Salary Finance

y3sitsm3

Superhoop91 said:

y3sitsm3 said:

Superhoop91 said:

Thanks for your not so useful post

It's plenty useful, it's just not what you wanted to hear.

Many consolidation attempts fail because the root cause of the issue is not addressed, and having lines of credit available means they get spent on, and the debt increases and increases.

Trying to juggle the debt over 0% cards to boot just increase the risk of it all going breasts up.

Whilst that will be try for some people, it is not me. I have fixed the reason why I got I to this situation in the first place and have been reducing my debt down for the past 12 months, I just wanted to now excelerate the process. Please maybe ask a question or two before you throw heavy judgements around.

It wasn't a judgement, it was an opinion based on seeing this exact story play out many many times.  Everyone says the exact same thing as you, and many of those people end up in a much worse position than when they started.

Arguably (and perhaps ironically) the best candidates for debt consolidation are the ones who don't think it's the solution.

Brie

y3sitsm3 said:

The better solution to debt issues is to work out a plan to repay it rather than shuffling it around.

Yes - and ensuring one has a better interest rate is often part of that plan.  I agree that if one is merely shuffling and not getting rid of the debt or understanding why there is a debt there's a real problem but that's not what the OP appears to be trying to do.  

Superhoopza

Thank you Brie. I understand some people get into worse issues but as you said, I'm trying to clear mine as quickly as possible. A conservative estimation says this will help me be debt free 3 months earlier as well as the other perks it should bring to my credit report.

Grumpy_chap

Superhoop91 said:

As an FYI, due to them having an eligibility checker, I got offered £10,000 at 9.9% APR, made a full application, got offered it and paid into my bank account. All within an hour. I've calculated that this should support me being debt free at least two months quicker as well as the perks of improving my credit report. This was far better than any eligibility checker was offering and I would advice anyone that needs to use it to genieunely improve their situation, look at this over other more expensive financing options.

That sounds like a good step.  Maintaining self discipline with the cards that you will clear from having this finance is difficult, but you seem to be robust so I am sure you will do it!

I'd never heard of the lender you mentioned, but they seem to have done you proud.  

Looking forward to seeing your update in a year or whenever with the smiling face on clearing it all off.

TripleH

Good luck with it.

I do think finding a way to make existing debt easier and cheaper to service sounds a good idea.

A benefit is that the money saved in interest can go towards capital repayments and thus clear the debt off sooner.

The Op's solution won't however work for everyone.

Superhoopza

Thanks all, I had never heard of this company either until the email arrived in my work inbox earlier in the week. It's good that there is more competition in the credit market and offering alternative ways to validate people's ability to repay and through their alternative risk management methods, be able to help people with better acceptance and better rates.

I'll update on here when my first payment comes off my payslip, to be on 28th Feb.

Superhoopza

Funnily enough, when I asked for a settlement figure for a current smaller loan I have, I then got told I was now eligible to apply for a new loan. Goes to show whilst getting into financial trouble can be a slippery slope, starting to clear it with a bit of help from time to time can also start clearing issues two fold. Save to say I didn't apply for the second loan.

Chris_English

Superhoop91 said:

Thank you Brie. I understand some people get into worse issues but as you said, I'm trying to clear mine as quickly as possible. A conservative estimation says this will help me be debt free 3 months earlier as well as the other perks it should bring to my credit report.

It's comments such as this that I think sometimes give people reason to urge caution.

If your aim is to live debt-free, then improving your credit file shouldn't matter; it's only ever going to mean anything if you intend to get into debt again.

Superhoopza

Chris_English said:

Superhoop91 said:

Thank you Brie. I understand some people get into worse issues but as you said, I'm trying to clear mine as quickly as possible. A conservative estimation says this will help me be debt free 3 months earlier as well as the other perks it should bring to my credit report.

It's comments such as this that I think sometimes give people reason to urge caution.

If your aim is to live debt-free, then improving your credit file shouldn't matter; it's only ever going to mean anything if you intend to get into debt again.

I said perks it brings, not that it was my ultimate goal. But seeing progress can't be a bad thing. I'd also like the option to apply for a mortgage at some point so improving my credit report will help with this.

Superhoopza

Seems to be going ok so far. This is my only interest bearing form of finance now as all credit cards are paid off in full, except one which has no interest until Jan 2023. Doing a soft search, MNBA has already said I can transfer the full balance over for another 14 months if I need to at the end of this year.

My only gripe, which I'm challenging them on is that I made a payment of £500 which has reduced my next payment amount but not changed any other payment amounts, therefore my interest hasn't been reduced. It states in my contract and in the FAQs that early payments will reduce the total amount of interest paid. I raised this and was told that my interest would not be reduced for making a payment, it would just help the loan be repaid quicker. I've sent an email response back disputing this and am awaiting a response (which wasn't as quick as them yesterday telling me I was wrong).

Anyone else tried to use these out of curiosity?