I have a debt problem but I want to avoid an IVA or DMP

chris_gray1980

I have just found in my agreement (yes is a HP Agreement) that once i hit the half way point of £6370.20 and i have taken reasonable care of the goods i will have not have to pay any more!

If i was to submit my car now and pay up to the half way point i don't see what the difference is really either if a lump sum or monthly payments because i am technically still paying up to the half way point?

jonjamie1970

chris_gray1980 wrote: »

If i return the car now i have to pay up to the half way point which is the £2247 paid back at £93 for 24 months

That is very interesting reading JonJamie, i didn't realise that, it may be worth holding off in that case and look at cutting down in other areas! for 10 months, unfortunately i will admit if it breaks and when it comes to the MOT and TAX i will be screwballed, i couldn't afford it ohhhh do i cut my losses and just be done with it it would be another 4 years of a black mark since i have one which will be on there for a further 2.. i was thinking about negotiating with my credit card for a lower settlement but i believe that goes down as a black mark as well these creditors don't make it easy for you

Chris, read the car policy first and confirm, I too run a car near the mark but careful maintenance has seen me OK so far but your right, if you get a big bill for something then your in trouble, perhaps you could ask your mum if this happens and explain to her that you can relinquish the deal in 9 months at the halfway point.

You can negotiate a full and final settlement of your debt but only if you have the money to clear the card, reduced payments normally result in an AP mark, arrangement to pay which shows on your credit score yes.

Let us know about the small print on your policy.

jonjamie1970

chris_gray1980 wrote: »

I have just found in my agreement (yes is a HP Agreement) that once i hit the half way point of £6370.20 and i have taken reasonable care of the goods i will have not have to pay any more!

If i was to submit my car now and pay up to the half way point i don't see what the difference is really either if a lump sum or monthly payments because i am technically still paying up to the half way point?

No your right its the same thing, if your mum can lend you that £1800 then its better probably yes.

Word of advice, present the car in as good as condition as you can, I valeted and t Cuted the BMW and provided a folder of relevant paperwork to charm that came to collect it, he coudlnt find a single fault. Include all old MOT's / Repair and serviec bills etc etc.

First impressions go a long way.

Who is the finance company, just so I can avoid them

chris_gray1980

JonJamie, I have posted it above, its only a small paragraph but backs up what you have said.

I just do not know I really want to free up some money some how and the only way is the car at the moment but I want to avoid screwing things up in the long run.

another thing is i do not know what's going to happen with regards to the solicitors since my soon to be ex wife wants removing from the agreement and i cannot do that without settling in full and i cannot afford that, but i could say im holding on to the car for 9 more months and then handing it back and she will have to wait for her 'clean break'

Jesthar

Guess it will depend on the lawyers to some extent then. But I'd definitely check out to see if paying up to the half way point in a lump sum would let you return the car. Make sure to get any offers in writing, and read the small print, of course, but better to get rid of that loan and the expensive car, buy a cheap to run and insure little runabout, and throw the money at something else. It would also get you ex the desired 'clean break' as a bonus.

~Jes

jonjamie1970

I doubt they will remove her name so she will have to wait, is she prepared to help with the sum to get it cleared quicker ?

Ring the finance company once you have decided and tell them you want to pay up to the halfway mark and arrange to drop off or have the vehicle collected, they may play dumb for a while but its written in the small print so refer them to that. They like to conveniently forget this as it means more money in the long run. I have to say however BMW Finance have always been excellent.

Your only decision for now is to borrow enough to take you halfway from your mum or to wait the 9 months. For what its worth I would get out now given the opportunity. Get a banger for a while, I did, I went from a £35k BMW to a £600 Laguna, no problems, didnt care where I left it and no wasted cash.

chris_gray1980

I have just phoned the company and discussed things with them, I will admit they are ripping me off but they are extremely understandable and easy to communicate with. so I talked about what if I returned the car and paid the deficit up to half way, she said it will go on my record as Voluntary Surrendered but will say settled next to it but no big black mark but there will be that on there and I guess on there for 6 months, BUT if I keep the car for another 9/10 months yes as you said jonjamie i can have it collected and walk away from it with nothing to pay..

Therefore I have paid this months payment and I am going to keep the car for now but after 9/10 months hand it back unless something does happen with the solicitors otherwise she will have to wait, I'm sure they cannot legally force me in to a negative situation with my credit history well and I assume hers as well, even though I'm told she is a guarantor it is signed jointly on the agreement, I may be wrong but I will wait and see, I will look at budgeting and see what I can save and yes talk to my mum for help with Tax and MOT.

Thanks again for your help, I have been in this dilemma for a few weeks and I feel a lot more relaxed now, so onwards and upwards, I have my children this weekend so I am looking forward to that (good job I don't have my spending diary yet lol ) but I will watch every penny and make a note

Woowoo

Just wanted to say hi Chris and good luck with your debt free journey. You sound very committed, stick with it even when it gets tough as the end result will be worth all the hardwork x

chris_gray1980

Hi Woowoo

Thank you for your message and the encouragement, its something i think we all need in times of debt, i am extremely committed and i am going to do what i can to get straight so i can start my new life.

looking at your signature your total debt is around the same as mine, i cant wait to calculate my debt free date, but i don't think i will achieve it by my 32nd birthday lol it would be very nice though.

Thanks again

Chris

Sarsie

About that food bill (sorry if someone's already said this I have theconcentration span fo a gnat)...

I see what you've done. You've budgetted for the food the kids eat too haven't you.

If you shift what they're costing you onto the bit that says "other child related expenses" you might get a more accurate picture.