warning...and maybe some advice

monkey_fan

Having now writtent this, please skip to the adivce bit if you don't want to be bored...

For the sake of being taken to task by fellow members I shall still write this. Plus I appologies if this actually turns into a rantball. That's like a rant and rambling at the same time.

We are the standard single income family. We have a great life buying the odd item that we really don't need and although worry about money (like every 10mins in my case) don't really suffer. I am also pretty sure that if we really needed family could help us. But this really is a warning to younger people. I work very hard and I think get a good wage - however I have been far from clever in the past with my money. I now have a crap credit rating (luckily good enough to get a mortgage, albeit expensive) am stuck with a basic bank account etc. Jesus I feel a fool. However up and till recently it has never really bothered me. Ok I have to pay a little bit more for my mortgage and my car on HP I am sure could have been cheaper if I had been a good boy. However I always pay my debts in the long run, I may have just missed a few payments inbetween. This is my advice to all - don't get credit unless you can pay. You don't need a 40" TV or a leather sofa etc. You do need freedom and you need to look after you family etc. I wish I could turn back time and do things slightly differently but I can't. So now I have to work harder no one else to blame but me. Ok that's enough of a warning and probably isn't meant to be read by anyone else, I don't have many people to talk to about this and just typing into the ethanet is turning out to be very satisfying. Did I mention that this is all very stressfull and gets me very down?

Anyway to the advice part
I currently have a car on HP, the settlement figure is around £11K and the car is worth about £9K and I have just finished the 1st year of 4. My wifes car is getting very long in the leg and needs to be sold while it is still worth something and replaced. We don't really have the funds to hand (I don't want more debt on my CC) to get her a car (ok we do have about £1.5K from the sale of her current car) but would like a little more. What I want to do is take out a loan to pay off the HP agreement on my car, sell the car and then use the funds to buy me a different car and her a new car. Mine needs changing as the miles are getting high, although this is not 100% important. However I have been refused credit by my bank, anyone any advice? Or have written to much, you've all gone to sleep or my situation is just to boring and based around needless stuff that I don't need?
Great web site, most of the forum is great to.

Londonboy_3

The opening paragraph should be taught in schools. In my view having a credit card is only worthwhile to build up a credit rating before a mortgage application, and even then you should pay all of it off every month.

Once you have your mortgage cut up your cards, don't touch any loans or credit agreements and live on what you earn, saving what you can.

On cars in particular - the vast majority of cars made in the last 15 years are built to last. You can buy a car for £1,000 which will go for 3 or 4 years at least without any problems.

Grek

Thank you for your post

CLAPTON

your wife doesn't need a new car
you don't need a new car

rethink your values... save then spend its really that simple (mortgage excepted)... doesn't really need teaching in school, just common sense

JimmyTheWig

Are you having to pay out lots and lots in repairs on your wife's car? (I.e. how old is it?)

This may be out of order, but if the debt problems are yours, would it ease your concience if you and your wife swapped cars? I.e. she has the £9k one and you have the £1.5k one?

Your advice to others is "don't get credit unless you can pay". Follow that advice.
Keep your current cars. Look after them. Get them serviced every year. When you start paying out more in a year on a car than it would cost you to replace it then replace it. Until then, you can't afford the luxury of changing cars.