Money nightmare - anyone have any ideas?

[RidleyRockets]

What is/was your job? Are you not entitled to any sick pay at all? Are you sure you are getting all the benefit you are entitled to?

If it's really that bad move back in with your parents, grandparents friends, brother/sister if you have any. Anywhere where you can probaly stay for free for a while. Live off the bountiful benifits of our government for a while as you figure out a plan. I've ****ed up and had to come running back home before, there is no shame in it. Shame comes later when you hear your parents shagging.

Other than that all i can think of is:

- Ebay the shit out of anything you don't need.
- If you can, work from home.
- If you can find work very near home.
- Eat the cheapest food possible.
- Set up a cam site for yourself and wank your way out of debt.

 

[repiV]

Will you accept paypal donations at all? I don't have a whole lot I can spare but if you'll let me I'll send $50 your way. Sounds like you need it.

Wow. That's so generous of you...thankyou so much.

I really don't want to take your money though, I don't want to impose at all. I hope that's not being rude, I'm not particularly clued up on the ettiquette of charity...I really, really appreciate the offer but the mess I'm in is entirely my fault and my responsibility and I don't want to make it yours too. It would make me quite uncomfortable to accept money from anybody.

Thanks again, my friend.

 

[Ennui]

That's fine, I understand (and would have done the same thing in your situation). Let me know if you change your mind though.

 

[RidleyRockets]

Wow. That's so generous of you...thankyou so much.

I really don't want to take your money though, I don't want to impose at all. I hope that's not being rude, I'm not particularly clued up on the ettiquette of charity...I really, really appreciate the offer but the mess I'm in is entirely my fault and my responsibility and I don't want to make it yours too. It would make me quite uncomfortable to accept money from anybody.

Thanks again, my friend.

.....can i have it then?

 

[ComradeBadger]

Have you tried

www.entitledto.com ? It's rather good for helping work out benefits/credits etc.

Very sorry to hear this mate, terrible thing to happen to anyone. Credit cards are the devil unless you play them right, and shift the money between cards like Kirov mentioned.

Have you spoken to your bank at all about the overdraft - they can suprisingly be understanding...

 

[morgs]

Is there some sort of sickness benefit you can go on? I know it's in NZ but I'm not sure about where you are...

 

[repiV]

What is/was your job? Are you not entitled to any sick pay at all? Are you sure you are getting all the benefit you are entitled to?

I was working a temp job at an hourly rate - so I'm not entitled to anything unfortunately. The last permanent job I had, the sickness entitlement was only 5 days anyway. I think it's only in the public sector where you can get full pay for months at a time when you're sick.
I'm pretty sure the only benefits I'm entitled to are Incapacity Benefit and Income Support, which I'm claiming for at the moment.

If it's really that bad move back in with your parents, grandparents friends, brother/sister if you have any. Anywhere where you can probaly stay for free for a while. Live off the bountiful benifits of our government for a while as you figure out a plan. I've ****ed up and had to come running back home before, there is no shame in it. Shame comes later when you hear your parents shagging.

Other than that all i can think of is:

- Ebay the shit out of anything you don't need.
- If you can, work from home.
- If you can find work very near home.
- Eat the cheapest food possible.
- Set up a cam site for yourself and wank your way out of debt.

I already live at home unfortunately - the house is paid for and I don't have to pay for food or anything like that. My debts are all personal loans/credit card, the problem is that the debts are unsecured and uninsured, my family is even poorer than I am and can't offer me any financial help, and the benefit system doesn't care about personal debt.

Wanking my way out of debt sounds interesting, but it would be a lot more appealing if I were temporarily a woman. Pays better too.

 

[Dr0ndeh]

I must avoid defaulting at all costs...
I think maybe my credit rating isn't so good now that I'm no longer employed and my income is 400 a month - I have a feeling that's why my request for an overdraft extension was declined.
The problem is that I just don't know how soon I'm going to be able to return to work. I might try and persuade one of my fair-weather rider friends to lend me their bike to commute on over the winter, then I can be assured of work by February at the latest but I don't really think it would be fair to ask. Expensive machines that get looked after as much as they get ridden, don't get subjected to the punishment of winter and if I had an accident I would have no way of paying for the damage. Which is something I definitely have to consider as winter riding is very treacherous and I've not been riding long enough to even have winter experience behind me.



