Consolidating Debt

Tricky_Dicky_3

Ok cool - thanks everyone - sounds to me like consolidating is a no no - I have already rung around and cancelled the PPI on my 2 loans and credit card - so there is a saving already - Now for that phone Bill

ktb

I completely agree with what has been said about tackling overspending ratrher than going down the consolidation routes. I cant believe the difference having a spending diary has made to my financial situation. I was stagnating in my overdraft, paying off just the minimum on my debts every month - but now I know exactly where my money was going I have been able to halt all my unnecessary spending habits (which to be fair was only the odd coffee and lunch at work - but it all added up!!) and within 1 month have been able start making proper inroads to getting rid of my debts.

Before consolidating why not try and get a good life of balance card (like the M&S card @ 3.9%) you can shift the debt at the higher APR onto that and then really make an effort to sort your spending out before deciding whether you really need to consolidate.

I really dont think that you will find many people on here that will agree that consolidation in the answer if you havent made a real effort to tackle your expenditures etc first.

Good luck Tricky_Dicky!

all_hours

Your M&S card is empty - phone them and ask if you can have the 3.9% life of balance deal. If they agree transfer what you can off the egg card.

Use the snowball calculator to see what you would pay on interest if you snowball your debts - then compare that to what you will pay in interest if you take the loan.

http://whatsthecost.com/snowball.aspx

Current total spending is £1429 - but there are things missing from your SOA such as budgeting for presents for xmas and birthdays.

could you get a cheaper tariff on your mobile and only use for emergencies?

do you have anything you could sell to bring in some extra money. could you get a part time job.

Tricky_Dicky_3

Right I think I am getting my head around this now - have moved my Egg Card Balance (17.9%) to my M&S Card (3.9%) - saving around £40 a month on that!!

One question I do have though is what to do about my Natwest OD - While I am paying off the other debts by snowballing - how do I eat into the OD - do I need to move that to a 0% card as well - otherwise my wages just get eaten up by it?? - Any Advice Please

SunderlandBlackCat

Tricky_Dicky wrote:

Right I think I am getting my head around this now - have moved my Egg Card Balance (17.9%) to my M&S Card (3.9%) - saving around £40 a month on that!!

One question I do have though is what to do about my Natwest OD - While I am paying off the other debts by snowballing - how do I eat into the OD - do I need to move that to a 0% card as well - otherwise my wages just get eaten up by it?? - Any Advice Please

The way I did it was to open another current account & got my wages paid into that then treat the old overdrawn current account as just another debt that I needed to transfer money to & paid it off in chunks.

Another option could be to open an Alliance & leicester current account. They'll match your current overdraft up to £2500 but interest free for a year. (and if you sign up via quidco they'll give you £50 cashback as well)

fififofum

I took out a £20K loan to pay everything off in 2004 and guess what I still owe nearly that!!!!!!!:mad:

You have to REALLY get into budgeting for stuff before it happens ie £45 a month for Christmas, £ for car service etc or trust me its not going to work and then you will find that no one (with scruples) will lend you any more and then you will have to do it. Cut up all credit cards, cancel them when you have paid them off. I dont have a credit card anymore and other than for hiring a car (which i could do on my switch anyway) its been fine. I found "Flylady"'s diary on here VERY useful, a day at a time approach. I have literally cut my spending down to £50 a month to clear this debt within just over 2 years - dont make my mistake, Anytime I think "oh sod it" I remind myself that I owe 19000 pounds so cannot buy it. Its hard but I make this debt (over 12 years) and its taken this long to really want to pay it off and get back into the black.:money:

Tricky_Dicky_3

So exactly how do I clear the overdraft - do I move it to a 0% card??

ktb

well the year before last I moved my £3000 o/d onto a 0% card.... a year later still had about £2000 on the card (which was then being charged at some high APR) and was back up to £1000 in the o/d. I hadnt made any changes to my spending habits at all so it made no difference. I decided to try clearing it after my LBM in Nov and from careful budgetting I have managed to get out of it now.

By all means put it on a 0% card but make sure that you balance that with being super careful with your spending. Get the bank to reduce or ideally close the overdraft feature altogether to stop you going into it again!

jackiegibbo

Hi i would like opinions please on what everyone thinks of this idea.We currently have £5500 on 2 0% credit cards a zopa loan of £3000 at 5.2%.
And unfortunately our car decided to blow up and we have asked zopa for another loan of £5000, just today.
The mortgage at the moment is £117000 and i would like to get it down and plod along with the debts we have.However my hubby wants to have more spending money!!! and is suggesting consolidating all these debts when our nationwide mortgage will be changed in july.However we did a similar thing 5 years ago and i can remember him moaning about doing that then,but he seems to have changed his mind.
OPINIONS PLEASE
shall we plod along?
shall we consolodate and put it all on the mortgage?
many thanks