consolidating silly debts

Joyceyjohnson

Hi,

I was on maternity last year and spent way beyond my means. So when I went back to work I was constantly paying for the previous month. This meant getting a small loan of £1000 hitting my maximum overdraft of £500 and racking up a few debts on my joint credit card. in total it's probably around £2000 but I don't really have any other debt, apart from a loan that finishes next August. Does anyone have any advice on the best way to consolidate? We are trying to save to buy a house and I want to make sure my credit rating is In a good place as well as my debt being neat if that makes sense?

Thanks

Caz3121

another loan may not be the answer...what is the interest rates on your current debts?

CLAPTON

Joyceyjohnson wrote: »

Hi,

I was on maternity last year and spent way beyond my means. So when I went back to work I was constantly paying for the previous month. This meant getting a small loan of £1000 hitting my maximum overdraft of £500 and racking up a few debts on my joint credit card. in total it's probably around £2000 but I don't really have any other debt, apart from a loan that finishes next August. Does anyone have any advice on the best way to consolidate? We are trying to save to buy a house and I want to make sure my credit rating is In a good place as well as my debt being neat if that makes sense?

Thanks

use your savings to pay off the debt

set up a proper budget and reduce spending

miketaff1408

You will find that consolidating debt with a loan is often seen by people in your situation as a good idea, yet so often it leads to the loan being taken out, debts paid, and then debt being run back up on the credit cards, overdrafts etc. This results in double the debt.

What is worrying is that you say:

but I don't really have any other debt, apart from a loan/QUOTE]

Yet You have:

A loan ending next August
An Overdraft of £500
"few debts" on a credit card
Another loan of £1000.

That doesn't look like "not really having any other debt"

You need to do a SOA, and look at ways of cutting your expenses back and trying to pay these debts off without consolidating, which will lure you in with a lower monthly payment, but will end up with you probably paying back more over a far longer term.

andyfromotley

hi joyce,

welcome. As above just pay off your debts as they stand, don't save money when you are in debt, it makes no sense! And don't worry about you debts looking tidy, just attack those debts with a passion and you'll soon shift em. When there gone they'll look super tidy!

Hope this helps

Joyceyjohnson

Hi, I should probably clarify I have no savings at all yet, the reason for this is that I am Constantly trying to catch up with myself...

Joyceyjohnson

Also can I has what and soa is? I am in debt because of previous silly spending and I already now have a clear budget for spending, spread sheets the lot, this is simply me trying to find a way to fix a mistake I can't un make

andyfromotley

hi joyce,

fill this SOA in
http://www.stoozing.com/calculator/soa.php

put it on here, (there is a bottom to format it for here) and people will have a look and tell you the best way to deal with it.

Its ok people were not having a go at you, we all have silly spending behind us. Its just that consolidation doesn't always make sense, and people often rack up the debt again ending up with twice the debt.

Like i say, get your SOA up and we'll do our best to help.

heartbreak_star

There's also a snowballing tool somewhere that can help you work out the order in which to pay debts off.

Good luck!

HBS x

Pixie5740

Snowball Calculator

I don't understand this fascination with debt being "neat". What's the benefit of having 1 payment to make rather than 3 or 4?

Certainly if you can shift your current debt to make it cheaper, for example a 0% BT credit card then by all means do that but bundling your debts up into one larger debt neither makes the debt cheaper or improves your credit history or mortgage affordability.

Joyceyjohnson

I must say I thought this forum was a place for people to go for advice and to support one another. I have pretty much just felt judged. The reason I posted on here was because I want advice I wasn't saying hey I'm going to go and get a loan to pay all my other loans and get into Moe edebt because it looks prettier or I can't handle money. I was asking what other people thought could he good options. I have a decent income and love to my means, I never miss a payment on anything I just made a few poor judgements while dealing with a new born and was simply asking if anyone knew of a good way to draw them all together into a manageable single payment. clearly the people who have so far commented are so good with their money that they've never made bad decisions or been in need of a sounding board.