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  • FIRST POST
    • zippygeorgeandben
    • By zippygeorgeandben 3rd Dec 16, 11:11 PM
    • 929Posts
    • 1,268Thanks
    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 9
    • zippygeorgeandben
    • By zippygeorgeandben 28th Jul 18, 10:24 PM
    • 929 Posts
    • 1,268 Thanks
    zippygeorgeandben
    Verbatim guess where I stumbled across today? Francis Road. A small pedestrian road flanked by cafes and organic shops etc. a small oasis within Leytonstone!
    Renting wise - £1400pm for a 2 bed ground floor flat!
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • Verbatim
    • By Verbatim 29th Jul 18, 8:31 AM
    • 4,617 Posts
    • 13,904 Thanks
    Verbatim
    Yes but the trick is to go off piste. A few streets away, but within walking distance. And I'm talking about buying rather than renting. You have the central line tube and the Gospel Oak to Barking overground line with tube interchange at Blackhorse Road (Victoria line).
    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 31st Jul 18, 5:18 PM
    • 929 Posts
    • 1,268 Thanks
    zippygeorgeandben
    Monthly update

    Good afternoon to all of you who read this thread. Well...and I won't get all Frank Sinatra on you but...


    'And now.....the end is near.....and so I face.....the final payment.....'

    A very successful month for me in terms of debt repayment. I paid an extra £140 off the Sainbury's debt, cleared the loan my sister gave me and also (as mentioned in an earlier post) paid off my student loan debt (which I had had for 21 years).



    All this means that when I do my monthly update at the end of August, I will be able to officially shout it from the roof tops that I am debt free.


    An interesting statistic is that roughly 18/24 months ago, 50% of my income went on expediture, whether that be rent/bills/loan repayments. This figure as from September will be 32%. I'm pretty sure that I'm in the minority of people living in London who pay less than half of their income on rent and council tax now. But it has been extremely hard work.


    I should be getting an ever so slight pay increase at some stage in Autumn/Winter 2018 but only by about £60 net I estimate but hey, that's the sky each month covered.
    The tutoring will probably stop now which was an enormous benefit to reducing my debt leaving a bit more free time to do some stuff.
    Also, (those of you who have read the thread!) one of my goals, albeit tongue in cheek was to and I remember what I said 'To lose some bloody weight'. I have shifted 18kgs since January which I'm over the moon about and now in a healthy BMI range.


    Thanks for the support and encourage, especially to those who take the time to log in and contribute to the discussion.
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • Dobbibill
    • By Dobbibill 31st Jul 18, 11:47 PM
    • 3,367 Posts
    • 4,301 Thanks
    Dobbibill
    Brilliant news
    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.
    • Verbatim
    • By Verbatim 1st Aug 18, 7:54 AM
    • 4,617 Posts
    • 13,904 Thanks
    Verbatim
    Very impressive weight loss and debt busting. Congratulations on both counts.
    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 2nd Aug 18, 12:35 PM
    • 929 Posts
    • 1,268 Thanks
    zippygeorgeandben
    Thanks Dobbibill and Verbatim!
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • lindez
    • By lindez 2nd Aug 18, 12:36 PM
    • 315 Posts
    • 1,112 Thanks
    lindez
    Congratulations on the weight loss and the debt busting x
    Payment A Day Chapter 18:
    MFWB#44
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Aug 18, 12:37 PM
    • 929 Posts
    • 1,268 Thanks
    zippygeorgeandben
    Thanks lindez and I hope the emergency fund challenge is going well!
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • Martintin78
    • By Martintin78 4th Aug 18, 1:27 PM
    • 1 Posts
    • 1 Thanks
    Martintin78
    Debt Consolidation Loans - Is there such a thing really??
    Good afternoon everyone,

    Is there such a thing as a debt consolidation loan? I have just come back from a meeting with my high street bank as I am looking to consolidate various debts in to one easy payment.

    I currently pay just short of £900 per month on credit cards, store cards and past loans. I have a good/excellent credit score - never defaulted and have a good income. I was looking to borrow £15,000 over five years - this would cover all of my current debts (excluding my mortgage) - and at £260 per month, would save me over £600 per month!

    When I do soft searches for a debt consolidation loan, it shows my chances of being excepted as low - 20-50%. I discussed this matter with my bank to get an understanding why this is.

