Our consolidation experience

Lorne

I know that generally the advice is not to consolidate but a few months ago we decided that this was the best option for us to lower our monthly payments and apr. It is really working well for us, this is the 5th month in a row that we have made an overpayment to our loan and all of our cards have been closed. Things are a lot brighter, it is much easier to deal with one debt rather than 6. We have had to massively change our attitude to money, just because we have access to money doesn't mean that we can afford things. We have upped our income and our ebaying like crazy to get the debt reduced.

Just wanted to say that while consolidation isn't right for everyone, it is working really well for us. We are finally planning our money and it is really encouraging to see the payments coming down.

DVardysShadow

Glad to see it is working out for you and well done for overpaying. Off the top of my head, I'd say it has more to do with your massive change of attitude than with the consolidation loan. Do make sure that you have enough by you to cope with emergencies.

Moglet

It's really heartening to hear of people doing well with taking control of their debt and their finances in general.

Consoldation can work if you tackle the root cause which you have done but so many don't, myself included as well as my partner (before we met).

Well done.

Devi

Hi,

i'm glad it's working well for you but i know first hand how easy it is to slip into old (bad) spending habits so be careful!

Lorne

I completely agree, a change in attitude has definitely made a big difference for us.

Consolidation wise, for us it seemed the only way forward. We weren't managing to clear our feet every month no matter how hard we worked and we were getting further into debt. By consolidating we have massively reduced our monthly payments and our debt is going down rather than up.

It takes a lot of determination, going back to our old and bad spending habits isn't an option, we can't go there. Working together is definitely keeping us on track.

pinkarsenalprincess

Good to hear this Lorne.
I am taking the same approach. Whilst my debts are not massive, I am getting stressed with two £2000 O/Ds. I find it so difficult to keep putting money into one and then seeing it disappear to interest or charges. I am putting them both onto an interest free CC with a super balance transfer and have thoroughly budgeted to pay it off.
As soon as the money goes in I am closing one account and asking for the O/D to be drastically reduced on the other.

Feels like such a relief to finally be able to take charge of things and get my act together. Have also had counselling to help with the reasons why I was recklessly spending and am feeling positive about the future.

Onwards and upwards

isy1011

Consolidation has never worked for me and now Ive changed my ways and just pulled in the reins. However, I'm glad you have found a solution. Well done.

DarkConvict

Precisely, consolidation can work. It is indeed both applying it to the right circumstances and having the right mind set to pay off debts. Sadly people often fail on the 2nd hurdle and sometimes even both. A few people on these forums have fell into the consolidation trap getting a new loan again and again.

I'm happy it worked for you, it shows you looked at the options and picked the best one, and stuck to the plan to repay it off.
Its worth noting consolidation usually costs you more than normal snowballing, but that doesn't mean it is not a bad option, sometimes paying more in a longer term loan is the right option for some people due to other commitments.

Lorne

It does completely depend on the circumstances, needs discipline and determination but it can work! I wanted to post because I know that consolidation gets a rough deal but in the right circumstances it can be a good solution.