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[Tab]

i'm quite lucky really as the only debt i've got is about 1K left on a bank loan.

i did have a credit card but it expired after ten years when i didn't use it at all.

[Jay w]

i did this sometime ago, reclaimed all my charges from credit cards and bank accounts.

it took some time (3 months) and was a bit tedious in places, there were one or two companies that didn't want to play ball initially, but faced with court action they saw things my way  

Lloyds, MBNA, cap one and HSBC all coughed up, totalled just shy of £1k over 5 years   most of that was bank charges

personally i would recommend doing it solo, there is stacks of info on the net, all it takes is some self organisation and a little percerverance, if that's not you then someone like BBman may be the help you need.

[Paul M]

My solution to debt is.... don't get into it in the first place

If I can't afford something, I do without and save until I can afford it. Works for me, I've never paid any interest on a credit card (and never forgotten a payment as I have a direct debit set up to clear them every month) and never had a loan, apart from the odd grand or two from my folks that was paid back as soon as possible -- within a few months tops.

Our whole economy is built on a mountain of debt, and the cracks are starting to show. I fear things are going to get a lot worse before they can get better, as there are a lot of people out there who are seriously overstretched.

PS Not preaching to anyone, we're all just about old enough to make our own decisions, but I think the culture that has developed in this country (as with most of Europe and North America) is that it's irrelevant whether we can afford something, just finance it now and worry about whether you can pay the bills later. The savings per person in the US is close to zero, right afer a long period of economic boom. If people don't save for a rainy day during the good times, it doesn't bode well for the bad. Saying that, it's no surprise really when you look at the deficit in the UK, Mr Brown has done exactly that during the last 10 years -- just keep spending during the good times for political gain, and somehow hope that the economic cycle no longer exists and there will be no bad times around the corner. Ho hum... hope everyone enjoys the ride

[Paul M]

PS I should add that if you already have debts, then consolidating them is definitely a good idea... obviously go for the lowest interest rate available to you, then with the fastest repayment plan you can afford. The quicker you get rid of it the less it will cost, so it's worth "tightening the belt" for a while if it means you can enjoy the freedom of having control of all your income later.

[Kevin Wood]

PS I should add that if you already have debts, then consolidating them is definitely a good idea...

.. as long as you cut up the old credit cards and bin them. So many people I know have "consolidated" and then spent up to the limit on their credit card(s) again. Exactly what the banks want them to do, of course!

Kevin

[tunnie]

good luck  

I have my student loan, (12k) but that just comes out of my pay packet. Its £60 a month out of my pay  

But thats my only debt.

Did you realy think it would be free cash!

And at 60 quid a month thats gonna take as long as a mortgage to clear!

Its all based on what you earn, at 25k its £60 a month. But soon as you get a bit more it shoots up.

£35k and its £170 a month.

I can choose to make payments on bulk if i wish, which i do have the funds to do, i could pay off a chunk. But saving for a deposit for a house... which willl take just about as long as a mortgauge to save  

[DaveyDavey]

good luck  

I have my student loan, (12k) but that just comes out of my pay packet. Its £60 a month out of my pay  

But thats my only debt.

Did you realy think it would be free cash!

And at 60 quid a month thats gonna take as long as a mortgage to clear!

Its all based on what you earn, at 25k its £60 a month. But soon as you get a bit more it shoots up.

£35k and its £170 a month.

I can choose to make payments on bulk if i wish, which i do have the funds to do, i could pay off a chunk. But saving for a deposit for a house... which willl take just about as long as a mortgauge to save  

Strictly speaking, you don't actually need any sort of deposit at all to buy yourself a property. In fact there are numerous companies out there who would be willing to lend you 100% of your desired property's value, together with some extra to cover SDLT (Stamp Duty Land Tax) solicitors costs, moving costs etc etc. However it does all depend on your individual circumstances and the property in question.

I should know, cos I'm a mortgage adviser  

[DaveyDavey]

No IVAs - doing it all my self.

Try to extend my mortgage to pay the vultures.

Take vultures to court for their charges ALA Martin Lewis.

Also trying to get house form band D to C as it fits in band C very well.

PM sent  

[Martin_1962]

PS I should add that if you already have debts, then consolidating them is definitely a good idea... obviously go for the lowest interest rate available to you, then with the fastest repayment plan you can afford. The quicker you get rid of it the less it will cost, so it's worth "tightening the belt" for a while if it means you can enjoy the freedom of having control of all your income later.

I have gone to my mortgage lender but at a long term. I will over pay when I can afford it.

That said I am getting out of my dark hole well now!

[Paul M]

I can choose to make payments on bulk if i wish, which i do have the funds to do, i could pay off a chunk. But saving for a deposit for a house... which willl take just about as long as a mortgauge to save  

I would clear the debt first before taking on more. Student loans are a bit of an unusual case in that the interest rate is very low AFAIK, so it's not quite so important to clear ASAP (in some cases you're better investing the money instead, as you'll get higher returns than the interest payments).

