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hornet

5,929 posts

135 months

[news] 
Tuesday 2nd October 2012 quote quote all
Final thought, as like others I suspect much of this is falling on deaf ears.

Whilst you can't be held responsible for the loss of your job, the fact you needed credit cards to meet expenses whilst you were out of work suggests you've prioritised short term lifestyle "stuff" (the BMWs and iThings) ahead of financial responsibility, resulting in being horribly exposed when the rug was pulled out from beneath your feet. Now you're back working, your FIRST priority should be clearing the debt - sell everything and live on SuperNoodles if need be - your priority after that should be to build up a buffer, say enough to cover three months outgoings at a bare minimum. Once you've got those two ticked off, by all means go back to track days and shiny things. Until then, understand the simple fact that you CAN'T AFFORD the lifestyle you currently have. Splashing out £500 on a second iPhone when you can't meet your existing obligations is weapons grade idiocy.

magpie215

2,140 posts

74 months

[news] 
Tuesday 2nd October 2012 quote quote all
hornet said:
walm said:
Obviously you don't need the iPhone5 - that is £500 no matter what contract you go on.
Keep the 4.
Or sell both and just buy a regular PAYG phone...
^^^^^^ G300 accend smart phone get it unlocked and on giffgaff for under £100 sell the iphone 4 and 5 = big lump of money to throw at debt issue

fido

10,682 posts

140 months

[news] 
Tuesday 2nd October 2012 quote quote all
bulldog5046 said:
Although i would like to point out the track car i only paid £25 for those tyres it shreadded and the track days themselves were free.
And the rest of the car? Or do future liabilities not matter? (if so is your first name Gordon?)

Welshbeef

17,838 posts

83 months

[news] 
Tuesday 2nd October 2012 quote quote all
Sadly I'd have to say the OP appears to only have noticed the debt issue but doesn't understand what it means so the reality of the situation and acceptance of the problem are some way off before he starts fixing the issue. During which time the debt will grow.

OP lots of sensible advice given here to help you - they don't know you from Larry nor have any vested interest you have asked for help its been offered and yet sadly your response is I cannot cut back on anything .... Grow up.

Debt can have a nasty way of getting out of control and by then your life will be consumed with worry and also it will take a much much longer time to fix.

Very simple
You know your base salary (any over time is a bonus so ignore it)
Work out what you have to spend - if this is larger than your income you have two options one get a payrise or a new higher paid job (not easy to do) or secondly review all your costs and either eliminate then or cut them back.

I'm guessing you rent - If you really wanted to save cash you could buy a really crappy caravan for £1k to live in from April to Oct that would save you a mint though an extreme example.
No sky
No smart phone
Sell iphone5 and that would clear current new debt
Sell iPhone 4S that would chip away at your other debt buy a £15 phone on a £10pcm simplicity contract
No holidays tough you don't have the money so work until you clear it
Downgrade to shopping in Lidl from Waitrose.
Make your own sandwiches - you will save £500+ each year
Don't buy coffee from a coffee shop instead buy a heat holding mug and make it at home to take into work a £6jar will last you easily 1 month possibly 2 months v £2.50 each day.
Hand wash your car
No beer
No going out for a meal or cinema
Only days out will be a good walk in the park or along the river etc
Cancel any magazines subscriptions
Don't buy newspapers
Don't buy any new clothes make your existing kit last for two years
Downgrade your car
Get rid of the track car you can always buy another in the future

Doing the above I'd say within a year ish you will have a savings pot of £10k with all debt paid off too- your halfway to having a big enough deposit to buy a house or to buy jointly.

groak

3,254 posts

64 months

[news] 
Wednesday 3rd October 2012 quote quote all
There are, essentially, two types of debt.

1) debt you feel comfortable about servicing and are happy to work to maintain.

2) debt whose servicing makes you feel uncomfortable in a spectrum from stressed to suicidal including the feeling of enslavement.

