Soldato
Have a look at Dave Ramsey a lot of what he says makes sense.
Debt free (well, in control)
- Thread starter agnes
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Soldato
- Joined
- 27 Apr 2013
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I've about £4k of a personal loan still to clear, plus some small balances on credit cards and such, that is down from £22k.
I do blame the banks and credit card companies for my predicament. Aged 18 they were giving me credit cards with £7k limits when I was barely earning more than minimum wage. I could tap about £15k of credit at one point, no questions asked.
It's taken me a while to get it all sorted. I'm in the home stretch now though and my credit rating is recovering.
I do blame the banks and credit card companies for my predicament. Aged 18 they were giving me credit cards with £7k limits when I was barely earning more than minimum wage. I could tap about £15k of credit at one point, no questions asked.
It's taken me a while to get it all sorted. I'm in the home stretch now though and my credit rating is recovering.
I have a.. somewhat.. slow... friend in a predicament at the moment.
She got married last year, and the pair of them put a despoit on a nice £250k house and moved in.
Come a few months back, they break up. Currently looking for a buyer for the house.
Now her solicitor is telling her shes going to get half of it, so, shes been spending BIG on credit cards on the basis that she thinks she is going to be getting £125,000 from the sale of the house.
The part ive tried explaining to her over and over again, is that she wont actually be getting £125k into her bank account, that the majority, if not all of the money from the sale will go to the bank who supplied the mortgage.
Shes either too stupid, deluded or simply doesnt understand that it means these tens of thousands shes racking up on CC's wont be paid off...
Nevermind eh.
She got married last year, and the pair of them put a despoit on a nice £250k house and moved in.
Come a few months back, they break up. Currently looking for a buyer for the house.
Now her solicitor is telling her shes going to get half of it, so, shes been spending BIG on credit cards on the basis that she thinks she is going to be getting £125,000 from the sale of the house.
The part ive tried explaining to her over and over again, is that she wont actually be getting £125k into her bank account, that the majority, if not all of the money from the sale will go to the bank who supplied the mortgage.
Shes either too stupid, deluded or simply doesnt understand that it means these tens of thousands shes racking up on CC's wont be paid off...
Nevermind eh.
Man of Honour
I used to blame the banks when I was younger, but then I realised it was entirely down to me, self control and careful budgeting. Admittedly they shouldn't be offering you large credit, but it is ultimately your responsibility. It's unfair to blame the banks on your spending
However, well done on working your debt down.
Man of Honour
I don't see that as a debt (of course it is technically) but as an investment you pay over time. As long as you don't actually claw up other short term debts you'll be able to budget your regular outgoings and you know your income - it might make things a little tighter, but then you would have had to pay rent anyway!
but then you would have had to pay rent anyway!
Which in the short time is very likely to be less then rent and long term be much cheaper then renting.
Man of Honour
Which in the short time is very likely to be less then rent and long term be much cheaper then renting.
And you end up with some equity too.
Soldato
Got about £3-4k of student loans outstanding, down from £10k. I am tempted to just pay it off, once and for all, it wouldn't make me better off, but at least it would be gone forever.
I know it's easier to blame the banks than to look into yourself and asking yourself some hard questions.
Well done on managing the debt. Keep it up now
Too stupid. She needs to be (proverbially) be smacked flat on her arse by credit card bills. You've done what you've can. You can't help Stupid. They need to learn the hard way unfortunately
Soldato
Paying off my big loan in next week so will instantly wipe 8k off. Then its just a few smaller ones over the next 3-5 months and I will be done with all the debt from silly youth 
Soldato
Debt can be incredibly flexible, providing it is affordable and is the right sort of debt...
I, like many others here, go into debt every month as I use my credit card. It is always paid off at the end of the month though, and is used as a current account. I don't spend what I can't pay back, but I did learn the lesson earlier on in life. Now having just turned 40, I'm fortunate that I only have mortgage debt remaining.
Also like many here, I use two current accounts (in conjunction with my fiancee). We both have our own separate current accounts, and have our respective salaries paid into those. We also keep a joint current account from which all our regular bills are paid - mortgage, utilities, mobile phones, standing orders for savings etc etc.
We each pay a monthly standing order from our individual accounts into our joint account (normally a little bit more as a buffer) and that keeps us afloat each month. Everything else we just split up and pay for as and when it arrives. It has worked really well for us for the past 11 years, and means that no matter what your discretionary spend (provided you stay within your means) you don't have to worry about your regular bills.
If I open new savings account, or change my mobile contract etc, it all gets taken from the joint account and then I just amend my monthly standing order to the new amount.
I check my personal current account a couple of times a week, but the joint bank account only four or five times a year (nothing really changes on it - utility DDs change every now and then etc).
Probably far from perfect, but it has certainly proved successful. The bonus part is that (although the interest rate is rubbish) by overpaying by a bit there's always a surplus slowly building up as a buffer in the joint account. Two months free every year of council tax certainly helps too!
I, like many others here, go into debt every month as I use my credit card. It is always paid off at the end of the month though, and is used as a current account. I don't spend what I can't pay back, but I did learn the lesson earlier on in life. Now having just turned 40, I'm fortunate that I only have mortgage debt remaining.
Also like many here, I use two current accounts (in conjunction with my fiancee). We both have our own separate current accounts, and have our respective salaries paid into those. We also keep a joint current account from which all our regular bills are paid - mortgage, utilities, mobile phones, standing orders for savings etc etc.
We each pay a monthly standing order from our individual accounts into our joint account (normally a little bit more as a buffer) and that keeps us afloat each month. Everything else we just split up and pay for as and when it arrives. It has worked really well for us for the past 11 years, and means that no matter what your discretionary spend (provided you stay within your means) you don't have to worry about your regular bills.
If I open new savings account, or change my mobile contract etc, it all gets taken from the joint account and then I just amend my monthly standing order to the new amount.
I check my personal current account a couple of times a week, but the joint bank account only four or five times a year (nothing really changes on it - utility DDs change every now and then etc).
Probably far from perfect, but it has certainly proved successful. The bonus part is that (although the interest rate is rubbish) by overpaying by a bit there's always a surplus slowly building up as a buffer in the joint account. Two months free every year of council tax certainly helps too!
Soldato
Sounds like your freind has done her ex-husband a big favour.