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  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 11:11 PM
    • 842Posts
    • 1,098Thanks
    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 6
    • Reb2016
    • By Reb2016 2nd Nov 17, 7:37 PM
    • 173 Posts
    • 438 Thanks
    Reb2016
    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!!!8217;m Sure you will have that 3 months saved in no time
    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 11837.25
    DFD was October 2020 40 months now 21st Dec 2019 26 months Overdraft £720/£2250
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Nov 17, 10:43 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Aw Dobbibill, you are too kind. Would you class any money in my current account over £0 as part of a monthly salary? i.e. if I had £1500 in my account, that what be £1500 salary builder or would you say £1000 of that is a salary builder and £500 just a contingency?
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 3rd Nov 17, 6:37 AM
    • 3,144 Posts
    • 4,053 Thanks
    Dobbibill
    Aw Dobbibill, you are too kind. Would you class any money in my current account over £0 as part of a monthly salary? i.e. if I had £1500 in my account, that what be £1500 salary builder or would you say £1000 of that is a salary builder and £500 just a contingency?
    Originally posted by zippygeorgeandben
    There is no right or wrong answer to this - it's personal choice.

    If you keep it in a separate account it becomes easier. Preferably a high interest account

    Your funds in your account may be spending money. Why is it there? What was it's purpose when it arrived in the account? Has it just built up from being frugal with your balance?
    This is where categories for every single penny works so effectively.

    You have to decide if you want the £500 contingency.

    Have you seen the 3 - 6 month EF challenge?
    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 3rd Nov 17, 8:47 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Ok - I'll take a look this weekend at high interest savings accounts Dobbibill.
    The money has built up due to a combination of a) underspending b) not using all my dads money he gave me and c) selling off my Yankee Candle collection - in fact I've arranged to sell a few for £850 so that can go towards the fund.
    I just had a look at the 3-6 month challenge - I think I'm up for that!
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • Reb2016
    • By Reb2016 5th Nov 17, 10:28 PM
    • 173 Posts
    • 438 Thanks
    Reb2016
    Wow I had no idea Yankee candles were worth that much thatís impressive

    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 11837.25
    DFD was October 2020 40 months now 21st Dec 2019 26 months Overdraft £720/£2250
    • zippygeorgeandben
    • By zippygeorgeandben 6th Nov 17, 7:33 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    They keep their value but Ive got some pretty rare ones too...
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 30th Nov 17, 9:15 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Good morning/afternoon or evening! Depending on when you are reading this of course.
    It is time for my monthly update. For those of you who aren't regular readers, please spend 5 minutes looking through my thread, especially if you are someone considering consolidating loans into one big manageable debt (sounds the best and most sensible policy right?)

    So this month, I have underspent by about £1400 pounds. The tutoring has really kicked on and even though it's about 4 hours out of my week, well it's worth it even if I stop at Christmas. I've sold a few items on eBay too as well as chopping down a bit of the monthly shop.
    I've just made the regular payments off the remaining debts so not much to move.
    I'm going to Dallas in February and that's going to cost about £1500 so I need to factor that in.
    I do now have that 3 month emergency fund but I guess I should look into the higher interest savings account but every month I write my update, I'm just not sure whether to pay all the debt off instead of putting it in a savings account. To tell the truth, I'm not sure how bothered I would also be with an annual pay out of less than say £100 an that ain't gonna happen.
    I'm also concerned slightly about the economy in Britain at the moment as we head towards Brexit. The closer it gets, the more unsure and nervy everyone seems to be so I think I'm just going to keep having money left over each month and letting it build up.
    Anyway, hope everyone is ok! I'm going to try and keep Xmas spends to a minimum but I'll attempt not to spend over my monthly wage.
    Thank you!
    Ben
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • Reb2016
    • By Reb2016 1st Dec 17, 9:07 PM
    • 173 Posts
    • 438 Thanks
    Reb2016
    That!!!8217;s an impressive underspend, and great going on the tutoring.

    Good news that you have the 3 month emergency fund too you!!!8217;ll soon be debt free

