Taking out a personal loan to pay off debt

Mattygroves2

GingerFurball wrote: »

Because a credit card is useful to have if managed properly.

I'm not sure "managed" is the right word - a credit card can be useful if paid back in full each month or is a 0% purchases one and you're saving the amount you need to repay it in full. Anything else incurs interest - including balance transferring to 0% offers.

FireWyrm

Bedsit_Bob wrote: »

I'm ashamed to say it thecassmanBoy, but I did it twice.

3 times for me. Been there, got the T-Shirt several time over. It never ends well does it.

[Deleted User]

FireWyrm wrote: »

It never ends well does it.

That's putting it mildly.

BillJones

GingerFurball wrote: »

Because a credit card is useful to have if managed properly.

Well as long as you are not the sort of person to get into debt problems, then that's probably fine. If you've an iron will, and live well within your means, then you are dead right.

It's a funny hing, though,there was someone with the same username as you further up this thread who'd managed to get themselves into a bit of a mess with spending too much, and running up problematic debt. Thank goodness you aren't like them...

GingerFurball_2

BillJones wrote: »

It's a funny hing, though,there was someone with the same username as you further up this thread who'd managed to get themselves into a bit of a mess with spending too much, and running up problematic debt. Thank goodness you aren't like them...

Haha!

Truth be told, I'm nothing like the person that ran up the debts in the first place. The Furball of 2012 is nothing like the Furball of 2014.

Mid 2012 was the nadir for me financially. I've actually gutted my files today and the correspondence I received throughout 2012 from various banks is enough to make anyone cringe. It didn't make pleasant reading but it was also a reminder of how far I've come.

2013 was the year in which I sorted out my attitude to spending, although sadly I wasn't in a financial position to do much more than maintain my debt levels. Now I'm in a better financial position, my debts are getting managed accordingly.

dktreesea

OP, you're right; it's a no brainer. I would suggest borrowing £3,800 over a year, so paying off just over £300k a month. You'll have it paid off in no time, and it will save you heaps in interest to consolidate.

BillJones

GingerFurball wrote: »

Now I'm in a better financial position, my debts are getting managed accordingly.

Good, and glad to hear that you seem to have been able to meet it all with a positive mind.

Please do be careful with the card, though, as very many people on here start off with the best intentions but then start using it for treats, extras etc, and soon find themselves a bit further back than they'd planned.

Getting_There_Slowly_2

I vote for consolidation. It is working well for me, and I believe it can for anybody who has had their true LBM and truly wants to be debt free.

Where people have got into trouble again after consolidating, was the loan to blame? Would they still have got into more trouble if they hadn't consolidated? Personally I think the issue is the mindset of the individual, regardless of the method of repayment chosen.

Consolidation makes budgeting easier month by month and often reduces overall interest cost. The trick is to recognise this as a good thing in itself and not a reason for deciding to start using cards again.

I'm not debt free yet so I'm not the expert here, but that's my take on it for what it's worth! Good luck with your loan.

GingerFurball_2

I got the loan closed off today after just 15 months. I now have no more debt, which feels good.

Big thanks to everyone who contributed to this thread. Although I ignored most of the advice not to consolidate and go with the loan (:D), I want to thank everyone who did advise me not to do it, because your reasons for giving that advice were spot on.

bennyhill_2

Congratulations to you - any slip ups on the way or did your LBM mean you stayed true to your initial intentions?

I'm kinda going through a similar thing, and just tonight got approved for a 0% transfer card (20 months), £2800 to transfer and hope to clear it in less than 12 (maybe even 6).