I wouldn't get so hung up on a property investment at this point in time, the market is way over-due a correction and it's already starting to happen. Buying at the peak, i.e. now, and you're effectively giving your money to the speculators who have been investing over the last 10 years! There are definitely better places to be putting your money in the meantime, and re-evaluate the scenario at a future date.

[DaveyDavey]

Couldn't agree more PaulM.

To buy the property I am in now would cost in the region of £160,000, which would equate to a repayment mortgage of £1,043 a month (£800 interest only).

But I currently rent it for £650 a month and have no worries at all  

[tunnie]

I can choose to make payments on bulk if i wish, which i do have the funds to do, i could pay off a chunk. But saving for a deposit for a house... which willl take just about as long as a mortgauge to save  

I would clear the debt first before taking on more. Student loans are a bit of an unusual case in that the interest rate is very low AFAIK, so it's not quite so important to clear ASAP (in some cases you're better investing the money instead, as you'll get higher returns than the interest payments).

I wouldn't get so hung up on a property investment at this point in time, the market is way over-due a correction and it's already starting to happen. Buying at the peak, i.e. now, and you're effectively giving your money to the speculators who have been investing over the last 10 years! There are definitely better places to be putting your money in the meantime, and re-evaluate the scenario at a future date.

There is no way i will invest currently, in The Times this morning there was an artical saying house prices are going to fall 7& in the next 2 years.

But i still want to save for a later date to put a large amount down, (in about 4/5 years)

Don't fancy a 100% mortage!!

There is also the possibility for me to work in New York, if our USA launch takes off well

At the moment, with me being single, living at home, i have no contract  links to the UK so can easily move to the USA. I know the company, people, and setup. So if i get the chance i am off!!!

[Marks DTM Calib]

good luck  

I have my student loan, (12k) but that just comes out of my pay packet. Its £60 a month out of my pay  

But thats my only debt.

Did you realy think it would be free cash!

And at 60 quid a month thats gonna take as long as a mortgage to clear!

Its all based on what you earn, at 25k its £60 a month. But soon as you get a bit more it shoots up.

£35k and its £170 a month.

I can choose to make payments on bulk if i wish, which i do have the funds to do, i could pay off a chunk. But saving for a deposit for a house... which willl take just about as long as a mortgauge to save  

Tunnie, thats the minimum payment per month.

I would get rid of it, if you keep it then its more money per month that cant go towards a mortgage payment.........and a good advisor will take into account the monthly out goings you have when considering your max loan amount.

[Marks DTM Calib]

Couldn't agree more PaulM.

To buy the property I am in now would cost in the region of £160,000, which would equate to a repayment mortgage of £1,043 a month (£800 interest only).

But I currently rent it for £650 a month and have no worries at all  

 

I have been lucky I guess, although I have also been very careful where and what I bought but plus I had an excellent mortgage advisor.

300K house, sub 100K mortgage and 15 years left to pay off.....so it should be gone by the time junior starts college.

[Bacon Butty Man]

THE AMOUNT OF DEBT I HAVE ENCOUNTRED ALONG THE WAY HAS BEEN ASTRONOMICAL, Its easy to say "dont get into debt" but thats not always possible, I am lucky that i dont have any debts also. But i did have debt up until i started to reclaim my bank charges. in total i reclaimed £5000 and with this i paid off everything, I know there are people out there who are so careless with finances and when you see them on tv with £35000 in cc debts they wonder where its all come from, they are irrasponsable and they should not be allowed to get away without paying it back, DONT ever consider an IVA as this can follow you around for 12 years, yeah you may be debt free in 6 due to current legislation but it may be with you on your credit file for a further 6 years beyond that, Dont get a mortgage yet, hang fire, they will bottom out within the next 3-4 years or sooner, but they are going to come down by as much as 50%, all you got to do is research other country markets, The USA is slumping at the mo which will mean we will follow.
debt is a huge huge problem in the uk with 99% of the people in debt not really knowing what you can do about it.
first port of call is your Original agreement to any financial loan or finance inc car/motorbike loans, If the paper work has any errors on it at all, the debt is not legally binding or enforcable, if there is a miscalculation on the loan by as little a 1p its unenforcable, if your d.o.b. is wrong, unenforcable, if your name is misspelt, unenforcable, if you think this is the case then do not tell them just yet, you need to send a cca request in for a copy of the original agreement, If they do not provide one within 14 days then the debt is unenforcable legally and they have to ask a judge to enforce it, none of this will affect your CR, but from the day you send the letter via recorded delivery and if 28 days have passed with no sign of the aggreement even if they acknowlege your letter, then without the agreement the debt is then legally lost to them and you can safely say they cannot supply you with a true signed copy of the original agreement because the either dont have one or cant find it, then you start to ask for the money you paid to the BACK. because they cannot prove you owed them money and the reason you paid them in the first place is because they said you owed money to them and being the trusting soul you are you paid, until you decided to investigate and found you did not owe money to them. UNDER NO SIRCUMSTANCES TELL THEM YOU DO ALREADY HAVE A COPY OF THE AGREEMENT, CITY FINANCE ARE NOTORIOUS FOR BAD PAPERWORK ETC.