Debt

It's all the people who panic and worry about being in debt, and struggle to repay their debts, that keep our heads above water. If it weren't for that ethos, the economy would be in dire straits!
 
I don't think it's bad to be in debt if you're in control of it.

I owe £3,600 (Was £3,400, the extra £200 is interest) to the Student Loans Company and I also have £3,800 to pay back on a loan for a business venture that didn't succeed.

So in total, £7,400.

I can afford my monthly payments (car insurance, loan) and my lifestyle and hardly use my overdraft or credit card, unless I know I can afford to pay the credit card or overdraft in full within one or two weeks.

Of course, I'm always looking for better paid work as I am only on 4 figures, so that I can pay back my loan sooner (by saving and paying it off in one big lump sum) as well as so I can start paying my student loan back before more interest accrues.

David
 
Thank god for this thread.

Got my anual statement the other day, just opened it out of curiosity now.

Was gobsmacked that my loans been taken from my deductions on my wage slip, but not actually paying off my loan.

Lat month I paid 765 Income Tax, 278 NI, and 214 student loan. But if its not paying off my loan - where the funk is it going?
 
AthlonTom said:
Thank god for this thread.

Got my anual statement the other day, just opened it out of curiosity now.

Was gobsmacked that my loans been taken from my deductions on my wage slip, but not actually paying off my loan.

Lat month I paid 765 Income Tax, 278 NI, and 214 student loan. But if its not paying off my loan - where the funk is it going?
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More HMRC bungling. Just goes to show large govt departments are a bad idea.
 
sr4470 said:
Probably didn't bother passing it on to the SLC in order for them to deduct the amount...
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Just got off the phone with slc.

Aparently I'm not meant to be paying it back till April 2008


They don't know where my money is.



If they don't know where it is, and I don't know either - who would?
 
sr4470 said:
Probably didn't bother passing it on to the SLC in order for them to deduct the amount...
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Yeah, that happened to me when I contacted them to pay it off.
I had to fax copies of my P60s for the last few years as well as copies of the current tax year's payslips.

Even then it took them over a month to get things sorted out.
 
I think the Credit Rating system could be blamed for a lot of debt.

I'm 30 years old, own my house outright, married with a family and been running my own business successfully for the last 3 years. I've never had a mortgage, credit card, loan or overdraft but yet I went earlier on in the year to get me and two employees, 3 phones on contract and failed the credit check because I didnt owe anything to anyone.

I actually had to take a small loan out for £500 from my bank, make 1 repayment and then pay it off to get some sort of history.

Yet a friend of mine who owes more than £20,000 (not inc mortgage) could get a loan, mobile phone, credit card etc at the drop of a hat.

Maybe I'm just naive and manage my finances well but I will never understand a system that allows people in a lot of debt to dig themselves a deeper hole.
 
Solaris said:
Aren't cars always a bad investment?

You always get bored of them eventually, they always depreciate, and a vw golf will do exactly the same job as a mercedes....get you from a to b....
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It depends how you view cars. If they are a hobby and a passion then a VW Golf won't satisfy you in ways a Mercedes will, if you are a Mercedes enthusiast.

If a car gets you from A to B and you simply couldnt care any more than that, then I agree, no point financing something expensive.
 
ManCuBuS said:
I think the Credit Rating system could be blamed for a lot of debt.

I'm 30 years old, own my house outright, married with a family and been running my own business successfully for the last 3 years. I've never had a mortgage, credit card, loan or overdraft but yet I went earlier on in the year to get me and two employees, 3 phones on contract and failed the credit check because I didnt owe anything to anyone.

I actually had to take a small loan out for £500 from my bank, make 1 repayment and then pay it off to get some sort of history.

Yet a friend of mine who owes more than £20,000 (not inc mortgage) could get a loan, mobile phone, credit card etc at the drop of a hat.

Maybe I'm just naive and manage my finances well but I will never understand a system that allows people in a lot of debt to dig themselves a deeper hole.
Click to expand...

The system is debt-based. Debt = issued money. Only we think in tangible money terms, hence the need to foster dependency.
 
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