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One step forward?

April 8th, 2016 at 10:30 am

I absolutely love my bank. Yesterday I applied for a loan and I was approved!!! The paperwork came today and I sent it away.

It's for 7750. I'm still planning how I want to distribute it between my debt and hubby's.

I'm so excited about this!!!

Oh the rate is 6.3%. Over three years.

13 Responses to “One step forward? ”

  1. ceejay74 Says:

    That is so great! Both the lower rate and the fixed term. Just make sure hubby doesn't take this as a license to run up his catalogue again! Wink

  2. CB in the City Says:

    That's great! I agree with CCF, pry hubby's fingers from the catalogue! Smile

  3. snafu Says:

    better rate than catalogue but when does Mr. step up and pay his fair share of expenses and fun? I always wondered if the riff was resolved...did he pay his mom for the games she bought him?

  4. DW Says:

    Sarah, Please be careful with this loan money. YOU understand the problem with debt and you're doing a GREAT job trying to stay in control. Your husband does not appear to be on board the 'reduce debt bus'. Your husband loves the catalogues Can I make a suggestion? Pay yours completely off and pay the balance on his. This loan can be a blessing or your worst nightmare. It's always advise to close the cards you are paying off to prevent charging on them again.

  5. creditcardfree Says:

    So the loan is for a debt shift, right? That is smart since I know those catalogues are at crazy high interest rates. It's nice to know that 7750 of your money will be gone in three years once the payments are complete!! Let us know what scenarios you are considering and we can try to help you think through the decision!

  6. VS_ozgirl Says:

    Congratulations, that's awesome!!! Are the repayments lower? (So will 60% of your income still be going to debt or do you have more breathing room). On average over the few years what is hubby's catalog spend? Maybe instead of forcing him to completely cut back from spending, it may be more workable to look at his spend, and try to get him to spend less while looking for an alternative lower interest avenue than the catalog? Credit card with a low rate?

  7. snafu Says:

    Sarah, apology for cranky, critical, snarky comment. I'd delete if I could figure out how! My mouth and brain went down different roads, mea culpa

  8. FrugalTexan75 Says:

    That's great Sarah! I hope this will help your debt payoff go even faster!

  9. scottish girl Says:

    Thanks everyone. I'm thinking I can use it to get rid of my catalogue, Husband's credit card, my bank of Scotland card and maybe pay over 1k to both of hubby's catalogues which should drastically reduce the payments each month, hopefully free up some money and get out of debt sooner. When I make a payment to the catalogues though, I won't know for a couple of weeks what the new payment will be so I won't know exactly how much each pay I will be putting towards debt straight away. I am really hoping I can make this work.

    I was debating whether to put anything to my 0% cards but it doesn't make sense when the catalogues are 36%+.

  10. DW Says:

    Your plan is good. It makes a lot of sense to pay off the 36% catalogues, but you will have to get hubby to stop using them. If you really know in your heart he will not stop using them, then pay the 0% cards. Is it possible to tell the catalogue to stop accepting new purchases?

  11. My English Castle Says:

    This is very good news. It will be easier to have the one payment. Certainly makes sense to pay off those head-spinning interest rates. I wonder if, like so many people, your DH spends to cheer himself up, especially now with the job situation? I wonder what the alternatives to retail therapy might be. Can he borrow or rent games from somewhere? Does he use them as time fillers when maybe that time could be redirected somewhere less expensive? It's hard to know, and I'm sure you've thought about all those things yourself. I think most of us here have had "discussions" with our significant others about money, and it can be so stressful if you're not on the same page. But not having the catalogs, the cot, etc to think about will alleviate some of your stress.

  12. ceejay74 Says:

    I do think you need a promise from hubby that he won't use the catalogues again if you pay them down for him. Maybe allot him a certain amount from the freed-up cashflow for spending, and let him know he can save that amount up for new games etc. Is there a way to cancel the catalogue accounts and put them in payoff mode only? I believe people can do that with credit cards at least here in the U.S.

  13. rob62521 Says:

    Good plan! Glad you are watching carefully how to save money.

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