Consolidating

[Deleted User]

Suseka wrote: »

If I had my time again - I would never have consolidated.

Me neither.

Many moons ago, I consolidated two CCs, a store card and an overdraft.

I then refinanced my loan, twice, to take advantage of lower monthly payments.

Of course, each refinance served to extend the payment period, hence my use of the phrase "Many moons ago".

I'm finally clear but boy has it been a slog.

silverjean

Thank you all for replying to me!!
I have decided not to consolidate I went into my bank today to update my details there as earning more than when i last went in. I also spoke to her about which would be better to pay off first.

I have written all my debts down and APR and this is the list;

Loan £2,150 and i pay £181 a month
Barclay card £3,893.75 (18.9%APR)
Capital One £441.99 (21.67% APR)
Top Shop £402.17 (24.9% APR)

My boyfriends debt is;
Santander (an overdraft agreement from charges) £367.50
BT (with a debt collectors agency) £201.22

Yes we join our money but we are not connected and i have been advised not to get a joint account as will effect my credit rating.

Our aim is to get this paid off as soon as possible, and I am feeling slightly better so will carry on working 56 hours a week.

When i went into the bank today the lady advised me to pay off Topshop and Capital one first as they are the highest APR. It wont take me long to pay them off as we have roughly £650 spare money each month to pay off debt.
Does anyone think this is the best way to go or is she just saying that as she wants me to keep my loan for as long as possible so i pay extra interest?
If i pay off my Loan as soon as possible, this will give me an extra £181 a month to add to my £650 to pay off the rest.
She also said to me not to rush to pay off the santander and BT as his credit rating has already been ruined and will take years to repair. I thought that it would be better to pay those 2 off as soon as possible to start this process as soon as I can????

I hope this makes sense!! Thank you all for your replying!! Please keep on replying if you can.

Sharon

moohound

Paying off the one with the highest interest is the right way to go so Top Shop first, then Capital One.

Some other money saving 'Gurus' say paying the smallest one first is best as it gives you a psychological/motivational boost, and I suppose this has its merits, but to pay the least in interest in the long run, pay off the highest interest one first. You seem very focused and motivated anyway, and your two with the highest interest are the two smallest ones anyway.

I would bin off the BT one just so I didn't have to deal with a Debt collection agency, you might feel better with them out of your life, I know I did!

downnotout

I would pay off top shop first, then cut the bloody thing up and never shop with them again
then I would clear the cap one, and do the same with that card, just think, once these two debts are clear, how much more better off you are (or how many hours less a week you will have to work )

ghostmadlittlemiss

Not really relevant to the question, I know, but do you wear all the clothes you bought from TopShop on the card? It's just that you might be able to get some money from Ebaying them. Don't expect to get their full value's worth but it would be better than nothing.
Kayleigh