None. It always seemed extortionately expensive to me, and they probably wouldn't pay out anyway as I had a temp job.



Hmm...can I do that now? Could that be the answer to my troubles?
What if I have another disabling accident during the repayment period?



Wow, that's good-natured charity for you. I'm not religious in the slightest, but that's certainly an option I hadn't considered before. Thank you.

a consolidation loan would certainly help tbh, i work for the halifax and our loans are deffered for 2 months (which means you start monthly payments 3 months after you get the money for example if you took the money today you wouldnt start paying till 22nd of feb)

it all depends on your creditscore and how much trouble youve got yourself into with your current bank. who do you bank with? (i assume youre in the uk)

 

[repiV]

That's fine, I understand (and would have done the same thing in your situation). Let me know if you change your mind though.

Thanks.

Have you tried

www.entitledto.com ? It's rather good for helping work out benefits/credits etc.

That's pretty neat, thanks. I just ran through it - apparently I'm entitled only to income support and incapacity benefit.

Very sorry to hear this mate, terrible thing to happen to anyone. Credit cards are the devil unless you play them right, and shift the money between cards like Kirov mentioned.

They are absolutely the devil. It's by far the worst kind of debt, not only because it's so expensive but because you can run it up on frivolous things whenever you feel like it and you don't have to pay it off if you don't feel like it.
I took out a ?3000 loan for the bike in March, and if this hadn't have happened I would have paid the whole thing off in February. Total repayable - ?3155. A pretty good deal in my opinion, the repayments were a short-term minor to moderate inconvinience completely outweighed by the benefits of having a bike.
My credit card debts have never been as high as that, but they just stick around forever because I never manage to pay them off. I was sticking fuel on them for pleasure rides too when I didn't have any spare money in the bank. Bad, bad, BAD.

At the end of the day, I should have taken steps to protect myself against this happening in the first place. My hobby is basically an extreme sport, and I will certainly be taking out income insurance and life insurance in future. I was stupid to push the boundaries without thought to the consequences of screwing up which reach so far beyond pain.
Although I think I'll spend time on racetracks in future, they're designed to be crashed on. Most times you can walk away from a 100mph fall without any injury at all. Then I won't need to have my moments of lunacy on the road.

Have you spoken to your bank at all about the overdraft - they can suprisingly be understanding...

Yeah, first I asked for a ?500 overdraft. Then a couple of weeks later for a ?1000 overdraft. This evening I explained the situation and asked for a ?1500 overdraft, and it was declined. Nothing he could do about it.
To be fair, I have found Alliance + Leicester, who deal with my loan, to be very helpful and understanding. They don't offer any kind of payment holiday though, which is a bastard.

Is there some sort of sickness benefit you can go on? I know it's in NZ but I'm not sure about where you are...

I'm in the UK. There is, but it's only 61 quid a week. A day's pay for a fairly poor man.

a consolidation loan would certainly help tbh, i work for the halifax and our loans are deffered for 2 months (which means you start monthly payments 3 months after you get the money for example if you took the money today you wouldnt start paying till 22nd of feb)

it all depends on your creditscore and how much trouble youve got yourself into with your current bank. who do you bank with? (i assume youre in the uk)

I bank with Lloyds. I've never really had credit problems in the past, never missed a payment (accidentally missed the monthly cutoff on the odd credit card payment but I've always made the payment as soon as I realised), been offered all sorts of credit cards etc.
Can I potentially get one of those loans if I'm currently unemployed? Income will be 400 a month from benefits, and if all my debts are cleared then I have no other expenses at all, except for my mobile phone. And I should be working again in three months.

 

[CrazyHarij]

christ, man.. ebay everything you dont need, heck, ebay/craigslist shit you dont have, check out bars and steal wallets, steal clothes and ebay them, talk to ppl and ask for small jobs, run liquor/smokes to minors, contact shady ppl.. hypothetically ofc.

 

[CrazyHarij]

i know its crap but srsly you need to get this sorted every way you possibly can.. pm for more tips.. anyway you should get some proper benefits if you get ahold of someone to talk to. but im not sure about that situation in the uk. good luck man!

 

[TechnoHippyChic]

Best case scenario, it will be April before I'm physically able enough to use public transport again.

