Debt v Life

skim

MET wrote:

Wow what a response! I know that my view point will not suit everyone...but I still stick by what I'm saying. A few of you ask the question.."what do you mean debt can wait?" Banks and CC companies will try and push you into making payments that you can not afford. Create a manageable DMP and stick by it. Don't be tempted to pay more than you can afford. In the long run you will, as many of you put it "fall off the wagon" and cause yourself more problems. If you are realistic and don't overpay you can stick to a dmp where everyones happy. The bank and CC companies want regular payments..so if you are over stretching and not making regular fixed payments they will hassle you day in day out. Not what you need when you get home from work! I do appreciate that some people here can not afford to take my view point and I appreciate that. As I said my views are not for everyone. My debts will be paid off, yes I have £80k of debt but even on the DMP they will be paid off within 12 years. I just want to make my life as easy as I can within that 12 years! Money does not make you happy - I agree with that but it sure helps. Poor diet and no treats would make life a dull existence. But like you I also enjoy doing things which cost nothing, such as walking my dogs and going to the park with my kids. All I'm saying is don't get obsessed, relax and enjoy life without stretching yourself to far. I hope that all makes sense..I'm not having a go at anyone, as I said everyone has different approaches to debt and if it works for you thats great. m

Blimey - I don't think I could live with debt like that. On £80k even if your interest rate is 5% which I doubt it would be, then you'd be paying £80 per week just to cover that.

When I was younger I used to get loans for everything - I just couldn't wait till I saved up for it. Nowadays I learnt it's better to not live like that. It took me 3 years to pay off my £18 of debt & now I'm saving about £600 a month without missing out on anything & the wife saves about the same. Went on 2 holidays last year - week in Cyprus, 3 weeks in Canada. Paying off your debt may mean you have to cut back short term but in the long run it makes sense.

Snaggles

There are a lot of interesting points raised on here, and I agree your individual circumstances/personality/upbringing etc has a huge impact on how you view debt.

Personally, I couldn't bear the thought of being in long term debt, and would cut back as much as I possibly could to repay it quicker (although not to the detriment of my child's diet/health). That's not to say my way is right, just different. Who knows whether I'll look back when I'm an old lady and think 'I'm so glad I did that' or 'I wish I hadn't panicked so much and just got on with my life'. We all have to deal with things how we see fit, and just hope that we are making good decisions.

Thanks nearlyrich for stepping in early - I think you have ensured this has turned into an interesting discussion rather than a free-for-all pub brawl!

SuiDreams

I'm a get things paid of as quickly as possible kind of person and its not about missing out its about being more creative with your money and not wasting it.

Zulu_Dawn

skim wrote:

Blimey - I don't think I could live with debt like that. On £80k even if your interest rate is 5% which I doubt it would be, then you'd be paying £80 per week just to cover that.

I think the amount is not particularly relevant. It is it's relationship to how much you earn, the equity in your house, the size of your mortgage, your family, committments etc. Also a DMP means you can get a lot (or hopefully all) of the interest frozen.

I owe a huge amount and the reality is I will be paying it back for the next 15 years. By really cutting down I might reduce this period a few years, but the reality is I'm there for the long term. Therefore living on cabbage soup and selling stuff on Ebay is not the solution for me. I have a self administered DMP which I can afford and am treating my debt in a similar way to the mortgage.

My lifestyle change was to realise the folly of living on credit and resolving to stop that. That was my lightbulb moment and it has changed my life immeasurably for the better.

As has been said many times in this thread it is down to the individual. The biggest plus is I am loving being a DFW and get more pleasure from that than the tens of thousands I spent in search of the hedonistic existence I thought I desired.

ZD

MET_3

Yes I agree with you ZD. It does depend on your level of debt and circumstances. If you are in it for the long term why not make your life comfortable. Not being funny but even if I upped my payments to the max I could afford, it would only take a few years off my repayments. yes, that was my lightbulb moment to..the switch from living off credit to pay as you go. I don't think everyone understand what I'm trying to say. When your in a long term DMP you have to make it as flexible and rewarding as possible. This viewpoint as I said won't suit everyone but it does for me and by the sounds of it for you also! m

skim

I do understand that you've got in a position where all you can do is make the best of it & that is to pay it off slowly & try & make the best of things.

I'm not criticising as I felt I was in a similar position but I was lucky & my circumstances changed.

Kevicho

bobble_hat wrote:

I think there is a strong case here for laws to be passed banning the issuing of credit to persons under 30.

What do you think?

NO!

What about people who need loans to start businesses, i know there in the minority, but people under 30 have the same needs as people over 30, and just because you are young it doesnt automatically mean you waste money

MET_3

True, but I do think that there should be greater restrictions at a young age. I'd love to know the percentage of businesses that fold when based on loans to people under 30? m

jessegee

MET wrote:

Hi all, I have been lurking on this forum for a good few months and have decided to make a few comments. Being in debt seems to take over peoples lives...which I find very sad. I know its important to pay back your debts but there is more to life than just making repayments month in month out. The most important thing is your family and having a life. Debts can wait. People who you owe money to will wait. I owe £80k but make sure that I look after my family first and don't offer the creditors more than I can afford. I worry when people on this forum start panicking over a few grands worth of debts...and making offers which they can't afford. Banks and CC companies usually agree to your payment offers if they realise that is all you can afford...but even if they don't stick to your guns and don't offer any more. I set up a repayment plan with all my creditors and all agreed and have done over the last 4 years. I think the most important thing is having a life and keeping your family safe and happy. Anyway rant over. m

I understand MET about the worry of paying back larger amounts
I am terrified the washing machine will go, or the roof will leak because we have committed up to the hilt

Our life has changed beyond recognition and we have learnt how to be poor and happy, but I am still stressed when life doesnt trot along normally and we get big expences come in , I most definately am upset that no matter how hard I work, I am still on the verge of losing it all and my sanity

I should have negotiated a better deal as you did

jessegee

anniestar

Zulu_Dawn wrote:

Hi Anniestar

I'd love to see the figures on Crosby Beach. Can you let me know what you thought and how easy it is to find them as I am from down south and don't know that neck of the woods too well.

Thanks,

ZD

They are fantastic and well worth a trip.BUT.....You will have to be quick as according to the local neews they are going within the next two weeks. We went down to the end of the M62 and followed the signs for Crosby. Ther are loads of parking facilities and free parking at the leasure centre(along with loos) and its a very good place to get on to the beach from. We have been going at different times of the yeas and at different times of the day. The statues are totally amazing and honestly in MHO well worth a trip. Hope you do get there.If there are any developements rgarding the extention that people want I'll let you know.