The "Pay ALL your debt off by Xmas 2012" challenge - PART 2!!!

HelenPie

PedroMatias wrote: »

Call them up and politely explain the situation. This is the sort of thing they'll waive as a 'goodwill gesture'. Worth a pop.

Not a chance - we went 8p overdrawn with them once (very late deduction of a debit card transaction). Happened when we were on holiday and come home to an £88 bill! Phoned up in tears and they said it was our own fault and we should have used internet or telephone banking to check balances and rectify the situation. Escalated to management and same response. I Hate Banks :mad:

Ruthy1604

karenann76 wrote: »

So here is a dilema for you! I have asked my OH about this and he just said whatever you want to do...very useful response!!!

We have a Lloy*s loan which is defaulted and with a collection agency (not sold on). There is no interest on it. I spoke to the agency today and they will knock it down from 6780 to 4080 as a final settlement, saving us 2700 on the debt. Because I get paid quarterly I will be able to pay that at the end of March but it will wipe me out for the next 3 months so we will have to live off the OH wage which just lately has been a PITTANCE (self employed)! It will stay on OH credit file as patially settled for 6 years but we have defaulted anyway and NO ONE would lend us any money even if I wanted it, which I don't.

So the question is, do I pay the loan and live on the breadline for 3 months till my next payment or do I make an arrangement which would be for the full amount. If I pay it we will save 2700, more than if I pay a debt which has interest being charged and it is our biggest debt and it would bring us below the 10k mark, both MAJOR psychological boosts. BUT it will stay as partially settled on the file and we will be seriously skint for 3 months.

What do you reckon?

£2700 is a really big saving, so I'd probably pay it off & be skint for 3 months. Can you sell anything on ebay to make some extra cash to tide you over ? Or perhaps stock up the freezer in anticipation of having no money!:cool:

Ruth

mrso2b

Thanks all for your help and support. Hubs and I sat down and decided against the loan. We looked at our finances and realised it's because we are always dipping into next month we're always short. For eg, this month we owed my friend £200, I owed Halifax £300 cause we went into their overdraft and then we had to have a plumber come round and that cost us £250 so we're already £750 down!

We have a night out planned tomorrow (cheap restaurant / half price drinks), hubs is meeting up with some old uni mates on Friday and then THAT's it. We have no more nights out planned and we aren’t planning any more. This will mean that we won't have to dip into next month's money.

We've worked out that after all our bills, £300 shopping budget (which is a lot for 2 people) and £50 a week each spends (for any dry cleaning, shoes reheeled, odd night out here and there) we can afford to pay £1,000 a month towards debt! We are just wasting money and I'm ashamed because that is more than enough and more than a lot of people have.

So big financial overhaul for Mr & Mrs O!

I've cancelled dinner with my friend this evening and we're going for a coffee instead. She offered to pay but I said no – helps with the dieting!

mf0u1098

mrso2b wrote: »

Thanks all for your help and support. Hubs and I sat down and decided against the loan. We looked at our finances and realised it's because we are always dipping into next month we're always short. For eg, this month we owed my friend £200, I owed Halifax £300 cause we went into their overdraft and then we had to have a plumber come round and that cost us £250 so we're already £750 down!

We have a night out planned tomorrow (cheap restaurant / half price drinks), hubs is meeting up with some old uni mates on Friday and then THAT's it. We have no more nights out planned and we aren’t planning any more. This will mean that we won't have to dip into next month's money.

We've worked out that after all our bills, £300 shopping budget (which is a lot for 2 people) and £50 a week each spends (for any dry cleaning, shoes reheeled, odd night out here and there) we can afford to pay £1,000 a month towards debt! We are just wasting money and I'm ashamed because that is more than enough and more than a lot of people have.

So big financial overhaul for Mr & Mrs O!

I've cancelled dinner with my friend this evening and we're going for a coffee instead. She offered to pay but I said no – helps with the dieting!

That is superb! You sound in a much better place now as you've worked it all out together as a team. I'm really happy for you xxx

mrso2b

mf0u1098 wrote: »

That is superb! You sound in a much better place now as you've worked it all out together as a team. I'm really happy for you xxx

I actually cried on Friday over money, how sad is that!

But have picked myself up and dusted myself down and am ready to tackle this.

As we have some work needed doing to our house, we have decided to put some money aside out of the £1,000 a month in case we need anything done to the house, so we're not in the same position as this month where we had to fork out £250 for the plumber.

I have been reading this thread and it's made me feel very humble: https://forums.moneysavingexpert.com/discussion/comment/51430531#Comment_51430531

PedroMatias

mrso2b wrote: »

Thanks all for your help and support. Hubs and I sat down and decided against the loan. We looked at our finances and realised it's because we are always dipping into next month we're always short. For eg, this month we owed my friend £200, I owed Halifax £300 cause we went into their overdraft and then we had to have a plumber come round and that cost us £250 so we're already £750 down!

We have a night out planned tomorrow (cheap restaurant / half price drinks), hubs is meeting up with some old uni mates on Friday and then THAT's it. We have no more nights out planned and we aren’t planning any more. This will mean that we won't have to dip into next month's money.

We've worked out that after all our bills, £300 shopping budget (which is a lot for 2 people) and £50 a week each spends (for any dry cleaning, shoes reheeled, odd night out here and there) we can afford to pay £1,000 a month towards debt! We are just wasting money and I'm ashamed because that is more than enough and more than a lot of people have.

So big financial overhaul for Mr & Mrs O!

I've cancelled dinner with my friend this evening and we're going for a coffee instead. She offered to pay but I said no – helps with the dieting!

As Jemma said, well done on the budgeting! It's amazing the difference that sitting down and putting it all on paper/spreadsheet can make. It's like wiping the steam from your glasses, and suddenly you can see clearly.

My work colleagues don't really understand how I'm in debt, but it's completely due to wastefulness. To be honest, I'm ashamed of the whole situation, but in less than a year's time we'll all be smug as can be, and rightly so. I'm in no doubt that this is going to change our lives. :T

PedroMatias

HelenPie wrote: »

Not a chance - we went 8p overdrawn with them once (very late deduction of a debit card transaction). Happened when we were on holiday and come home to an £88 bill! Phoned up in tears and they said it was our own fault and we should have used internet or telephone banking to check balances and rectify the situation. Escalated to management and same response. I Hate Banks :mad:

Will they give you a small arranged overdraft to prevent it happening in the future? Even if it's only £100 or something. And while you're asking, cheekily give them a nudge about the charges. If you get a good customer service rep and be nice to them, you might get lucky.

I had something similar years ago (3x£25 bounced DD in a few days while I wasn't watching), and although they wouldn't refund the whole amount, they refunded part of it.

HelenPie

mrso2b wrote: »

I actually cried on Friday over money, how sad is that!

Not at all. I've certainly been there. It's one of the biggest causes of stress there is so no shame in getting a little (or more than a little) upset over it.

At least you're doing what you can to get yourself out of the situation.

Pedro: thanks, will give that a try.

mf0u1098

PedroMatias wrote: »

As Jemma said, well done on the budgeting! It's amazing the difference that sitting down and putting it all on paper/spreadsheet can make. It's like wiping the steam from your glasses, and suddenly you can see clearly.

My work colleagues don't really understand how I'm in debt, but it's completely due to wastefulness. To be honest, I'm ashamed of the whole situation, but in less than a year's time we'll all be smug as can be, and rightly so. I'm in no doubt that this is going to change our lives. :T

:T:T:T You spelt my name right...

Mrs_Addicted_to_Spending

*Hugs* to JakesMum.