Unsure whether to consolidate - please advise

zippygeorgeandben · 5 September 2017 at 11:26PM

Thanks so much Dobbibill for the super quick reply. I'm hoping enthusiasticsaver and others might pop along too!
Are you saying to pay off my sister because a) financially correct decision or b) because she's may sister. I'm thinking she may have received the same sum too.
Another quick point to make is that £240 comes out of my salary each month for post grad student loan. That's got about £3,000 on it.

Dobbibill · 6 September 2017 at 6:48AM

zippygeorgeandben wrote: »

!
Are you saying to pay off my sister because a) financially correct decision or b) because she's may sister. I'm thinking she may have received the same sum too.

b) - because she is your sister so morally rather than financially - she was there for you when you needed it, this opportunity allows you to show you appreciate it

Hopefully others will come along and add their thoughts in - it's an interesting topic

Reb2016 · 6 September 2017 at 10:22AM

If it were me I would offer to pay of Sister first and then use the rest on the highest interest rate debt, and put an amount by for an Emergency Fund, so that you don't fall back onto using cards if something unexpected crops up.
However if I were your Sister I would turn down your payment and tell you to use all of it on the highest interest rate debt, and to pay me back when everything else is cleared.
The reason I say Sister first, is same as Dobbibill, because this shows you appreciate her helping you out.

I can understand that you might prefer to pay the higher rate debts back before paying your Sister, so another possible option is to sit down with your Sister explain that you have been given this sum of money, and while you could now pay her back with her agreement you would like to pay the higher rate debts of first, and this would mean you will be able to pay her back quicker as you now have less to pay back in total. If I were your Sister I would be happy with this, as it would mean you were being open and honest with me and would show me you are continuing to take serious action to pay back your debts.

As Dobbibill says its an interesting topic, and a quite nice dilemma to have, be interesting to hear your decision.

Reb

Mogley · 6 September 2017 at 12:22PM

I've read through this thread once a couple of months ago. Well done on your achievements thus far.
Some points from me:
1) Ensure you've contacted student loans company about your proposed end of payment date. They should suggest setting up a direct debit so that you don't overpay. You can set your own direct debit payment amount. What is your existing and future interest rate? This will determine the payment priority.
2) I would pay your sister first. This shows you appreciate what she did for you and as soon as you have the money to pay her back in full, you have done so. She will be more willing to help you out in the future.
3) Clear the interest bearing debts.
4) Maintain a monthly spending plan to clear the 0% debts within the required promotional time.
5) Open interest bearing current account(s). Maybe one(s) that has a regular saver attached to it. Deposit any remaining capital you have from the £10k + the £1.5k balance in your existing current account into the interest bearing current account(s).
6) When and as soon as you get paid each month direct the money you used to pay for debt into regular savings account(s).
7) Once you have enough saved to cover your debt and six months easy access emergency fund, use these forums to look at other ways in which you can save/invest.

This time next year you'll be a millionaire:). Well not quite but potentially you will know that you will not need to burden yourself with debt again.:j

zippygeorgeandben · 6 September 2017 at 9:50PM

So don't just stick it all on black then?

zippygeorgeandben · 9 September 2017 at 7:22PM

My sister absolutely does not want me to pay her back early. It was an interest free loan from her workplace and she didn't need it so she wondered if I wanted it. She wants me to pay higher bearing interest loans off first.
I have paid off the whole of the ZOPA loan today, saving £25.
That's £777 of the £10,000 I received.
Can I just say a great big thank you to those of you who have posted in my thread, Dobbibill Reb2016 Mogley

Reb2016 · 9 September 2017 at 8:48PM

What a lovely Sister you have,

and great to hear you have already started on getting rid of some of those debts

Reb

zippygeorgeandben · 15 September 2017 at 10:35PM

Hi guys - I've decided to use a large portion of the £10,000 paying off the other interest bearing loan (Tesco) in full. They've given me a settlement figure which includes a rebate of £155.
So Dobbibill I'm going with what you suggested in your last post (apart from paying sister off) and the payments I would have made monthly to Zopa/Tesco, I'm going to throw at the Sainsburys debt.
Thank you to all of you and I'll update probably at the end of this month.

Verbatim · 16 September 2017 at 7:35AM

I know you said you rent. If you're thinking of buying soon you could put some away for a deposit. I agree that using regular saver offers makes sense with the low interest rates on savings elsewhere.
Great progress.

zippygeorgeandben · 16 September 2017 at 5:47PM

Thanks Verbatim for taking the time to post.
Considering using the remaining £5,000 to perhaps pay off either the Sainsburys or putting towards my Summer 18 holiday.

Unsure whether to consolidate - please advise

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