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Unsure whether to consolidate - please advise

edited 30 November -1 at 1:00AM in Loans
251 replies 104.3K views
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  • Lover_of_LycraLover_of_Lycra Forumite
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    Momo89 wrote: »
    Hi there,

    I currently have £12.5k in debts with consist of 3 credits cards all at 0% and a Zopa loan.

    Tesco card- £3200 credit limit and I owe £2974- 0% for 28 months
    Virgin Credit card £2200 credit limit and I owe £1855-0% for 20 months
    Halifax credit £1800 credit limit and I owe £1600- 0% for 18 months

    Zopa loan £5500 currently paying £140 per month for 5 years. I have been using quite a lot of my credit for personal circumstances such as repairing my car, shopping, travel and gambling sometimes online casino- such as money transfers. I have never miss one single payment, no defaults ever recorded and CCJs. I currently owned a 2 bed flat with HTB with my partner and we are looking to sell it by next year or so to move into a 3 bed house. During December, I have made few credit applications for debt consolation loans but were all rejected due I been doing quite few applications. I have checked my credit report and it is now quite poor due the fact of my credit utilisation and credit applications. At the moment, I am currently paying minimum repayments on all credit cards. I know after 3-4months, my credit score might be a bit fair where I see what options might be available to me.

    Because I have the intention to move into a new property by next year or so, a new mortgage application will need to be made which might be hard for me. I want to know if a debt consolidation loan might be useful for me or a secured loan on my property, but I am sure if secured loan works with help to buy.

    I have no idea about secured loan and want to ask, what if I opt for a secured loan for 12.5K for 7-8years, interest might be lower and my repayment will be less I will use it as debt consolidation loan to pay all those credit cards and Zopa loan. My question is that, if ever I need to sell my currently property, do I need to pay the rest of the secured loan or the full amount I have borrowed before or after making the sell. Secondly, if I go for a new mortgage application, would I be able to add this secured loan onto the new mortgage. Please I would really be grateful if someone could be able to give me the correct advice, I really want to be debt free. Thank you.

    Pushing the whole "turning unsecured debt into debt secured against your home is not a good idea," to one side, I don't think you can take out more secured borrowing whilst you have a HTB EL. Currently the mortgage lender has the first charge against the property and your equity loan is the second charge so even if you were allowed to do it you probably don't have enough equity anyway.

    You are also proposing turning debt which is currently at 0% into interest bearing debt which doesn't seem very sensible. If you want to become debt free then you need to repay your debts because replacing credit cards and a loan with another loan won't make you debt free. Fill in a statement of affairs and head over to the Debt Free Wannabe board for advice. You also want to ease off those gambling transactions because a) you can't afford them and b) some mortgage lenders will turn you down because of them.

    https://www.lemonfool.co.uk/financecalculators/soa.php
  • brownie17brownie17 Forumite
    12 posts
    MoneySaving Newbie
    As the loans are interest free I would also go with saving 3 months of salary first, then you have a really good safety net.
  • VerbatimVerbatim Forumite
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    How're you doing Zippy? How's your Dad? Are you still in Spain? I hope you're ok. 
    Vx
    CCs @0% £24k Dec 05 £19,621.41 Au £13400 S 12600 Oct £11,981 £9481 £7500 Nov £7250 D £7100 Jan 6950 F £5800 Mar£5400 May £4830 June £4660 July £4460 Aug £3200, S £900, £0 18/9/07 DFW Nerd 042
  • zippygeorgeandbenzippygeorgeandben Forumite
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    Verbatim said:
    How're you doing Zippy? How's your Dad? Are you still in Spain? I hope you're ok. 
    Vx
    Hi.  He's back in the UK (thanks for asking) and I am visiting when I can. :smile:
    Savings as of September 2020
    Savings account 1 - £15628.82(15614.12)Savings account 2 - £6000(5500.00)
    Current account - £2550.39(3524.52)
    Total - £24179.21 (24638.64)
    Plus £728.45 (£50 per month between CS/BS) HTB £1200
  • VerbatimVerbatim Forumite
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    That must be easier for you Zippy. 
    Vx
    CCs @0% £24k Dec 05 £19,621.41 Au £13400 S 12600 Oct £11,981 £9481 £7500 Nov £7250 D £7100 Jan 6950 F £5800 Mar£5400 May £4830 June £4660 July £4460 Aug £3200, S £900, £0 18/9/07 DFW Nerd 042
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  • zippygeorgeandbenzippygeorgeandben Forumite
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    Monthly update number....?! (lost count!)
    Hi everyone, it is time for my monthly update.
    Not much to say really, as my finances stayed the same, but I did manage to pay for a 2 day break in Brussels/Bruges in May with my debit card, Eurostar travel as well and it does not seem to have impacted my monthly spend that much. 
    I am now paying Bulb £100 per month instead of the £46 I was as it just was not enough and the account was building up.  I have also had an email from them today to say that my bills are going up by £9pm (sigh). 
    I negotiated a new SKY deal yesterday, so my payments will be £66pm instead of £88pm.  Not bad as a saving percentage wise.
    I am still paying off the Scottish Power debt from Aug-Oct but that is only for the next three months.
    I am back on a diet unfortunately which does cost ALOT of money per week but I am factoring this in each month.  I also really need to sell some candles, but can never get round to sorting it out.
    I do not have much planned for March, and I do not want much to happen as I am dieting, so the social calender goes out the window. 
    Thanks for reading.

    PS Moderators, can one of you sort my thread out?  Delete some of the replies as I seem to have had my diary hijacked somewhat.  Thanks
    Savings as of September 2020
    Savings account 1 - £15628.82(15614.12)Savings account 2 - £6000(5500.00)
    Current account - £2550.39(3524.52)
    Total - £24179.21 (24638.64)
    Plus £728.45 (£50 per month between CS/BS) HTB £1200
  • zippygeorgeandbenzippygeorgeandben Forumite
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    Dear All,
    Time for my monthly update.  I am sure History will look back at this time in society as truly remarkable.  I feel more fortunate than others to be in a job (education) where I will still be paid, even though I am mostly working from home.  Yes, I am a key worker and do an important job but there are many people who are not as fortunate as I am.
    My monthly usual outgoings are higher because of O2 (they took two amounts out this month - I fancy changing all my DDs/SO so nothing comes out near the month end as this always annoys me)  so that was an extra £42.  An extra £15 came out for another subscription but then again, no council tax this month (saving £73.50) so, swings and roundabouts really.  I normally pay £20 per month on travel so that was about £15 less.
    Regarding outgoings - quite high really.  I am on a strict diet at the moment, which is expensive but it gets the results fast.  That was over £300 but I have now put a stop to that.  Food shopping is definitely higher too, especially getting items in for the cat.
    I am paying that frustrating scottish power bill of £94 per month for the next three months also.
    I was resigned to losing £700 (paid in Feb) for a trip abroad in May, however, I think I might get this back as e vouchers now so that's good to know.
    Those of you who have followed my 'diary' know how lovely my sister was to me when she lent me £2000 to clear some debts.  It is now time to return the favour.  She was paying 19.9% interest on a storecard whilst just paying above the minimum monthly payment so I have cleared that for her (a lovely feeling to have, knowing I can help out as I have transformed my own debt free journey) and she is paying me back each month.
    Surely someone can find me a nice proverb to finish off this post!?
    Thanks for reading.


    Savings as of September 2020
    Savings account 1 - £15628.82(15614.12)Savings account 2 - £6000(5500.00)
    Current account - £2550.39(3524.52)
    Total - £24179.21 (24638.64)
    Plus £728.45 (£50 per month between CS/BS) HTB £1200
  • zippygeorgeandbenzippygeorgeandben Forumite
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    Hi all,
    I hope we are all doing ok in lockdown.  This lockdown has saved money for me in travel (£70pm) and I have stopped all those 'stopoffs' in places such as M&S.  The only expenditure I really have is on baking/cooking which I love to do.  Ingredients for some dishes can be expensive, but I really do enjoy it.  I haven't heard yet from Eurostar regarding the trip in February but they are so busy that I will leave it for a few more weeks until contacting them again.  That trip was meant to be on Friday but we will all get to travel again, sometime.
    I wasn't sure what to do with the Coventry Building Society money now as they have reduced their rates in accordance with the BoE reduction but I think quite a few savings accounts are going to be hit so maybe I just keep it there until it matures in October.
    Anyway, hopefully when I do my next report there may be some semblance of normality in the UK.
    Be safe everyone and as ever, thank you for reading.
    Savings as of September 2020
    Savings account 1 - £15628.82(15614.12)Savings account 2 - £6000(5500.00)
    Current account - £2550.39(3524.52)
    Total - £24179.21 (24638.64)
    Plus £728.45 (£50 per month between CS/BS) HTB £1200
  • zippygeorgeandbenzippygeorgeandben Forumite
    1.2K posts
    Part of the Furniture 1,000 Posts Name Dropper Debt-free and Proud!
    ✭✭✭
    Hello everyone,
    Just thought I would drop by and give you an update.  What week of lockdown is this?  For me I think it is week 13 but the week's go by so quickly don't they? Anyway same as before really; my outgoings are not much as a bit of tutoring offsets this but I am definitely saving money here in lockdown.
    I am going to try and see what my supermarket shops are though - so I am having 2 online deliveries a month between 2 of us.  I think it is roughly about £450.  That includes for one cat, as well as alcohol.  Is that too much? I'm not sure.  I cook from scratch most of the time and it includes lunches too.  Salmon is expensive though!
    Savings as of September 2020
    Savings account 1 - £15628.82(15614.12)Savings account 2 - £6000(5500.00)
    Current account - £2550.39(3524.52)
    Total - £24179.21 (24638.64)
    Plus £728.45 (£50 per month between CS/BS) HTB £1200
  • VerbatimVerbatim Forumite
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    Part of the Furniture 1,000 Posts
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    Hi Zippy,
    What is the "Announcement" in pink concerning your thread? It isn't a link and I'm stumped. It appears on my bookmarks page.
    CCs @0% £24k Dec 05 £19,621.41 Au £13400 S 12600 Oct £11,981 £9481 £7500 Nov £7250 D £7100 Jan 6950 F £5800 Mar£5400 May £4830 June £4660 July £4460 Aug £3200, S £900, £0 18/9/07 DFW Nerd 042
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