consolidate?

reallylost

I have got the chance to consolidate all my debts and make life easier.
But i keep hearing that this would be a bad thing....why?
I know it is only good in that my payments will be more manageable but bad that i will pay longer and with more interest but is it really that bad a thing to do if it takes the weight off now?
thanks

lynzpower

Sam

I know we had a similar conversation last week. Do you want to be in debt for a) that much longer and b) pay that much more?

spud30

I cant tell you how many times I have consolidated, but am still over £30K in debt.

Each time I have done it, I have run the debts up again, most people do.

I believe the struggle helps you learn the lesson not to do it again.

tesuhoha

It only seems easier because you pay off a fixed easily payable monthly payment and the debt is in one place and will be paid off at a certain date but you could probably work this out for yourself with credit cards and its good to see them disappear one by one (this is my theory because ive only just started)

LookingAhead

NOOOO. I have recently broken the consolidation cycle (after joining this site).

Don't do it if you can help it or at least let us have a look at your situation first to assess it.

I know it's tempting to consolidate, but snowballing is cheaper and more satisfying as you see some debts hurtle downwards.

Have you posted an SOA? Maybe you could do that now (statement of affairs) listing all your incomings and all your outgoings with all APR rates for credit cards etc.

See Southern Scousers "sticky" thread for more advice on SOA's.

Ali-OK

Consolidating will not help you to change your spending habits - what it will do is make it easier to keep to your current spending habits, as you'll be paying a smaller amount each month that you'll factor into your outgoings,
which is why it's easy to run up debt again when you consolidate.

Work on your spending habits first to be able to pay your debts as they stand, once you are doing that, you can overpay your debt and it'll come down quicker and you'll be debt free quicker.

Consolidation doesn't teach you to be smart with money, it just prolongs the agony of having debt.

So in a nutshell, no don't consolidate!

Mrs_Sparkle

Please don't do it hun. I'm a classic example of the consolidation loan cycle. You take out a loan, you promise yourself you will never use your credit cards again. Once the loan comes through you clear all your cards, feel very pleased with yourself, take your eye off the ball and immediately start running up overdraft + cards again.

Trust me- I've been there and have only just broken the cycle by joining this website. The only issue I have to sort is my over-spending- another loan won't solve anything. Plenty of us here in the same boat so we can all help you x

newleaf

As others have said so eloquently,we've all been there and got the T shirt so to speak. Consolidation only makes it easier to spend more money. Please don't do it.

postingalwaysposting

no please dont, i have read so many storys on here about consolidation loans, and its just one huge cycle, everyone says they would never run up the debt again but 80% do, please dont be one of them, stick at it, its much nicer to see loads of small debts go (milestones) than one huge one that will take longer and cost more you have support here, you can do it :j

In_Search_Of_Me

I can only speak from experience. I colsolodated my credit cards twice and just carried on spending. Now I have 2 huge loans (thankfully not secured) and a vast credit card bill..its much better to stop now before it gets out of control (see my signiture!!) and sort things out. I now feel really angry with myself that I consoloated and will be paying vast amonts of interest for the next 6 years...just dont would be my advice. If I could go back 2 years & have learned the lesson then I would but am now lumbered with foolish choices! Hope you sort it and as others asid try doing SOA but ifyou cant do that sit down work it all out & start payig it off - consolodation is not the answer but that comes from one whose had a life changing lightbulb moment & wouldnt change it for the world!

postingalwaysposting

fishface-69 wrote:

consolodation is not the answer but that comes from one whose had a life changing lightbulb moment & wouldnt change it for the world!

*hugs fishface* you dont know how much this last line made me smile
:grinheart