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  • FIRST POST
    • ent_moot
    • By ent_moot 23rd Jun 17, 8:33 PM
    • 42Posts
    • 8Thanks
    ent_moot
    How to pay off loans
    • #1
    • 23rd Jun 17, 8:33 PM
    How to pay off loans 23rd Jun 17 at 8:33 PM
    I'm trying to sort out my parents finances.

    They have a bunch of high-interest loans that I would like to pay off; however, I'm having real trouble tracking down who they are with.

    Should I just cancel the direct debts and see who comes calling, or is there a better way?
Page 2
    • ViolaLass
    • By ViolaLass 24th Jun 17, 12:24 PM
    • 5,015 Posts
    • 6,936 Thanks
    ViolaLass
    I prefer to educate my friends on how to use cards etc properly/sensibly (if they ask me for advice) rather than telling them to avoid them, which is, I think, less practical and unnecessary.
    • ent_moot
    • By ent_moot 24th Jun 17, 12:27 PM
    • 42 Posts
    • 8 Thanks
    ent_moot
    The trouble is that, no matter how well educated and disciplined you are, things can slip badly in a crisis.
    • BrassicWoman
    • By BrassicWoman 24th Jun 17, 12:30 PM
    • 1,298 Posts
    • 5,401 Thanks
    BrassicWoman
    I prefer to educate my friends on how to use cards etc properly/sensibly (if they ask me for advice) rather than telling them to avoid them, which is, I think, less practical and unnecessary.
    Originally posted by ViolaLass
    And if they don't ask for advice, keeping quiet is always an option
    Downsized and mortgage free
    September 17 grocery challenge £64.28/£100
    • dresdendave
    • By dresdendave 24th Jun 17, 1:05 PM
    • 633 Posts
    • 732 Thanks
    dresdendave
    Gosh, you misunderstood me entirely. The reason why it is valuable to me is because I have convinced multiple people to get rid of their credit cards and they are much better for it. By having no credit card, I am therefore in a position to provide meaningful and credible (excuse the pun) advice to those who do.
    Originally posted by ent_moot

    I have several credit cards. I never pay a penny in interest, I get cashback, can obtain foreign currency at the best rate, have no problem hiring cars or staying in upmarket hotels, can often claim work related expenses before I actually pay for them and have S75 protection to fall back on. Please can you convince me how my life would so much better if I were to get rid of my cards.
    • sourcrates
    • By sourcrates 24th Jun 17, 1:36 PM
    • 11,882 Posts
    • 11,390 Thanks
    sourcrates
    I have several credit cards. I never pay a penny in interest, I get cashback, can obtain foreign currency at the best rate, have no problem hiring cars or staying in upmarket hotels, can often claim work related expenses before I actually pay for them and have S75 protection to fall back on. Please can you convince me how my life would so much better if I were to get rid of my cards.
    Originally posted by dresdendave
    Then you are using those cards to your own best advantage and been extremely savvy about it.

    But there are people in this world who dont possess those kind of skills and end up in horrendous debt because of it, or as with me, your marriage can end, and that unleashes a sh**storm you would not believe, and before you know it, your borderline alcoholic, gambling all night, all funded by those cards................of course thats an extreme example, but a good one of how things can go wrong very quickly.
    Last edited by sourcrates; 24-06-2017 at 1:40 PM.
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    • ViolaLass
    • By ViolaLass 24th Jun 17, 11:09 PM
    • 5,015 Posts
    • 6,936 Thanks
    ViolaLass
    The trouble is that, no matter how well educated and disciplined you are, things can slip badly in a crisis.
    Originally posted by ent_moot
    You can also get hit by a car every time you go near a road.
    • Grzegorz Kowalski
    • By Grzegorz Kowalski 25th Jun 17, 1:58 AM
    • 18 Posts
    • 8 Thanks
    Grzegorz Kowalski
    That is my judgement, yes. If I've come across as smug about it, I apologise.
    Originally posted by ent_moot
    Actually, I quite like your approach to the finances.

    Destroying the two, high APR CC last month gave me a lot of satisfaction. I can't wait to put the rest into the shredder.
    • badmemory
    • By badmemory 25th Jun 17, 5:53 AM
    • 670 Posts
    • 659 Thanks
    badmemory
    But the APR on a credit card is only of any relevance if you ever actually pay any interest.
    • Pixie5740
    • By Pixie5740 25th Jun 17, 9:03 AM
    • 10,816 Posts
    • 14,943 Thanks
    Pixie5740
    This is your 5th thread about sorting out your parents' finances. Do your parents actually want your help?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Tarambor
    • By Tarambor 25th Jun 17, 11:18 AM
    • 1,138 Posts
    • 785 Thanks
    Tarambor
    Gosh, you misunderstood me entirely. The reason why it is valuable to me is because I have convinced multiple people to get rid of their credit cards and they are much better for it.
    Originally posted by ent_moot
    Oh deary deary me. Had you done that to me you would have COST ME MONEY. Why?

    My main credit card is a Barclaycard that gives cash back on all purchases and I do all my spending on. I make £180-£200 a year from that on the cashback plus whatever interest I gain on a monthly basis by the money being in my bank account.

