MSE News: Budget 2012: what the child benefit overhaul means for you

wayne0

labyrinth84 wrote: »

they introduced the £5 a day charge instead of the £35 a month/time of default which immediately sent my charges through the roof! I thought best I just got it cleared...I suppose another debt cleared very soon!

from 35 a month to 150 a month in charges....
not bad for getting "out of the deeeep red"....

my brother had a bank without an overdraft that went into the red. his jsa was swallowed by bank... after a few days, and a telephone call from job centre the bank soon released his benefit payment.

pretty sure laws havent changed...

what i found when i was overdrawn was it was easier to live off a CC (interest free period) and clear the overdraft, then transfer the balance... for about 4 years i was trying to clear the overdraft until my brother suggested such... cleared the overdraft in a month or two. then the cc in less than a year.

then i went to "sensible" credit... until recently when my cc has gone up with fuel costs etc to see son.

im sure the debt free board people can give more insight into clearing debt etc (i havent looked on there but intend to head over )

labyrinth84

wayne0 wrote: »

from 35 a month to 150 a month in charges....
not bad for getting "out of the deeeep red"....

my brother had a bank without an overdraft that went into the red. his jsa was swallowed by bank... after a few days, and a telephone call from job centre the bank soon released his benefit payment.

pretty sure laws havent changed...

what i found when i was overdrawn was it was easier to live off a CC (interest free period) and clear the overdraft, then transfer the balance... for about 4 years i was trying to clear the overdraft until my brother suggested such... cleared the overdraft in a month or two. then the cc in less than a year.

then i went to "sensible" credit... until recently when my cc has gone up with fuel costs etc to see son.

im sure the debt free board people can give more insight into clearing debt etc (i havent looked on there but intend to head over )

I remember £192 coming out in one day! I didn't have anything to transfer it to...not incurring any more though, and haven't for the 2 years I've been paying the Overdraft off.

I've got plenty of debt...no credit debt though, no store cards, no credit cards, no loans...just household debt. Once my bank got out of control, it all just spiralled! It's abit hard to clear stuff when you've not got much left though! It's old debt though, I'm managing to pay most on time now so least it's not growing

wayne0

well first things first is pay my rent. then ensure i got food for my kids... gas an elec needs paying... car is paid annually (loan repayment monthly) - although buying a newer car on finance was one of the worst mistakes ive ever made... i owned my old car outright... i bought a focus. and in less than a year lost over 5 grand on it. I did some "swingling" and signed a loan agreement for a high interest rate to get the best deal for trade in on the car i could (negative equity) but invoked right of withdrawal using bank loan (id set up ready)... payments went down hugely... and "gave breathing room" then csa got involved and we were worse than before.

last week i explained to her i couldnt see son as couldnt afford petrol. she said i was rolling in money as i had bought a new car etc... (its a 59 plate also)... i explained what id done etc... goes to show not everything is as it seems...

my other bank has offered me a 6grand loan.. lower rate of interest, so i might take it up... and spread it over a few years longer (can spread it over 7 years... so payments will reduce... will give me a bit more "breathing room".

shame really, as the most i can get for my car is about 4 grand i still owe over 6 for it...
although i owed 7900 for my old car, spreading the loan over 5 years helped heaps.

just wish i could be debt free... lol - no mobile contract, no car payments. nothing... would be great...

labyrinth84

You'll get there, me too I hope!

It's definitely a 'robbing peter to pay paul' scenario.

And, your car will last you years

kevin137

wayne0 wrote: »

well first things first is pay my rent. then ensure i got food for my kids... gas an elec needs paying... car is paid annually (loan repayment monthly) - although buying a newer car on finance was one of the worst mistakes ive ever made... i owned my old car outright... i bought a focus. and in less than a year lost over 5 grand on it. I did some "swingling" and signed a loan agreement for a high interest rate to get the best deal for trade in on the car i could (negative equity) but invoked right of withdrawal using bank loan (id set up ready)... payments went down hugely... and "gave breathing room" then csa got involved and we were worse than before.

last week i explained to her i couldnt see son as couldnt afford petrol. she said i was rolling in money as i had bought a new car etc... (its a 59 plate also)... i explained what id done etc... goes to show not everything is as it seems...

my other bank has offered me a 6grand loan.. lower rate of interest, so i might take it up... and spread it over a few years longer (can spread it over 7 years... so payments will reduce... will give me a bit more "breathing room".

shame really, as the most i can get for my car is about 4 grand i still owe over 6 for it...
although i owed 7900 for my old car, spreading the loan over 5 years helped heaps.

just wish i could be debt free... lol - no mobile contract, no car payments. nothing... would be great...

Hold on a minute, you have a loan for a car, that you clearly cannot afford, and you are considering taking a different loan to do what exactly...? Clear the 1st loan and then spread the remainder over a longer period...???

And what do you do for a living exactly....???

wayne0

Im considering taking a loan to consolidate debts... and make the repayments easier to handle. - why?

i work for a living... (although off work ATM due to health issues)
and my living is earned by working in mcdonalds... (although not a spectacular job ....)

reason for question?...

I cant afford 50 quid of fuel out of 85 ssp...

kevin137

My point is, your income is VERY different to what you where earning before december, so if you took a loan now, then you would have to declare a change in income, and it would be extremely unlikely you would get ANY loan on SSP, and certainly not even close for a consolidation loan on anything over £1000

The risk to the lender is just far too great to even consider.

If you didn't notify them of the change, temporary or otherwise, you could be committing an offence of obtaining money by deception, regardless of the intent to pay back, even a 10 year old with basic maths could tell you, if you only have £85 coming in a week, and you borrow £5000 over 5 years, you don't have enough money to pay it...!!! I am shocked that you think you could pay it full stop...! Unless of course there is an income that no one knows about, or you have a parent that will pay it for you, which still doesn't change the fact that YOU should not be getting a loan like that....

I would probably be looking more towards, getting rid of the car, clearing as much of the debt/finance as possible, reducing the payment considerably, then when back at work buying a cheaper car using a loan not finance...! At least then you will retain a good or better credit rating while on a low income, as it is far easier to pay...

It is crazy to even consider i consolidation. Even ONE late payment affects the rate of interest you pay on any future loan, if you are late once or twice, then expect the % points to go up from 6 or 7% on a loan to 12 or 13%, which is a huge difference...!!!

wayne0

Kevin, I already attempted to sell my car, the amount I can get for it will cover half the amount.

The loan for the car payments made to it will not reduce the amount payable but shorten the term it is payable for. (effectively reducing amount of interest paid too..)
to sell my car would result in no financial gain for myself for a number of years yet.

also, income I have ATM is CTC, CB and SSP. (so about 190/week - although Im hoping my appeal against loss of WTC will go in my favour - im not holding my breath.) - i should qualify for full HB whilst im sick though (claim is placed) - despite wife living here ive been assured that as a single parent (my children are british) I would be entitled to 2 bed rate - so HB being paid as my wife is here too wont effect her status etc.) however council tax is a different story...

[edit
I also dont intend to get a loan whilst off work sick. Sorry, my post may of been confusing... I was simply saying in the future - ive got physio booked for the end of jan. so im hoping it is just a trapped nerve (like doctor suggests) which should only need a few visits to correct - however, doesnt alter the fact that ive been to physio many times n its not helped before
I have no intention of sitting around on SSP forever, and if physio doesnt work then plan to go find another job which I can do.

However: DR has suggested that if my condition doesnt improve I should notiy DVLA and theres always a posability i could loose license. at which time i would sell the car - even if the loan is still there no point a car gathering dust)
/]

CSA should reasses (although they havent yet despite payslips ETC) on 160 (no CB should be assessed)... does this figure get reduced by 20% before assesment, even though its the "reduced rate" for children at home? - i know i pay £5 for the first 100 and 19% for £60. = 16.40 = £16

but if -20% then 160-20% = 128.
so £5 + 5.32 = 10 payable.

(i think 20% is still done as:
if income is 200 -20% = 160
160 *15% = £24


if income is 160 standard then...
[edit
19% of 160 + £5 would certainly mean reduced rate pays more than standard rate.
]
^ i was wrong with working, forgot only 60 would be at 19% so
£5 + 11.40 = 16 payable.

[/edit]
(or were CSA incorrect when they told me that if the -% for RC sent me below 200 i would still be payable at stardard 15%?

it is hard to get a straight honest answer from the CSA. - considering that they think all NRP did a runner and dont take an interest in kids life.

does example of £200 income attract normal calc so £24 payable or reduced rate £16 payable)

kevin137

It's none of my business what you do with your finances, it would just be a stupid move to try to take a loan while under those circumstances...!

It may be worth looking at any claim on insurance you have against loss of income might be a good idea... If you have any that is...

wayne0

the only insurance I have is life insurance. (to ensure that my family is supported should i die/"critical illness") although its only a monthly payment etc until childs 21st and not a fixed sum

I actually dont think you were being unhelpful, because some people dont know the implications of fraud etc. but I wouldnt risk it. - I dont think I provided income details on the last bank loan i took out, they used the information of income ETC from my bank account etc and my repayment history on CRA - all i did was provide employment details and how much i needed etc (although i may be wrong/forget)

do you know about the calculations above?