Consolidation

[Deleted User]

I have read the posts about consolidation etc and they all seem to say bad idea...
I have just taken all my debt, and consolidated it for five years which I can make three. I was not sleeping, it was always the first thought in my head each day, was grumpy etc etc... You get the jist of it. My point is this. I now feel like I can breathe easier and can see the wood for the trees whereas before I couldn't. I will take what I done on the chin and abit like when I stopped smoking.... I hate the smell of ciggies etc. I truly hate and loathe credit cards, banks and overdrafts for what they made me feel like. I have lurked here for years and finally got my lightbulb moment and done something I needed to do. I read a book called 'the money secret'. And I have read this many times ... It just makes sense to me. Banks/credit cards etc are like red riding hood story... You think it's grandma and everyone trusts her... It's not... It's a wolf. :eek:

HappyMJ

It can be.

If the old accounts are not closed it could be very tempting to accrue more debt.

As long as the causes have been dealt with then it can save you some money if done correctly.

Pixie5740

Did someone put a gun to your head and make you borrow the money? Of course not, you chose to apply for loans and credit cards all by yourself.

You haven't actually tackled your debt. You just owe someone else the money and unless you've tackled the route cause of your debt you'll be back at square one soon enough.

CLAPTON

Deleted_User wrote: »

I have read the posts about consolidation etc and they all seem to say bad idea...
I have just taken all my debt, and consolidated it for five years which I can make three. I was not sleeping, it was always the first thought in my head each day, was grumpy etc etc... You get the jist of it. My point is this. I now feel like I can breathe easier and can see the wood for the trees whereas before I couldn't. I will take what I done on the chin and abit like when I stopped smoking.... I hate the smell of ciggies etc. I truly hate and loathe credit cards, banks and overdrafts for what they made me feel like. I have lurked here for years and finally got my lightbulb moment and done something I needed to do. I read a book called 'the money secret'. And I have read this many times ... It just makes sense to me. Banks/credit cards etc are like red riding hood story... You think it's grandma and everyone trusts her... It's not... It's a wolf. :eek:

no that isn't correct
I often post positive things about reducing interest payable via re-financing loans/CCs
some people can handle credit and some can't
those that can't should avoid it, the others can gain from its benefits

DCFC79

The problem is when people get the consolidation in the bank they get tempted to buy a new TV or something else and it spirals so the consolidation loan has been spent and its extra money to be repaid back.

dresdendave

Deleted_User wrote: »

I have read the posts about consolidation etc and they all seem to say bad idea...
I have just taken all my debt, and consolidated it for five years which I can make three. I was not sleeping, it was always the first thought in my head each day, was grumpy etc etc... You get the jist of it. My point is this. I now feel like I can breathe easier and can see the wood for the trees whereas before I couldn't. I will take what I done on the chin and abit like when I stopped smoking.... I hate the smell of ciggies etc. I truly hate and loathe credit cards, banks and overdrafts for what they made me feel like. I have lurked here for years and finally got my lightbulb moment and done something I needed to do. I read a book called 'the money secret'. And I have read this many times ... It just makes sense to me. Banks/credit cards etc are like red riding hood story... You think it's grandma and everyone trusts her... It's not... It's a wolf. :eek:

Hopefully consolidation will work for you, for many people it doesn't though.


One issue is that you still seem to be blaming the banks for the debts you built up. Your true lightbulb moment will be when you realise that you were responsible for running up these debts, so it is your responsibility to change your lifestyle to repay what you owe. Hopefully consolidating has put you in a better position to attack these debts, but tackling the root cause is far more important.

dealer_wins

It all seems rosy until 12 months down the line you have racked up more short term debt for "emergencies" and "treat myself" holidays and tat.

Then the sleepness nights start all over.

Seen it thousands and thousands of times over my 20 year banking career (1988 - 2008). I must have been the only adviser in the whole of LloydsTSB who told customers consolidation was a bad idea, and suggested they start to cut back and build up an emergency savings pot.

Puddylove

You are still in as much debt, if not more- you just owe a different creditor.

You haven't had your 'lightbulb moment' if you are now happily forgetting about the debt, and how you got in to it. What are you changing about your life to make sure you won't end up back there?

I have credit cards, and have loans etc. It's my decision to access finance, and my responsibility to repay it without defaulting. Not the banks/creditors.