Posted: Wed Sep 12, 2007 9:04 pm
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.
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.