Man of Honour
Whoa...your parents are paying for accommodation *and* food *and* leftover cast and you're *still* having trouble? CrikeyA2Z said:
That's some insane spending
debt, wtf is happening ?
- Thread starter ste_bla
- Start date
That's some insane spending
I dont mind talking about, I chose not to go with bankrupcy, with bankrupcy you have to pay a certain amount firstly to even file for it, secondly you legally have to go public and can appear in local papers etc.
With bankrupcy your can be debt free within 12 months now, which is crazy, an even larger amount of the debt is written off, but your blacklisted heavily for a larger amount of time.
I chose an IVA which is an involuntary agreement which means I payed a fixed amount for 60 months and anything that couldn't be reached in that time was written off.
The IVA is voted for by your creditors with your solicitors doing all the work, a certain number have to agree to it or it does not go through and you will be declared bankrupt, the payment amount is worked out from your outgoings etc and then split fairly between creditors.
Your credit rating is still ruined with an IVA for a few years for anything major (mortgages etc) but you can still get a bank account and even phone contracts etc after a year or so, if you really need to (personally I refuse to even bother with that now and go payg).
Its not an "easy" way out in my opinion, and its stressful and your bound by law to see it through.I never planned to get into the debt and then just get it sorted like this, most of the debt appears when you find yourself getting more loans to pay other debts etc, it escalates hugely and before you know it you cant reach payments.Anybody who would do this on purpose is crazy.
Sean
With bankrupcy your can be debt free within 12 months now, which is crazy, an even larger amount of the debt is written off, but your blacklisted heavily for a larger amount of time.
I chose an IVA which is an involuntary agreement which means I payed a fixed amount for 60 months and anything that couldn't be reached in that time was written off.
The IVA is voted for by your creditors with your solicitors doing all the work, a certain number have to agree to it or it does not go through and you will be declared bankrupt, the payment amount is worked out from your outgoings etc and then split fairly between creditors.
Your credit rating is still ruined with an IVA for a few years for anything major (mortgages etc) but you can still get a bank account and even phone contracts etc after a year or so, if you really need to (personally I refuse to even bother with that now and go payg).
Its not an "easy" way out in my opinion, and its stressful and your bound by law to see it through.I never planned to get into the debt and then just get it sorted like this, most of the debt appears when you find yourself getting more loans to pay other debts etc, it escalates hugely and before you know it you cant reach payments.Anybody who would do this on purpose is crazy.
Sean
wolvotim said:I was a credit card company’s ideal customer I always paid the minimum payment every month and kept racking up more and more debt every month. Over a period of about 6 years I managed to get about 18k under over 3 cards a loan and overdraft.
As I want to buy a house I finally come to my senses last year. I started doing overtime at work and stopped blowing my cash on random crap.
Now a little under a year later my total debts amount to £1994 which I should be able to get rid off before the end of the year.
You can’t imagine the weight that has been lifted off my shoulders. I’m so proud of my self turning round my whole financial situation in a year
I must say thats very commendable, i know how hard it is to stop buying what you want and have to put it away for bills or payments, to do it for that much money is a pretty good achivement. Must have been a nightmare not buying anything for so long that you wanted.
Soldato
A2Z said:
£150 a month on food alone?
Hells bells, where do you shop? Harrods? Harvey Nic's food hall?
A2Z said:
A few have mentioned this already but £150 a month for 1 person who is a student is utterly silly, i mean its just way over the top, what do you buy? I would love to know, it must have alcohol in it as i cant see how you could spend that. Yes you could spend it if you where working full time quite easily but you arent. Between me and my partner we spend around £200 a month tops on an asda shop and we earn a decent wage between us and we have no kids. For a student i would say £25 a week is more than enough just for groceries.
Students these days seem to be burning cash in its hundreds on nothing, you will wish you hadnt when you are paying of the loans for years after it, when you REALLY need the money.
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Soldato
Could simply NOT be more true...schnipps said:
Jez said:
To get the better vehicle straight away and not throw £2000 away
The best way to buy a good car (assuming you not got £10k sitting around) is to see what your can afford monthly, decide what period you want to pay over then decide you budget.Blowing £2k on a bucket worth nothing inside 3 years while paying tax, mot, service's and petrol is a MASSIVE waste of money - if your aim is simply to save up to get the "better" car.
Sometimes credit makes sense when its around 4%.
My only debt is mortgage, car and £2k on a credit card (from wedding).
