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  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 11:11 PM
    • 1,058Posts
    • 1,442Thanks
    zippygeorgeandben
    Unsure whether to consolidate - please advise
    • #1
    • 3rd Dec 16, 11:11 PM
    Unsure whether to consolidate - please advise 3rd Dec 16 at 11:11 PM
    Hello everyone,
    First of all, I can't believe I still remembered my username and password. It's quite a while since I've logged into MSE!
    Anyway, here are the facts.
    I currently have three debts I am paying off
    1) £5727.54 loan(started at £11k)with Zopa @ 4.8% - I pay £230pm
    2) £7568.74 loan(started at £12k in 07/2014)with Tesco @ 4% - I pay £222.61pm
    3) £4211.19 credit card with Virgin Money @ 0% until June 2017 - I pay £200pm (which is more than the £50pm they ask for)
    Total debt equals £17,507.47.
    Total monthly payments are £653pm

    I wish to reduce my monthly direct debit outgoings to give me more flexibility for stuff I want to buy.
    After having a brief search, Sainsbury's have a loan for £18k (so this covers all the debts written above) @3.1% which would mean me paying £323.89pm.
    TSB have a loan for £18k @3.5% which is £328pm. I'd be paying £1621 in interest for this deal.
    Both these loan repayments per month are roughly £330 less than I currently pay off per month at the moment (which as I've said above, are £653pm)

    I can't seem to find the wood for the trees here. What would you do?
    Would you just continue to pay the three original debts off? I can afford these repayments (just) but it doesn't give me lots of flexibility.
    Or would you consolidate all three debts, pay them off, and take out a new 5 year loan where the monthly payments would be reduced by over £300?
    Or is there another option I should consider?
    Thanks for reading,
    Ben
Page 12
    • zippygeorgeandben
    • By zippygeorgeandben 30th Oct 19, 9:27 PM
    • 1,058 Posts
    • 1,442 Thanks
    zippygeorgeandben
    Hi there!
    I'm just confused as normal so I'm copying and pasting my signature from last month here, before I update. I'm trying a different tactic this month on how to control my finances, plus a regular saver matured which is playing with my brain...
    End of September 2019
    Savings account 1 - £8616.05
    Savings account 2 - £3000.00
    Current account - £1263.29
    Total - £12879.34
    Savings as of December 2019

    Savings account 1 - £8646.94 Savings account 2 - £1500.00
    Current account - £7698.58
    Total - £17845.52
    Plus £880 (£120 per month between CS/BS)
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Dec 19, 6:11 PM
    • 1,058 Posts
    • 1,442 Thanks
    zippygeorgeandben
    WORK IN PROGRESS
    Savings as of November 2019
    Savings account 1 - 8636.54
    Savings account 2 - 1000.00
    Current account 3 - 7074.82
    Total - £16711.36
    Savings as of December 2019

    Savings account 1 - £8646.94 Savings account 2 - £1500.00
    Current account - £7698.58
    Total - £17845.52
    Plus £880 (£120 per month between CS/BS)
    • zippygeorgeandben
    • By zippygeorgeandben 7th Dec 19, 3:21 PM
    • 1,058 Posts
    • 1,442 Thanks
    zippygeorgeandben
    Advice people
    The powers that be at work have decided to pay us all on the 19th December (instead of the usual last working day of the month). I'm not happy about this. A decision made without consultation with the rest of the staff. Anyway, I cannot do anything about it but it's worrying me how I will be able to manage my meticulous daily budget on excel. It won't be a true representation of December/January spend. I get the idea of helping families out so they get paid before Christmas however it's a very long time until January 31st.
    Savings as of December 2019

    Savings account 1 - £8646.94 Savings account 2 - £1500.00
    Current account - £7698.58
    Total - £17845.52
    Plus £880 (£120 per month between CS/BS)
    • zx81
    • By zx81 7th Dec 19, 3:24 PM
    • 24,815 Posts
    • 27,705 Thanks
    zx81
    If you don't think you can resist the temptation to spend it, move it to another account and then pay yourself as normal at the end of the month.
    • Naomim
    • By Naomim 7th Dec 19, 7:00 PM
    • 1,337 Posts
    • 3,258 Thanks
    Naomim
    If you don't think you can resist the temptation to spend it, move it to another account and then pay yourself as normal at the end of the month.
    MrM & I both getting paid early and also plan to do this so it's more accurate and January isn't 6 weeks long.