    They took a detailed look in to my account - looking at my income v outgoings though my account. The person in the bank said I was failing on afford ability. When you apply for a loan, obviously it looks at you income and your outgoings, but this includes the outgoing debt payments which would be covered by the new loan.

    So in essence I can not get a debt consolidation loan because my outgoings which would not be there after the loan are impacting on the process.

    It is frustrating, as I have clearly demonstrated I don't default on any payments, and if I can afford to pay £900 per a month, I can 100% afford £260 a month!

    I know the bank would risk assess it, by saying we don't know you would use it to pay of your loans - but that takes me back to my original point - are debt consolidation loans real or just false advertising?

    Does anyone have advice? Is there a way of getting a loan which would pay the debts directly - thus reducing the risk to the lender?

    Thank you
    • Dobbibill
    • By Dobbibill 4th Aug 18, 4:59 PM
    • 3,367 Posts
    • 4,301 Thanks
    Dobbibill
    Good afternoon everyone,

    Does anyone have advice? Is there a way of getting a loan which would pay the debts directly - thus reducing the risk to the lender?

    Thank you
    Originally posted by Martintin78
    Hi Martintin78 - welcome to the forum.

    This would be better placed as a new thread rather than attached to someone elses 'sticky' thread. (Perhaps the BG on this board can move it).

    On paper you would be assessed on paying the £900 plus the £260 - the lender has no guarantee you will pay off the existing debt.

    If you read through this thread you will see the benefits of not consolidating - you can attack different debts as a priority rather than converting them all into one. (normally the highest APR first).

    All the best.
    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 10th Aug 18, 6:24 PM
    • 929 Posts
    • 1,268 Thanks
    zippygeorgeandben
    Thanks Dobbibill! I did wonder whether I'd opened up the wrong thread at first!
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • lindez
    • By lindez 12th Aug 18, 9:19 PM
    • 315 Posts
    • 1,112 Thanks
    lindez
    Thanks lindez and I hope the emergency fund challenge is going well!
    Originally posted by zippygeorgeandben
    Thanks Zippygeorge its going slowly but its going in the right direction x
    Payment A Day Chapter 18:
    MFWB#44
    • zippygeorgeandben
    • By zippygeorgeandben 16th Aug 18, 12:55 PM
    • 929 Posts
    • 1,268 Thanks
    zippygeorgeandben
    Hi everyone - I paid £70.04 off my Sainsbury's credit card yesterday, leaving just the £140 to pay. This comes out at the end of this month. If it goes out the following month I won't be happy!
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • Greta Sharbo
    • By Greta Sharbo 22nd Aug 18, 12:10 AM
    • 254 Posts
    • 244 Thanks
    Greta Sharbo
    This thread is great! Well done Zippy. What a story.
    • zarbles
    • By zarbles 29th Aug 18, 11:49 PM
    • 1 Posts
    • 0 Thanks
    zarbles
    My advice?
    Focus on paying off.
    So, go for the consolidation and keep your payments at roughly the same level so you can pay off faster.
    Remember: 'interest' is giving money away for nothing in return.
    • zippygeorgeandben
    • By zippygeorgeandben 31st Aug 18, 11:00 AM
    • 929 Posts
    • 1,268 Thanks
    zippygeorgeandben
    Look at my signature!
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • MallyGirl
    • By MallyGirl 31st Aug 18, 12:01 PM
    • 2,998 Posts
    • 8,005 Thanks
    MallyGirl
    Congratulations !
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    Any views are mine and not the official line of MoneySavingExpert.com.
    • MSE Andrea
    • By MSE Andrea 31st Aug 18, 12:31 PM
    • 9,216 Posts
    • 22,046 Thanks
    MSE Andrea
    Look at my signature!
    Originally posted by zippygeorgeandben
    Wooohooo! Huge congratulations!
    Could you do with a Money Makeover?


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    • MallyGirl
    • By MallyGirl 31st Aug 18, 12:36 PM
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    MallyGirl
    Take a wander to the Debt Free Role of Honour and sign up - much deserved.

    https://forums.moneysavingexpert.com/showthread.php?t=291326&page=90

    You have been given the badge already
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    Any views are mine and not the official line of MoneySavingExpert.com.
    • Verbatim
    • By Verbatim 31st Aug 18, 1:54 PM
    • 4,617 Posts
    • 13,904 Thanks
    Verbatim
    Well done. Great achievement in super quick time.
    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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