New Life, My DFW Diary!

Lucy1982_2

I know it's impressive isn't it!! See this must be what sorting your money feels like, I know that there is money in the bank now and I don't want to spend it!

madmoney_2

hi lucy, re the consolidation loan, i think its only a bad thing when you dont actually consolidate if you know what i mean! loads of ppl get the extra cash in their hands n think stuff it and blow the lot. I think its a sensible move and if youre happy with it then well done, you are sorting your finances out which inevitably is what we are all her for. good luck hun xxx

Tete_en_l'Air

HI Lucy,
I agree with Madmoney's sentiments. I think sometimes it helps to just have the one thing to be paying off rather than bits and pieces here there and everywhere; at least you know where you're at and won't be stressing out checking all your statements all the time. Just so long as you DO cut up the cards and close the accounts and don't run them up again.
And congrats on the Sainsbury's No-Spend - surely a milestone!! x

Lucy1982_2

I know. I just feel a bit funny about it as I said I would never do it again. I've cancelled the OD on my current account and I am going to call the company who finance my bed and see if I can pay it off, if not I will transfer the money into savings and pay for it that way.

I'm going to go into the bank on Friday (I can't get there any sooner) and pay off the small loan and once I've done that I will pay off my A and L OD, which will just leave the one big loan.

I figure on my sig is the amount I will pay back rather than the amount I borrowed, so I will know exactly what is remaining.

I'm determind to make this work and I feel like I have enough support here for it to work.

Lucy1982_2

Everything will be cancelled I can bare the thought of going through this again! As I've hit my payback bby Christmas challenge, I've altered it to make an extra payment by christmas, I figure that now I have some extra cash each month I will be able to save a bit more and make bigger overpayments every now and then which means the debt will come down quicker.

Thanks for being so supportive, I did feel a bit like a fraud when I logged on this morning, but I am going to make this work.

Tete_en_l'Air

"I just feel a bit funny about it as I said I would never do it again." (Sorry haven't quite got the hang of the quote tool yet!) - I think this time though you have your eyes open and your reasons for doing it are not the reasons most people consolidate (then ending up regretting it). If that makes sense?
What do you mean though when you say: "I figure on my sig is the amount I will pay back rather than the amount I borrowed"? Did you borrow extra but save it rather than spend it? I know you were at around the £9k mark before... surely the extra's not all interest???

xela_17

Hi Lucy, really enjoying your diary, just one thing to say re the consolidation: it doesn't seem to be a good idea to pay off the 0% A&L overdraft with your loan money. Why change 0% debt to interest paying debt? I know you want to get rid of everything possible and just have the loans to pay but you opened A&L so some debt would be at 0%. Why not just leave A&L alone as even after the 0% ends, the interest rate is low.

Otherwise, well done on how you're doing - debt and weight loss. :T You have (nearly) inspired me to join SW - just have to get up the guts to go on my own!

Lucy1982_2

I borrowed £9000 which will pay everything back, I have insurance cover on it, but yes that is the amount I will pay back.

Which surpisingly I'm ok with

The figures I was working with excluded interest so were probably somewhere around that anyway!

Lucy1982_2

xela_17 wrote: »

Hi Lucy, really enjoying your diary, just one thing to say re the consolidation: it doesn't seem to be a good idea to pay off the 0% A&L overdraft with your loan money. Why change 0% debt to interest paying debt? I know you want to get rid of everything possible and just have the loans to pay but you opened A&L so some debt would be at 0%. Why not just leave A&L alone as even after the 0% ends, the interest rate is low.

Otherwise, well done on how you're doing - debt and weight loss. :T You have (nearly) inspired me to join SW - just have to get up the guts to go on my own!

Thanks for that!

I know it seems strange, but I want to clear it for pyscological reasons and I am then going to use the account for my Holiday fund (Off to Ibiza cheaply in May)

I know I should leave it but I don't want it there any can start building up savings to over pay the big loan. It might not make moneysaving sense, but it will make me feel better!

Tete_en_l'Air

Wow, it's scary when you see the interest as a lump figure like that, god knows how much I've been paying over the years!! I can see your point about wanting to clear the A&L OD for psychological reasons, I'm about to clear my Barclaycard for exactly the same thing. It'll bring my OD right back to its limit, and my purchases are at 0% until November on the card but I don't care, I want it gone. (Partly that and partly a letter I got from them saying that after the 0% period something strange would be happening with my interest rate which I didn't understand and don't want to risk!) xx