My advice is to get as much of 1) as you can, wherever you can, and to do everything possible to get rid of 2) regardless of what it means sacrificing or selling.
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oldcynic

1,705 posts

46 months

[news] 
Wednesday 3rd October 2012 quote quote all
Welshbeef said:
Loads of good advice for someone on the edge of bankruptcy
Fundamentally, you need to start living within your means.

You can choose to live within 50% of your means and save a truckload of money over the next 12 months, or to live within 95% of your means and pay off your debt over the next 12 months.

Keep buying the latest technology and pouring fuel / road tax / insurance / whatever else into your track car and you won't be living within your means. You don't have to shift your lifestyle very far at all to clear the debt. You could shift your lifestyle a whole lot further and bank some savings to cover another month (or 6) out of work.

z4chris99

7,351 posts

64 months

[news] 
Wednesday 3rd October 2012 quote quote all
sounds like your typical of a section of society that lives way above their means.

I bet you have;
sky tv
a big flat screen
nice holidays
iPhone
fancy carc
buy clothes often
eat out

none of which you should have or do if you are struggling to get out of debt.

bulldog5046

Original Poster:

1,236 posts

63 months

[news] 
Wednesday 3rd October 2012 quote quote all
I'm sorry but alot of what is being said appears to to have an extremist view, It's coming across along the lines of "SELL EVERY POSSESION OR YOU WILL DIE!" kind of mentality. Maybe thats just the PH way? or maybe £2200 sounds like alot and you are presuming i earn dole money?

The reality is much more as Groak has put it:-

groak said:
There are, essentially, two types of debt.

1) debt you feel comfortable about servicing and are happy to work to maintain.

2) debt whose servicing makes you feel uncomfortable in a spectrum from stressed to suicidal including the feeling of enslavement.

My advice is to get as much of 1) as you can, wherever you can, and to do everything possible to get rid of 2) regardless of what it means sacrificing or selling.
So, i had a bit of a stty weekend, felt a bit bad and felt like life was hard for a day so asked for help. PH was obviously the wrong place to do this with the 'holier than thou' attitude some of you have displayed. You can't honestly tell me none of you have ANY debts?

Some of the points from other post's are valid, and to help me clear the debt i will be looking to cut-back on lunches & beer for example as when reviewing my spending last night it was a clear high monthly expense. I will also be selling off a few items that i no longer need to go towards it, but it seems illogical to sell items i need and use daily.

Thanks again to those who gave helpful & balanced comments.

/thread

hornet

5,929 posts

135 months

[news] 
Wednesday 3rd October 2012 quote quote all
bulldog5046 said:
I will also be selling off a few items that i no longer need to go towards it, but it seems illogical to sell items i need and use daily.
You don't need two iPhones. Or for that matter any iPhones. If you absolutely need the utility of a smartphone, there are far cheaper ways to obtain it. I think the frustration for many is your failure to grasp that point. Rather than tinkering round the edges with food and beer, you could clear 20% of your debt in one fell swoop simply by having a different phone. Hardly a sacrifice, yet you refuse point blank to even consider it, hence why people are getting a bit short with you. The solution is quite literally in your hands, yet you're ignoring it.

On the question of being in debt, no, I've never had anything I can't manage, chiefly becuase rather than playing with iThings and living right up to (or beyond)my means, I first concentrated on building up reserves to cover emergencies. All very dull and worthy, but when my hot water system went bang and cost £1500 to fix, I didn't need to use credit cards at 19%, I had the cash to cover it. The best way to manage debt is to avoid getting into it in the first place. All about priorities. Let's say you are unfortunate enough to lose your job again. What you currently spend on iPhones could cover a decent chunk of your rent/mortgage, removing the need for emergency credit and giving you some breathing space. By prioritising "stuff" ahead of financial planning, you're dramatically increasing the risk of needing expensive debt to make ends meet should you find yourself in another situation. You're willingly jumping into a debt spiral for the want of a spangly phone, which is insane.

z4chris99

7,351 posts

64 months

[news] 
Wednesday 3rd October 2012 quote quote all
bulldog5046 said:
I'm sorry but alot of what is being said appears to to have an extremist view, It's coming across along the lines of "SELL EVERY POSSESION OR YOU WILL DIE!" kind of mentality. Maybe thats just the PH way? or maybe £2200 sounds like alot and you are presuming i earn dole money?

