Killed by my Debt
Discussion
it is amazing how fast things can get out of control. I have been there myself.
First it was just bouncing off my overdraft limit getting constant large charges for small bouncy cheques, Getting a £40 bank charge for going a couple of quid (or pennies) over a limit when you are already broke is not ideal.
As a result of all the charges , I could never catch back up so the bank gave me a loan to pay off the outstanding debts and 'get things under control' but then I was still in the same situation but with a loan to pay off, so they gave me a credit card to make payments on the loan...
I got to the point where i was just about managing to pay the interest on the card but not paying down the debt. I was now paying the bank hundreds of pounds a month in interest and the debt was not shrinking.
The bank was literally bleeding me dry and i couldn't see a way out.
Eventually I just opened a bank account elsewhere and told that bank they were not going to get another penny out of me until they stopped charging me the ridiculous interest rates i was paying and they could take me to court if they wish. Eventually they agreed to stop charging me the interest and that any money i paid them would go to pay down the debt!
I am convinced that what they were doing was illegal or they wouldn't have backed down..
First it was just bouncing off my overdraft limit getting constant large charges for small bouncy cheques, Getting a £40 bank charge for going a couple of quid (or pennies) over a limit when you are already broke is not ideal.
As a result of all the charges , I could never catch back up so the bank gave me a loan to pay off the outstanding debts and 'get things under control' but then I was still in the same situation but with a loan to pay off, so they gave me a credit card to make payments on the loan...
I got to the point where i was just about managing to pay the interest on the card but not paying down the debt. I was now paying the bank hundreds of pounds a month in interest and the debt was not shrinking.
The bank was literally bleeding me dry and i couldn't see a way out.
Eventually I just opened a bank account elsewhere and told that bank they were not going to get another penny out of me until they stopped charging me the ridiculous interest rates i was paying and they could take me to court if they wish. Eventually they agreed to stop charging me the interest and that any money i paid them would go to pay down the debt!
I am convinced that what they were doing was illegal or they wouldn't have backed down..
Shuvi McTupya said:
it is amazing how fast things can get out of control. I have been there myself.
First it was just bouncing off my overdraft limit getting constant large charges for small bouncy cheques, Getting a £40 bank charge for going a couple of quid (or pennies) over a limit when you are already broke is not ideal.
As a result of all the charges , I could never catch back up so the bank gave me a loan to pay off the outstanding debts and 'get things under control' but then I was still in the same situation but with a loan to pay off, so they gave me a credit card to make payments on the loan...
I got to the point where i was just about managing to pay the interest on the card but not paying down the debt. I was now paying the bank hundreds of pounds a month in interest and the debt was not shrinking.
The bank was literally bleeding me dry and i couldn't see a way out.
Eventually I just opened a bank account elsewhere and told that bank they were not going to get another penny out of me until they stopped charging me the ridiculous interest rates i was paying and they could take me to court if they wish. Eventually they agreed to stop charging me the interest and that any money i paid them would go to pay down the debt!
I am convinced that what they were doing was illegal or they wouldn't have backed down..
Thank goodness you were dealing with established banks, and you had the presence of mind to deliver that ultimatum. That they agreed to help. Pay day loan companies are everywhere, and I don't suppose they're biddable in that way.First it was just bouncing off my overdraft limit getting constant large charges for small bouncy cheques, Getting a £40 bank charge for going a couple of quid (or pennies) over a limit when you are already broke is not ideal.
As a result of all the charges , I could never catch back up so the bank gave me a loan to pay off the outstanding debts and 'get things under control' but then I was still in the same situation but with a loan to pay off, so they gave me a credit card to make payments on the loan...
I got to the point where i was just about managing to pay the interest on the card but not paying down the debt. I was now paying the bank hundreds of pounds a month in interest and the debt was not shrinking.
The bank was literally bleeding me dry and i couldn't see a way out.
Eventually I just opened a bank account elsewhere and told that bank they were not going to get another penny out of me until they stopped charging me the ridiculous interest rates i was paying and they could take me to court if they wish. Eventually they agreed to stop charging me the interest and that any money i paid them would go to pay down the debt!
I am convinced that what they were doing was illegal or they wouldn't have backed down..
I'm lucky in that I started out with capital behind me. I squandered some of it (car...), but I always try to buy outright and live within my means. I'll take out a mortgage soon, and this worries me.
castex said:
Thank goodness you were dealing with established banks, and you had the presence of mind to deliver that ultimatum. That they agreed to help. Pay day loan companies are everywhere, and I don't suppose they're biddable in that way.
