I've Consolidated !

[Minnie]

Some of you will be aware I was in a dilemma as to whether to consolidate my own debt or to follow advice and remortgage.

The only reason I had to consider consolidating my own debt was to support my husband's IVA because without a reduced payment for my own commitments it was felt an IVA would not be possible.

I was very reluctant to go down either route but found myself in a corner.

Following reading several entries on the forum and looking at our finances both before and after consolidation/IVA, I decided I had no choice but to consolidate.

Despite the advice to remortgage, which would have meant an even lower repayment but over a longer period of time, my consolidation loan has now completed.

This may seem a little random to put on to this forum but there may be some in a similar position.

It feels really weird now.

I have paid the various creditors, cancelled standing orders etc., and through Microsoft Money have worked out all outgoings and incomings.

The reason it all feels weird but not necessarily in a bad way is because I now feel that I don't have a credit card I can use. As payments are still clearing I have not closed accounts yet.

Even though the commitment to a 10 year consolidation loan, with a second charge on my property is frightening, I do feel my finances are now tidier than they used to be and that money I now spend each week/month is literally out of my bank account. It has also made me stop and think before I buy anything. When you put purchases on credit card you don't think about it - as long as you maintain the monthly payments, what's a few extra months added to paying it off.

When the purchase has to come out of your bank account and with Microsoft Money you can see the lows and highs as you forecast your money for the coming year or years, it does make you not quite as reckless as you may have been when using credit cards.

I know it is very early days but the 'psychological' signs are good in terms of my approach to 'spending'.

I am very cautious about being too optimistic especially with interest rates the way they are and given that my husband's IVA is still in the process of being sorted. Things could still go t**s up! I would then be in a worse position because of the secured loan.

The biggest challenge will be being able to resist the temptation to start to use credit cards again.

There are still lots of hurdles to get over yet but I have done what I can to support my husband's IVA.

[MelanieGiles]

Minnie

So long as you feel that you have done the right thing for you and your family, that is all that matters! And your husband will be really appreciative of what you have done to help him indirectly. I sense that he will be doing the washing up for many nights to come!

I am sure that his IP will have the proposals ready for him to sign very soon!!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Minnie]

I hope so Melanie - I really do!

If it does go t*** up I think it will destroy us.

Not sure about the washing up though!

[MelanieGiles]

There is no way things should go wrong for you - and you should be proud that you have taken time to consider all options before taking the plunge. In my experience, those clients who consider several forms of advice - ie from their IP, direct research and use of debt forums like this, are far more likely to commit and stick to their repayments, than those who have had an IVA "sold" to them by gimmicky advertising.

Give yourself a pat on the back, and think that by Christmas your debts will all be under control!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mikebdomain]

Well done Minnie - hope all goes well for you

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
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http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[iva_squirrel]

Minnie,

You considered all options and took the one you thought it was the best for you. Well done! I wish you all the best.

Regards,
Michelle P.

[ray_a]

Minnie

Hope everything goes well for you!

You might have done this but if you haven't and need to use a credit card you can get prepaid cards and I suggest you look to Cash plus. You front load the card and you then spend your money. As it is a Mastercard you can use it as a normal credit card. There is a small monthly charge!

Good Luck

[Adam Davies]

Hi Minnie
Well done,you certainly thought things through carefully.
Just one bit of advice from someone who consolidated at one point,cut up those cards or,at the worst,just leave yourself one and decline any further credit limit increases.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Minnie]

Thank you for all the positive comments and good wishes.

One more hurdle down - several to go!

Advice taken on board in terms of credit cards. Before I consolidated I really felt it would be easy for me to start to re-use etc. Even though, as I have previously mentioned, it is very early days I genuinely do not envisage using credit cards the way I used to and indeed my husband used to. Well he can't anyway now.

It is all a scary process but it is so good to have a forum like this not just for advice but for that all important support and 'shoulder to cry on'.

I have felt desperate at times and whilst I am sure there are still some desperate moments ahead I feel cautiously positive but will be watching even closer now for interest rate rises. I never used to worry too much about them but as my husband goes through his IVA we are trying to work to the potential IVA budget so every penny saved is great but as we all know every penny added to our monthly commitments can be a worry.

[lily]

hope it goes well for you, I really glad the desperate days are overfor you, do cut up those cards though.



lily

[scaredkez]

i agree with lily minnie cut up those cards, glad it has all worked out for you.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/