why is everyone so anti consolidation?

debtfree1day

mortgage man came today to value house....got feeling its gonna be a big NO judging by his body language, and approach

anyway...................will upodate once we get a response

lisa
x

debtfree1day

well mixed news, but mostly bad I think

First of all got letter saying no can do, following review of incomings and ourgoing

Phoned up - and fond out they had not reflected the fact the money would clear many of the debts (incl loans) AND as I would restructure loan over 20 yrs not existing 13, actual mort payments would be flat. Then got an OK, BUT only if I borrow full £52k and pay high value borrowing fee of approx £2k (exact figure to be sent in post)

Explained I would probably rather borrow just £20k and clear loans, still resturcutre mortgage and avoid the 2K fee but the bank said that was not possible as they have to be sure my outgoings reduce and therefore want the vast majority of loans cleared.......

so, consolidate to SVR, and add 2k to overall debt

or fumble along.....................

Lisa
(headache!)

debtfree1day

BUMP.....

Any views

rayday2

To me if you are having to bargain with a lender whether or not you can afford something that says that really and truely you can't afford to borrow that much.

Also adding 7 years back onto your mortgage its like wiping out 7 years of repayments.

But its your business and you have to do what feels right to you but I would seriously rethink banks are terribly causal at lending and if you have one doubting then maybe you should doubt too.

FirstTimer4Me

magni wrote: »

Generally when people consolidate they just run up more debts on cards and end up worse off than they were before.

Exactly true, which is what has happened to us.

People, please, please take note.

Linda1971

As many have said in front of me you have to understand what made yourself get into debt in the first place. Until then consolidation will not help. I consolidated twice and ended up with a total debt of 40K.

I realised that it had a lot to do with my depression and not talking things through with OH. When he was short of money he withdrew cash on the cc rather than asking me for help. I just overspent.

I have managed to get a 40K consolidation loan at 6.9% for 8 years but this time unlike all the times before I have phoned the cc companies and cancelled all my cards. I am starting to make extra money through cashback sites and using all the moneysaving tips that I have found on this site. For the first time I have opened a savings account to save for the unexpected. I also still have equity in my property which is a blessing.

Consolidation will work for me and I will be debt free in 8 years but please be cautious about consolidation especially at a high interest rate.

Hope all goes well for you

debtfree1day

thank you all

Linda - I hear what you are saying, but think I have got to the root cause. For the last few months we have lived well within our means and been eating into debt

for weeks I have been myserty shopping in the evenings, reducing household bills, stopping luxuries, selling on ebay / amazon , even making money doing surveys

OH is bought into process too, and I know we are making a difference

Of course thats months and we need years - the question is what is our best chance of success?

If I do take money and go over 20 yrs, it will be with a view to changing that in 18 months by which time I would be totally debt free (but obviously not mortgage free)!

If i dont take the money have to something to smooth debts as loans are coming in at over 1k per month, and with minimum paymetns on credit cards I am looking at 2.3k a month out which is killing us

still a headache

Lisa
x

Linda1971

Lisa

We are very similar. I only got my lightbulb moment recently. We were just starting to find that our debt was getting out of control. We were paying nearly £800 pounds a month to our debts and just covering the minimum payments. I have two toddlers and don't work so money has been really tight. Luckily for me I have a good credit history and got a reasonable loan.

Like you I have started to sell on ebay and amazon, use cashback sites and I have my first mystery shopping job tomorrow. This site has helped me such a lot.

Let me know how you get on

Linda

debtfree1day

who is your mystery shopping with?

Linda1971

Hi

Its with Retail Maxim

L