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  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 10:11 PM
    • 982Posts
    • 1,360Thanks
    zippygeorgeandben
    Unsure whether to consolidate - please advise
    • #1
    • 3rd Dec 16, 10:11 PM
    Unsure whether to consolidate - please advise 3rd Dec 16 at 10:11 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 11
    • Verbatim
    • By Verbatim 11th Apr 19, 6:21 PM
    • 4,674 Posts
    • 14,352 Thanks
    Verbatim
    Wow fabulous holidays and all budgeted for, or no debt involved anyway. Enjoy!
    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 12th Apr 19, 4:44 PM
    • 982 Posts
    • 1,360 Thanks
    zippygeorgeandben
    Wow fabulous holidays and all budgeted for, or no debt involved anyway. Enjoy!
    Originally posted by Verbatim
    Thanks Verbatim (you've always followed and supported me on my journey).
    I just have to make sure that I keep on top of stuff. If I have a month with not many outgoings, it can be a good £750 going into the savings account. This is only possible though because of my tight management and getting my debts down in 2017/2018 which I'm still proud of.
    I would rather pay upfront for all these things though and sticking them on an amazon credit card has so far got me a £40 gift card!
    Savings End March 2019 £2937.61
    September 2018 £986.09 October 2018 £1254.04 November 2018 £27.00
    December 2018 £21.14 January 2019 £1448.92 February 2019 -£1528.04
    March 2019 £728.46
    • zippygeorgeandben
    • By zippygeorgeandben 12th Apr 19, 4:49 PM
    • 982 Posts
    • 1,360 Thanks
    zippygeorgeandben
    No words of advice, you are doing brilliantly.

    Lots of trips to look forward to.

    Do you put money away specifically for holidays as part of your budget? That might help take the strain off a bit - a holiday fund/pot.

    A huge well done though - to think how far you have come, it's amazing.
    Originally posted by Dobbibill
    Hi Dobbibill and same as I said to verbatim, you've been there all the way through my journey. I'm extremely grateful. Because of this financial management, my OH and I are going to move into a bigger place in August. I want a bigger flat and nicer kitchen. I'll be paying the extra rent but I can absolutely afford this. Yes we could stay where we are and save myself £250pm but we've outgrown the place really.

    I don't put away the money for these big one offs because I know I have the funds. Yes it is a big amount but my income/outgoing ratio is decent so it isn't really that much of an issue but something i'm aware of.
    Thanks once again.
    Savings End March 2019 £2937.61
    September 2018 £986.09 October 2018 £1254.04 November 2018 £27.00
    December 2018 £21.14 January 2019 £1448.92 February 2019 -£1528.04
    March 2019 £728.46
    • tomgujjarcomis
    • By tomgujjarcomis 22nd Apr 19, 10:36 AM
    • 2 Posts
    • 0 Thanks
    tomgujjarcomis
    If you use credit cards to pay for these expenses, you'll rack up debt. ... Again, if you owe a balance and make payments to someone, you're in debt. And the first step to paying off debt is knowing how much you owe.
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