/thread
£2200 isn't a lot of money no, but if you are complaining out loud about having it and struggling to reduce it while you have many clear options which you could clear it in one swoop, none of which you appear to want to take because you value materialistic items such as your BMW and your iphone 5 more greatly than being debt free.

i find it astonishing that you brought an iphone 5 on your credit card. then complain about being in debt.


cuprabob

2,759 posts

99 months

[news] 
Wednesday 3rd October 2012 quote quote all
z4chris99 said:
i find it astonishing that you brought an iphone 5 on your credit card. then complain about being in debt.
Slightly off topic and don't want to be the grammar police but why do so many people these days say brought instead of bought?

OP - Some good advice on the thread and you should at least take note, bearing in mind you posted requesting help in the first place.

z4chris99

7,351 posts

64 months

[news] 
Wednesday 3rd October 2012 quote quote all
cuprabob said:
z4chris99 said:
i find it astonishing that you brought an iphone 5 on your credit card. then complain about being in debt.
Slightly off topic and don't want to be the grammar police but why do so many people these days say brought instead of bought?

OP - Some good advice on the thread and you should at least take note, bearing in mind you posted requesting help in the first place.
my speeeeling is rubbish. i don't blame anything other than myself being crap at it.

bulldog5046

Original Poster:

1,236 posts

63 months

[news] 
Wednesday 3rd October 2012 quote quote all
z4chris99 said:
£2200 isn't a lot of money no, but if you are complaining out loud about having it and struggling to reduce it while you have many clear options which you could clear it in one swoop, none of which you appear to want to take because you value materialistic items such as your BMW and your iphone 5 more greatly than being debt free.

i find it astonishing that you brought an iphone 5 on your credit card. then complain about being in debt.
Then prepare to be astonished, it was £80, not the £529 everyone is obsessing over. And, it was paid from a Debit card, not credit.

Look, i've already said, i was having a bad day and feeling a bit down about it. It just felt like every time i pay something off another bill rears it's head rady to snatch more money.

To a degree you (all of you) are correct, i should reign my spending back some amount to compensate for the upkeep of my lifestyle. Clearly i've not found this balance yet.

But i disagree with the comments regarding the severity and degree of debt management that should be put into place.

As said, it should become 'manageable' not expect it to clear it overnight by selling all my possesions.

ShawCrossShark

2,125 posts

119 months

[news] 
Wednesday 3rd October 2012 quote quote all
Any advice anybody can send me.

Have £3.5k on a credit card which I cut up. Have £1k overdraft on a bank account I am no longer using. Rest of debt is mortgage and associated loans (both secured and unsecured)

Been to CCCS and have token amounts going to CC, overdraft, unsecured loan until my lodger starts paying rent again in January (he paid up to Christmas in advance to clear council tax/ mortgage arrears)

Don't have much spare time as I spend time with daughter, plus I work thursday and saturday nights behind a bar to fuel my £500 Peugeot to get me to my full time job

Virgin is £26 a month including calls and broadband. Mobile is £35 a month due to 2 year contract. Due to expire in December and am planning on reduction to £15 a month plan

All this is due to the wife walking out 2 years ago

OP, you don't know you're born mate wink

walm

4,588 posts

87 months

[news] 
Wednesday 3rd October 2012 quote quote all
bulldog5046 said:
Then prepare to be astonished, it was £80, not the £529 everyone is obsessing over. And, it was paid from a Debit card, not credit.
Apologies if this is flogging a particularly dead horse but this is a finance-101 fail.

An iPhone5 costs £500. That is a simple fact.
If you decide to finance it by paying a higher monthly fee then you are just spreading the cost.
The cost is still £500.

