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  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 11:11 PM
    • 816Posts
    • 1,049Thanks
    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 7
    • zippygeorgeandben
    • By zippygeorgeandben 1st Feb 18, 6:32 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Hey Verbatim thanks very much! Yes regarding the protection I forget. I'm now worrying Tui will go under..
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • debtfreeby2020
    • By debtfreeby2020 24th Feb 18, 8:49 AM
    • 88 Posts
    • 172 Thanks
    debtfreeby2020
    Hi Zippy.

    New to these parts. This is my first MSE post and I must say that you are a complete inspiration. I came on here to see what advice you got about consolidation, as I was thinking the same. Now I see that it is a complete mistake. I have read every single comment and I can't wait to celebrate with you at the end of the journey, which must be a matter of months away?

    Thanks so much for sharing x
    • zippygeorgeandben
    • By zippygeorgeandben 28th Feb 18, 8:59 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Well hello there everyone. It's time for my monthly update!

    First of all, thank you to debtfreeby2020 for the kind words. I didn't realise the answer at the time to all my worries was to change my mindset and I know it's difficult and people's situations change through no fault of their own, but to know I'm going to be debt free sooner rather than later is an amazing feeling to have. It could be months away but I'm sticking with the direct debits whilst building an emergency salary fund. I took all the advice on board, whether I agreed with it or not.

    So anyway, as those of you who know I went to Dallas, TX for 5 days and I splurged on an upgrade coming back but you know, it's all costed in. The Halifax clarity card worked really well with no fees/charges throughout my stay. I've managed to sell some more candles for £200 and about £100 of Elemis stuff however we also bought a new bed and headboard which was LONG overdue.
    I've paid another £244 off my student loans which I've never classed in my debts (because I didn't ever think I'd get round to nearly clearing them and they just came out of my PAYE) but I think this will be cleared in around 9/10 months. I could add this to my signature I guess.
    I've paid another £140 off the Sainsbury's CC but yet again, ANNOYINGLY, my SO to my sister hasn't come out. I really shouldn't have debts coming out on the last day, as plenty of times it just doesn't happen and screws my budget.
    I've only three months left on my iPhone which I really like and won't be changing so I should save the £20pm handset cost and go just sim only.
    I underspent by about £800 this month again so this has gone towards the emergency fund.

    So, in conclusion, everything is going well. Nearly into March and I'll chip off the debt even more. If there is anyone reading my diary who is a regular reader (or indeed if you aren't), could you perhaps point my way into somewhere to put this emergency fund? i.e high interest account preferably with a link?!

    Thanks everyone,
    Zippy
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 1st Mar 18, 7:18 AM
    • 3,057 Posts
    • 3,980 Thanks
    Dobbibill
    could you perhaps point my way into somewhere to put this emergency fund? i.e high interest account preferably with a link?!
    Originally posted by zippygeorgeandben
    Nationwide FlexDirect account - pays 5% for the first year. (criteria for interest paying in £1k)

    Referrers board may have a refer a friend link if you have an account you wish to switch to it (£100 each if you have 2 x DDs on the account)

    Regardless of whether you open as new or switch it will still give you access to their regular saver which also pays 5% (can pay in max of £250 pcm)
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • zippygeorgeandben
    • By zippygeorgeandben 1st Mar 18, 10:33 AM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Thanks Dobbibill - I knew you'd come up trumps! How are you? Still proud of me!?
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 1st Mar 18, 6:29 PM
    • 3,057 Posts
    • 3,980 Thanks
    Dobbibill
    Thanks Dobbibill - I knew you'd come up trumps! How are you? Still proud of me!?
    Originally posted by zippygeorgeandben
    You're welcome and yes very proud.....look back to your first post - Wow! how far you've come and all without consolidating. It's brilliant.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • shreya
    • By shreya 6th Mar 18, 7:43 AM
    • 8 Posts
    • 12 Thanks
    shreya
    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
    Originally posted by zippygeorgeandben
    That is an excellent question. I know I am a little late on this post, but could you tell me what option did you choose finally and where do you stand today?
    • zippygeorgeandben
    • By zippygeorgeandben 11th Mar 18, 2:38 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Hi shreya, it would be more helpful if you grab a cup of tea/coffee and read my whole thread. Then you'll see which of the loans I went for
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • Colin_Maybe
    • By Colin_Maybe 11th Mar 18, 7:51 PM
    • 2,101 Posts
    • 956 Thanks
    Colin_Maybe
    I've only three months left on my iPhone which I really like and won't be changing so I should save the £20pm handset cost and go just sim only.
    Originally posted by zippygeorgeandben
    This post is purely to shame you into not buying a Samsung S9+

    You know it's for your own good

    http://forums.moneysavingexpert.com/showthread.php?t=5808893
    • zippygeorgeandben
    • By zippygeorgeandben 13th Mar 18, 7:31 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    COLIN!!! How mean of you!
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 30th Mar 18, 12:42 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Monthly Update

    Hello everyone,
    Time for my monthly update.
    First of all I was incredibly annoyed with Sainsburys as they charged me nearly £50 interest in a transaction. What happened was that I put our Summer holiday on the CC and paid it off in full the next day. Sainsburys decided that they would take that full amount of my promotional balance transfer and not the new purchase. Apparently I paid too quickly. I would have thought that as, let's say £2304.47 went on the CC and I paid the next day the amount of... £2304.47 then it would have seemed obviously, but alas no! To give them credit they did sort it out for me and reversed the process.
    I've paid another month of my debts but I must say I'm seriously tempted to just pay off the whole debt now to my sister, sainsburys and my student loans (SLC). I could then say that I am officially debt free!
    I'll await to see with the SLC statement is, it normally arrives in about June for me and I'll see what the balance left is. I'm calculating that it'll be about £1500.
    Best update the signature.