Doesn't the bus system have some kind of accomodation for disabled persons? Here, at least, they have one's with extendable ramps, special "shortbuses" etc. Sounds like it may still be difficult, but perhaps doable if they do offer such things.

 

[kirovman]

Unfortunately I'm not sure it's a viable solution because walking on crutches is a lot more difficult than you would imagine. The distance of a 20 second walk at a brisk pace would leave me sweating, trying to catch my breath and wobbling all over the place from exhausation. A walk to the local shops is completely out of the question.

Your walking will improve week by week I should imagine as your injury heals. What might seem unbearable this week may be doable in 2 weeks time. Sounds like you need some breathing space.

Also, maybe you could call your bank, explain your situation to them, and see if you can get a payment holiday, until you are fit to work again. I'd try this site:

http://www.moneysavingexpert.com/loans/debt-help-plan They seem to give good advice on all aspects of saving money, from best supermarket deals to managing your debts.

The biggest problem with debt I find is that it forces you to live your life a certain way. It's like a prison cell. You HAVE to maintain a certain level of income in order to meet the repayments, and that really infringes on your freedom. I would have gone to teach English in China but my debts made that impossible - with the money I'd earn over there I'd have to be completely debt-free to make it viable.

Yeah, I try not to get into debt at all, unless it's low rate debt. It is like a prison in some ways, and you have to make sure you have a good repayment plan in place.

From now on I intend to live a lifestyle without overspending and then I can enjoy life without having to worry about financial commitments or being tied down. Then a modest salary would be perfectly acceptable.

Yes, being debt free and able to afford what you want when you want must be a good feeling.

Are they ... 0% interest loans? Do they ... actually exist? Are there companies out there genuinely stupid enough to hand out 0% loans? Where can I find them? :E

I have been looking at these consolidation loans that were mentioned earlier...certainly sounds like it could be the solution to my problems. If I end up paying more debt or making payments for a longer period of time that's not such a problem so long as the monthly payments are manageable and I don't run up any more debt.
The question is whether I can get those loans at the moment and what kind of insurance I could have in case this happens again.
Although, I'm sure there must be a catch somewhere. Taking out a loan to pay off other loans? Strange concept...

I think they are 0%, but I think you have to invest in something, like property. And then pay back a proportion of the profit earned on it at the end. Anyway check out that site I linked to, there's lots of helpful information.

 

[Maxi]

What can I say? You're ****ed!

Credit is not bad. Debt is not bad. But not having money AND having debt is bad. I plan on buying my own flat, but I'll have 14000€ set aside gaining around 11% per year invested in different stuff. So I'll have around 80k€ in debt, and 14000 gaining 11 per year.

Having debt is bad. Using credit to help ease debt is worse. Just don't. Explain to each of the companies you own money your situation, don't go and "move" the debt to another credit card or something as foolish as that, it will backfire.

 

[TheDan]

Are you cutting down on spending on as much as possible? For example, you could buy value food (although I wouldn't go for value meat like value mince) and find out what meals are cheapest to cook. I don't know how much of a change it would make, but maybe doing things like turning off lights/putting computers into hibernate when you're not using them, turn down the heating and put a jacket on might make a difference in your outgoings.

 

[ComradeBadger]

That's pretty neat, thanks. I just ran through it - apparently I'm entitled only to income support and incapacity benefit.

Hope that's helped you out! As a student I use that site to take what I can get!

They are absolutely the devil. It's by far the worst kind of debt, not only because it's so expensive but because you can run it up on frivolous things whenever you feel like it and you don't have to pay it off if you don't feel like it.

What I always find is that it doesn't feel like spending real money, I've only really managed to stay on top of debt by managing it in concert with my student loans etc

I took out a ?3000 loan for the bike in March, and if this hadn't have happened I would have paid the whole thing off in February. Total repayable - ?3155. A pretty good deal in my opinion, the repayments were a short-term minor to moderate inconvinience completely outweighed by the benefits of having a bike.
My credit card debts have never been as high as that, but they just stick around forever because I never manage to pay them off. I was sticking fuel on them for pleasure rides too when I didn't have any spare money in the bank. Bad, bad, BAD.

At the end of the day, I should have taken steps to protect myself against this happening in the first place. My hobby is basically an extreme sport, and I will certainly be taking out income insurance and life insurance in future. I was stupid to push the boundaries without thought to the consequences of screwing up which reach so far beyond pain.
Although I think I'll spend time on racetracks in future, they're designed to be crashed on. Most times you can walk away from a 100mph fall without any injury at all. Then I won't need to have my moments of lunacy on the road.

