Debt Repayments

Discussion in 'The Lounge - Off Topic' started by Fergal1982, Aug 10, 2007.

  1. zebulebu

    zebulebu Terabyte Poster

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    Fantastic thread - if only to see how badly the credit market treats people.

    Personally, I've never owned a credit card and never will, I've never taken out a loan and have never been overdrawn in my life.

    I spent my childhood pretty much in poverty, which usually makes people go one of two ways when they grow up - spend every penny they have - and loads more they DON'T have, or never spend anything at all.

    Thankfully, I have taken a 'middle road' as I've gotten older and, as a result, simply live within my means at the time.

    That said, of course, I have got a mortgage, but considering it will be paid off in six years I don't see that as too much of a problem, and I stand to make a ridiculous amount if I sell my house now, so it doesn't worry me at nights.

    What DOES worry me is the absolute impossibility of getting on the housing ladder in the UK if you're single - heaven forbid, but if I were to split with my wife I would have to live in an abject shithole for five years until I had accumulated enough money to move into a nice place on my own - and I make pretty good money.

    It sucks.
     
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  2. greenbrucelee
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    greenbrucelee Zettabyte Poster

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    I believe 60% of our petrol is tax so wee would be similar to you if not for the tax.
     
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  3. dmarsh
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    Well I've always been careful with my money, never spend more than you earn is my advice, if you must have credit cards set up a direct debit and have them settled in full every month, that way you look at them as debit cards instead.

    I drive a £4000 diesel ford mondeo paid for cash, its the cheapest way for me to motor, I'd prob get £3000 if I sold it and the running costs are about as reasonable as they get for the UK.

    The only real loans i've ever had were student loan and my first car loan. I was dumb, I took garage credit and had to pay an APR of 20%, thats one of the best lessons I ever learnt !
    I worked weekends and holidays so my student loan wasn't that big, even with small repayments it soon went within two years once i started working.

    I don't have a mortgage, I once looked at buying a house but was made redundant as often happens if you're a programmer during lean times. Time I got my head straight house prices had gone up 100-150%. I'm single so renting looks the way forward for some time... :dry
     
  4. greenbrucelee
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    dont do it

    I am not really earning enough to pay my debts, but I decided I must forgo my entertainment/nightlife etc and put every available penny towards my debts.

    I earn 17k a year and managed to pay 15k of debts in 3 years, it all depends where your priorities lie.

    I was told by creditors that I will be it would take 11 - 13 years to pay off all my debts at £75 per month, I statted paying them off when I was 26 I am now 30 and I should be clear completley in 2 years for the ccj 5 years early

    dont go bankrupt although the bankruptcy end after a year its still on your credit record for 6 years and there will always be a mark on your credit to say you have been bankrupt. Whereas my ccj will get wiped and there will be no knowledge of it after 6 years because I actually paid it back.
     
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  5. dmarsh
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    Well I can't reccomend being irresponsible, bankruptcy seems to be an easy option for many these days. If you have a partner with a clean credit record will it really affect you ?
     
  6. greenbrucelee
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    If you live with someone who has a clean credit record it can affect the person with a clean record as loan co's and banks sometime do an address check and the system they use does not say who or how many people live in your house.
     
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  7. Stevie

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    I've got a CCJ from Barclays for the same reason. I took out a loan when I was young and stupid. I bought a lot of guitars and custom made guitars that were used by famous bands as I used to be good freiends with a guitar tech who toured with them. I sold them after a while, and rather than paying off the loan I spent the money going out. Barclays cancelled all my direct debits from my account for some reason, so I went to another bank and opened an account with them. As my credit wasn't great, I couldn't get a debit card, but I had a credit card so I could still order things online. About 5 months after I've been given a CCJ, I've managed to get a debit card again, all be it a Visa Electron, but it's better than nothing.

    I've got my CCJ payments, which are £30 a month, car finance, car insurance and mobile bill. I'm trying to save money for a house, but to be honest I'm absolutely struggling to do it even though I live with my parents and earn about £1350 after tax a month. I've never been good with money, but I'm trying hard to get better at it and it's slowly working.

    I was watching the music channels on sky the other nite and almost every advert on them is aimed at people struggling with debts.
     
