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Consolidation?

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  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I second what Dobbibill says and thanks DCFC79 for linking to my thread.



    Consolidation is rarely the right solution.

    Its worth a read, anyone who is thinking consolidation should read it.
  • adindas
    adindas Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 29 May 2018 at 10:02PM
    katie4 wrote: »
    I have found most people on here will tell you don't do it
    but I did and I worked really well for us we had a high interest credit card £4500 and I was struggling to pay the minimum plus the interest on top
    I opted for a consolidation loan with my local credit union (have you got one? theyre really helpful and fantastic rates)
    we are now paying this off over 3 years and at a much more affordable rate, just make sure once you've paid it off you cancel the card so you're not tempted to use it and create extra debt


    It works for you so good for you. You might be one of a few exception.
    But did you really read the story of debt consolidation in this forum?


    If not try to search, read it and draw conclusion.



    This is one example posted today

    https://forums.moneysavingexpert.com/discussion/5848766/joint-loan-to-consolidate


    For "most" people the debt racked up because they cannot control their spending. In this case Balance transfer will not solve the problem before the fundamental issue on spending is controlled hey will just end up racking up more debt. At some pint the start blaming the bank for lending themmoney.

    It is the same with throwing alcohol to alcoholic.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    katie4 wrote: »
    I have found most people on here will tell you don't do it
    but I did and I worked really well for us we had a high interest credit card £4500 and I was struggling to pay the minimum plus the interest on top

    For some people it does indeed work. Unfortunately statistically it doesn't. Mainly down to an individuals genes. A reason that targetting of credit (cards) is so successful. Everyone clears their balance in full every month until they don't. Then very slowly tomorrow never comes. Making it harder and harder to get off the hamster wheel.
  • Money_maker
    Money_maker Posts: 5,471 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Take on extra work, cut spending to the bone. If you want a mortgage in the next couple of years then you need to shift this quick and start saving. Can you do that?
    Please do not quote spam as this enables it to 'live on' once the spam post is removed. ;)

    If you quote me, don't forget the capital 'M'

    Declutterers of the world - unite! :rotfl::rotfl:
  • Dobbibill
    Dobbibill Posts: 4,192 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    katie4 wrote: »
    I have found most people on here will tell you don't do it
    but I did and I worked really well for us we had a high interest credit card £4500 and I was struggling to pay the minimum plus the interest on top
    I opted for a consolidation loan with my local credit union (have you got one? theyre really helpful and fantastic rates)
    we are now paying this off over 3 years and at a much more affordable rate, just make sure once you've paid it off you cancel the card so you're not tempted to use it and create extra debt


    I notice you have mentioned this on a few posts, it would be interesting to understand how far into the 3yrs you are with your consolidation plan. The rate you moved it from/to and the contingency you have to prevent further debt. Just recommending consolidation to others because you are in the process doesn't give much context to how you are making this work. I agree with adindas, if nearly towards the end of your consolidation, you are the exception to the rule.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    If you can't be the best -
    Just be better than you were yesterday.
  • bertiewhite
    bertiewhite Posts: 1,904 Forumite
    1,000 Posts
    Consolidation worked brilliantly for me but others will tell you it's a bad idea.

    Horses for courses.
  • katie4
    katie4 Posts: 459 Forumite
    Part of the Furniture 100 Posts Name Dropper I've been Money Tipped!
    Dobbibill wrote: »
    I notice you have mentioned this on a few posts, it would be interesting to understand how far into the 3yrs you are with your consolidation plan. The rate you moved it from/to and the contingency you have to prevent further debt. Just recommending consolidation to others because you are in the process doesn't give much context to how you are making this work. I agree with adindas, if nearly towards the end of your consolidation, you are the exception to the rule.


    Hi I am 1 year into the deal at the moment. The card was paid off and cancelled therefore I can not and have not accumulated any further debt, plus I am now able to set aside £100 a month in savings from the interest I have saved and the loan is now being paid off at a much cheaper rate. My aqua credit card was 41% apr my apr with the loan is 11% :T
  • katie4
    katie4 Posts: 459 Forumite
    Part of the Furniture 100 Posts Name Dropper I've been Money Tipped!
    DCFC79 wrote: »
    Had you already been saving with them ?
    I was under the impression you had to be saving with them to take out a loan.

    No I hadn't I but I my repayment is £143 a month and they now take £10 out of that which goes into a savings account
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