Getting myself debt free - consolidation?

sourcrates

rachelgreen3691 wrote: »

Benefits of availing debt consolidation loans:

• Many lenders provide convenient options to avail debt consolidation loans at considerable, but affordable APR.
• You can borrow debt consolidation loans to consolidate your impending debts and dues and pay them off all at once.
• Most debt consolidation loans are unsecured loans, so there is no fear of losing an asset.
• They are available for people with all types of credit histories, irrespective of their scores.
• The repayment schedule is pre-planned with fixed APR and loan amount, which allows planning of the budget.
• Timely payment of debt consolidation loans can help in building your credit record.

I smell spam

enthusiasticsaver

sourcrates wrote: »

I smell spam

I agree but I did not want that to be the most recent response on the thread hence my rebuff

ryanm8655

So...things have changed quite dramatically...

A lot has gone on of late but ultimately I should be able to clear my debt far more quickly.

The flatshare didn’t work out...the tenant dealing with bills was trying to rip me off on the bills (£500 for 3 weeks) so I have managed to get out of the contract and have now moved back home where I have no rent or bills to pay.

I will need to buy and run a car for the commute, so there are some increased costs but overall I should be far better off and also won’t have the time to go out for dinner/drinks anymore as it’s about a 2/2.5 hour each way commute. Should be able to work from home at least 2 days a week, which’ll help cut down the cost and reduce the strain.

It’s been a crazily stressful month or so. A close family member was diagnosed with the C word and I was also mugged at knife point in London (which didn’t do the financial situation any good) so it’s actually good to be home in spite of the commute.

Will have to do an updated SOA but hoping I can clear about £2k of debt a month now...

Thanks,
Ryan

enthusiasticsaver

ryanm8655 wrote: »

So...things have changed quite dramatically...

A lot has gone on of late but ultimately I should be able to clear my debt far more quickly.

The flatshare didn’t work out...the tenant dealing with bills was trying to rip me off on the bills (£500 for 3 weeks) so I have managed to get out of the contract and have now moved back home where I have no rent or bills to pay.

I will need to buy and run a car for the commute, so there are some increased costs but overall I should be far better off and also won’t have the time to go out for dinner/drinks anymore as it’s about a 2/2.5 hour each way commute. Should be able to work from home at least 2 days a week, which’ll help cut down the cost and reduce the strain.

It’s been a crazily stressful month or so. A close family member was diagnosed with the C word and I was also mugged at knife point in London (which didn’t do the financial situation any good) so it’s actually good to be home in spite of the commute.

Will have to do an updated SOA but hoping I can clear about £2k of debt a month now...

Thanks,
Ryan

That sounds like a better option. Sorry about the family member and the mugging.

ryanm8655

I should also add that I am no longer in possession of any of my credit cards ha.

With that in mind I am reconsidering the option of a loan to clear the interest bearing cards. The rate has now gone down to significantly less than the interest on the cards and I can comfortably afford the repayments on a £15k loan over 12 months at the rate offered. Though I’ll do an updated SOA first.

Thanks,
Ryan

ryanm8655

Right...in light of my new circumstances I've updated my SOA below.


A few things to note...I don't yet have a car so have input what I think it'll cost me. Happy to be corrected. Planning to spend between £1-2K on a car (have the cash saved for this). Insurance is about £600/700 per year depending on the car...


Petrol and travel costs are a tricky one, I work in London and am living in Dorset. A monthly season ticket costs about £550/month but if I were to drive I'd save money overall but not time/stress. I should also be able to work from home twice a week...at which point daily tickets may be better value (I have a railcard). These costs are a bit uncertain as a result. I've based them on getting the train, so would have about 30 miles of driving per day. I assume £200 per month in fuel is correct but haven't driven in years...


I have no rent or bills and can probably get away without having to pay for a lot of groceries...


Critique more than welcome. Now that I am back home it is far easier to decrease the entertainment budget.


My total debt will be a bit less than stated as I haven't checked balances on cards for a while but as I don't have the cards or login details I haven't been able to check those but will do in future. Likewise the minimum payments are likely lower...at the end of this month around £20k of the credit cards will be accruing interest.


I checked ratesetter yesterday out of curiosity and am now able to access a loan at a far more competitive rate. I also have a further 0% offer from barlcaycard. I am therefore minded to get out a 15k loan over 12 months, clearing the barclaycard and other higher interest cards and then using the barclaycard 0% offer to shift the remaining £5k onto 0%. I know this is frowned upon but I won't have the cards and will be cancelling those that are cleared in full.


Thanks for the help.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2920
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2920
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 36
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 75
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 550
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 12.5
Haircuts................................ 15
Entertainment........................... 200
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 1410.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclays.......................7336.8....150.......0
Santander......................7645.79...160.......23
Tesco..........................455.44....8.........20
Tesco..........................2417.44...20........0
M&S............................1254.85...32.17.....0
MBNA...........................3146.79...75.87.....22.93
MBNA...........................1338.02...0.........0
MBNA...........................4942.93...50........27.9
Total unsecured debts..........28538.06..496.04....-

Monthly Budget Summary
Total monthly income.................... 2,920
Expenses (including HP & secured debts). 1,410.5
Available for debt repayments........... 1,509.5
Monthly UNsecured debt repayments....... 496.04
Amount left after debt repayments....... 1,013.46
Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -28,538.06
Net Assets.............................. -27,538.06
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

ryanm8655

EssexHebridean said:

ryanm8655 wrote: »

...the rates suddenly went up (something must have updated on my credit file). So are only marginally better than the cards, so I’ll go with the recommended approach of paying down the cards. I guess I’ll start with the high interest MBNA!

Thank goodness for that. I'm guessing that in a handful of years you'll genuinely look back and say the same thing, too. Possibly while explaining to someone on here why consolidation won't work for them in their circumstances!

Just rereading my old threads in preparation for my post in the debt free roll of honour and this made me smile.

Thank god I didn’t consolidate

Actually ended up paying much less in interest as more 0% offers opened up as I cleared the debts down. Had all of the debt on interest free within a few months IIRC.

greensalad

The car maintenance category looks low to me, £25 a month. I currently set aside £115 a month for my car, including saving towards insurance at £350 p/a. It helps that I know I have a few things coming up (new brake pads needed next spring), but MOT, service, enough to cover any repairs, and monthly insurance is going to cost you more than £25. When you buy, find out when the tyres were last changed and try to plan out how long it'll be until you need new tyres too as that one is inevitable and expensive.

sourcrates

greensalad said:

The car maintenance category looks low to me, £25 a month. I currently set aside £115 a month for my car, including saving towards insurance at £350 p/a. It helps that I know I have a few things coming up (new brake pads needed next spring), but MOT, service, enough to cover any repairs, and monthly insurance is going to cost you more than £25. When you buy, find out when the tyres were last changed and try to plan out how long it'll be until you need new tyres too as that one is inevitable and expensive.

Greensalad, that SOA is over a year old, the OP has come back to tell us he is now debt free.

OP, i`ll close this thread for you now, congratulations on your debt free status.