainsbury's, you should only need to inform them in advance of your first overpayment, not before every one.


    Look forward to seeing those figures in your sig. tumble ...
    Living Life @ 174 BPM >> CC Balance (0%) -£1,950 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -£20,264.29 - Target DFD Oct 2020
    • zippygeorgeandben
    • By zippygeorgeandben 17th Mar 17, 7:31 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Hey moneyrollercoaster thanks for the positive message.
    I probably did jump a little early but I'd rather be in control of the change then actively looking for a different card when against the clock.
    I overpaid Zopa a couple of months ago online, and it automatically reduced my monthly repayments. I didn't realise that some companies expect you to let them know if you overpay?
    Yes I hope to get those numbers tumbling soon. Someone has shown an interest in purchasing a collection of mine which would be possibly £250 which i can throw at the debt.
    Thanks
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • Money Rollercoaster
    • By Money Rollercoaster 17th Mar 17, 8:32 PM
    • 238 Posts
    • 549 Thanks
    Money Rollercoaster
    I think they've counted your previous payment as a forward payment. So, they're keeping the loan term the same, but reducing the monthly repayments.


    I don't know if they have the option, like a mainstream lender, to overpay and keep your DD the same ... that way you eat into the capital repayments faster and ultimately pay less interest and can repay earlier.
    Living Life @ 174 BPM >> CC Balance (0%) -£1,950 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -£20,264.29 - Target DFD Oct 2020
    • zippygeorgeandben
    • By zippygeorgeandben 19th Mar 17, 10:00 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Hi Money Rollercoaster - according to another poster on another thread I'm active on, Zopa do not allow this option. So he/she is suggesting that if they reduce the monthly payment, I just make an extra payment each month for the rest, to make up my usual monthly debit.
    Thank you.
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
    • Money Rollercoaster
    • By Money Rollercoaster 20th Mar 17, 9:21 AM
    • 238 Posts
    • 549 Thanks
    Money Rollercoaster
    Ah, I wondered if that might be the case.
    Living Life @ 174 BPM >> CC Balance (0%) -£1,950 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -£20,264.29 - Target DFD Oct 2020
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Apr 17, 9:11 PM
    • 482 Posts
    • 534 Thanks
    zippygeorgeandben
    Just a quick end of month update for you all.
    Have done a BT for the whole of the virgin credit card to a 0% card for 24 months.
    Have been approved for a CC 0% on purchases for 25 months.
    Have agreed to borrow £2k from my sister and repay over a 15 month period, interest free which will go straight off the loan.
    Had a surplus at the end of month of £850 which will go against the Zopa loan.
    All going well!
    End Sep 2016 End March 2017 £8236.57 £6900.91(Tesco 4.8%) £6185.75 £4755.62 (Zopa 4.0%) £5344.50 £3394 (Sainsburys 0% until 06/19) Total debt £19.766.82 £15,050.53 Bronze Pay £1344.50 by Sep '17 SMASHED! Silver Pay £1844.50 by Sep '17 EASY! Gold Pay £2344.50 by Sep '17 Platinum Pay £2844.50 by Sep '17. Original DFD May 2019.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

207Posts Today

1,322Users online

Martin's Twitter