Need advise please

[Deleted User]

The OP hasn't posted in 2 days, and has responded to the last ~ 20 posts.

I'm beginning to wonder if we will be hearing from them again.

lazer-zxr

Bedsit_Bob wrote: »

The OP hasn't posted in 2 days, and has responded to the last ~ 20 posts.

I'm beginning to wonder if we will be hearing from them again.

This seems to be happening quite a bit recently. These people appear to be very close to their LBM ans very close to the best advice and experience from this forum ..... but never quite engage.

lazer-zxr

Thanks for the comments on consolidation. I understand what your saying. I'd still argue that the consolidation loan at a lower rate is the correct financial product ...... and that the fault lies with the budgeting tool or control. Choosing the less than perfect financial product is compensating for the poor budgeting control with a more expensive financial product. Sad how much of a geek I'm becoming while on this dfwb journey.

MrsTinks

lazer-zxr wrote: »

Thanks for the comments on consolidation. I understand what your saying. I'd still argue that the consolidation loan at a lower rate is the correct financial product ...... and that the fault lies with the budgeting tool or control. Choosing the less than perfect financial product is compensating for the poor budgeting control with a more expensive financial product. Sad how much of a geek I'm becoming while on this dfwb journey.

In a Utopian world then sometimes consolidation would be the best financial product yes... but we would end up advising people who can't control their debt to consolidate and take out MORE debt. For those who have a credit rating that can take it it's still rarely a good first option, and of course many are in a situation where they no longer qualify for more debt.

[Deleted User]

lazer-zxr wrote: »

I'd still argue that the consolidation loan at a lower rate is the correct financial product ...... and that the fault lies with the budgeting tool or control.

My downfall with consolidation was, being seduced by offers to "leave you more money each month".

This, to my eternal shame , lead to me refinancing the consolidation loan, TWICE, stretching out the 5 year loan, to over 10 years.

lazer-zxr

Bedsit_Bob wrote: »

My downfall with consolidation was, being seduced by offers to "leave you more money each month".

This, to my eternal shame , lead to me refinancing the consolidation loan, TWICE, stretching out the 5 year loan, to over 10 years.

Ah, right, ok.

I consolidated, which left with more money each month, I used that additional money as a snowballing debt repayment, as opposed to spending it ... which reduced the term of my debt.

I see where your coming from.

[Deleted User]

lazer-zxr wrote: »

I consolidated, which left with more money each month, I used that additional money as a snowballing debt repayment, as opposed to spending it ... which reduced the term of my debt.

Sadly, I didn't.

When I first took out my consolidation loan, I was really up against it. Two Credit Cards, a Store Card, and a fair sized OD, all of which I was just barely servicing each month.

Even with just the consolidation loan, after bills and loan repayment, I had practically nothing left each month.

So, when my bank manager told me he could give me a loan, which would clear the first loan, and leave me with more spare cash each month, I jumped at the chance.

It never occurred to me, that I was resetting the calendar on the repayments.

enthusiasticsaver

lazer-zxr wrote: »

Thanks for the comments on consolidation. I understand what your saying. I'd still argue that the consolidation loan at a lower rate is the correct financial product ...... and that the fault lies with the budgeting tool or control. Choosing the less than perfect financial product is compensating for the poor budgeting control with a more expensive financial product. Sad how much of a geek I'm becoming while on this dfwb journey.

When I did debt arrears counselling many people were unaware of how much they were spending and had poor budgeting skills. Their automatic fix to not having enough money was to apply for further borrowing, pay off existing debt and then continue to spend until the next consolidation. Often this would happen continuously over a period of years only coming to a head once they could no longer borrow or make minimum payments. If only I had a £ for each time someone said I wish I had tackled my overspending and lack of budgeting much earlier when the debt was £5k rather than £50k then I would be rich . That is mainly why I advise against them.

If, however you are still able to access good interest rates for a loan to consolidate and this goes along with cutting up credit cards, paying off overdrafts and learning to live within a budget then yes this will help.

lazer-zxr

I'd love to do some educating of people on how to do a budget, and manage debts. Is there any demand for this, and where would you go to engage with this kind of work?

EssexHebridean

lazer-zxr wrote: »

I'd love to do some educating of people on how to do a budget, and manage debts. Is there any demand for this, and where would you go to engage with this kind of work?

I'd also be interested to know if anyone is aware of anywhere that uses volunteers for this kind of stuff.