Citibank loan 12.9 %-Advice needed

immoral_angeluk

I can understand but you can't get yourself deeper into debt just to keep up with the Jones'. It's none of their business if you say you're not having all the work done and if they want a reaosn just say you want to be able to treat the new baby!

art_student

moneymaker2 wrote: »

If they knew the amount of debt we are in (mostly from consoling then running cc's back up agin)

This makes me think that it might not be the best move for you to consolidate - you have had problems in the past. It does seem to be (from what you've said) your husband who is causing the main problems here, keeping up with the Jones', running up credit card bills etc.

My husband is useless with money too. I have taken charge of all of our finances! He is ok with that as he knows he can't sort it out and really can't be bothered to anyway! Maybe it's a good idea to have a proper chat to your hubby and get him on your side in addressing the debt and if he feels like it's all to much work maybe he can just let you be in charge and just agree to not hinder you!!

moneymaker2

I think i'll sign up to the 7500 loan @ 12.9 % over 5 years and pay off and cancel the creditcards. They are 17.9 and 18.9 and working in finance I know it makes sense to clear them to a lower rate over a lower term. That way my husband won't be able to do much about it.
I will then suggest that the fence goes back up and we rip up the rubbush turf clear the garden and relay.
Once the patio heater and table and chairs are out there then the cragen will look lovely.
Thanks for you help guys.
I'll keep you posted.

moneymaker2

just booked in to see someone at 4.45 so i'll pop on later to give you an update with the whole garden saga and the aftermath.

RAS

Hi

You may work in finance, but saving a few percentage points and paying the debt off over a longer term means that you end up paying even more interest on the loan than if you pulled your belt tight and sorted it now.

How do you think you are going to cope when your income is stretched by the extra cost of childcare etc? it is excruciatingly expensive for under 1s. And what happens when child 2 comes along?

Really, you should be living as cheaply as possible, throwing everything at the high interest cards and loans and then saving a bit for when you are on leave.

You do not mention whether this loan is secured or not? If it is how much is your mortgage and how much is the house worth as you could be in negative equity?

What is better for your child, parents who can budget and look after it long term, or lots of nice things and parents who are strung out by debt?

david_hellier

I'm afraid consolidation is not the solution. It is less stressful and economically efficient to budget effectively. Borrowing for things you cannot afford now is the modus operandi of the debt ridden. DFW is not about shuffling the problems around but managing them now to produce a debt free situation.

Despite the fact that the credit cards are a little higher APR than the proposed Citi loan, they are actually far easier to settle later if your fortunes change. They also have a far more transparent charging system. I suggest you cut them up now and set up a manageable standing order to pay them a fixed amount each month; ie not the minimum. Do not use them again.

Forget the garden; use the park.

Good luck.

angelavdavis

Too late guys(!):

http://forums.moneysavingexpert.com/showthread.html?t=459695

harrysmum03_2

your baby isn't going to be using the garden till He/She is a year old. and what time of year will it be when he/she is a year old? if it's winter then you probably won't use it till spring so i wouldn't bother about the garden and get yourself into debt in the process.
you can get turf and a bag of cement cheap enough from diy stores and other half should just roll his sleeves up and dig in.
hope i don't sound rude, but theirs more to life than a nice garden and a load of debt!!!!