I dont live on credit, i use 1 credit card and it gets paid off each month. I started with a 300 credit now its 10k every 6 months of so they increase the limit. I guess they are trying to get me to spend even though only twice in 15 years of having credits card have i spent over £1000 that was on a holiday and they other was a plasme tv.
considering he hasnt got his loan yet im not really suprised, how else would he pay to be there?Beansprout said:Whoa...your parents are paying for accommodation *and* food *and* leftover cast and you're *still* having trouble? Crikey
That's some insane spending
Man of Honour
Aye...I know lots of people who see their student loan as "MONEY!! SPENDZOR!!"...the whole media hype about student debt is totally overblown, because only for a small fraction is it real debt - ie, "my parents couldn't afford to pay for most of my stuff, so I really had to budget, and use my loan" - and even then, the only difference with not going to uni is the tuition fees, since you'd need to pay standard living costs even if you had a job.schnipps said:
I must admit I have been splashing out on food a bit recently - however I don't use my student loan for crap like others, and I don't spend £10 - £30/night a few nights a week going out, so it all balances....
just paid off my last loan, I only have my 70k mortgage which is fixed for another 3.5 years.
easy life and I'm loving it, dont even owe a penny on my one and only credit card
Personally I think anyone with several CCs and loans needs to get a consolidation loan ASAP and sort them out, I did it 5 years ago, best decision I ever made.
easy life and I'm loving it, dont even owe a penny on my one and only credit card
Personally I think anyone with several CCs and loans needs to get a consolidation loan ASAP and sort them out, I did it 5 years ago, best decision I ever made.
Associate
#Chri5# said:£150 a month on food alone?
Hells bells, where do you shop? Harrods? Harvey Nic's food hall?
Typical week for me in the past:
Sainsburys weekly shop- food/loo roll, deodrant etc (but mostly food and drink) £25-£30
Fast food - mcdoanlds, BK, KFC, Pizza hut/dominos, subway, another £15 - £20ish
Uni canteen food, bread rolls on the go, sweets, etc - £6
Night out - fast food takeaways perhaps £5 - £10
Can easliy rack up £50 in one week on food as a student.
Noxis said:To get the better vehicle straight away and not throw £2000 away
Blowing £2k on a bucket worth nothing inside 3 years while paying tax, mot, service's and petrol is a MASSIVE waste of money - if your aim is simply to save up to get the "better" car.
Sometimes credit makes sense when its around 4%.
My only debt is mortgage, car and £2k on a credit card (from wedding).
Is it?
I paid £1k for my car a year ago, £600 to get it on the road etc and I'll trade it in against something in a year or so. in the meantime I'd happily pay the same agian to keep it going in repairs, fact is I don't have a fixed outgoing on it and there isn't a lot of value to lose. It's a LOT LOT better than buying a £6000 car on credit, which will devalue by the time I trade it in and fix me in a monthly outgoing.
You're financial advice won't fit everyone, if he's only got a couple of grand then yes he's better off staying away from credit especially if he's likely to get into trouble with it. You do NOT take out debt you can't pay back.
I did use a clause in scottish law for this a few years ago, law states that in hire purchase that after half of the value had been paid off I could terminate if I just handed the car back, I knew I was VERY close to being unable to pay monthly so I let the value go, I had no other option but it was a case of either end up in trouble over it or write it off and buy myself something cheap to run about in. We learn from our mistakes, I'm lucky that scots law has clauses like that or my credit rating would be ruined by now.
Soldato
schnipps said:
I don't get it either. I live with my dad and little sister, and in a month the entire family lives on £150!
Soldato
Scuzi said:They throw money at people, it's ridiculous. I recently applied for the BMI credit card as I fly a lot with them and want to benefit from the air miles. I was talking to the nice lady on the phone during my application and she said this:
Her: "I'm happy to inform you that you've been accepted with a fifteen thousand pound credit limit."
Me: "Fifteen hundred pounds is a bit higher than I'd like, can I set it at five hundred?"
Her: "Well it's actually fifteen THOUSAND pounds but I can set it at five hundred if you want."
Me:
They were willing to throw £15k at me. If I had a £15k balance on a credit card I'd be screwed, I have no idea how they justify making that amount available to me. Something needs to be done to prevent this.
I hear that
Whilst not as daft numbers I have now got a little over 10k available credit across 3 cards!!
My income for the last year was <10k (minimum wage sucks, much like my job hunting skills
) yet they keep wanting to increase the limits?!Daft is barely scratching the surface....
Associate
There's a documentary called "Maxed Out" which is all about how the consumer credit industry lures their customers in.
Man of Honour
Oh, did I miss that bit o.oPosty said: