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

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Comments

  • DiggingOut
    DiggingOut Posts: 770 Forumite
    If it hurts too much to give up more than you can tolerably cope with, then I'd suggest you didn't. (I'll get shot for saying that by the way!) It's no good having money problems and making yourself more miserable by living TOO frugally.

    This is true, I believe. But I also know (from my experience and others) that happiness and pretty extreme frugality can go together.

    I would encourage you to push the limits on what you think you can be happy with. I originally said save £250 a month in an ISA. And that's a good place to start for a couple months, and get yourself on track. But then, go a step farther, and also put a couple hundred in savings each month. Try it for a month or two, and see how it works. If it doesn't work, then fine, back off to just the ISA savings. But if it does, you will be that much closer to the point of having cash to offer your creditors.

    I would encourage you to not push the savings thing to the point where you are miserable (you don't need to, on your income), but it wouldn't hurt you to push it hard enough to find out where that point is and then back off from it.

    On your salary, if you get as compulsive about savings and debt-reduction as you were about gambling, this whole thing will be over in 3 years at the most. ;)
    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?
  • draconian_2
    draconian_2 Posts: 104 Forumite
    I read this post and everyone elses with interest and whilst I don't really want to quote anyone - one thing is for sure here, Donmonster - in my eyes you don't seem to be stressed about your position, possibly because you have got used to it?

    When I was in debt £70K I was really stressed about it. I sat down with my dad and we discussed everything (I was 32 and out of home after a very acrimonious split with ex wife (over 7 years of marriage)).
    We filled in the bankruptcy forms cos with £70k of debt you have to wonder how on earth we got that bad and then how was I going to pay it!!

    Well as I said I was a good earner (director of my own Ltd company as well)- at first I was paying £2k a month off and did this for as long as the income was good. Then 9/11 (Disaster) shook my world and all of sudden my industry's floor fell out. No money in and no money to pay me. But by then I had paid a good 30k off and felt I was achieving something and my creditors could see wasnt shirking my responsibilities. So when my income nosedived and I had to reconfigure my dept payments they were easy-ish on me.

    Back to what I was saying - A frind of mine (Finance Director) for a big plc sat me down and took me through insolvancy - after a couple of hours I did not like the idea of being subservient to an officialreceiver for 3 years, and in the future may have wanted to be a director of a company so I bit the bullett and tore up the 3 copies of the forms.

    There have been days when I wished I had just bankrupted (seems so easy on monopoly innit!) But as I said in a nother post I am now down to 23k in 5 years and will definately clear 15k of it this year and the rest next.

    I am hungry for it and I think the stress of being chased has made me thick skinned to those creditors that treat me so harshly and created desire to clear it all up. I must admit I could have paid these off a year earlier if I didnt let myself go, but considering the maintenance payments and paying for a car/rent and living I have focused and am feeling good.

    I suppose to sum up - whilst you can afford another £1k a month - save these sums up to 4-5-6k lump sums and try to settle with the 75% full and final settlements. One day the money may not be there and you could be sitting there in a year or two wishing you had paid more off when you had a chance.

    Good luck

    D
  • donmonster
    donmonster Posts: 33 Forumite
    Thanks for the reply Draconian - one thing is I am stressed by it - yes not to the point where I can't eat etc (wish that was true might loose some weight!!)

    Anyway the thing is I checked the terms of my employment and it would be considered Gross Misconduct to go Bankrupt - so I suppose that is out of the question unless I quit my job - and I don't think at this stage that is really an option.

    I too have got thick skinned with these creditors - almost to the position where I give out to them when they call. I am thinking what you and a few people have said is correct - trying to save up lump sums and settling with them one at a time. I know places say you should offer it out to all of them but I just don't see it being cleared much quicker if I did it that way.

    Soo it looks like I am on my DMP for a good few years yet.....
  • donmonster
    donmonster Posts: 33 Forumite
    Also I was just wondering I might write to all my creditors and find out what sort of final offer they would take. Obviously going to structure the letter on a template I saw on one of the links someone previously posted but wanted to know if anyone had any idea or experience of what Creditors might accept in Full and final settlement.

    As in would it be pishing it to offer 50%-70% of the outstanding amount in the hope that they might accept - just wondering if anyone has any figures?
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    Donmonster ... there is no specific formula. It depends on the lender and what day of the week it is ;)

    Offer 50% and see if what they do.

    But, you really should pro-rata a lump sum proportionate to the total debt and offer something to each creditor. Otherwise, you are favouring one creditor over another.

    Details, including the letter template, here
    http://www.nationaldebtline.co.uk/england_factsheets/factsheet_24.php3

    Very odd that your employer considers bankruptcy to be Gross Misconduct .... unless you work in Financial Services...?
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • Sofa_Sogood
    Sofa_Sogood Posts: 5,258 Forumite
    Hi Debt_Free_Chick

    I don't like to answer for people as a rule but he's in the banking industry.

    Will that complicate things even more do you think?
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    Hi Sofa

    The only difficulty is that his employer considers it Gross Misconduct and that usually means instant dismissal.

    OT but ..... the banking industry have played their part in our Debt Society, so it's a bit rich that they take such a hard view of their own staff's financial difficulties!

    It looks like the Monster is stuck with a DMP - I suspect an IVA would also be Gross Misconduct.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • Sofa_Sogood
    Sofa_Sogood Posts: 5,258 Forumite
    It is kind of ironic now you've pointed it out Debt_Free_Chick.

    It also looks more intimidating seeing it in black and white.

    Can't offer any advice donmonster, I just hope it doesn't get too stressful. Nine years might seem a long time; when you get to 36 you'll realise it's not ;), but that's easy for me to say (again).

    It just seems like the nine years could be reduced with a rethink and a reorganisation?

    Sorry to be so unhelpful.
  • donmonster
    donmonster Posts: 33 Forumite
    Sofa yes 9 years does seem like a long time - but I do realise that I am not looking at that long with a bit of re-organisation of my finances.

    I have read and re-read every post and I have taken a lot on board. I am miserable enough paying what I do and no need to go into the whole argument of well you had the money etc etc...but I think what I will do is start saving say an extra £250 into an ISA each month - and then each year try and pay off a creditor or two with that lump sum - bonuses from work will also come into play so it should be a good deal less. The only thing that worries me is my statements from the CCCS show what they think the level of debt should be but of course this does not include any interest payments or fees - which no doubt all the balances now have!!
    i work for an investment bank - and although not dealing with money they see it as Gross-misconduct so that option is really out the window unless I quit my job which I don't think I could do....
  • TRAVELMAN_2
    TRAVELMAN_2 Posts: 864 Forumite
    Morning DonMonster,

    Seems to me the only thing really stopping you is the job. Sounds like a good income & career path. Is there any way you could find out discretely IF the gross misconduct thing still stands? It may be that for new starts it's different-as even police officers can now go bankrupt! Worth checking out because IF you could keep your job you'd actually have more disposable income (based on the OR'S guidelines) than you have now & all over in 3 years! Did you get an answer from the other website?

    Or....quit your job-get the whole thing over with & max. term will be 1 year (although this option is a bit more 'drastic' you'd have closure sooner).

    Please...no more 'moral' replys-he's got enough money...etc...this is just an option in an open, free forum.
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