Achieving the Impossible (FTB)

bodmil

Why are you comparing yourself to people with 50k of debt and needing loans for cars and home improvements?

jon557

They are worse off than me. Perspective!

How do I close this thread?

Jellybean_Jo

The very fact that you are naive enough to think that 13k of debt is insignificant and meaningless (because that's what it is, not this 12k you keep mentioning, that's just PART of your debt) astounds me!

You keep saying you'll just sell your car and BAM there's your deposit...if your car means that little to you, why did you get yourself into debt to buy it in the first place?

And your overdraft? Yeah, that's still a debt...and using debt to pay off debt is poor financial management right there!

I hope you've got some really supportive family and friends around you to pick up the pieces when you come crashing back down to earth with a BAM!

bodmil

jon557 wrote: »

They are worse off than me. Perspective!

How do I close this thread?

Isn't perspective supposed to include the whole picture, not just the part that makes you feel better?

Buddy, just close your account, you're already a money saving expert.

thelawnet

jon557 wrote: »

Seriously people!!!

I've only been on £44k for a few months!!! Last year I was on £35k and around the £25k the year before.

I don't see that that really makes it any better. The question is why did you spend so much money you didn't have.

£25k is hardly penury is it? So why so much debt?

thelawnet

jon557 wrote: »

Wow £18k on rent! Your landlord must be happy you are paying his mortgage and giving him a nice retirement package.

He doesn't have a mortgage. It's an inherited property.

He gets 3% on it gross, significantly less after costs.

I wonder if he is aware that you can buy shares in say Tesco, which yield 4.61%, and which don't require any maintenance, and are likely to appreciate at least as well as the house. In fact, comparing price/earnings on Tesco with the house, Tesco is clearly much cheaper.

Would you really bet your life on housing outperforming the stockmarket in the long run? Net of costs?

Renting is dead money. Obviously it is necessary if you do not own. You are paing for a roof over your head. But it is money you will never see again, if you are happy about that then fine. But I want to convert that expense into owning an asset sooner than later. It benefits will be seen later in life.

No, DEBT is dead money.

If you rent from the bank (aka mortgage), all that interest is money you will never see again. If you are happy about that then fine.

And houses don't earn any income if you are living in them.

You might just as well buy gold bullion, pork belly futures, fine wine or art. Any of these things could appreciate.

There is nothing unique about housing - money that you have tied up in housing is money you can't invest elsewhere. It's a liability as well as an asset.

Yea debt is not good money but it helped for the reasons I needed it for. I pay it on time and I live a good life. So it's not bad, just undesirable. I am now fixing that. I have not wasted it left right and centre, I have had to help family out, sort out old Uni debts and around £6k on the car. It has it's reasons.

I thought you said you used it to buy furniture. I spent £13k on my current car, I probably wouldn't again, but when I was in debt my car cost £1k. I only spend money that I have.

How is £12k a ridiculous amount? You are getting that confused with £50k! The average house conservatory extension is like £12k!!! Many people have car loans way over that amount!!!

So much wrong with your attitude.

£12k is a lot of money, sorry.

People have on average £1783 of savings http://www.telegraph.co.uk/finance/personalfinance/8505061/Britons-see-average-savings-drop-100-to-1783.html

You've got 7 times this much in debt, and you think it's chump change?!?!

You don't even own a house and you are talking about conservatory extensions for £12k?! No wonder this country is deep in the merde. Having £50k in debt is not and should not be 'normal'.

Don't justify your own stupidity by reference to greater foolishness by others.

Like my calculations begin to show, paying into a mortgage is going into a building you own later on in life. Renting is money you will never see again, i.e. dead money. It SAVES money overall!

So you reckon I would have been better off forking £25k on stamp duty and conveyancing, plus an extra £20k or more in interest, so £50k more overall? We looked at the house next door for sale when we moved here.

£50k in completely dead money had I bought that, and no capital appreciation at all; that £50k has instead gone into my ISA, tax sheltered for life. Ok, the £50k in the ISA hasn't appreciated much, but at least it hasn't gone to the government!

Well done! If you have read my other posts, you'd see that I HAVE NOT BEEN TRYING TO SAVE FOR A DEPOSIT! My deposit is my car, I can sell it to my Mother for £6k and BAM I have my deposit.

Lol, why would your mother want a hot hatch?

Jellybean_Jo

I'm starting to think Flash Jon is just out to wind us all up! It's got to be; why else would you come on a 'Money Saving' website and brag about your debts!?

andy8784

jon557 wrote: »

Well done! If you have read my other posts, you'd see that I HAVE NOT BEEN TRYING TO SAVE FOR A DEPOSIT! My deposit is my car, I can sell it to my Mother for £6k and BAM I have my deposit.

Ok, but even without trying you shouldn't really have ended up with more than £13k debt... It looks like your income has risen quite sharpely recently (up nearly £20k in 2 years :shocked:), you have a lot more cash available so maybe aren't as careful in your spending as you should have been if your intention was to own a propery in the near future.

Good luck to you, but if I was in your position I would want rid of existing debts before taking on any more... especially a mortgage.

jon557

The very fact that you are naive enough to think that 13k of debt is insignificant and meaningless (because that's what it is, not this 12k you keep mentioning, that's just PART of your debt) astounds me!

You keep saying you'll just sell your car and BAM there's your deposit...if your car means that little to you, why did you get yourself into debt to buy it in the first place?

And your overdraft? Yeah, that's still a debt...and using debt to pay off debt is poor financial management right there!

I hope you've got some really supportive family and friends around you to pick up the pieces when you come crashing back down to earth with a BAM!

Wrong!

£13k of debt for my position is manageable (comfortably), its £350pm... I have about £2k left after paying that. How do you still think that is a problem?? Would you actually struggle to survive on £2k in your bank each month? It's plenty for me!

Yes I can sell my car (to my Mother, then I will buy it back from her later in the year) - it's thinking outside the box - not following conformity for the sake of it.

Overdraft? I am not planning on paying off debt with other debt, but I did pay off my old loan with it as I needed to get the loan off my credit file asap as it shows a £418pm commitment that would impact mortgage considerations. Logical stuff.

Really supportive family? How exactly do you expect I am going to fail? I have had a few loans before, PERFECT history and my credit score is a fair amount higher than the average, I get reports delivered to me monthly! I will never need rescuing - trust me.

You do not know all the facts.

jon557

Isn't perspective supposed to include the whole picture, not just the part that makes you feel better?

You seem to be speaking but not listening. £12k is a small debt, it is the cost of a small car. Many people have cars on finance, so it's just like that. How can it be wrong? How can it be wrong when I got it for 9.4% in a recession? Because banks see my good credit history and consider me low risk.