Some advice needed

shopnomore

Hi All,
Am interested in your opinion.
As I have posted before, my husband and I are in about £45k worth of unsecured debt!:eek: I know I know......plus we have a secured loan on our house with a mortgage. Can you say idiots. It was all OK and payments were fine until husband got made redundant.

Anyway, we have entered into a DMP with CCCS, at least I think we have. We did the intital budget/remedy thing on line, received their paperwork, completed it and sent letters to all our creditors. Since then, we have not heard anything from CCCS and this was all sent back on 1/6/10 so I guess I should call them. On the plus side, all of our creditors have stopped calling us!!! Hoping this is a good thing.

Anyway, point of the thread. We have a car, an old old old car that is falling to bits. The last few services have been expensive and it always needs new bits. It is due for it's MOT next month and I am pretty sure it will fail and need a couple of hundred worth of work doing. It is 10 years old and has done 130k miles so we have had our moneys worth really. My boss at work is selling her daughters car which is an 1 year old car. She just had it valued at £14k and has shown me the valuation and has offered to let me buy it off her for £13k. She also said she will do it on an interest free loan over three years and deduct the payment from my salalry each month at an agreed rate.

So one part of me is ready to snap her hand off and do it. Thinking no MOT costs for the next few years. Still under warranty. New and reliable. I know my car is coming to the end of it's life and there is no way I will be able to afford to buy anything from anywhere else for at least the next 5-6 years. I need a car to get to work as it is miles out of the way and public transport is not really possible but it is a good job, I arn £30k a year there and have looked at getting something nearer home but all on much lower incomes.

On the other hand, I am thinking you stupid girl, why are you even CONSIDERING this when you are already in so much debt and having to get CCCS to fight your battles.

We would literally have to live on rice and beans and have no social life for the next couple of years if we do buy it....... Arrrgghhhhh I don't know what to do!!!

Am so mad at myself for being in this financial mess. This is a fab opportunity to get a really nice car and a very generous offer from my boss.

Advise me oh great and nobel debt free wannabees

Pigmyhippo

Dont do it!!

What happens if problems occur at work, and you have to leave/are made redundant?

How about if the boss decides to call in the loan at a quicker rate leaving you with even less money than you are planning for?

Even if these problems don't occur, do you really, and I mean REALLY need a 13k car, or would it just be to make you feel good short term whilst suffering the pain long term?

My advice would be to spend the money on repairs for the car, live frugally for 3-6 months putting aside the amount that would've been deducted from your wages, and then go bargain hunting for a cheap car if yours is becoming increasingly unreliable. I picked up a car 5 years ago for 1.5k, and it still gets me to work every day despite being over 10 years old now.

It may not look as snazzy as a nice new car, but it does exactly the same job, and at a fraction of the cost.

Anyway just my thoughts on it feel free to completely ignore me, I'm no angel myself!

mummytofour

Let me get this right, You are already in 45k worth of debt, worried sick about money and you are considering spending 13k?

Have you actually had your light bulb moment? Do you really really understand how much debt you are in? Because you are not thinking that way IMHO. living on beans and rice for 2 yrs is not something that you really want, I am sure.

Regarding the current car, find out how much it will be to get the work done, then ring round and see if you can get it cheaper. After you know how much the work will be then is the time to consider your options in a realistic manner.

Sorry to be harsh, I just feel that it will benafit you to hear it straight.

10past6

shopnomore wrote: »

Arrrgghhhhh I don't know what to do!!!

If you've submitted your SOA to CCCS, that should confirm you have no surplus funds, the agreement when entering into a DMP is no further credit is added to your existing debt, do tread very, very, careful, “some” members with CCCS have had their DMP cancelled when additional credit has come to light, the end of the day, it's your choice how you proceed.


Good luck

shopnomore

I know................... I guess I just really wanted a new car and can't see me ever ever ever being able to afford one and this seemed too good to be missed.
Sigh.
Maybe I will never learn. This is how come I am in this darn situation anyway!
Thanks for telling me what I needed to hear. I will tell her tomorrow thank you but no thank you.
I have had my light bulb moment, believe me. I think there was maybe a power cut thought the last day or two but it's back on now.
:(:o:(

3Dogs

We all know what it is like to have the chance of a nice car or (holiday, new tv, submit anything else) but, if we are to make sense of our current debt, it has to remain a dream for now - unfortunately!

You just needed to be told what you already knew didn't you? I think most of us would at last consider the fantastic offer. BUT that is what got us all into the mess we are all mostly in.

You had your LBM and did all the hard work with CCCS and are going ahead with your DMP - when this is all sorted out, and your debts cleared, you can start a new then - and with your salary, and all your money coming to you, you'll soon be able to save enough cash up to by yourself a nice new car, if you still want one then.

So I say well done to you for posing the question and knowing the answer!!!! Good luck with your DMP