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What do people think of this....thoughts, opinions please..

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Comments

  • DiggingOut
    DiggingOut Posts: 770 Forumite
    Not a lot needs to be said here. You are going through a lot of money, aren't you? That's a lot of "going out, etc", isn't it?

    You ought to track EVERYTHING you spend and then look at it and say, "Did I really need to do that?" I suspect you probably won't spend sometimes when you would have just because you won't want to write down what you spent the money for....

    You could cut that by a third without hardly trying, I would guess, and all of a sudden 9 years becomes five. Which is still a long time, of course.
    I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.

    If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.

    Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    donmonster wrote:
    Hi folks thanks for the many replies - I really appreciate it - and I just wanted to get some ideas of what is available and what is out there.

    I had thought you could get up to a 1/3 of the Debt written off if you offered to pay them off. Can anyone tell me what is the problem with paying one creditor off at a time and not the others - i.e If someone offers to take £2000 for a £3000 debt would it not be best to clear that if possible and then just increase the payments to the others as a result of not having the debt you have just paid off anymore?

    In all debt management situations - DMP, IVA, Bankruptcy - creditors have to be treated equitably. So they each get a share of what you've got. In your example, one creditor would get less than they were owed and the others would get the whole debt repaid. Think about it from the creditors point of view ... why should one of them get preferential treatment?

    This is the way CCCS work (and all the DMCs). They take your monthy payment and spread it around your creditors, pro-rata, according the amount you owe each as a proportion of the total debt.

    It's all explained in this DIY Debt Management Pack

    http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3

    I understand that the origin of this is in some very old law (Law of Equity as in fair and equitable treatment), but have no reference for this. You can call the National Debtline and ask them on 0808 808 4000.
    I have no property at all - only my motorbike - which I think would break me to sell - and as I also use it every day....

    Perhaps you should consider bankruptcy. That's one way of having your debt wiped out. Details here

    http://www.nationaldebtline.co.uk/england_factsheets/factsheet_01.php3
    Regarding the point about unemployment Deemy - what do you mean by this - actually quit my job and then claim I am unemployed? Don't think I could do this - as apart from perhaps pushing my partner over the edge it would leave me with no money whatsoever...how does this work?Talon thanks for your message - I suppose it just gets to me when I think of how long it will take - yes some of it is self pity but a lot of it is just like "This is going to hang over me forever!!" However I am in a better situation than a lot of people - I can always afford to eat and go out the odd night and hopefully this year get a holiday. The thing is some will say you should save that £1000 from the holiday and pay off the Debt but I think my girlfriend would go mad - and I would loose friends if all of a sudden I could never visit or go away with them. Perhaps I am still living in a make believe world and peiople think I should not be having these treats as I have already had years of fun with the money.....who knows...

    You're certainly living in a make believe world if you think you can afford treats and a holiday and pay off your debts. Oops, forgot .. you actually don't want to pay them off, do you?

    <snip>

    Perhaps I should cut out some of my 'treats' and put an extra £100 a month in? However when I think about that I think should I just put that £100 a month into an ISA or something so I have a lump sum say in 2-3 years to pay off one of the Debts and hopefully get a discount?

    You need to decide what's important. If you want treats & holidays then your debt-free date is a long way off. And remember, it was probably treats & holidays that got you into debt in the first place. Sounds like you are still liviing a life you can't really afford.

    On the other hand, if you really want to be debt-free then take every step you can to achieve that. Remember that giving up treats & holidays only lasts as long as the debt. Once it's gone, you get the treats & holidays back.

    Crunch some numbers. How much money would you have if you were debt-free? Does that look attractive? If so, then you just need to focus on it.

    Your other alternative, as already suggested is Bankruptcy. That way your debts get written off, but the OR may take some of your surplus income to offset against your debts until you are discharged - which is usually after 12 months.

    Wake up and smell the coffee ... ;)
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • fazer6
    fazer6 Posts: 185 Forumite
    I used the name on a bike forum so people knew what I had and it just seemed like a good idea to stick with something I could remember, even on normal forums!

