Head in the sand for years... Updated 08-Mar-06

CLAPTON

If you would more detailed ideas about reducing spend etc you might like to post your Statement of Accounts (SOA)...if you browse the board you will see examples but basically

list you income

detailed list of expenditure (without debt repayments)

detailed lists of debts giving amount, monthly repayment and APR with a few totals to save everyone having to add it up

also how much equity is in the house?

i'm sure people will give their ideas and suggestions.

jobbingmusician

A really EXCELLENT post which I'm sure will be an inspiration to many other people, and maybe help others to recognise and manage their own situation. THANK YOU for sharing in this way

I'm already looking forward to the party in 10 years' time!!!

Cantdance_2

Believe me there will be a *big* party when it's all paid off.
:j

Actually I hope it won't take 10 years - we're both going in the right direction in our careers and although PayPlan haven't yet rung back to explain to us properly how the DMP play is going to work, I am presuming (and hoping!) that it gets revised every so often as your salary changes and you're able to pay more in.

We're also looking at other ways to save money - at the moment we're paying £144 a month for the car still, which is too much, especially since my parents have now offered to give us their old but reliable Renault Clio. The only snag is that I still owe around £5,900 on the finance agreement and the car only seems to be worth about £5,300 max and that's if I sell it myself, the garage will only give us about £4,700 for it. It might be worth cutting our losses, selling it for what we can get and then just making the last couple of payments after the car's actually gone?

We will also be cancelling Sky once we're out of our contract (in August) and getting freeview... changing our mobiles to pay as you go (when contract is up in October) and downgrading our broadband package to save a tenner a month.

Here's hoping all that will make quite a difference!

James

Verbatim

Hi James,

Wow what an amazing post. I agree with whoever (sorry can't remember) said try sending it to a magazine.

I'm no expert but be careful when selling a car with a finance agreement. If it's legally the finance company's until the last payment is made I think you'll be committing a criminal offence in selling it. I believe you can get the agreement of the finance company (in writing) when it's then OK. Anyway check this with CAB or Payplan may know.

Thanks for aninteresting and inspiring post. Good luck to you both.

themaccas

Hi James
Excellent post and well done for facing it that's often the hardest part. I just thought I would pass on my experience about selling a car with finance outstanding. I did this a few years ago - had about £2000 o/s and needed to sell it because I was being given a lease car for my work. The garage would only take it back for around the same amount and only if it was in pristine condition, it was worth about £3500. I decided to sell it privately for £3200 and had loads of interest, the first viewers bought it AFTER I told them there was finance outstanding. The legal standpoint is that you can only sell privately if the finance is paid off. Our buyers bought the car after their loan company (The AA) paid our Ford finance balance off directly and we received a cheque for the balance. It all went through very smoothly and I would recommend this if it possible. You could sell your car this way providing your buyers paid the finance off and you also settled any remaining balance too before they took ownership.

ladywood

Brilliant post James - and all the best to you both.

tanith

Read your post from top to bottom and found it very inspiring.. its that 'light at the end of the tunnel' feeling that I liked.. and I am sure that others reading it will draw strength from your story.....

All the best to both of you

Cantdance_2

Thanks again everyone for the kind words -I'll certainly look into your advice about the Car fnance!

Managed to do a months' shopping for £60 last night so definitely on the right tracks!

James

Feej_2

Hi James
What an impressive post - well witten and honest about your situation. All the best to you both as you work towards solvency. Doing this together should help: you'll be able to support and encourage each other and take pleasure in the milestones as you achieve them, however small.

All the best to you both - and let us know how you get on.

Feej

kuohu

Hi James,

I don't have any good advice to offer but I would just like to thank you for a frank and honest post, which I certainly empathised with on a number of points. Especially the bit about thinking that you are okay and in control of the finances when in reality that isn't the case. I think that could describe how I have been over the last ten years.

Good luck with sorting things out.

Best wishes,

Nick