I'm lucky in that I started out with capital behind me. I squandered some of it (car...), but I always try to buy outright and live within my means. I'll take out a mortgage soon, and this worries me.
I was trying to live within my means too, I have never had anything on HP, never paid more than £2k for a car, always cash. The only time in my life i even had a credit card was the time I mentioned. I'm lucky in that I started out with capital behind me. I squandered some of it (car...), but I always try to buy outright and live within my means. I'll take out a mortgage soon, and this worries me.
I hate being in debt, I dont even like mobile phone contracts !
It was such a relief when i finally got it all payed off, but it was a really tough couple of years. 95% of my debt was charges and interest, I didn't have a shopping problem
I couldn't watch the end. Very sad indeed.
What was surprising was that it was two fines totalling about £100 originally that escalated to over £1k.
Then the bailiffs removed his only way of paying it back. He really needed help. Seemed totally avoidable.
Most of us here are fortunate that we can pay the fines or bills and avoid extra charges. If you can't afford to pay the fine/bill it becomes unmanageable quite quickly and it seems a down hill spiral. The government should really limit this behaviour as it seems like an attack on the poor imo.
What was surprising was that it was two fines totalling about £100 originally that escalated to over £1k.
Then the bailiffs removed his only way of paying it back. He really needed help. Seemed totally avoidable.
Most of us here are fortunate that we can pay the fines or bills and avoid extra charges. If you can't afford to pay the fine/bill it becomes unmanageable quite quickly and it seems a down hill spiral. The government should really limit this behaviour as it seems like an attack on the poor imo.
Shuvi McTupya said:
The bank was literally bleeding me dry
No.Honestly, they were not.
I can guarantee that they were not bleeding you dry.
https://dictionary.cambridge.org/dictionary/englis...
The Mad Monk said:
Shuvi McTupya said:
The bank was literally bleeding me dry
No.Honestly, they were not.
I can guarantee that they were not bleeding you dry.
https://dictionary.cambridge.org/dictionary/englis...
Really?
That's what you took from his story?
Unbelievable.
The Mad Monk said:
No.
Honestly, they were not.
I can guarantee that they were not bleeding you dry.
https://dictionary.cambridge.org/dictionary/englis...
you sir are a complete bellend!Honestly, they were not.
I can guarantee that they were not bleeding you dry.
https://dictionary.cambridge.org/dictionary/englis...
bazza white said:
Really sad. a debt cloud above your head can quickly turn into a thunderstorm.ive been there when i was young and wont be going there again
Payday loans are now capped at twice the debt amount yet his fines ended up at nearly ten times the original amount its quite bonkers.
whats really worrying is quite how many people are just one paycheck away from being in this situation.Payday loans are now capped at twice the debt amount yet his fines ended up at nearly ten times the original amount its quite bonkers.
I've been close for a while, each month being a balancing act between what could be paid off. a job on the side sorted it for me with a fair few promotions in my main job. The big solutions take time though and were very close to not being quick enough!
The Mad Monk said:
Shuvi McTupya said:
The bank was literally bleeding me dry
No.Honestly, they were not.
I can guarantee that they were not bleeding you dry.
https://dictionary.cambridge.org/dictionary/englis...
If not - get a life you gobbler.
I am usually pretty busy (currently on holiday, hence lots of posts) and sometimes miss going overdrawn on an account, triggering fees.
If those fees were the equivalent interest rate they would be illegal and I think it is outrageous that the FSA have not banned this behaviour by the Banks.
Barclays are the worst, in my experience.
The Mad Monk said:
I knew this didn't have a happy ending. I didn't watch it.
Serious question.
What should the debtor have done?
Spoken to someone like citizens advice or debt helpline, even being more open with his parents. I know its easy to say it but hiding it and doing nothing is one of the worst things you can do with debt but debt collection agencies should be handing out details of debt help agencies to the debtor the same as gambling sites now offer contacts for thos with gambling issues. Serious question.
What should the debtor have done?
The Mad Monk said:
I knew this didn't have a happy ending. I didn't watch it.
Serious question.
What should the debtor have done?
at the point of the fine, phone and phone, complain to the bank immediately. See if you can get this first charge removed.Serious question.
What should the debtor have done?
But really, this is already too late. What is really needed is the nigh on impossible task of saving into a savings fund from day1 of work. Problem is that if everyone did this it would probably crash the country, and given how rubbish many people's wages are would be impossible anyhow.
other than that, second job I guess.
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