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  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 11:11 PM
    • 912Posts
    • 1,240Thanks
    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 8
    • zippygeorgeandben
    • By zippygeorgeandben 28th May 18, 11:04 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Hi Litleskintdragon84, thanks for stopping by and the kind words. Must have took you a while!
    Yes I'm definitely going to make sure I don't 'slip back into my old ways.' When it gets to September/October I want to start paying more of the bills to help out my OH with his debt issues.


    It sounds to me though that even though you consolidated you're on the right track (you're posting on MSE so you must be doing something right and not burying your head in the sand).
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • zippygeorgeandben
    • By zippygeorgeandben 31st May 18, 11:54 AM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Hello everyone! and it's time for my monthly update! I was 39 yesterday!

    This month I have underspent by over £300. This is due to finally paying in a cheque owed to me as well as doing a little bit of tuition.
    So my exciting news this month is that I paid an extra £1000 off the Sainsbury's debt. I simply cannot believe that my total debt is now under £1000. I have just one instalment left to pay to my lovely sister and the Sainsbury's debt will be cleared probably quicker as I am start to get impatient!

    Another piece of good news (if you're still reading that is!) is that I managed to reduce my pet insurance from £37 per month to £14 per month. This site is absolutely brilliant, but we know that already don't we!? I never would have thought I could get pet insurance from my credit card company! 12 months for the price of 9 for MORE cover! I really should look into sorting out the electricity really as that's £82 a month for two people living in a small flat.
    I have sorted out my O2 as well as the contract came to an end, I switched to SIM only and reduced this from £37 to about £15 per month.

    I have decided to pay my OH £50 a per month from June onwards which goes towards weekly essential 'popping down the high road' shops for milk/bread/eggs/greengrocers etc. I budget his money as well and it's all those small insignificant amounts which build up over time and he can't really afford it. I think like I've said in one of my previous posts that once I am officially debt free, then I'll start to build a 3/4 month emergency fund of my salary and then help OH more. He isn't frivolous with cash, he just doesn't have much disposable income once his debts are paid.

    The tenancy is up at the end of July. Once again, I'm hoping that it does not increase. It really is overdue an increase compared to what other flats are per month but a) it needs a total makeover and b) he is getting his mortgage paid by reliable tenants every year without fuss. If it doesn't increase, I can imagine we will stay on again as we really like the area where we live and know there is no way we'd get a 2 bed flat around this location for what we pay now. I'm talking about £250pcm savings here.

    I'm forecasting June to be an ok for month for spends. Tomorrow I go to Hull for the weekend and that's for my OH 40th birthday (tomorrow) and I'm paying for a hire of an area, few different things to shell out for as well. I'm not quite sure what else is planned at the moment but perhaps my next monthly update will be a little bit more interesting than this one!

    There really isn't much to say apart from me hoping that people thinking of consolidating read this whole thread and perhaps it might help them change their mind set.

    Thanks to all of you who link this thread in any consolidation posts because if it can help just one person change the way they see their debt then that's fantastic.

    PS I was thinking of putting 10% of my salary away each month into an actual savings account and leaving it there as I don't have any savings, just surplus money in my current account.
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • Dobbibill
    • By Dobbibill 31st May 18, 7:05 PM
    • 3,300 Posts
    • 4,227 Thanks
    Dobbibill
    Hello everyone! and it's time for my monthly update! I was 39 yesterday!
    Originally posted by zippygeorgeandben
    Happy Birthday for yesterday
    So my exciting news this month is that I paid an extra £1000 off the Sainsbury's debt. I simply cannot believe that my total debt is now under £1000. I have just one instalment left to pay to my lovely sister and the Sainsbury's debt will be cleared probably quicker as I am start to get impatient!
    Brilliant news. This type of impatience is a good type though as it's more with the excitement of seeing the finishing line so close.

    Another piece of good news (if you're still reading that is!) is that I managed to reduce my pet insurance from £37 per month to £14 per month. This site is absolutely brilliant, but we know that already don't we!?

    I really should look into sorting out the electricity really as that's £82 a month for two people living in a small flat.


    I have sorted out my O2 as well as the contract came to an end, I switched to SIM only and reduced this from £37 to about £15 per month.
    Well done on the bills you have saved on - pop over to the Energy board when you've done a comparison for your lecci - there's lots of feedback on different providers you can check out if you like. Lots of knowledgeable people there too.

    There really isn't much to say apart from me hoping that people thinking of consolidating read this whole thread and perhaps it might help them change their mind set.