That is/was a pretty damn good deal for a loan really. However, think of it this way - you've learned from your mistakes & gained experience which will benefit you in future. I think the trick is to attempt to see the positive in the worst of situations - at the end of the day you can and will work your way out of this, it's not a situation you will willingly get yourself into, and you now know that you need to provide precautions for the worst case scenario.

Yeah, first I asked for a ?500 overdraft. Then a couple of weeks later for a ?1000 overdraft. This evening I explained the situation and asked for a ?1500 overdraft, and it was declined. Nothing he could do about it.
To be fair, I have found Alliance + Leicester, who deal with my loan, to be very helpful and understanding. They don't offer any kind of payment holiday though, which is a bastard.

I think experience varies between banks, Natwest have been utter ****s in every dealing I've had with them, and have made use of various dirty underhand tactics to rob me of my money - one of which involved subtracting the minimum credit card payment from my account every month - regardless of whether I'd even run up a bill or payed off the balence.. sometimes this would push my overdrawn student account over the limit, a pleasure for which they would charge ?60 for. Ridiculus. Compare this to Barclays, who have helped me out at every turn, and been very understanding (especially when over one unemployed summer my account was permanently overdrawn to the max, and sometimes over in particularly tough months).

I sincerely hope you work your way through this - just don't give up hope..

 

[repiV]

christ, man.. ebay everything you dont need, heck, ebay/craigslist shit you dont have, check out bars and steal wallets, steal clothes and ebay them, talk to ppl and ask for small jobs, run liquor/smokes to minors, contact shady ppl.. hypothetically ofc.

i know its crap but srsly you need to get this sorted every way you possibly can.. pm for more tips.. anyway you should get some proper benefits if you get ahold of someone to talk to. but im not sure about that situation in the uk. good luck man!

Hey man...haven't seen you around for ages. Where've you been hiding?

Maybe I could become an assassin...nobody suspects the wheelchair guy.

Doesn't the bus system have some kind of accomodation for disabled persons? Here, at least, they have one's with extendable ramps, special "shortbuses" etc. Sounds like it may still be difficult, but perhaps doable if they do offer such things.

Yeah, the buses are disabled accessible. That isn't really the issue though, it's an impossibly long walk to the bus stop for me and even then, the transport system is so packed full during the rush hour it would be extremely dangerous. I'd have to fight my way through crowds of people and hope someone gives me a seat, and fight my way back out again. And at this time of year, there are going to be wet patches all over the place from people's footprints which would inevitably result in me slipping and falling on a regular basis. Crutches are very unstable in that way - you put them forward of you and lean on them to take your weight, and if a "glossy" surface like the floor of a bus is wet then the crutches just slides and you fall flat on your face, with an injury-exacerbating twisting movement if just the one crutch slides.
The buses are only good for local journeys also...the tube is even worse.

Your walking will improve week by week I should imagine as your injury heals. What might seem unbearable this week may be doable in 2 weeks time. Sounds like you need some breathing space.

My mobility is certainly improving all the time, but I don't see that I will ever build up the fitness to walk a quarter mile on crutches - certainly not in the timeframe we're talking about. I started off feeling sick and dizzy just standing up, and walking round my hospital bed to the chair was incredibly exhausting. When I first came home, it was a big effort to move from room to room and now I'm at the stage where I can walk to the GP across the road or around the hospital departments on my outpatients appointments without too much trouble. But the kind of distances we're talking about to use public transport or get around the local area are at the very least 20 times larger than that. Not to mention the dangers of slipping, crossing roads and being at the mercy of crowds.

Also, maybe you could call your bank, explain your situation to them, and see if you can get a payment holiday, until you are fit to work again. I'd try this site:

http://www.moneysavingexpert.com/loans/debt-help-plan They seem to give good advice on all aspects of saving money, from best supermarket deals to managing your debts.

Payment holidays aren't part of the deal with my loan unfortunately.

Thanks for the link...at the moment I'm thinking of going for one of those free debt management charities (they basically do the same thing as a debt management company but they don't take 15%).

Yeah, I try not to get into debt at all, unless it's low rate debt. It is like a prison in some ways, and you have to make sure you have a good repayment plan in place.