    PS For all those people thinking of consolidating and getting all the advice from MSE not to, just take a step back and think about whether it is the best course of action for you.
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 30th Mar 18, 5:57 PM
    • 3,057 Posts
    • 3,980 Thanks
    Dobbibill
    Lovely update again.

    CC payments are only paid off statemented balances - lesson learned though I'm sure
    You will also have a small amount of trailing interest on it next month for each day the purchase was on the card so be prepared for a little more interest on your next statement.

    How far you've come is incredible (I know I say this every month) and to now be in a position to completely pay off your debts is brilliant. Huge well done to you.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • zippygeorgeandben
    • By zippygeorgeandben 30th Mar 18, 8:20 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Hi Dobbibill - how are you? I think it's only you who logs in and puts a comment now so thank you!
    I actually won't have the interest. They reversed the interest on the month and the 9 days following. I really ought to see if you have a diary...
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 30th Mar 18, 8:29 PM
    • 3,057 Posts
    • 3,980 Thanks
    Dobbibill
    I'm glad you're not going to get any interest surprises next month - that was very generous of them, you must have been so nice on the phone.

    I don't have a diary as I am fortunate not to have any debt (aside from a mortgage). You never know though, I may pop up on the MFW board with one one day
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • zippygeorgeandben
    • By zippygeorgeandben 30th Apr 18, 8:01 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Hello and it's time for my monthly update!

    I really do despair with these direct debits either not coming out at all or coming out twice in a month (like this one) but it is what it is.

    Would you believe that this month I have overspent by quite a bit. Through a variety of reasons really.
    One) I didn't do any tutoring for a couple of weeks which provides extra income
    Two) Went to Aarhus which was very expensive
    Three) Paid £175 of my OH trip money as a surprise
    Four) £140 on Panini stickers!
    Five) £100 on DvDs (there was a massive Amazon glitch I just had to take advantage of!)
    Six) Various splurges on nights out

    The reason I'm writing this down is for my own benefit. To know that a) I have overspent and b) I need to rain it in this month.
    Hopefully this month I'll be back to tutoring, spending a bit less (although I do have some weekend engagements) and just keeping track of it.

    Have a great month everyone and thanks for reading.
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • BrassicWoman
    • By BrassicWoman 30th Apr 18, 8:17 PM
    • 1,568 Posts
    • 6,590 Thanks
    BrassicWoman
    keeping it honest is good
    Jan 18 grocery challenge £105.13/ £150
    • zippygeorgeandben
    • By zippygeorgeandben 12th May 18, 6:47 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Just a mini update for all of you.
    My O2 contract ended this month and instead of going for a new shiny phone which I considered, I've decided to just get a SIM only contract. It's £17pm for 10GB data (previously 3GB) but I get a friends/family discount making it £12.60 per month. I used to be paying £36pm for my phone so that'll be £20 I save each month.
    I've also paid £1000 off my Sainsbury's CC. It was bugging me. Yes I was paying £140 off and would clear it in its promotion period but I want to be debt free sooner rather than later. I cannot believe that my original target using the snowballing calculator was May 2019 and I'm going to be debt free DEFINITELY by the end of this year but maybe even before
    Thanks for reading
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
    • Verbatim
    • By Verbatim 13th May 18, 8:11 AM
    • 4,576 Posts
    • 13,611 Thanks
    Verbatim
    You're going great guns! Does that mean your signature should now be Sainsbury's £630? And you'll have paid your sister back by the end of next month so will be able to finish Sainsbury's in August ish?
    Fantastic!
    Do you have any plans for all your freed up money afterwards?
    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
    • zippygeorgeandben
    • By zippygeorgeandben 13th May 18, 8:56 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    Hi Verbatim hope all is well with you. I'm sitting here watching BBC Young Musician of the Year. I love it. I went to a music school and it's very calming before another busy week!
    I will update my signature at the end of the month as that's what I normally do.
    Not that I think someone is going to fraudulently empty my bank account but I've built up a sizeable emergency fund now and I just have this worry that it'll get emptied after all the hard work I've done so I'd rather use some of it to pay debts off! All a bit weird I know!
    Hmm plans for money, well I'm still paying student loans off but instead of it going out of my salary, I've switched it to direct debit so I don't overpay. When I get my annual statement once HMRC take off what I've paid off, I'll see what's on that debt and get that paid off too.
    I'm not sure really as yet. Deposits for flats/houses are still just an absolute mile off and I don't think I'll spend my life saving years for a deposit on an overpriced London flat. One option I've considered is to build up a savings fund and then my and my OH could leave London, move somewhere more affordable and have our own garden, more square footage etc. It just really bugs me that London lose two talented workers due to house prices.
    Once these lasts couple of debts are paid off 33% of my salary goes on rent/bills/dds leaving quite a chunk for food and whatever i want. I realise that this is much more healthier than most people in London who spend more than half their income just on rent/council tax.
    I'd be grateful for any advice, short and long term.
    Thanks for reading.
    End Sep 2016 End Apr 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £1630.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 [B]£266.71/B] (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £1896.75 Original DFD May 2019.
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