    Thanks to all of you who link this thread in any consolidation posts because if it can help just one person change the way they see their debt then that's fantastic.

    PS I was thinking of putting 10% of my salary away each month into an actual savings account and leaving it there as I don't have any savings, just surplus money in my current account.
    It's so true about consolidating and to see how you have reaped the rewards by taking advice on the forum is true testiment on how it works without consolidating. I'm sure this post insprires more than just 1 person.

    Depending on the amount you are thinking of squirrelling away - a monthly/regular saver would probably be a good option for your 10%. You normally have to have a current account with your provider for these types of savings accounts - have a look what your provider has on offer.

    Well done for another step closer to being DF - it's so close now you can almost taste it
    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.
    • DCFC79
    • By DCFC79 31st May 18, 7:46 PM
    • 32,544 Posts
    • 20,478 Thanks
    DCFC79
    You've done well so far zippy, your clpse to the end.
    • Nasqueron
    • By Nasqueron 31st May 18, 10:49 PM
    • 5,437 Posts
    • 3,350 Thanks
    Nasqueron
    You missed a [ in your signature which is making it look a bit funny


    £2000.00 [B]£133.38/B] (Sister 0%) £133.33pcm

    Should be



    £2000.00 [B]£133.38[ /B] (Sister 0%) £133.33pcm


    Which would be



    £2000.00 £133.38 (Sister 0%) £133.33pcm
    • zippygeorgeandben
    • By zippygeorgeandben 9th Jun 18, 5:02 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Thanks for pointing this out to me!
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • fudgecat
    • By fudgecat 20th Jun 18, 4:49 PM
    • 221 Posts
    • 460 Thanks
    fudgecat
    Just read your sticky and followed your progress in reducing your debts. Thank you for your detailed posts and I know this is an inspiration to others starting on a debt free journey.
    Once clear, look at maximising your savings by making your money work hard for you. Lots of advice on regular savings and multiple bank accounts on this site! You may end up being a Zopa lender, rather than a Zopa borrower!
    Debt July 2009 £479.29 Debt Jan 2011 £20,000! (Helping Kids) Debt May 2013 £3,600.00
    Debt March 2015 £2,400 (owed £3000.00)
    Debt October 2016 BIG FAT ZERO!
    Now mortgage free too - AND we helped the kids some more.
    • zippygeorgeandben
    • By zippygeorgeandben 21st Jun 18, 9:29 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Aw thank you fudgecat for your post. I'm sure it took you a while to read. It would be cool to be a Zopa lender I guess. I did wonder about a bit of stocks/shares. I've got quite a bit in the bank now and really need to think what to do with it. I'm just not sure whether I'm bothered by getting a £50 annual rebate from a monthly savings sum.
    Actually, how about premium bonds? I could put money in there per month? Anyone got any thoughts on this?
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Jun 18, 8:48 AM
    • 7,038 Posts
    • 15,234 Thanks
    enthusiasticsaver
    I have popped on to your thread after seeing you post elsewhere advising against consolidation loans thank goodness.

    As you are now so close to being debt free I would urge you to think of your future goals so the spare money is not frittered away and you are using it to your best advantage.

    Re house purchase. London prices are ridiculous and have been for a long time. Totally out of proportion to average wages. We moved away 30 years ago. The problem is the older you get the shorter the mortgage term unless you intend paying for a property outright. You won't get a mortgage which takes you into retirement, most see 70 as the oldest they will lend to and I am not sure anyone wants to still be working at 70. If you do intend to buy a HTB ISA or a Lisa may be an option but you have to be under 40 for a Lisa.