Yes, being debt free and able to afford what you want when you want must be a good feeling.




I think they are 0%, but I think you have to invest in something, like property. And then pay back a proportion of the profit earned on it at the end. Anyway check out that site I linked to, there's lots of helpful information.

Interesting...
I'll definitely check it out, thanks.

What can I say? You're ****ed!

Credit is not bad. Debt is not bad. But not having money AND having debt is bad. I plan on buying my own flat, but I'll have 14000? set aside gaining around 11% per year invested in different stuff. So I'll have around 80k? in debt, and 14000 gaining 11 per year.

Having debt is bad. Using credit to help ease debt is worse. Just don't. Explain to each of the companies you own money your situation, don't go and "move" the debt to another credit card or something as foolish as that, it will backfire.

Yeah, I'm not gonna rack up any more credit card debt. That's just crazy. I want to just get rid of the debt, as quickly as possible.

Sounds like you've got your financial planning in very healthy order.

Are you cutting down on spending on as much as possible? For example, you could buy value food (although I wouldn't go for value meat like value mince) and find out what meals are cheapest to cook. I don't know how much of a change it would make, but maybe doing things like turning off lights/putting computers into hibernate when you're not using them, turn down the heating and put a jacket on might make a difference in your outgoings.

I don't have to worry about those expenses because I live at home - there's not really anything I can cut back on because I'm not spending anything.

Hope that's helped you out! As a student I use that site to take what I can get!

Damn right.

What I always find is that it doesn't feel like spending real money, I've only really managed to stay on top of debt by managing it in concert with my student loans etc

Can be like that, yeah... I always regret pulling out the credit card, but the repercussions are never immediate or obvious.

That is/was a pretty damn good deal for a loan really. However, think of it this way - you've learned from your mistakes & gained experience which will benefit you in future. I think the trick is to attempt to see the positive in the worst of situations - at the end of the day you can and will work your way out of this, it's not a situation you will willingly get yourself into, and you now know that you need to provide precautions for the worst case scenario.

Yeah, you're completely right. I've learned a number of valuable lessons from this. I have firsthand experience that it's perfectly possible for me to suffer crippling injuries as a result of my mistakes (and I'm lucky to actually still be here, if any part of my upper body had taken that kind of impact I'd be dead). It doesn't just happen to other people.
The whole financial situation of course...it may even give me the chance to finally clear all these debts I've had bugging me for years. And I'll be happier for it in the long run.
And of course I'm learning to make the best of a bad situation and that it has benefits too. One thing's for sure, when I turn up to a place in full bike gear with crutches I won't be short of interesting conversational opportunities.

I think experience varies between banks, Natwest have been utter ****s in every dealing I've had with them, and have made use of various dirty underhand tactics to rob me of my money - one of which involved subtracting the minimum credit card payment from my account every month - regardless of whether I'd even run up a bill or payed off the balence.. sometimes this would push my overdrawn student account over the limit, a pleasure for which they would charge ?60 for. Ridiculus. Compare this to Barclays, who have helped me out at every turn, and been very understanding (especially when over one unemployed summer my account was permanently overdrawn to the max, and sometimes over in particularly tough months).

I find that banks are generally a bunch of deceitful bastards. Although I've only ever banked with Lloyds, they still all love to sting you with outrageous fees for minor indiscretions as a profit-making exercise.

I sincerely hope you work your way through this - just don't give up hope..

Thanks - I'm sure I'll be fine. I'm not in a negative mood at all to be honest - I was when I started this thread, at the moment I'm seeing some potential solutions and I'm really looking forward to being able to get back on the bike in January (hopefully). Riding in the depths of winter with a broken leg in heavy traffic will be anything but fun, but it will give me my life back - and ultimately that's what I want more than anything.

 

[Sulkdodds]

Well, fuck. I'm afraid I have no advice, except for selling things, and I'm sure you've already thought of that. Oh, and searching around for jobs that can be done from home. Which you already know.

Banks are awful.

 

[Evo]

Just wondering if your place of work will pay for your travel expenses (i.e. a taxi) so you can get to work? Would be something to get in touch with the manager about

 

[repiV]

Well, fuck. I'm afraid I have no advice, except for selling things, and I'm sure you've already thought of that. Oh, and searching around for jobs that can be done from home. Which you already know.

Banks are awful.