    Naomim
    Credit Cards £33,220.42 NOV 2019

    Here's my diary: A Ditherer's Diary Again
    • zippygeorgeandben
    • By zippygeorgeandben 1st Jan 20, 3:29 PM
    • 1,058 Posts
    • 1,442 Thanks
    zippygeorgeandben
    Hello everyone and happy new year. I wonder what 2020 will bring for me and you?
    Anyway, where to start.
    I normally give you a run down (short or long) on each month, however, this month has been different.
    Basically, my Dad had a heart attack in Spain and is currently in ICU. This has meant my sisters and I flying out there, finding accommodation and looking at day to day on how my dad is. Currently he is improving, having had to have a quadruple heart bypass.
    But I am on here to talk financially. Fortunately, my sisters and I have a fund we pay into each month which has covered flights and accommodation so far. We also have been extremely fortunate enough to have the loan of a villa from someone my sister knows (about 20 mins from the hospital). We are so grateful for this.
    However financially and budgeting it caused no ends of trouble.
    a) Took £1600 out of the sibling fund (NSandI) into current bank account
    b) Dad gave us each some money to cover all costs so far
    c) I have been paying for everything on my Halifax clarity credit card daily, and then instantly paying off using linked debit card.
    d) Sisters transferred the money to me Dad gave us and then I tried to transfer this back to NSandI. This is where to problems started.
    e) NS&I declined the transfer, even though I went through verified by VISA. HSBC say its live pending payment so they can't do anything about this. I realised then that NS&I had old address and takes them a couple of days to do anything.
    So basically, I have this extra money in my account to transfer back to the Sibling fund, however I have paid for everything so far via my Halifax CC/HSBC debit card. It's all very confusing!
    I also received a £377 Scottish Power bill which I have reluctantly accepted to pay.
    I'll update my savings account information in my signature but I am not quite sure where I stand for whether I am over or under this month!
    Thanks
    Savings as of December 2019

    Savings account 1 - £8646.94 Savings account 2 - £1500.00
    Current account - £7698.58
    Total - £17845.52
    Plus £880 (£120 per month between CS/BS)
    • GolfR
    • By GolfR 8th Jan 20, 5:25 PM
    • 14 Posts
    • 11 Thanks
    GolfR
    Just wanted to say a quick hello. Iíve been reading through all this yesterday and today and I have to say Iím in awe of what youíve achieved over the last few years. I was turned down for a consolidation loan a few months ago and looking back I am so glad I was, I have now sat up, taken stock of my situation and sold my performance car (wasnít easy ) which is paying half my debts off and the other half Iím going to bulldoze over the next two years to then start saving for a house deposit. You are a massive inspiration!!
    • DCFC79
    • By DCFC79 8th Jan 20, 7:46 PM
    • 35,640 Posts
    • 22,492 Thanks
    DCFC79
    Just wanted to say a quick hello. Iíve been reading through all this yesterday and today and I have to say Iím in awe of what youíve achieved over the last few years. I was turned down for a consolidation loan a few months ago and looking back I am so glad I was, I have now sat up, taken stock of my situation and sold my performance car (wasnít easy ) which is paying half my debts off and the other half Iím going to bulldoze over the next two years to then start saving for a house deposit. You are a massive inspiration!!
    Originally posted by GolfR

    That's a good plan, if you can stick to it then its a very good plan.


    What contributed to the debt ?
    The car ?
    • zippygeorgeandben
    • By zippygeorgeandben 8th Jan 20, 8:52 PM
    • 1,058 Posts
    • 1,442 Thanks
    zippygeorgeandben
    Just wanted to say a quick hello. Iíve been reading through all this yesterday and today and I have to say Iím in awe of what youíve achieved over the last few years. I was turned down for a consolidation loan a few months ago and looking back I am so glad I was, I have now sat up, taken stock of my situation and sold my performance car (wasnít easy ) which is paying half my debts off and the other half Iím going to bulldoze over the next two years to then start saving for a house deposit. You are a massive inspiration!!
    Originally posted by GolfR
    Thank you!
    Savings as of December 2019

    Savings account 1 - £8646.94 Savings account 2 - £1500.00
    Current account - £7698.58
    Total - £17845.52
    Plus £880 (£120 per month between CS/BS)
    • Momo89
    • By Momo89 16th Jan 20, 10:13 PM
    • 2 Posts
    • 0 Thanks
    Momo89
    Willing to be debt free
    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.
    • GolfR
    • By GolfR 19th Jan 20, 8:30 AM
    • 14 Posts
    • 11 Thanks
    GolfR
    That's a good plan, if you can stick to it then its a very good plan.


    What contributed to the debt ?
    The car ?
    Originally posted by DCFC79
    The car was half and the rest is mostly overspending on my part. All good debts as in good interest rates, long 0% balance transfers etc. I was living with my ex and we were both on decent money so I let myself buy whatever I wanted even if I couldnít afford it that month - never saved for car insurance or necessary wear and tear bills etc, just put them on credit card. But I left him just over a year ago and now live alone with our two kids, still earning decent money but have a lot more bills to pay myself and because of the monthly payments Iím paying out on debts and bills, I canít do much with the kids as Iím lacking spare money so Iíve decided enough is enough and I needed to grow up. Been very good with spending the last three weeks too apart from food, car insurance etc so Iím confident for the future of my debts and finances
    • Lover of Lycra
    • By Lover of Lycra 19th Jan 20, 8:46 AM
    • 831 Posts
    • 1,780 Thanks
    Lover of Lycra
    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.
    Originally posted by Momo89
    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
    • brownie17
    • By brownie17 22nd Jan 20, 2:48 PM
    • 10 Posts
    • 8 Thanks
    brownie17
    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.
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