Has anyone had experience with loqbox

Fluffysocks23

So whilst I’m planning to start a self managed DMP, I’m also going to save a small amount to pay for Christmas. I had an idea of opening a loqbox account. Possible monthly payment between £25-50 a month. Then I can unlock it in December 2024. 

Has anyone else done this whilst they’re in debt. 

My credit score is low currently and I’m hoping to improve it over the next 12 months. 

fatbelly

I don't see why that wouldn't work

Martin likes it and has some guidance on using it fee-free

https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/#declined

A couple of points.

Do you think you could manage at the lower end of that scale? Realistically will you need a lump sum of £600?

This won't have much impact on your file against a background of defaults. You might be better putting it into a regular saver. Does your bank do one?

Ignore your credit score. Seriously. Just stop looking at it.

Fluffysocks23

fatbelly said:

I don't see why that wouldn't work

Martin likes it and has some guidance on using it fee-free

https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/#declined

A couple of points.

Do you think you could manage at the lower end of that scale? Realistically will you need a lump sum of £600?

This won't have much impact on your file against a background of defaults. You might be better putting it into a regular saver. Does your bank do one?

Ignore your credit score. Seriously. Just stop looking at it.

I think just on the basis I’m ignoring Christmas this year. I’ve told everyone they’re getting nothing and to do the same in return. Last years was ruined too. So I thought of it as a treat myself/family money for next year

yeah my bank has one. I could put it in there. I just need to resist temptation.
i just found one of the saving challenges instead I might do that instead and save in real cash! 

I check my credit score too often!.. it’s improved greatly since being in a DMP .. 
I need to focus! 

Going to be productive tomorrow and start my to do lists and set up my CCA forms and print them! 

Babysteps fluffy!! 

Longwalker

Why do you need to save so much for Christmas?



Im not being funny or judgemental , I really do not understand 

For me its a 2 day holiday, we have a nice dinner and thats about it

Its nobodies birthday other then Jesus, hes dead, no presents required 

Ok I lie, its me mums , she gets a gift

cymruchris

It helped me when I used it after bankruptcy - it gave me a fully settled credit agreement at the end of the 12 month period - which at the time I had none - and it gave me the basis of establishing credit with mainstream providers. It's not for everyone - but in some cases I think it's worth a shot. 

Things to remember - as much as your 'saving' - it's technically a credit agreement. You MUST without fail keep up the payments. You can't think 'oh I'm a bit short this month - I'll not bother putting anything into my loqbox'. It's recorded as a loan - so on time payments for the loan are what will help with your positive credit history. Miss a payment and your credit history will be further damaged.

At the end you have to open a current account with their nominated provider in order to withdraw your funds fee free. (At the time I did mine it was the TSB - and probably still is). If you decide you want to withdraw to your own account - the fee at the time I did it was about £30. 

Fluffysocks23

Longwalker said:

Why do you need to save so much for Christmas?



Im not being funny or judgemental , I really do not understand 

For me its a 2 day holiday, we have a nice dinner and thats about it

Its nobodies birthday other then Jesus, hes dead, no presents required 

Ok I lie, its me mums , she gets a gift

I don’t think saving 325 is a lot for December. 

It would cover some food shopping- an in this day and age you don’t get a lot for your money. And also presents too for family members and friends. 

In the past I probably would have spent that amount on my partner so it’s still a “budget Christmas” it would probably consist of making self made presents for several family members/friends which have had thought but into them rather than some tat that they wouldn’t like 

Fluffysocks23

cymruchris said:

It helped me when I used it after bankruptcy - it gave me a fully settled credit agreement at the end of the 12 month period - which at the time I had none - and it gave me the basis of establishing credit with mainstream providers. It's not for everyone - but in some cases I think it's worth a shot. 

Things to remember - as much as your 'saving' - it's technically a credit agreement. You MUST without fail keep up the payments. You can't think 'oh I'm a bit short this month - I'll not bother putting anything into my loqbox'. It's recorded as a loan - so on time payments for the loan are what will help with your positive credit history. Miss a payment and your credit history will be further damaged.

At the end you have to open a current account with their nominated provider in order to withdraw your funds fee free. (At the time I did mine it was the TSB - and probably still is). If you decide you want to withdraw to your own account - the fee at the time I did it was about £30. 

I didn’t know you had to open an account at the end of it. Thanks for that information. 

I’ve just found a few savings account. Some even offering 8% interest! So I think I might go down that route 

fatbelly

Is that the Nationwide one?

The headline rates on regular savings are often quite good. Remember that mathematically you will average half that so £25 per month = £300 over the year plus £12 interest

Obviously scale that up proportionately if you can afford more

Fluffysocks23

fatbelly said:

Is that the Nationwide one?

The headline rates on regular savings are often quite good. Remember that mathematically you will average half that so £25 per month = £300 over the year plus £12 interest

Obviously scale that up proportionately if you can afford more

Yeah that’s the one! I’m pretty sure that’s the top deal with saving interests! Have you seen any others? 

I was actually looking at the switch service however I don’t actually qualify for their accounts just the basic one! However it’s not an issue I think I could still apply for the 8% account hopefully if not it’s a 4%  account if I remember correctly 

Longwalker

Fluffysocks23 said:

Longwalker said:

Why do you need to save so much for Christmas?



Im not being funny or judgemental , I really do not understand 

For me its a 2 day holiday, we have a nice dinner and thats about it

Its nobodies birthday other then Jesus, hes dead, no presents required 

Ok I lie, its me mums , she gets a gift

I don’t think saving 325 is a lot for December. 

It would cover some food shopping- an in this day and age you don’t get a lot for your money. And also presents too for family members and friends. 

In the past I probably would have spent that amount on my partner so it’s still a “budget Christmas” it would probably consist of making self made presents for several family members/friends which have had thought but into them rather than some tat that they wouldn’t like 

All I can say is, Im glad you have found a Money Saving Site

I took Martin Lewis's advice years ago, stop buying pressies, and you know what, its so liberating.

I live in a 3 adult household. Other then a wee birthday treat for mum, we buy for the grandchildren still in education and thats it. And the grandchildren might not even see their pressie as it might be a fill of oil so they are kept warm over the winter, so their mum can carry on feeding them

Never ever will I get in debt for a commercial holiday