    I have a Santander Zero card. I use that when I go abroad because it has zero fees for cash withdrawls, no ATM charges abroad and offers an excellent exchange rate. Checking online, the best currency conversion rate for Euros as I'm going abroad in the next day is over a cent worse than my credit card. And also by using this card I don't get the double whammy of being shafted when turning my unused Euros back to GBP.

    I have another card which was 0% on purchases which I used to fund the purchase of a "new" car and will be paying off by the time the deal ends which has allowed me to make another £150 on interest the money I would have spent buying the car outright in cash has made being sat in my bank during that time.

    And the one thing you've missed is Section 75 protection where if you buy goods £100 or more and put any of that on the credit card then the credit card company shares joint liability with the retailer if anything goes wrong.

    So before you get on your high horse and just tell people to ditch their credit cards willy nilly perhaps you might at least do some research and find out exactly why they have them. Not everyone uses them because they're wanting to buy things they can't afford.
    Last edited by Tarambor; 25-06-2017 at 11:21 AM.
    • Nearlyold
    • By Nearlyold 26th Jun 17, 8:10 AM
    • 935 Posts
    • 770 Thanks
    Nearlyold
    If you are really concerned about their access to further finance then I would consider their agreement to a Power of Attorney a condition to your continued assistance.

    I've never had to use it so not 100% certain it's right for you but could be worth looking at?
    Originally posted by Westminster
    A Power of Attorney would not prevent the parents from approaching a lender and getting a loan.
    • AndyPix
    • By AndyPix 26th Jun 17, 1:58 PM
    • 2,679 Posts
    • 1,799 Thanks
    AndyPix
    how condecending do you want to be OP ??


    I bet you're a right hit at parties
    Running with scissors since 1978
    • ent_moot
    • By ent_moot 28th Jun 17, 9:10 PM
    • 42 Posts
    • 8 Thanks
    ent_moot
    You're missing the point. It is about principles.

    Why do you vote when the probability dictates that your individual vote will almost certainly not matter? You vote on principle.

    I abstain from credit cards on principle. The bonus schemes are a thin veneer of sugar atop something rotten that exists primarily to exploit those who, for whatever reason, fail to manage it with great care.

    If you make money out of them, and your conscience is fine with this, then good for you. I'm not going to judge you for it. However, my opinion is that the world would be a better place without credit cards, and especially without high interest loans. Therefore I abstain from them and encourage others to do so.

    Please respect my opinion also without getting defensive and personal.

    You may have very different life experiences to me where you have seen credit cards save lives and create great happiness and therefore you are strongly in favor of them. If so, great. I respect your view of credit cards.
    Last edited by ent_moot; 28-06-2017 at 9:17 PM.
    • ent_moot
    • By ent_moot 28th Jun 17, 9:15 PM
    • 42 Posts
    • 8 Thanks
    ent_moot
    This is your 5th thread about sorting out your parents' finances. Do your parents actually want your help?
    Aren't you a pleasant fellow?

    It is my second thread about helping my parents.
    • Pixie5740
    • By Pixie5740 2nd Jul 17, 12:48 PM
    • 10,816 Posts
    • 14,943 Thanks
    Pixie5740
    Aren't you a pleasant fellow?

    It is my second thread about helping my parents.
    Originally posted by ent_moot
    You might want to check your posting history as there are more than two threads about you sorting out your parents' finances. We get it, you've got lots of spare money and are super generous, but how many threads do you really need about the same topic? Do you keep starting threads because for all your good intentions your parents haven't asked for your help and aren't being cooperative? Perhaps they just want you to butt out?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • ent_moot
    • By ent_moot 9th Jul 17, 5:06 PM
    • 42 Posts
    • 8 Thanks
    ent_moot
    You might want to check your posting history as there are more than two threads about you sorting out your parents' finances. We get it, you've got lots of spare money and are super generous, but how many threads do you really need about the same topic? Do you keep starting threads because for all your good intentions your parents haven't asked for your help and aren't being cooperative? Perhaps they just want you to butt out?
    I have precisely 2 threads about helping my parents in the past 2 years, so please get your facts straight. If you are referring to threads 2+ years ago, then obviously they will be very different circumstances. Two threads in as many years is really not a lot, so please stop painting an entirely inaccurate picture of my usage of this forum.

    And besides, no one is forcing you to read my threads. If they make you feel inadequate, that's your problem. Go read another thread.

    I'm here to get information on how best to help my parents, and some of the advice has already been extremely helpful.
    Last edited by ent_moot; 09-07-2017 at 5:09 PM.
    • Robisere
    • By Robisere 9th Jul 17, 8:55 PM
    • 1,728 Posts
    • 2,519 Thanks
    Robisere
    There is a lot of truth in what ent_moot says. Easily-obtainable Credit is responsible for the £Trillions of debt in this country. It's true that no financial lender or credit card company, forces people to take a loan or a card. The problem is that many of the millions who do take these services, do not look into the amount they have to eventually repay. They simply have wants and do not compare them with their actual needs, nor think about what the future might bring to their doors.

    It's all about financial responsibility, knowing what you can manage. That's why I have one credit card, which gives me cashback. I make certain that I repay anything I buy with it and I have never paid interest upon it.

    What saddens me about this Thread, is that the guy is making a valid point and no one wants to listen, mainly because his point is real. Misplaced criticism is not a good defence.
    There may be more than one way to skin a cat.
    But the result is always inedible.

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