Unsure whether to consolidate - please advise

145791035

Comments

  • Well done on clearing so much of your debt. Much better plan than debt consolidation. Hopefully the Zopa loan will soon be gone and you can tackle the Tesco one.

    I am going to suggest you start to get in the habit of saving for holidays rather than use credit cards. Calculate the amount you will spend in 2018 and divide by 12 and start putting money away for this. Same goes for gifts for your dad and partner and your dental work. This might mean you don't have as much money to overpay the debts but at least you can start to get out of this circle of debt. You also need an emergency fund. It does not have to be huge but at least another option other than a credit card.

    My plan would be to calculate what all of these extra ordinary expenses would be and divide by 12 and save that plus £50 to £100 per month on an emergency fund. What impact would that have on your debt repayment plan?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment 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.
  • You are an inspiration and such a role model for the members who are now where you were when you started your 'journey' :)
  • Reb2016
    Reb2016 Posts: 176 Forumite
    edited 1 September 2017 at 7:47AM
    Catsacor, I completely agree with you, I very nearly consolidated but thankfully was turned down, reading this thread reminds me that I can do it.


    I also agree with enthusiastic saver on the emergency fund and presents fund, I recently had a small emergency (water leak) and it was great to not use the credit cards.

    Reb
  • Dobbibill
    Dobbibill Posts: 4,133
    First Anniversary Mortgage-free Glee! Name Dropper First Post
    Ambassador

    Well when the clock hits 00:01 it's my first year anniversary of deciding to tackle my debts.

    My debt on September 1st 2016 was £19766.82 and as of today it is down to £11499.70. I have managed to clear £8267.12 off my debt in a year!


    Happy Anniversary on tackling your debt.
    You have achieved so much in 1yr.
    Plans for 2017-2018 are as follows;
    1)I start a new job on Monday which should give me an extra £250-275 per month to throw at debts, probably the Tesco one.

    I don't have an emergency fund if anything should happen and this slightly concerns me as I'm throwing 'extra' money at reducing debts. Wouldn't mind some advice on this MSEers.

    Congrats on the new job - all the best for Monday.

    I love the way you have set yourself clear plans for the coming year.

    I agree with other posters about saving monthly for birthdays and dental treatment.

    As for the emergency fund - there is a £1000 EF thread going here if you wanted to join for motivation, something should be going into an EF each month.
    http://forums.moneysavingexpert.com/showthread.php?t=5076051

    Life has a habit of throwing curve balls into plans. Yes this would mean less each month but you can always overpay more when you've reached your EF target or if you spend under budget on birthday celebrations.

    Maybe the extra income could be used for this - so you would still pay off a huge amount in the coming year ;)

    All the best - you are doing brilliantly.
    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.

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  • Hello everyone - just logged on. I re read my post yesterday, almost think to myself was i drunk? when I wrote it. I really hope that my post doesn't come across as smugness to anyone reading it because that's a trait I hate in anybody else. I've just been consistent in writing down monthly what I've been up to.
    I actually note down day by day what I spend on a monthly spreadsheet and if I overspend, I write down why. For example, August I overspent by about £300 but that's because I overspent on the Tesco loan by around £660.
    I'll answer points individually from members thus far but one thing I have failed to mention so far I have a bit of credit in my bank account, not a lot but when my salary gets paid in, I'm normally about £3500 in credit and it normally goes down to about £1500 so I can always decide to put some of this away for debt or 2018 spends.
    Off for lunch, last day off!
    Thanks for reading
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • Reb2016
    Reb2016 Posts: 176 Forumite
    I don't think you come across as at all smug, just rightly pleased and proud of how far you have come.
    Hope you enjoyed your last day off.

    Reb
  • Well done on clearing so much of your debt. Much better plan than debt consolidation. Hopefully the Zopa loan will soon be gone and you can tackle the Tesco one.

    I am going to suggest you start to get in the habit of saving for holidays rather than use credit cards. Calculate the amount you will spend in 2018 and divide by 12 and start putting money away for this. Same goes for gifts for your dad and partner and your dental work. This might mean you don't have as much money to overpay the debts but at least you can start to get out of this circle of debt. You also need an emergency fund. It does not have to be huge but at least another option other than a credit card.

    My plan would be to calculate what all of these extra ordinary expenses would be and divide by 12 and save that plus £50 to £100 per month on an emergency fund. What impact would that have on your debt repayment plan?

    Hi - thanks for your kind motivating words enthusiastic saver. I understand what you are saying about saving each month and I totally get the not being too reliant on credit cards for holidays. Perhaps as a compromise I should just ignore the fact that the holiday is on a 0% credit card and pay it either off in maybe 3 lump sums or 1 whole lump sum. The total for 2018 would be around £2500.
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • zippygeorgeandben
    zippygeorgeandben Posts: 1,273
    Name Dropper First Anniversary First Post Debt-free and Proud!
    Forumite
    edited 18 January at 8:20PM
    Catsacor wrote: »
    You are an inspiration and such a role model for the members who are now where you were when you started your 'journey' :)

    Thank you so much for this Catsacor. I wouldn't say an inspiration but maybe if it gets one person who is thinking consolidation to rethink their goals, well that's great.
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • UPDATE
    For all those who have read my thread with interest and understand what I've been paying off, I have just been given £10,000.
    What do you think I should do with the money please? Thanks
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • Dobbibill
    Dobbibill Posts: 4,133
    First Anniversary Mortgage-free Glee! Name Dropper First Post
    Ambassador
    Pay off the interest bearing lending, along with your sister.
    Put the rest into an emergency fund.

    Snowball the payments you would have made on everything into the Sainsbury loan so it is cleared ASAP.
    Some may argue that you could put this amount in savings and stooze but you can be DF sooner if you don't which has been your objective for the past year or so.

    When it's all done - save a 6 month EF so if something happens to your job/health - you have a contingency plan.

    Whatever you decide, all the best.
    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.
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