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  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 11:11 PM
    • 709Posts
    • 883Thanks
    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 3
    • JReacher1
    • By JReacher1 2nd Apr 17, 10:53 PM
    • 2,633 Posts
    • 3,635 Thanks
    JReacher1
    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!
    Originally posted by zippygeorgeandben
    Well done!

    I'm a bit confused why you've got a 0% purchase credit card. What are you planning on buying?

    I thought you were trying to reduce debt not get more!
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Apr 17, 11:42 PM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    JReacher1 - Hi! Yes I absolutely see your point. I normally go on holiday during the Summer and was being proactive in getting a CC with a long 0% interest on it. I will then set up DD to clear it. Nothing is booked yet, but I thought I'd sort it out just in case.
    Last year, I had the problem of receiving the money from other people coming with me but instead of paying it off the CC, I just left it in my current account and it got swallowed up in everything else.
    I also have a potentially VERY expensive wedding to attend in August too.
    The reason I've basically moved a CC balance to a Sainsburys one is because of that poor decision of mine in June last year. I won't be doing it again though you can be sure of that!
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • JReacher1
    • By JReacher1 3rd Apr 17, 12:47 PM
    • 2,633 Posts
    • 3,635 Thanks
    JReacher1
    JReacher1 - Hi! Yes I absolutely see your point. I normally go on holiday during the Summer and was being proactive in getting a CC with a long 0% interest on it. I will then set up DD to clear it. Nothing is booked yet, but I thought I'd sort it out just in case.
    Last year, I had the problem of receiving the money from other people coming with me but instead of paying it off the CC, I just left it in my current account and it got swallowed up in everything else.
    I also have a potentially VERY expensive wedding to attend in August too.
    The reason I've basically moved a CC balance to a Sainsburys one is because of that poor decision of mine in June last year. I won't be doing it again though you can be sure of that!
    Originally posted by zippygeorgeandben
    As a bit of advice if you are serious about clearing this debt down I would probably have a year either without a holiday or just have a cheaper one!
    • zippygeorgeandben
    • By zippygeorgeandben 16th Apr 17, 10:21 AM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    Thanks for replying JReacher1 (in fact I have just read about your latest escapades in Hamburg!)

    Regarding the holiday, I see your point, it's totally valid and yes I may look at a cheaper one. However, I tried the year before last with no sunshine holiday and when I went back to teaching in September, I didn't feel I was replenished and relaxed. What I have done this month is given my sister some money to keep so when it comes to paying for a holiday of some kind, I've planned in advance.
    I'm in a better position than I was 6 months ago that's for sure.
    Thanks
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • Windofchange
    • By Windofchange 16th Apr 17, 1:32 PM
    • 549 Posts
    • 629 Thanks
    Windofchange
    You've pretty much been there and brought the same t-shirt that I did - I got in a lot more debt, but still, same sort of picture. I am nearing the end of my journey to pay this all off, and I am aiming at the end of this year to have it all done, along with also having built a small savings account - I have already managed to put away 2k into an ISA this year, and am aiming to save 5k by xmas.

    I would concur about the holiday - the past year or so I have been living pretty frugally - haven't been away anywhere since last spring bar a couple of UK weekend break type things. Having said that, over the past few years I have still spent some cash - you have to I think to keep you sane. I couldn't live on beans and toast for a year to pay off the debt sooner.

    Keep on going!
    Debt Free by Xmas 2017
    86.58% of Virgin CC £3750 0% of Barclaycard CC £1123.91 100% of Bank of Scotland CC £704.74 100% of Student Loan £3124
    • zippygeorgeandben
    • By zippygeorgeandben 22nd Apr 17, 5:45 PM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    Hey Windofchange hope you are enjoying your Saturday!
    My sister has kindly lent me £2k interest free which I've just thrown at the Zopa debt, bringing this down to about £1900 now. I've agreed to repay her £133.33 over 15 months and saving me some interest, reducing my monthly repayments on all my debts meaning I can throw some more at the others (if that makes sense!)
    Anyway, it's not that long until pay day (next Friday) and I'll be changing my signature that's for sure!
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 30th Apr 17, 4:23 PM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    Hello guys.
    Just thought I would provide a quick update.
    My monthly repayments now are as follows;
    1) Zopa - £85pm
    2) Tesco - £222.61pm
    3) Sister - £133.33pm
    4) Sainsburys - £76pm
    New total repayments £517.00pm
    2016 monthly repayments £653.00pm
    I will throw an extra £136pm at one of my debts, probably the Zopa one.
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • farazakbar25
    • By farazakbar25 24th May 17, 2:37 AM
    • 3 Posts
    • 0 Thanks
    farazakbar25
    i have the above debt, not sure what to do, should i pay in full or part settle,
    what is best for my credit, i have DEFAULTS on all 4 creditors which the defaults expire by end of 2018