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  8. greenbrucelee
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    you wont get a mortgage with a ccj or untill its wiped of your credit record ie if you pay it off before 6 years is up it will get wiped if you pass 6 years even by 1 minute it will be re-registered for another 6 but you can pay the county court to mark it on your credit record to say satisfied, so concentrate on paying it off
     
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  9. Arroryn

    Arroryn we're all dooooooomed Moderator

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    Wizard, I know Fergal doesn't want this thread to get personal; this is my own opinion, I want you to know it's not directed at you.

    The figures of bankruptcy in Britain are frightening. Plain frightening. Bankruptcy is something that should only ever be a last resort; nowadays, it seems like people keep it as an 'ace card' as 'just another option'.

    I think credit scoring has changed now, from being pertaining to your home address, to being to you personally. But it will make your life virtually impossible to lead. It's not starting your financial life from scratch - it's starting from the bottom of a very large pile. People may get cleared after a year, but the strike against your credit record sticks. People that declare themselves bankrupt have a credit limit of £250, unless otherwise authorised by lendors (which face it, probably wouldn't happen). After this, you have to build up your credit rating with this bad record; this (at the start) leads you to only be able to get high APR loans and cards - which, if you get in difficulty again, leads back to the same spiral of debt.

    There are other ways. Contact your lendors, and the citizens advice. A lot of banks and companies would rather you paid them back at a lesser rate a month, then go through the court proceedings and investigations a bankruptcy would cause.

    I had one friend declare himself bankrupt because he screwed himself over with student debts and living the high life. It didn't improve things. He got back in debt. It was horrible to watch.

    I would beg anyone considering bankruptcy, only to do it as a last resort. If you decide that it is truly the only way you will be able to solve problems, then I whole heartedly hope everything is sorted.
     
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  10. wizard

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    The thing is I cannot afford to pay back the banks at all, it isn't a case of offering them reduced payments, there is nothing there to pay them at all. So it's a case of me petition for bankruptcy or the banks will eventually do it.

    I haven't taken this decision lightly, I'm 33 now, I don't want to be paying my debts off into my 40s.
     
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  11. Arroryn

    Arroryn we're all dooooooomed Moderator

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    Like I said, it wasn't personal - it's just my opinion on the matter after seeing what my friend went through. I hope you get it all sorted out Wizard. :arrow:
     
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  12. greenbrucelee
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    Hey Wizard can you not even afford £10 to each creditor most would rather have something instead of nothing.

    Once yo start earning a bit more money (if you do) increase the amount you pay.

    It will only look more favourable to them.
     
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  13. BosonMichael
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    Federal and state fuel taxes average about 62 cents per gallon, so we're probably at around 20% tax.
     
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  14. BosonMichael
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    GBL is right... it can affect a partner with clean credit.
     
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  15. greenbrucelee
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    That just shows the difference between the two counties taxes although there is a lot more people in you country than mine.
     
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  16. wizard

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    No I cannot offer them anything
     
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  17. greenbrucelee
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    if your out of work, then you can get help from the benefits centre
     
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  18. wizard

    wizard Petabyte Poster

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    I am working.
     
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  19. BosonMichael
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    I don't want to drag your personal situation into it, Wiz... I just ask you to carefully analyze where your money is going. If you're doing *anything* other than living in a one-room shack eating bologna sandwiches and posting to CF on a library's computer and Internet connection, I'd urge you to reanalyze your expenditures. Perhaps you've cut as far as you can cut, but only you know that.

    To get out of debt, sometimes a huge sacrifice is required. If you choose not to do it now, you'll end up being forced to do it later... usually in the form of a high-interest-rate loan or mortgage (or worse, being declined for one, and being forced to drive $500 cars and live in an apartment or rented house for the remainder of your life).

    Ultimately, you will have to live with the decision you make. If you're fine with it, even after knowing the bankruptcy horror stories that are out there, then you make the best decision you can with the information you've got. In any case, I wish you the best of luck with whatever decision you make.
     
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  20. dmarsh
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    http://www.petrolprices.com/fuel-tax.html

    I think taxes are closer to 70% and i've heard higher figures in the past, I think its gone down a few percent in recent years.

    Currently average effective unleaded price is around $7.28 in the UK with current fuel prices and exchange rates.
     

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