Unsure whether to consolidate - please advise

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  • Reb2016
    Reb2016 Posts: 176 Forumite
    Such a positive update, which is so great to hear :T and great news on the extra from the tutoring that'll make a big dent too.

    Reb
  • Thanks Reb2016 for your kind comments. You always pop along to keep me feeling positive :)
    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
  • BrassicWoman
    BrassicWoman Posts: 3,201
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    you are doing awesome :)

    Emergency fund established before helping OH, however...
    2021 GC £1365.71/ £2400
  • Pixie5740
    Pixie5740 Posts: 14,515
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    I wonder if this thread could be made a sticky so that all those wanting to consolidate their debts could read it.

    It be interesting to know once you've finished repaying your debts how much time and interest you saved by cutting back and snowballing versus consolidating.
  • Candyapple
    Candyapple Posts: 3,384
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    Pixie5740 wrote: »
    I wonder if this thread could be made a sticky so that all those wanting to consolidate their debts could read it.

    It be interesting to know once you've finished repaying your debts how much time and interest you saved by cutting back and snowballing versus consolidating.

    Agreed and have done so :)

    Well done zippy on your progress.
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  • I feel kind of honoured and humbled if this thread is made a sticky. It probably needs moving to the DFW in reality.
    Interesting about the emergency fund suggestion. Would take me a long time to build up 3 months salary I think but yes, I'll take that on board.
    Have a lovely Sunday everyone.
    Thanks Brassicwoman and Pixie
    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
  • Hello again everyone and thanks for clicking on my latest monthly post.
    What's happening in my world this month you wonder? Well... I've paid off another month of the Sainsbury and sister loans.
    Financially this month I've been much better off. I budgeted against my new salary this month so have more money coming in. I have also done quite a bit of private tutoring which has also boosted my salary. In a nutshell, I underspent this month by £1000.
    I have probably got around a month and a half emergency salary built up and I'm still wanting to boost this to at least 3 months.
    I also have this incredible urge to pay off these loans BUT as they are interest free, I should just keep them where they are at I guess. Maybe I should pay more per month as in post one I was paying £653pcm whereas this is now just £273.33
    Any advice?
    I suppose I could open a premium bonds account and put a couple of hundred away each month?
    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
  • Dobbibill
    Dobbibill Posts: 4,133
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    Well done on what you've achieved so far - it's brilliant and so motivating for others who read this thread.

    I think I would be tempted to save the 3 or even 6 month salary then start putting anything you can into a high interest account until you reach the total owed on the loans.

    Once you are DF neutral, your salary is yours and you can reassess your budget.

    Another interesting question though - I wonder what other forumites think ;)
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  • Mogley
    Mogley Posts: 250 Forumite
    Thanks for the update. You have a real success story and it's good to see this thread as a sticky.:j
    I also have this incredible urge to pay off these loans BUT as they are interest free, I should just keep them where they are at I guess. Maybe I should pay more per month as in post one I was paying £653pcm whereas this is now just £273.33
    Any advice?
    I posted this when you received the windfall.
    Mogley wrote: »
    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.

    I think in your own way you've worked through points 2-4 (not sure about point 1 as no further mention). So my answer to your question is to move onto points 5 and 6 (which is a similar approach to Dobbibill). Use "The best bank account guide" on the main site to help. Happy Saving :T.
    You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.
  • Reb2016
    Reb2016 Posts: 176 Forumite
    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.
    You are doing so well i’m Sure you will have that 3 months saved in no time
    Reb
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