    Right so £100 for food for two people a month and you do regularly spend more than this? Last month I took out £100 in cash and kept it in my shopping purse. I had bought a fair bit of reduced meat so this month I thought I'd see if I could go for £80. It's actually easier than you think to reduce the shopping bill. I get paid mid month and am right on target to have spent my budget (I might end up a couple of pounds over but not more than £5). Come over to moneysaving oldstyle and join the march grocery challenge. Take out your shopping money in cash each month and plan to only spend that amount, try and reduce it by a small amount until you reach frugality nirvana. What you need to learn to do is bulk out meals to make them last longer and to have cheap meals. Plan your meals religiously and only ever buy what you need to make your meals for that week. Do a roast on a sunday and use leftovers in sandwiches for the week and then in a curry. I have my meals planned for the week, they generally fall along the lines of monday - chicken/turkey tuesday - cheap meat (sausages/mince) wednesday - hardly any meat (pasta bake, risotto, fried rice...) thursday - dairy day (homemade pizza, omlette, quiche...) friday - fish, saturday - slow cooker delight, sunday - roast. A few times a month I'll replace an evening meal with homemade soup and a sandwich. Slow cooker meals get padded out with pulses and veg so they last longer and I freeze leftovers. A £4 reduced leg of lamb did a roast and then a caserole with enough portions for two of us 4 times. For about £2 I made 32 meatballs in spicy sauce. Do you have an aldi/netto/lidl near you? Check out their offers online and work your meal plan around what's on offer. I got 4 pork steaks for £2.99 (or thereabouts) and condensed soup for 25p a can, in the slow cooker that'll be lovely and hopefully last for 3 dinners for two of us. Do you buy brand name stuff?

    Your mobile - do you go over your minutes? If you do then stop, register with call18866 and use that at home for landline calls. If you spend on cross network calls then use text messages, if you text a lot then cut it down and email instead. Don't forget every penny does count and a saving of a couple of pounds a month on your phone, combined with £20 a month on your food, combined with... you got the picture right?

    What about gas and electric? Can you switch to get them cheaper? Have you checked recently to see if you can?

    What if you only play football once a week? Would that halve the bill?

    The savings money is blatently better off paying off debt.

    Get martin's budget and set yourself a target for each thing - food, entertainment... On payday take out the money in cash and spend no more than your budget. Open up different bank accounts if you want to and have one for petrol... This keeps you to within the budget.

    Cutting back a little bit from everywhere won't hurt and it'll help with the debt. Oh and if you have a monster then I'm well jealous, wanted to try one when I was on used bike heaven but they didn't have one in.
  • ms_london
    ms_london Posts: 2,852 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Donmonster

    I have had a brief read through all of the threads, and I might repeat what others have written, but these are just a few thoughts that spring to mind..

    You say initially that your brother took out a consolidation loan for you? Was this in his name? How much was this for? Do you still owe him money? What a nice brother you have!!!

    Too right that you cannot go bankcrupt.

    I think what you need to do is list ALL of your outgoings each month, and all of your debts (or is the only debt you have with the CCCS and the payment of £474 pcm)?? Is this similiar to payplan where you pay this amount and the CCCS distribute it between creditors?

    How long have you been with the DMP for? It seems that by lying about your rent you hadnt had your "lightbulb moment", and it seems you probably still havent. And if things dont change, you could be in debt a lot longer than 9 years.

    If you dont want this debt hanging around your neck until you are 40 which you state you dont want, stop looking for easy ways out (IVA/bancrupcy/your debt being written off).

    Do you have savings?? How much? I noticed a £1000 relating to a holiday, but do you have more than this saved somewhere?? If you would lose friends for not being able to go away or visit them, then quite frankly what kind of friends are they. I think you are living in a make believe world like you say you are.

