Can You Live Without Credit? Please Answer.

Chrisblue1962

My DMP starts next month...I can't wait! Will have a balanced budget without access to any credit. It's going to take 11 years to pay off debts but each month is a month nearer "financial freedom"!

BooBoo14

I have been on a DMP for nearly a year now and feel so much better and budgeting much better and learning to live without credit cards! One of my creditors (NatWest) took me to court recently for their money as they are not happy with my monthly payment (I found that scary), never been in that position before, now have a CCJ! Anyone here had the same?

Should be debt free in about 11 years. Maybe I am a bit dumb, but can someone on here explain how it works that your credit rating is 'crushed' for 6 years even though I will still be then paying the debt off 5 years after that!

taplady

we have lived without credit for nearly 5 years now - just about to finish a IVA:j its not been all been smooth sailing by any means but we've managed. In the past we would have turned to the CC for any emengencies but now we have to find an alternative.

We've been lucky - my car was free from a friend who had been given a company car and its hardly cost us anything in repairs so far. DHs van is fully paid for. Our sofa was free from someone who wanted something new(its an ercol so got lots of years in it yet)
Our bed was my Mums old one(new mattress). Our bedroom carpet came from a church and was going to be thrown out(its wool and in fab condition)
Our TV was free - a friends son was going to take it to the tip as he';s bought the latest plasma one.
we have a beautiful pine chest opf drawers rescued form a skip and restored.
Other things we have got from carboots, freecycle and ebay. You dont need to buy new to get a nice house - there;s nothing wrong with my house:)
I have the knowledge that its all mine and paid for - unlike a lot of people who will be paying for their cars, plasma tvs and sofas for years to come!
Our last debt payment is in July and then we will be considerably better off but I dont intend to go back to my old ways ever!
It can be done.

mystery_united

BooBoo14 wrote: »

I have been on a DMP for nearly a year now and feel so much better and budgeting much better and learning to live without credit cards! One of my creditors (NatWest) took me to court recently for their money as they are not happy with my monthly payment (I found that scary), never been in that position before, now have a CCJ! Anyone here had the same?

Should be debt free in about 11 years. Maybe I am a bit dumb, but can someone on here explain how it works that your credit rating is 'crushed' for 6 years even though I will still be then paying the debt off 5 years after that!

Sorry not sure of the answer to your last question, BUT:

We started our DMP in November last year - will take 9 years to pay it all off. Since things have settled down somewhat I have plucked up the courage to start picking off each of the creditors.

Firstly take a look about reclaiming PPI & charges on this site, does this apply to you?

Secondly, you may find that if the debts have been passed on to DCA, they will periodically write to you with 'one off' discounts on the debt i.e. 50% off. My thoughts are that even if you can't afford the payment now, squirrel away what you can each month and then write back to them once you can afford it (full & final settlement).

You will be amazed how quickly the years will come down on the remaining debt.

aaronm_2

To tell you the truth, no.

fakeplastictwee

It certainly can be done, you just have to change your state of mind.

I have never had a credit card in my life, and have (thankfully) always been brought up to pay for whatever I want with actual money... to be honest, if there's something I really want, I find making myself wait for it usually results in deciding I don't want it that much after all anyway! If I had a credit card I'd end up buying stuff on a whim and getting bored of it fairly quickly.

I drive a £400 banger, started first time every day over the horrible winter. I don't really worry about what people think of me and there's so many other older cars on the road. The reality of it isn't as bad as you might think! I recently bought a second hand bike and cycle to work some days instead of driving. Certainly makes me appreciate my little old fiesta when it's windy and raining!

I don't earn much...around £850 a month after tax, and sometimes get frustrated that I can't buy myself new clothes very often etc. but I have no debt, rent a nice house with my bf, can afford to look after 2 cats and still go out and enjoy myself sometimes... I appreciate these things more than having amazing expensive possessions that I'll probably get bored of. I appreciate experiences, spending time with friends.

Whatever you choose to do, I hope you can be happy. Living without spending a lot can still be fulfilling. The most important thing is that you and your wife are healthy and can sleep at night. Don't worry too much about changing your car! (To be brutal, when I see someone driving a car with a personal plate, I always wonder about the size of their ego )

Eskimo12345

mikon wrote: »

So how do you survive without credit.

1. Work hard to get a well paid job

2. Don't spend more than you earn

Not difficult.

franwh

mikon wrote: »

The problem is I am driving a £22k vehicle now private plates so to come down to a £500 vehicle will set alarm bells ringing amongst my family and friends. I know this sound stuck up my own ars* but I am one of those individual that has to maintain an image albeit the image I have been protraying over the past year has been beyond my means its difficult to readjust, its easier to go up than it is to come down. I guess my image needs to go out the window and my OH health and well being needs to be my priority.

Sorry for sounding a stuck up pompus, I'm not if you knew me.

How ridiculous

bluebag

Credit is nothing more than spending your future earnings today and paying a hefty interest fee for doing so.
Can I live without that..... Oh yeah!

MS_Dolphin

The real question you need to ask is, "can you live without credit?"

For me personally, the answer is yes, because I've had to. The first step is admitting to yourself that there is a problem and I guess this is where pride comes in - £22k cars and personal plates. I don't say this to have a go, but because I know how it feels.

It was hard for me to admit I had a problem but once I did it was actually quite liberating. Admitting the issue is the first step to fixing things. I'm now 18 months on from my (real) lightbulb moment and things are turning around. I've still got plenty of debt but it is reducing and I've consistently got more coming in than going out - and my £500 car gets me to all the same places previous expensive one did.