    Regular savers are great for higher interest rates and premium bonds are another option. Stocks and shares isas and overpayments into your pension are great vehicles for retirement/early retirement.
    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 30th Jun 18, 10:39 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Hi enthusiasticsaver thanks for the advice.
    I think I will continue to put the money in Premium Bonds for now. I just found out that the LL is putting the rent up from August. To be fair, it's not budged for about 4 years so I was kind of expecting it.
    Nothing to report on my debt because they haven't come out of my account this month. Both due out the 2nd July. So frustrating really when I only post once/twice a month on here!
    Did a bit more tutoring this month which provided some more funds. The boy I tutor is going away for the holidays from the 13th July onwards so I won't have any extra income coming in from then. I am actually hoping I might get my annual statement coming in from SLC in July to see what I owe on the ruddy thing and then I might just pay that off as I can afford to at the moment.
    I'm going to sell a few more candles too.
    Have a great weekend everyone and I'll catch you all around a few boards!
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • lindez
    • By lindez 10th Jul 18, 9:20 PM
    • 284 Posts
    • 1,047 Thanks
    lindez
    Hi Zippy,
    I came across your post looking at consolidating and I have read it from the beginning.
    Congratulations on your journey you have done brilliantly I am mostly at the start of my journey slowly chipping away. Your posts have inspired me to continue chipping away rather than consolidating. Thank you to you and to everyone who has commented on your posts these have also been really helpful.
    Payment A Day Chapter 18:
    MFWB#44
    • zippygeorgeandben
    • By zippygeorgeandben 12th Jul 18, 9:25 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Hey lindez that's so kind of you to leave a comment. I sometimes re read it myself to see how far I have come. Everyone has been helpful on my thread and now I try to help others. You can't make someone see the error of their ways but you can make suggestions. I'm still as obsessed with my finances as I was in September 2016 and I'm attempting to build a 6 month emergency fund now.
    Anyway, one regret I do have is not starting a diary so perhaps you could do that (if you haven't already) because I think it's really useful to just air how you are feeling, steps you need to take etc.
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • lindez
    • By lindez 13th Jul 18, 8:56 AM
    • 284 Posts
    • 1,047 Thanks
    lindez
    Hey lindez that's so kind of you to leave a comment. I sometimes re read it myself to see how far I have come. Everyone has been helpful on my thread and now I try to help others. You can't make someone see the error of their ways but you can make suggestions. I'm still as obsessed with my finances as I was in September 2016 and I'm attempting to build a 6 month emergency fund now.
    Anyway, one regret I do have is not starting a diary so perhaps you could do that (if you haven't already) because I think it's really useful to just air how you are feeling, steps you need to take etc.
    Originally posted by zippygeorgeandben
    Thank you Zippy, I am attempting to reduce my debts its a very slow process but I have joined the payment a day and emergency fund threads. I will consider doing a diary I do like reading diary's for areas of improvements that I can make. Thank you so much for your reply.
    Payment A Day Chapter 18:
    MFWB#44
    • zippygeorgeandben
    • By zippygeorgeandben 23rd Jul 18, 3:58 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Good afternoon everyone!
    It's the first day of my 6 week Summer holidays today so I'm in a very good mood!
    I have also just paid off the balance of my student loans. From 1997-2018 I have been paying student loans in one form or another, whether it be undergrad or postgrad and it's quite emotional now paying it off. No more deferrments, no more money being taken from my PAYE and no more direct debits! I never actually included this in my debts so my signature will not change but it's another £244 surplus money that I will have at the end of the month.
    Woo-hoo!
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • Verbatim
    • By Verbatim 23rd Jul 18, 5:06 PM
    • 4,615 Posts
    • 13,884 Thanks
    Verbatim
    Nearly there Zippy! What next? Saving for a deposit?
    House prices in East London have weakened considerably in the last 8 months or so. Had a look at Leyton on behalf of a family member last November and was amazed at how trendy some bits are and better value than Walthamstow.
    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 23rd Jul 18, 7:09 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    Verbatim - I thought that I was moving in with you?! Or have I got my wires crossed?!
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • BrassicWoman
    • By BrassicWoman 23rd Jul 18, 8:31 PM
    • 1,750 Posts
    • 7,128 Thanks
    BrassicWoman
    you are so nearly there!!!
    Jan 18 grocery challenge £105.13/ £150
    • Verbatim
    • By Verbatim 23rd Jul 18, 9:27 PM
    • 4,615 Posts
    • 13,884 Thanks
    Verbatim
    Ooh er Zippy! There's a thought. Not sure what my oh or yours would say to that though!
    Sorry, I can't help hoping people would buy I'll just have to accept that not everyone wants to.
    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 23rd Jul 18, 9:35 PM
    • 912 Posts
    • 1,240 Thanks
    zippygeorgeandben
    I'd like to buy (not love) but I took a look and it's £350k for a 2 bedroom flat. On a joint salary of £70k with about £5k deposit, it just won't cut it.
    If there are trendy bits in Leyton, I'm yet to find them in 8 years...
    End Sep 2016 End August 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £0 (Sainsburys 0%) £0pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £0 Original DFD May 2019.
    • Verbatim
    • By Verbatim 24th Jul 18, 8:03 AM
    • 4,615 Posts
    • 13,884 Thanks
    Verbatim
    Francis Road. Any of the streets around and about within walking distance would be a good bet.
    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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