To consolidate or not?

In_Search_Of_Me

Just a word of caution from one with a NR (consoldation!) loan...they've got you by the short & curlies; you cant overpay & while the payments seemed great compared to CC amounts in my experience you're lulled into a false sence of security & dont stop spending because your brain thinks "oh great now I can shop!" rather that "whew that was close, ok lets budget!".
I carried on consolodating until I could no more! Luckily before (just) things got too bad but I'll be paying it off for another 4 years. If I hadnt been so incredibly stupid & recogised that I was living well beyond my means I would be debt free much earlier...I suggest you do an honest budget of what goes in & out and see how you can pay the debt off rather than consolodating but it is your call...I know what I wish I had done...

kcmatt79

Thanks, I'm going to have a think about it all. I feel so down about it all at the moment that I can't really think straight. It does feel like consolidation is the easy way out. I know I'll probably end up regretting it, because I'll be paying back so much more than I do at 0%. The other thing that worries me though, is that when some of these deals end, I won't be able to get another. I've contacted Egg to ask if they would lend me at my current rate of 7.6%. I like them because you can make overpayments whenever you want. If I could get some of my debts onto there, then maybe I'll see the light at the end of the tunnel.The other slight problem is that my o/h doesn't really understand how bad I feel about all this. He tells me not to worry, but will happily ask me to pay for half of a very expensive shopping bill. I don't think he would want to cut back on what we buy, and I would feel guilty for buying food that he isn't going to be happy with. Sounds daft, I know. He doesn't really have any debt, so I guess he just doesn't really understand. I wish I felt like we were in it together, but I don't.

kcmatt79

Thanks, fishface. I had thought about that with the NR loan. That's why I've asked Egg about their loan. I just can't see how I can get myself out of this any other way. I have done an honest budget and I know I should have about £100 disposable income, but it just seems to disappear.

In_Search_Of_Me

by the way if it's any help I worked out (after lightbulb moment!) that my NR loan cost me ...drummroll please...over 8000 (& no, alas, that is NOT a typo!) in interest!! I know it's depressing but you need to cut back & start sorting this..you know it and yes, its hard but trust me you feel so much better when you do! Have you tried a spending diary? My single most pwerful weapon/shock tactic against debt!! (must start up again...wasteful things like mags have crept in...) Hug for you! Paying stuff off feels SOOO good. Promise! it's 100% better than reaising that you've been a complete numpty & have to pay a ridiculously expensive loan for 7 years and have no way out of it (see my diary!)...trust me THAT is depressing and IS something you can avoid if you dont consolidate & start sorting!

Buffythedebtslayer

I consolidated, With an egg loan, my monthly repayments before Consolidation were close on 750 pounds and it was getting ridiculous and so frightening.

I researched squillions of loans until my eyes bled, phoned banks, got more more info then I knew what to do with.

In the end egg would let me make extra payments with out penalties and get out early without penalties, so I went with them.

To be honest I don't think it matters whether you consolidate or not, it has to come down to a change of attitude, I made no extra payments until I found this website - it has changed how I see things. I really could pay off my debts in two years. it could happen. it is just down to me.

I know exactly how you feel, money gets sucked out of the account and seems to go no where. its horrible. and it all happnens again next month.

Seven years is frightening but maybe it doesn't have to be seven years? maybe if you got a loan you could make extra payments to etc you could do it in less time?

And if you really get serious ( old style board etc and all the tips you can get here) maybe you don't need to consolidate? I do understand the whole peace of mind thing and having a far more managable amount to pay each month.

Investigate loans and read this site, then see what you think. and ask lots of questions! (everyone is really nice)

hugs, cos really I remember so clearly wondering what to do!

Buffy

Mozette

kcmatt79 wrote: »

I have done an honest budget and I know I should have about £100 disposable income, but it just seems to disappear.

Keep a spending diary. Note everything you spend and you'll see what happens to the £100. It's the most useful thing I ever did (well, other than actually stop spending too much!)

kcmatt79

Thanks for all your help, guys.I'm feeling a bit more positive today, despite having nothing to spend over the next two and a half weeks! I earned £27 yesterday tutoring, and I will be earning another £15 on Tuesday. I am going to give up piano for a while - just concentrate on practising at home. I'm also going to try to cut back with the food shopping; have spoken to o/h and he agrees.Had a chat with my o/h about it all and he agreed with you guys. He doesn't think I should consolidate either. I'm going to keep track of things for the next couple of months and see how I go. If I can keep up what I'm doing for at least another 6 months, I'm sure it will get easier.I'm due a payrise next month, which will give me about another £80 a month. I'm definitely going to keep a spending diary and keep track of every penny. I'm also going to be more serious about saving more. Where should I go first on these boards? I would appreciate any help or advice you could give me. Thanks again