Help - dont want more debt!

GhostHunter_3

Hi

I have recently had to purchase 3 items from Currys - a Fridge, a freezer and awashing machine. They are to replace the fridgefreezer and wshingmachine we already have all 3 have now ground to a complete stop as we have hung onto them waiting till were desparate to replace them as trying to work our way to be debt free.

Problem I have is Currys have put us on an easy payment plan via HFC. The total cost of the 3 items if I paid instore would have been £430.
The total cost of items including the machine breakdown cover x 3 is £680.
The total cost of the repayment plan over 4 years is :eek: £1,000.

Obviously I dont want this hanging around and so am seeking the best way to be able to repay the £430. over 10 months. I tried asking family to lend it to me and I was prepared to set up a monthly DD to repay them straight into bank, but no one has £430. spare.

The next option is to find a 0% credit card and repay it that way, but how much would it cost with the ballance tranfer and other fees? Plus who'se the best for this? Once the card repayment has been made the card would be cancelled, no other spending would be on the card as would cut t up on receiving it. Repayment woud be via monthly DD of £43. over 10 months.

The last option is to find a loan but the minimum amount I have found so far is £1,000, and I admit there are other items we would like but cannot afford to justify buying with the leftover £ of loan.


Im going to cancel the machine protection x 3 as each item comes with a years guarantee and I could save as much money in that year on not paying the 'protection' to purchase a new machine should it break down 1 year and 1 day after the free guarantee expires!!

Anyone got any suggestions as desparate to stay on track of becoming debt free!

Thanks

Heddwen.

tesuhoha

First of all, I think its a total waste of money to buy breakdown cover. I never buy it on anything. The 0% cards charge about 2-3% so I suppose if you had a BT of 430, I make that a charge of about £12.90, so thats not bad. Though it could be more, depending on the interest rate. It wont be much more than that though. I think that is your cheapest option. Thats what I would do, and I would pay it off like a loan as its easily affordable.

tiff

It's too late now, but you could have used a 0% card for purchases (such as the Halifax One online exclusive) for 12 months. That way there would have been no BT fee.

scorpio_biker

Just as an option, and if you are disciplined enough, you could take out a loan that allows overpayments (Nationwide and Egg do I think) and then immediately pay back the difference just leaving the £430 to repay. However apr rates are higher for those smaller loans - so a 0% credit card is probably better.

nick1977

How recently is recently?
All of these contracts have a cool off period, so you maybe be able to cancel the service contract, and possibly even the finance agreement. Then you could do as others have suggested and get a 0% on purchases for 12 months credit card and be paying about £40pm to clear the £430 before paying any interest at all.
If it's too late to get out of the agreement, then again as others have suggested transfer the balance to a 0% APR card, and pay the fee that is small relative to the interest you'd pay Currys.

Nick

GhostHunter_3

Hi

Thanks for the replies.

I would have waited to buy them but they had a 'special offer' on recently with the fridge & freezer, buy 2 together and get £100 off. Considering ive been using cool boxes for the last month or so and having to go the other side of village to chage the blocks from my inlaws for the past 4 weeks or so (been waiting for new council tax bill increase to check I can afford to get new stuff!) Ive been back to basics with the washing past 2 weeks as the washingmachine finaly conked out on me, at last the neightbours can have some peace from its whining and clanking lol!

tesuhoha - I agree and as I was trying to borrow it frm family its the next best option with little to pay on top.

tiff- yes it is too late unfortunately but there wasnt any time (offer due to expire) and no guarantee id be accepted. Thanks for advice though will bear in mind for future pourchases. Fingers crossed their a long way off though!


scorpio_biker - think I would be diciplined but cant even trust myself! Bit confused how would I repay the bulk of the loan? Just use th money I borrowed that I dont need? Dont feel comfy with this option with financial circumstances right now, thanks anyway.

:T

Heddwen

GhostHunter_3

Hi Nick

Erm as recent as last week, we received deliverey last Saturday!

Will look into the 0% are there any that guarantee a quick acceptance? Already have Credit cards with Sky Card and Capital One but try to repay these off monthly as each card is used for a budgeting purpose!

Thanks

Heddwen.

nick1977

Not sure if any issuers are quicker than others. Perhaps someone else cna give some insight.
Usually service agreements have about 14 days cool off, but check the small print. Of course there is an element of risk with cancelling this, but you will still get the 1 year manufacturers guarantee. Personally I think you'd have to have some major problems with the appliances to get your moneys worth for a coverplan of £250.

Nick

Next time worth checking John Lewis as they give 2 years free guarantee on electrical appliances, and 3 years on their own branded stuff. I work for them but this is posted for information rather than advertising!

bandraoi

You shouldn't need any sort of guarantee or breakdown cover with expensive electrical equipment. Your statutory rights state that it should be "fit for purpose" and of "merchantable quality", (or whatever the UK variation of the wording is)

Means that if it fails within a "reasonable period" then they have to repair or replace it free of charge. The guarantees they offer are usually below what you're entitled to under law. They deliberately use them to trick people with the stupid line "oh it's out of waranty, you don't have breakdown cover etc."

The only possible advantage is that any problem will get sorted quicker.

beanielou

Hopefully you can cancel the breakdown cover.