I was being generous with my £300 because you said your old tariff was £25. The simple fact is THAT tariff was too high.
Sim-only all you can eat monthly contracts are £500 cheaper over 2 years than iPhone5 subsidising ones (including up front phone cost).
Because an iPhone5 costs £500.

Finally, saying you are using your debit card not credit card is just irrelevant and poor book-keeping.
The money you spent (£80) SHOULD have been going towards paying off the credit card.
It didn't.
So in effect it kept the credit card balance higher than it should have been.
That's called spending on a credit card.
Every penny you spend when you are in debt on an uncleared credit card balance is spending on that credit card.

When you are in credit on your credit card and current account - then you have a choice.
Before then it's all credit.

prand

3,288 posts

81 months

[news] 
Wednesday 3rd October 2012 quote quote all
bulldog5046 said:
I can't deny i do have spending habits. Although i would like to point out the track car i only paid £25 for those tyres it shreadded and the track days themselves were free.

It's easy to say 'sell the car' but with things like these, i'll only see half what i've spent on it back if im lucky.

Also, an 80 mile daily cylce is a little off putting :P

I'm sure i must be overlooking some thing, i'll go back over my statements and see where i can find some money to free up.

EDIT: I'm possibly making thing's sound worse than they really are. I have around £400 of overtime coming in at the end of this month, an iphone 4 for sale for £175-200 which combined will make a considerable dent in the debt, i've just been feeling a bit like as soon as i pay anything, another bill comes along.

Edited by bulldog5046 on Tuesday 2nd October 17:25
Ha Ha, you sound just like my feckless brother in law.

The one who is having to sell his own flat and move into his father's house at 35 because he just would not listen to any advice from anyone.

Mountain bikes, running and maintaining a Mk 1 golf, as well as an over-specced company car, £400 smart phone, surf boards, and endless drinking sprees means he's losing everythign he's worked for in the last 10 years.

And I always get the same answer "it's an investment, its worth XXX when I sell it, I'm worth it, it's my hobby etc etc.

I refuse to talk to him now as he's such a loser and there's always an excuse for it.

cuprabob

2,759 posts

99 months

[news] 
Wednesday 3rd October 2012 quote quote all
z4chris99 said:
my speeeeling is rubbish. i don't blame anything other than myself being crap at it.
It's just that I've seen it so many times recently, I was wondering if it was iPhone autocorrect or something.

eldar

8,335 posts

81 months

[news] 
Wednesday 3rd October 2012 quote quote all
bulldog5046 said:
Look, i've already said, i was having a bad day and feeling a bit down about it. It just felt like every time i pay something off another bill rears it's head rady to snatch more money.

To a degree you (all of you) are correct, i should reign my spending back some amount to compensate for the upkeep of my lifestyle. Clearly i've not found this balance yet.

But i disagree with the comments regarding the severity and degree of debt management that should be put into place.

As said, it should become 'manageable' not expect it to clear it overnight by selling all my possesions.
The advice is basically correct.

You don't budget properly, unexpected (forgotten about) bills suddenly appear. Meanwhile you spend money you know you can't afford.

You need to fix it, or it will get worse. Your current lifestyle is based on debt, bit like Greece in 2002.


Welshbeef

17,838 posts

83 months

[news] 
Wednesday 3rd October 2012 quote quote all
Ok as you say it's not a lot - I totally agree its not a lot at all although that kind of depends on your income and committed costs.

Depending on how much you earn this could be fixed in as little as one month or years and years.


So if its worrying you as much to post up in a forum then it must be a concern. You should have reserves to cover three months living costs and bills for the situation of out of work.


If you don't take any of the advice enjoy increasing your debt or if you act upon it good for you

VTECMatt

577 posts

123 months

[news] 
Saturday 6th October 2012 quote quote all
OMG I read track car which is a huge luxury give it up job done. Track days for you might be free although i doubt it, but Petrol, tyres, pads etc aren't. Come on get a grip you don't need stuff like this if you worry about about 2K of debt.
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