help with debts (6months later)

Magnolia · 23 July 2010 at 10:54AM

Where are you staying in Thailand? DH and I have done Bangkok and Hua Hin. Loads of fab trips - if you have time do the Bridge of the River Kwai - it is very emotive.

Oh yes and the Rose Garden was a lovely experience as well.

Lisa1978 · 23 July 2010 at 10:55AM

Thanks for the tips

We are doing the other side... Phuket/koh lanta/krabi

Was more expensive to fly into Bangkok so going with Air Asia (cheap airline) to KL.
sounds fab

xx

Magnolia · 23 July 2010 at 11:01AM

The round island trip on Phuket is brilliant! It takes you to a cashew factory where the nuts are still extracted by hand :eek:

They had a shop where you could buy the produce - lots of stuff with nuts and coconut in but beware of some of it - I thought I was eating coconut shavings in caramel - nope - it was dried fish!!! *where is the throwing up smilie when you need him!*

amiehall · 23 July 2010 at 11:34AM

A DMP is only really suitable if you're failing to meet the minimum payments on your debts. If you can meet the minimum payments (or a bit extra) then you're really best off plugging away with them as they are and trying to pay as much as possible to get them cleared yourself. I can't see how a DMP and definitely not an IVA could help you.

tbourner · 23 July 2010 at 11:39AM

You seem to have planned for the debt payments so I'd say a DMP and certainly an IVA are a long way away!! If you get further and further into debt to the point you don't think you can pay minimum payments - then start looking into it.

Congrats on getting married. We did it 2 years ago and cost us about £8k, that was cheap!! More than half of it was the dress, rings and venue though!! :eek:

tbourner · 23 July 2010 at 11:42AM

Lisa1978 wrote: »

and i know that people will say they should be Hubbies once married, but in my eyes why should they be! I got myself into the mess, its up to me to sort it out!

Most people agree with you!

DarkConvict · 23 July 2010 at 12:00PM

Getting married is about showing love and commitment to each other. However i personally think you can show this better by working together on your finances and bringing the debt down. It shows that you are willing to commit to each other in the long term by tackling problems together. Furthermore it also means when the debt is gone you can get married without worry, because right now you are asking opinions because you are unsure if spending £8000 is a good idea.

It is an achievement to have saved that much money, but i would use it with the advice given on the forums to make F&F offers to creditors, bring the debt down first should be your priority. Reduced stress and greater happiness will follow, by doing it this way you won't have any regrets when you get married.

DVardysShadow · 23 July 2010 at 12:16PM

Lisa1978 wrote: »

... The problem : I still have my debts sitting in the background. I am paying my minimum payment on my credit cards :

Ulster Bank: £3,500 @ 17.9% (paying this off first as high rate - pay over the min, try for £200/mth at least)
Virgin : £4400 @ 16.6% (pay £112/mth min)
Abbey : £2000 (i don't spend on this card, used as a bal transfer @ 0% and pay the min £95/mth direct debit)

Also 2 unsecureed loans of £302/month, £155/ & £147, the £147 has only 2 payments left :) therefore from Sept onwards i cld use that £147 to pay off agasint CCs to < debt

My question : do you think i shld go for a DMP/IVA or keep plugging away and hopefully come Feb after honeymoon can start paying a larger wack of the debts to reduce them?

Sorry its a long one! xx

https://forums.moneysavingexpert.com/discussion/2230961

Looks like you have increased your CC debt from 8100 to 9900 - 1800 of your wedding has gone on to the cards. So in reality you have saved 2700 towards the wedding.

Well done for spotting that your £147 loan is almost paid off. It will allow you to start making more of a dent - how long until the other debt is paid off? The fact that you are going to free up this money suggests to me that you would be mistaken to go for an IVA or DMP. I suggest you try the snowball calculator to try and plot a path to being debt free.

Although I think it is harsh to suggest you pay off your debts before you marry, I think you should not be marrying while you are talking about DMPs and IVA's - and you should not increase your debt in order to marry.

DarkConvict · 23 July 2010 at 12:23PM

Old style forum gaming princible

Although I think it is harsh to suggest you pay off your debts before you marry, I think you should not be marrying while you are talking about DMPs and IVA's - and you should not increase your debt in order to marry.

QFT - Quoted For Truth.

If you have looked at the snowball calculator, by getting married you are going to be setting your debt free date back by years. It would be so much happier for you to get the debts down if not totally cleared before you get married.

Look at it like this. http://www.whatsthecost.com/snowball.aspx

If you add up your debts to a total of £15,000 at ~17%. Paying back £500 a month.
It will take you 39 months to pay off these debts if you snowball correctly. During that time, you'll pay £4,308.00 in interest.

Now say you invest £8000 of money into it today. Meaning.
If you add up your debts to a total of £7,000 at ~17%. Paying back £500 a month.
It will take you 16 months to pay off these debts if you snowball correctly. During that time, you'll pay £737.00 in interest.

You could save thousands in interest that can go towards a better wedding, and you will be happier sooner. Buying stuff on credit before you can afford it will cost you so much in the long term!

Marisco · 23 July 2010 at 12:58PM

I must say I completely agree with DarkConvict. I didn't realise weddings cost so much:eek: Maybe that's why not as many people get married these days as used to. It would be nice to start married life with a clean slate, and not bogged down with debt:) And if your already living together a few more months won't make much difference.