Ahh, it'll all work itself out. I just need a good plan and a bit of luck...

Just wondering if your place of work will pay for your travel expenses (i.e. a taxi) so you can get to work? Would be something to get in touch with the manager about

Sadly not...the taxi fare would be more than they actually pay me for the work.
It could be a possibility with an old employer of mine who are only a few miles away but they don't have any vacancies at the moment. Needs to be admin or something like that really, I'm in no condition to go back to the stressful recruitment role I used to have there.

 

[Parrot of doom]

Theres nothing wrong with credit cards, you just have to know how to use them. I've had several for years, pay them off in full each month. Occasionally use them as buffers when cashflow is poor.

Anyhow, I suggest you visit:

www.moneysavingexpert.com

for lots of tips on how to save money. The best deals for food, bills, etc.

 

[Cormeh]

I find my credit card works as an excellent ice scraper.

Anyhow - /me just catches thread

I'm kinda shocked to be honest repiV, from the nick you've been in that you never thought/knew you were entitled to aid/funding for you situation.

Although, a lot of good advice here. Hope it sorts out fella.

 

[repiV]

Thanks for all the advice everyone. It's really appreciated.

I've decided to go with a debt management plan. They'll take over all my debts, get all interest and charges frozen and I'll pay them a monthly amount which I can alter depending upon my circumstances.
The downsides are that they take 17.2% and I'll find it difficult to get credit for the next few years and impossible until I've paid off my debts.
The good news is that I should be debt free within 18 months and not having any credit for a while is probably not such a bad thing.

It'll be good to get rid of the worry, anyway.

 

[Parrot of doom]

You're about to get reamed.

Everything those debt management companies do, you can do as well.

Its quite easy to contact your creditors and explain you're having difficult repaying. Most if not all will be more than prepared to work out a repayment plan that means they get their money back, rather than you buggering off and them getting nothing from it, or worse still you going for an IFA.

Debt management companies are nothing but companies that profiteer from the ignorance or laziness of their customers - and I don't wish to offend, but you're at risk of falling into the latter of those categories.

 

[repiV]

You're about to get reamed.

Everything those debt management companies do, you can do as well.

Its quite easy to contact your creditors and explain you're having difficult repaying. Most if not all will be more than prepared to work out a repayment plan that means they get their money back, rather than you buggering off and them getting nothing from it, or worse still you going for an IFA.

Debt management companies are nothing but companies that profiteer from the ignorance or laziness of their customers - and I don't wish to offend, but you're at risk of falling into the latter of those categories.

No offence taken.
I know, it is laziness. I just don't want the hassle of it all. I haven't finalised anything yet, so I'll look into doing it myself but when I spoke to Alliance + Leicester they were understanding but not overly flexible. I could agree to pay a lower monthly rate, but by the third month I would have to pay the contracted minimum PLUS make up for the arrears from the past two months or I would be issued with a default.
No freezing of the interest, either.

 

[Kadayi]

Nightmare. It will take you 3 years to restore your credit rating after you've paid back the loans. If you are able to get out of the obligation I'd be inclined to drop the debt management plan at the earliest opportunity and tackle the debts yourself, once you are fully recovered and able to work. The best approach is to pay the absolute minimum on the cheaper loans and power crunch on the highest interest one as much as possible (aim to clear it in 6 month max). If you can balance transfer off the expensive onto the cheaper do that as well (though watch out for hidden liabilities). If it's a CC, then put as much of your salary onto it as possible at the beginning of the month, then use the card to pay out for stuff during the month. Interest on a CC is calculated on a daily basis, so albeit that you might put 1500 in and spend 1350, effectively reducing it by only 150 for the month, you will have significantly reduced the interest calculation during that period, which means more of your reduction goes towards paying back the capital rather than merely meeting the charge.

 

[repiV]

Nightmare. It will take you 3 years to restore your credit rating after you've paid back the loans. If you are able to get out of the obligation I'd be inclined to drop the debt management plan at the earliest opportunity and tackle the debts yourself, once you are fully recovered and able to work. The best approach is to pay the absolute minimum on the cheaper loans and power crunch on the highest interest one as much as possible (aim to clear it in 6 month max). If you can balance transfer off the expensive onto the cheaper do that as well (though watch out for hidden liabilities). If it's a CC, then put as much of your salary onto it as possible at the beginning of the month, then use the card to pay out for stuff during the month. Interest on a CC is calculated on a daily basis, so albeit that you might put 1500 in and spend 1350, effectively reducing it by only 150 for the month, you will have significantly reduced the interest calculation during that period, which means more of your reduction goes towards paying back the capital rather than merely meeting the charge.