    i have an arrangement to pay £5.00 pm to each creditors

    any suggestions ???
    • -taff
    • By -taff 24th May 17, 5:54 PM
    • 7,098 Posts
    • 5,090 Thanks
    -taff
    The defaults will stay on your file for 6 years whether you partially settle or not, so it's entirely up to you.
    You could offer a settlement figure, see what they say.
    And you're better off asking for debt advice on the debt free wannabe board. Ask sourcrates to move your post.
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Jun 17, 4:50 PM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    Hey everyone,
    Just giving you an update for those of you who have been reading my thread since I started it in December.
    To save all of you first timers re-reading it, in a nutshell in September I started to take a look at what I owed and budgeted accordingly. In December I was looking at consolidation loans to allow for more fliexiblity. Six months later I'm making great inroads into my debts and looking at short/mid/long term goals.
    I'm going to take each debt one by one now.
    Tesco - I have been paying £222.61pcm every month on this debt and haven't paid more than the monthly amounts. There are about 2 years to go on this debt.
    Zopa - This loan I have made regular overpayments of whenever the month allows. The original payments were (as in my OP) £230pcm but due to these extra payments this is now down to £72.25pcm. However, I also borrowed £2k off my sister to reduce this, save on interest also and I'm paying back to her £133.33pcm.
    Sainsburys CC- This was an original debt of over £5k in September and is now near the £3200 mark. I transferred it from Virgin and it's on a 0% card for 2 years and this isn't a card to purchase any goods on. My monthly repayment on this is roughly £74pcm but I'm well aware of clearing it before the 0% is up.
    Halifax CC - I signed up for this card purely for my summer holiday. Last year I was naughty and didn't put the money I received from everyone else off the holiday debt (hence the plus £5k CC mentioned earlier) but this time I've already transferred the holiday money from 2 people leaving just my own of £1347 to pay on this card. This is also 24m 0%.
    If I don't make extra repayments my monthly debt repayments are around £520 which is £133 less than I originally was paying off back in late 2016. I'm glad I've saved interest on the Zopa loan and as I've been selling stuff on ebay and spending within my means, I've got quite a healthy amount in my bank account at the moment.
    It's all going well, plus I've got a new job starting in September which will bring in another £250pcm.
    Thanks for reading.
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 29th Jun 17, 10:24 PM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    Hello everyone - time for my monthly update (I hope at least one person is reading!)
    This month I have paid over £800 off my debts.
    Tesco - I made an extra monthly payment of £222.61 this month, which also gave me a £20 interest rebate.
    Zopa - I made the monthly payment of £68.38 and I also paid an extra £200 off this loan.
    Sainsburys CC - I paid a monthly amount of £72.96 this month. This is 2.25% of the balance.
    Halifax CC - I paid the 1% of the balance which was £15.95 this month. I am completely aware that I haven't paid this Summer holiday off yet but it's right that I pay off the debts with higher interest such as the Tesco/Zopa personal loans. I just need to ensure that I up the minimum payments once at least the Zopa is paid off.
    Sister - The standing order didn't come out of my account this month, I think it's programmed to go in my sisters account at the start of every month.

    I also made a one off payment to Student Loans Company (£100) as I was sorting out how much I have left on this debt. I've never included it on any of my debts whilst on MSE because it comes straight out my salary. It's gone from £6500 to £3800. The more I earn the more I pay back each month and I think I've calculated that it should be gone in about 18 months.

    Thanks for reading if you did and thanks for stopping by!
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 30th Jun 17, 8:41 AM
    • 2,452 Posts
    • 3,553 Thanks
    Dobbibill
    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
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • Reb2016
    • By Reb2016 30th Jun 17, 12:34 PM
    • 149 Posts
    • 338 Thanks
    Reb2016
    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
    Light bulb moment 6th June 2017 £13333.63 Debt now 11837.25
    DFD was October 2020 40 months now 21st Dec 2019 26 months Overdraft £720/£2250
    • zippygeorgeandben
    • By zippygeorgeandben 30th Jun 17, 7:23 PM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    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!
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 30th Jul 17, 11:53 PM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    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.
    Last edited by zippygeorgeandben; 30-07-2017 at 11:56 PM. Reason: SPAG
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • Verbatim
    • By Verbatim 31st Jul 17, 7:46 AM
    • 4,513 Posts
    • 13,214 Thanks
    Verbatim
    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!
    CCs @0% £24k Dec 05 £19,621.41 Au £13400 S 12600 Oct £11,981 £9481 £7500 Nov £7250 D £7100 Jan 6950 F £5800 Mar£5400 May £4830 June £4660 July £4460 Aug £3200, S £900, £0 18/9/07 DFW Nerd 042
    • cjmillsnun
    • By cjmillsnun 1st Aug 17, 12:53 AM
    • 291 Posts
    • 199 Thanks
    cjmillsnun
    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
    • By zippygeorgeandben 2nd Aug 17, 10:34 AM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    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!
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • Candyapple
    • By Candyapple 2nd Aug 17, 11:30 AM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    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: www.moneysavingexpert.com/creditclub
    Equifax: www.clearscore.com
    Call Credit: www.noddle.co.uk

    And finally well done on reducing your debt thus far
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • zippygeorgeandben
    • By zippygeorgeandben 1st Sep 17, 12:16 AM
    • 709 Posts
    • 883 Thanks
    zippygeorgeandben
    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
    Last edited by zippygeorgeandben; 01-09-2017 at 12:39 AM.
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
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