    I live in London, im in debt (will be debt free in December, debt stood at £19K at its highest, now around £7.5K). So quite frankly yes it IS possible to be living in London on a budget of not much more than £200. Not much fun, no, but it can be done - it is feasible though. Again, you mention an issue of pressure from your work peers wondering why you are never out/cant afford to do anything. You're 27 but sound as though you are a lot younger, and live your life through other people. What exactly does it have to do with your work peers? It is tough, but just explain that you are trying to save for a house or something (if you dont want to tell them about your debt), they should respect this & understand.

    "" I must admit I do not really budget "" - well that one kind of speaks for itself.

    So after your rent money/CCCS payment/girlfriend debt/savings/gym/mobile phone/footie/petrol - you are STILL left with £1017 - are you serious???????

    My good god, this is so much money. You are in an extremely good position to be able to pay off your debt, imagine if you threw the £1K a month into it, you could be debt free in 50 months, 4 years 2 months - making you 31 - not the nearer 40 you once thought. Sure paying £1,000 a month might not be completely practical. Mind you, you already pay the CCCS £474 - so it would only be an extra £524 a month, still leaving you with a substantial amount to live on each month, and also continue saving. What if you could pay £1,500 a month into it, you could be debt free in 2 years 7 months!!!! Wow, almost before you turn 30. Could you not pull your belt in for the next 2 years and 7 months, then you will be debt free & could then completely enjoy life.

    Also you pay £800 a month EACH for rent/utility bills etc. Could you not move to a cheaper flat for a while, this would free up a lot of your money for starters. You need to budget for other things too, travelcard, phone bills, petrol, maintenance on your bike, insurance, christmas, birthdays, holidays etc. If you are prepared for these & save a small amount each month for them, it will be more manageable, and you wont be hit with big bills when they are due.

    As debt free chick has already mentioned. You have to decide whats important, and only you can do that. Ok, so you decide you just want to continue paying the £474 a month for the next 9 years - come your 40th birthday you are debt free. But you have no or very little savings, perhaps still renting - or if you have got married, bought & house & perhaps got kids - you could be even more in debt because you havent budgeted and just spent too much money "on going out etc etc".

    You have the means to turn this around, you really do. But it takes a lot of hard work, determination & perseverance. It wont all get handed to you on a plate (I used to think this too, and dream of winning the lottery so that my debts could be cleared, but no the only way I have paid so much off is by having had two jobs for the past two years!!!!)

    I do apologise to have been a bit harsh, but you did come here looking for advice and our opinions afterall.

    Good luck with what you decide to do, you can change this around.

    Ms_London
  • donmonster
    donmonster Posts: 33 Forumite
    No Debtfreechcik I am not just trying to get out of it easily - of course who would not want all their debt wirtten off - but I am realistic I realise I need to pay it off.

    I do not think I can do bankruptcy as part of the Debt has come from gambling...anyone know any update on this?

    Fazer thanks for the meal tips - I think overall what is needed is more planning on my part - it is that old chestnut in that if you do not have anything in the house then you just get a meal on the way home - this is where the main cost comes from - I know I can buck up a bit on my food expenditure and should be able to put an extra £70-90 away a month quite easily - i.e packed lunches rather than the canteen!!

    The bike is not a Duke - just a very old username I have used for years. Just got a BMW F650 - delighted with it - well until someone nicks it as that is what happens in London!!

    I will get the budget planner and see what I come out with - looking forward to it and will keep you updated once I can make a list of exactly where the cash goes....also onto eBay this weekend to clear out some junk and get a few pounds!!

    Thanks
  • ms_london
    ms_london Posts: 2,852 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Read the "Money Saving Old Style" part on this board, they have some great tips for cheap & easy meals, and also other interesting "Money Saving" Stories & ideas.

    Its good to hear that you have some ideas, i.e ebay items & thinking about cutting back on your food expenditure. All it needs is a bit of organisation & planning, and its easy peasey!!
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    peterbaker wrote:
    Deemy, as Diggin_Out put so well, followed by others' agreement, disowning debt so easily is not laudible when you have the capacity to pay eventually. Abdicate this and what will be abdicated next time? Surely this is not the kind of discipline we wish to promote in our fellow citizens?