    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 11837.25
    DFD was October 2020 40 months now 21st Dec 2019 26 months Overdraft £720/£2250
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Dec 17, 9:47 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Aw thanks @Reb2016 I know you're reading! It's nearly 6 months since your lightbulb moment...
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Jan 18, 10:22 AM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Greetings and salutations my friends and well... HAPPY NEW YEAR!
    Wow, 2017 for me (well financially) was a GOOD year. Just looking at my signature shows the amount i've paid off. I'm hoping that I can become debt free this year. That's the plan anyway.
    I must change the dates my direct debits come out as once again, they haven't taken the money until today, meaning that, well, none came off during last month.
    How did you all do with Xmas spending? For those of you who have read my diary before I had my Dad's 80th to attend and sort out which was lovely and as a kind gesture, my sisters and I decided that we would pay for everyone's drinks for the event. I didn't do too bad actually financially in December and ended up a couple of hundred pounds in the black. As a couple we really stripped back with the present giving (more than last year) and it all goes towards the emergency fund I guess.
    It's funny when you have disposable income in your bank account. I've just booked 2 return tickets to Dallas for February and I know last year I would have used by credit card and then been charged 1.5% fee but this year, as I had the money in the account, I used my debit card and saved (quick Ben where's the calculator) £19.50.
    Thanks for reading everyone and have a wonderful 2018.
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 2nd Jan 18, 11:08 AM
    • 3,144 Posts
    • 4,053 Thanks
    Dobbibill
    Well done zippy and Happy New Year to you too.

    What a nice way to start the year with Dallas to look forward to.

    You've done excellent throughout 2017 and I'm sure you will be just as productive in 2018 too. I'm sure your DFD won't be far away.

    Keep up the good work, you're nearly there
    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.
    • Reb2016
    • By Reb2016 2nd Jan 18, 12:12 PM
    • 173 Posts
    • 438 Thanks
    Reb2016
    You have done so well Zippy, you are so close now
    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 11837.25
    DFD was October 2020 40 months now 21st Dec 2019 26 months Overdraft £720/£2250
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Jan 18, 12:19 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Aw Reb2016 - where's your diary?!
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • Reb2016
    • By Reb2016 2nd Jan 18, 10:29 PM
    • 173 Posts
    • 438 Thanks
    Reb2016
    It!!!8217;s here http://forums.moneysavingexpert.com/showthread.php?t=5660404&page=5 I haven!!!8217;t done as well, but am now getting back on track

    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 11837.25
    DFD was October 2020 40 months now 21st Dec 2019 26 months Overdraft £720/£2250
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Jan 18, 10:45 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben

    keep up the good work, you're nearly there :d
    Originally posted by dobbibill
    i know i know!
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • enthusiasticsaver
    • By enthusiasticsaver 5th Jan 18, 2:00 PM
    • 6,607 Posts
    • 13,891 Thanks
    enthusiasticsaver
    Almost there then Zippy and 2018 is the year you will be debt free. Hopefully having got used to not seeing that £650 per month in your daily spends you can save towards house, holidays, long term future or whatever.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • zippygeorgeandben
    • By zippygeorgeandben 7th Jan 18, 7:42 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Thanks so much enthusiasticsaver I've always appreciated your support on MSE. I haven't yet sorted out any kind of savings account and know that I need to.
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • stridernje
    • By stridernje 8th Jan 18, 5:23 PM
    • 10 Posts
    • 0 Thanks
    stridernje
    A concern I would have with what you are suggesting is that by reducing your monthly payment by £330.00 per month then what are you going to do with that money? You said you want to have some money to buy nicer stuff. Trouble is nicer stuff is usually expensive so is it possible you might take another loan out to buy that something special or even another credit card. In which case you will find yourself back at square one within 6 - 12 months.

    to Answer you questions
    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.
    I would pay as much as I could for as long as I could. I'm not saying I could hold out for the whole term, but the longer you do then if you do consolidate it will be for a lower amount possibly over a shorter term.
    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? -

    I wouldn't, it would be too easy for me to find something else to spend the money on.

    Or is there another option I should consider?
    Do you have anything you can sell that you can replace with cheaper items. Any money saved could be added to the repayments to shorten the term. Have you checked all your spending habits to see if you can squeeze some more money for yourself each month. The usual stuff like switching supplier accounts, renegotiating phone / cable supplier deals etc.
    • zippygeorgeandben
    • By zippygeorgeandben 31st Jan 18, 9:40 PM
    • 842 Posts
    • 1,098 Thanks
    zippygeorgeandben
    Hello everyone! It's time for my monthly update! I'm thinking of numbering my updates! Well all I know is is that I think that this is number 14!
    So how have I managed financially this month? - Well, quite well actually. First off, I've booked and PAID IN FULL my Summer holiday on my debit card. I also paid for my flights to Dallas in February in full this month. I also totalled extra Direct Debits of £340 this month because of the cross over between December/January i.e. some came out the 2nd and some the 31st January. Annoys me when this happens.
    So I've paid £280 to my credit card this week and £266.66 to my sister.

    This might make my debt under £3,000 but we shall see!
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
    • Verbatim
    • By Verbatim 1st Feb 18, 8:51 AM
    • 4,581 Posts
    • 13,664 Thanks
    Verbatim
    Remember the protection credit cards afford for big purchases, although I think debit cards can sometimes offer something similar. The trick is of course repaying credit cards in full each month!
    Big well done from me. You!!!8217;re almost there.
    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
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