A Payment A Day Part 5

SarahNeedle1872

Paulgonnabedebtfree wrote: »

Although Martin's advice is correct for somebody who can be certain of never needing short notice, emergency credit, for everyone else, I think his advice is out of date.
It was correct at the time he first gave that advice. It is not necessarily correct now. This is because many of the lenders withdraw facilities completely or drastically reduce credit limits without warning. This happens to people who do not misuse their accounts too.
A fictitious example to try to clarify (one which could happen to me if credit was all suddenly withdrawn):-
I use money earned to pay down my debts in the belief that I have £5,000 credit for an unexpected emergency. I could have put that money into a savings account but didn't because I knew I had access to £5,000 if I really needed it. Then a disaster - the gearbox needs replacing on my van. Cost £3,000. I put the vehicle in for a replacement gearbox. When I go to pay (using a credit card as I have no savings), I find that the credit limit has been slashed, without warning, to just £200 above my current outstanding balance. I am now in a catch 22 situation. I have no savings to get the van out of the garage. I have no access to credit either. Therefore, no van, no income, totally stuffed.

I think Martin should re-jig that bit of advice to saying that if you are in debt, you should not have savings of any more than you might need to meet unexpected emergencies. Of course, for some people that might mean just having enough put aside for bus fares and sandwiches for work for a month. For others that could mean having enough for a major vehicle repair and to carry a few weeks sickness from work.

If Martin is referring purely to just the numbers then of course he is correct. However, it doesn't take account of potential cashflow problems - particularly for people who are totally dependent on running a vehicle in order to earn a living. Even someone who normally drives to work might get away with using public transport for a while. However, I don't think an 800 litre water tank, a load of window cleaning poles, and a stepladder would be very well received by a bus driver. Maybe I could put the water tank on wheels and have it towed behind the bus.

A very good point Paul, especially in your situation.

I think it depends on the personal circumstances, some people do need to have that savings buffer.

Sx

musogirl295

£59.48 for me today please

Muso x

Flower08

£5 for me today please purple!

Thank you for the well wishes for OH, he is ok just a bit bruised - looks like a right thug!!

Hes desperate for some new game that came out on the PSP today - i knew it was out so budgeted for him to have it, but now it seems to be sold out everywhere :rolleyes: he would think hes 4 not 24 the way hes moaning!!

angelicmary85

Paulgonnabedebtfree wrote: »

Not managing too well at the moment

Hi Paul,

A few weeks ago alot of padders jumped on the 'help BrokeInWales wagon' (Basically a user posted that they had £3 or something to keep them going 3weeks and loads of people offered to send them stuff) so maybe if you're needing a little something (store cupboard style things or whatever) we could maybe do the same for you?

It's just a thought so won't be offended if you say no!

angelicmary85

Flower08 wrote: »

Hes desperate for some new game that came out on the PSP today - i knew it was out so budgeted for him to have it, but now it seems to be sold out everywhere :rolleyes: he would think hes 4 not 24 the way hes moaning!!

Hi Flower,

I had the same prob a couple of weeks ago but OH didn't know I had pre-ordered it from play...it was meant to be a surprise xmas present but he was here when it arrived in a white envelope and the green box was glowing inside when the light hit it so he knew what it was straight-away...now he's not gonna get anything from Santa :rolleyes:

euronorris

I want new FB buddies too! Although I don't have Farmville. I don't want to get started on that. I'd never do any work! haha

Hope everyone is OK. It's Friday!!!!!! Yay!

And the new episode of my fav series will be downloaded and waiting for me to watch it when I arrive home! YAY!

Lemon_Tree

my PAD today is £3 which is my half of the money raised from selling 3 more PS2 games.

Thisisforthekids

Hi all,

£20.21 please purple to the Barclaycard.

Cant be long got to do the food shopping and 100 other things, going back to work is going to be a nice break!!!:rotfl:.

Oscar is still as cute as a button but very very hungry, poor mummy cow!!:D.

See you all soon enjoy your afternoon.

jo41

Hi Everyone,
hope you're all doing well. Having a bit of a hellish time at the mo but at least we're only three weeks from half term and I'm off to Sharm el Sheikh (sp?):D
£30 please Purple to OD and visa.
Catch you all later.
Jo x

clearing_out_my_pockets

Second PaD - 46p