    And from a more selfish viewpoint, I for one don't see why the interest rates I pay should be inflated to take care of someone else's gambling debts or any other debts just because he or she is tempted not to pay.

    Look !
    If the creditor chooses to right off the debt then thats between the creditor and the person with the debt.

    Its worth a shot - Its not illegal or underhand or anything other than the truth of the situation at that moment in time, it may or may not work with some or all... who knows, but worth a try.

    If I were in his position, I would give it a shot - nothign to lose.
  • fazer6
    fazer6 Posts: 185 Forumite
    Ah well at least you're not a duke owner, that really would be a sign you prefered a name over quality. I don't think I'd be allowed to talk to a duke owner anyway, it's a bit like me being seen with a hornet. What would the neighbours say!

    Canteen meals should be stoped right now, I bet you spend a minimum of £3 a day which is £15 a week which is £780 a year. How much closer would your debt free date be if you put that money to better use. There was a thread on money saving old style about pack up alternatives. Make a pot of soup and freeze it in individual tubaware pots . Netto might still have a massive tubaware collection on offer if you're lucky (did you know you can hold a massive 24 pot tubaware set between you and the tank and do a u-turn in front of a copper without making a fool of yourself). If you do a roast each week then the rest of the meat can be used in sandwiches. Roast turkey and stuffing with cranbury is my fave. There's also things like jackets, leftovers from the night before, wraps, salads... Lakeland do these teflon pocket things you put your sarnie in the toaster in so you can have a toasted sarnie at work.

    So you now have an idea of what you can do do save a bit of money so set your budget, stick to it and look forward to an early debt free date. The main hurdle is getting into the money saving habit but you'll get used to it. Just keep asking yourself do I need to buy this this week and you'll cut down the spending. Use your savings to pay off the highest interest debt and throw all you can towards paying the rest off.
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    deemy2004 wrote:
    Look !
    If the creditor chooses to right off the debt then thats between the creditor and the person with the debt.

    Its worth a shot - Its not illegal or underhand or anything other than the truth of the situation at that moment in time, it may or may not work with some or all... who knows, but worth a try.

    If I were in his position, I would give it a shot - nothign to lose.

    I agree. But they will ask for a Financial Statement. And if this shows that you can afford to pay (as Donmonster can) then they will want you to agree to a repayment plan.

    If you can't afford to pay, then bankruptcy is the only route.

    If you really want to know the options, then do the research. The National Debtline site is a good place to start

    https://www.nationaldebtline.co.uk

    Deemy, I know you mean well, but there's precious little point in suggesting something that will not work. You say "I can't afford to pay; write off the debt please". The creditors say "Show me ... show me that you can't afford it".

    Checkmate! ;)

    as I hope you appreciate, my comments are about the practicalities, rather than the "morals".
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    How can it be checkmate when were still moving pawns :)

    Yes, have to be truthful about earnings,

    But the positives are this, if your unemployed, no assets

    By sending the creditors a letter and stating that you are unemployed, with no assets and also owing money to other creditors, that you cannot in any way shape or form pay the debt off, that you would like to meet with them to discuss somethign workable. At the very least you could get them to suspend interest charges, and reduce the repayment to a mere pittance i.e. say £5 per week. And there is a chance if not there and then, but maybe sometime later on they cancel the whole debt, since you have tried your best to honour the agreement with them.

    I am saying the person should become proactive in contacting the creditor want to have a meeting, be willign to repay the debt to the best of their ability which the company will take into account. Its better its done this way rather than say through a court or official paperwork, as its more open to be dealt with more speedily and you get a better deal. ;)

    I'm talking from experience.. IN the mid 80's I accrued debt of £12k, went down to the creditor told them point blank I can pay £7 per week if no interest is credited, agread there and then, next 8 years paid £7 per week, then they send me a letter telling me I have been a good boy for trying to repay the debt and that they have decided to write off the balance owed so it can and does work !

    Its better to take control of the debt rather than the creditor push you down their preferred route.

    If someone is in debt and with no assets and no income, then you have the advantage and can literally dictate terms, once done dusted and agread, then you can get back to work ;)
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