Can You Live Without Credit? Please Answer.

bluebag

MS_Dolphin wrote: »

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.

We had always bought cars on finance, then after a light bulb moment we saved for a banger and bought cash. Since that time we have always put a set amount away in a savings account just for the car, we actually put £25 a month less than the finance was costing, this has gradually allowed us to buy a better car for cash and pay for all the repairs required without any worry, the account is always in credit and sometimes we have a little treat and spend the excess. The loss hit you take when buying a new car is dreadful, you can loose thousands just driving it off the forecourt, this is mainly tax, add finance charges on top of that and it seems like a complete rip off to us.
Better things to spend the money on than keep the taxman and the bankers happy.
bb

archersluck

fakeplastictwee wrote: »

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 )

Seconded! :T

FATBALLZ

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.

Don't know about anyone else but when I see somebody driving a shiny new beemer my default assumption is that they probably took out a big load of debt to pay for it. Particularly when it's driven by somebody who lives somewhere cheap. It isn't really a particularly good image to me.

worried_jim

Haven't used credit since I started my dmp Nov 08 and had no problems and I will never use credit again. Good luck.

handyman123_2

Hi, I agree with Jim, We can all learn to live without credit. I don't want it, if offered I'd probrably get into bother again.

Best wishes Handyman123.

Dinah93

mikon wrote: »

This site has been fantastic over the past week. I have been sheltered from our debts whilst my OH she has been worrying herself sick for the past 4 months and is now is ill as a result of the debts. She poured her heart out to me last week and I sought help from this site and National Debtline as well as CCCS.

The thought of embarking on a DMP is daunting and worrying as we have always had an excellent credit rating and pride ourselves on paying our way in life. That is why the thought of having my credit rating trashed is frightening but the fact the we will not have to worry and not have the stress of scrimping and scraping month in and month out seems worth it. I am also worried about the stress the calls and letters from creditors will have on my wife but I guess their entitled to chase their debt and we want to pay them just the interest element means we will never clear them. So the journey we are about to embark on is daunting but in 6yrs when we are debt free we will be stronger and better people.

archersluck wrote: »

fakeplastictwee wrote: »

. 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 )

Seconded! :T

It's not their ego they're trying to make up for! I'm with others on this one, I see a flash car I think 'what is he over compensating for?!'. Where I work there is a lad on £27k a year and he drives a £35k bmw something or other. He looks a prat in it because we all know he's had to move out of his rented house into a mate's guest room since he couldn't afford the lifestyle. I earn slightly more than this and I drive a £3.5k (3 years ago!) Alfa Romeo. I love it to bits, I get so many compliments on it because its a drivers car not the chrome and aluminium equivalent of stuffing a sock down there, and when someone scraped the bumper in Tesco car park I was angry, but when someone scraped down the side and whacked a dent into my colleagues car he sat in the office and cried! Manly.

I'm about to be harsh, sorry, but it sounds like your partner is tearing her hair out over this, and you want to make her less stressed, but arren't prepared to sacrifice your 'image' for it (and I'm sorry, photos for events in a 22k car - that just says if I hired you you do it as a hobby not that you need the job!) No one is going to think less of you turning up in say a 3 or 4 year old audi A4 or BM3 series or someting, and if any of your family knew our situation I'm sure they'd think a heck of a lot more for you for putting your partner before your pride.

I don't know how much debt you have, but whether its 20k or 120k, 22k for a car is a BIG dent, and could knock a lot of time of the dmp, or you could sell it, pay off some of the dents, making things much more managable, and not have to knacker your credit rating in the process.

You say you like to dress nicely, nice suits etc. This isn't an excuse for it to cost the earth! My H2B went to work today in a Ralph Lauren suit. He earns £16k a year. e buys his suits at TK Maxx for around £100 a suit, they are all beautifully cut designer suits that might be 'last seasons' design but since suits tend to last a few years this certainly doesn't phase him, and he always looks very smart. There are always ways and means.

For some reason multi quote didn't pick up on something you said. That you have always prided yourself on paying your own way. But you haven't. You haven't been able to pay your own way and have relied on banks to fund your lifestyle for you. As I say I don't know your circumstances, you could have been made redundant, been seriously ill, anything, and if so I apologise for being harsh, but if your debts are down to a lifestyle you can't afford rather than an unforseen tradgedy then you need to learn to live within what you have, rather than this image you want people to have of you, as the stability and health of your partner and family are a million times more important than image.

fatpiggy

You may have paid £22K for your car, but it ain't worth that! Like other posters, I always feel a bit sorry for people with private number plates because I wonder if they haven't got anything more interesting to spend their money on. Many people are so wrapped up in themselves, I genuinely don't think they will take any notice of you or what you drive! Sadly, in this day and age, I'd also worry about driving such an obvious pointer to money and being followed home and robbed (especially women whose number plate is clearly their name). Anyway, isn't downsizing and economising the latest fad? I've always bought cars at 3 years old, and paid cash, starting to save up for the next one straight away. My current one is a 51 plate and just went through 145000 miles last week. It will need a new clutch shortly because the cable is now so short (still has the original one) but a mate will do that for me and I plan to keep the car for at least another couple of years. I paid £5k for it and its worth about £500 now but it is super reliable and extremely cheap to run which is all that matters to me. I dress smartly thanks to good quality buys in charity shops and do most of my shopping in Aldi and Lidl. The Germans don't buy rubbish remember! I haven't had a credit card for years and don't miss it.

Good luck with your new money regime. I'm sure that once you have settled in to it, you will be much more content and in turn, this will help your wife to get better.

katiehardgirl25

I just wanted to add not all people with a personal plate are w***ers! I think the point is the OP cannot afford his and therefore will inevitably have to change his lifestyle!
I have a nice car and a personal reg but I have budgeted for it and can afford it - thats the difference. I may not spend in other areas that other people do (holidays etc) but enjoy cars so this is one area I like to spend money on. If people can afford luxuries dont do them down - surely they can reward themselves for hard work and money earned?

If I couldn't afford it or was taking out stupid amounts of credit then they'd be out the window!

Simple budgeting as far as I can see... You spend your money on what's important to you and within your means....

0191kate2172

Crikey, what have I stumbled on? Last year was or so I thought the worst year of my life.. Credit crunch hit me and my family big time, we ran our family business, one of our big customers couldnt pay us, we then couldnt pay our finance companies etc etc. We had to declare ourselves bankrupt and walk away from our 'comfortable' lifestyle including our house which we had paid £50k deposit as well as 5 years worth of payments. We handed our 'luxury' vehicles back inc private plates! and found a rented property which is a two bedroom and the kids share now. We have no debt and to be honest and can sleep now! The hardest day was handing my keys back to the Abbey (Business loans secured against house - but not advised they were secured) I know what some of you may say, but yes we were mis sold and not advised.. Anyway, we are here, still standing, happy with money in our pockets, my stress has totally gone with a simple court number. I would never ever have said to anyone Bankruptcy was the only way out for myself and my husband but we were very well advised by a company in Newcastle who did'nt charge for impartial advice.. Don't be led into paying someone to write your debts off, there are too many con men out there waiting to prey on 'down on their luck people' But to reiterate YES YOU CAN LIVE WITHOUT DEBT!! AND ARE VERY HAPPY. Good luck for the future.:)

A_Nice_Englishman

I don't buy on credit because I'd rather spend my money on things I need or want than give it to banks in the form of interest.