Wow, that's really insightful. Thanks.

I had no idea that credit card interest was calculated on a daily basis either, I thought it was a monthly thing. That's bad.

The thing is, I was under the impression that the debt management companies could get all the interest frozen for me, and as far as I know I'm not able to do that. Although if it's simply a case of persuasion rather than policy, hopefully they'll be able to see it my way.
Most of my debt is credit card and overdraft, roughly 17.9% APR on each. My personal loan is 9.9% APR but the minimum payment is 263 a month, which unfortunately stops me from immediately focusing on the higher interest rates first.
With the current interest rates, I'm paying about 35 quid a month in interest on my credit cards alone - and one of them is 0% for a couple more months. Thus making the debt management fee less of an issue because it's cancelled out by the interest I'm paying?

My credit rating must have taken a massive hit recently, even though I have yet to miss a payment. I applied for a current account today (because most of the money I owe is owed to my current bank) and was rejected. That just sucks bigtime.

Either way, I haven't signed anything yet so I can certainly still change my mind. I guess I should try and sort something out with my bank so I can focus on paying off my personal loan (three months left) and then work on the other debts? If that's possible, anyway...

 

[Operational]

I haven't read all 5 pages so maybe someone mentioned this but if things are really, really bad you could declare Bankruptcy.

 

[Parrot of doom]

Creditors aren't stupid. They understand the difference between getting something, and nothing.

Despite what they say about how much you must pay, its up to you to work out exactly how much you have each month, and to split that between the debts you have. The debts on which you pay the most interest have priority, but stick to your guns and tell them exactly how much you can afford to pay them back. As long as you are reducing each of your debts it makes sense for them to accept whatever you offer.

Oh and none of these companies can impose financial penalties on late payments or overdraft charges beyond what it costs them to process such things. Credit card companies can only issue standard industry-wide charges, banks haven't been reeled in yet but its a matter of time. This is a matter of contract law.

I suggest you trawl through your banking history and check if you've been charged ?30 for being overdrawn - while any claims are on hold as a result of an OFT investigation, it will give you moral ammunition when dealing with them.

 

[Druckles]

Don't suppose you know when you're going to go back to work? I'd suggest taking up an internet job. Such as website design, producing random programs or the like. It might be enough to cover the immediate problems.

*waves at Parrot* woot! Manchester!

 

[Kadayi]

Wow, that's really insightful. Thanks.

I had no idea that credit card interest was calculated on a daily basis either, I thought it was a monthly thing. That's bad.

The thing is, I was under the impression that the debt management companies could get all the interest frozen for me, and as far as I know I'm not able to do that. Although if it's simply a case of persuasion rather than policy, hopefully they'll be able to see it my way.
Most of my debt is credit card and overdraft, roughly 17.9% APR on each. My personal loan is 9.9% APR but the minimum payment is 263 a month, which unfortunately stops me from immediately focusing on the higher interest rates first.
With the current interest rates, I'm paying about 35 quid a month in interest on my credit cards alone - and one of them is 0% for a couple more months. Thus making the debt management fee less of an issue because it's cancelled out by the interest I'm paying?

My credit rating must have taken a massive hit recently, even though I have yet to miss a payment. I applied for a current account today (because most of the money I owe is owed to my current bank) and was rejected. That just sucks bigtime.

Either way, I haven't signed anything yet so I can certainly still change my mind. I guess I should try and sort something out with my bank so I can focus on paying off my personal loan (three months left) and then work on the other debts? If that's possible, anyway...

If you haven't missed a payment than your credit rating should be ok. What you seem to be in is a temporary crisis situation, in that in a few months you'll be able to work again and service your debts. So what I'd consider doing is applying for a long term personal loan. Get the lowest interest you can get try [...] for deals..or at worst try your bank (interest is higher generally) as they tend to agree to loans that replace overdrafts as a matter of course. Ensure the loan consolidates everything you owe (CC, rest of existing loan, OD) then put a grand on top. You can use that extra money to service the loan repayments for the few months you require until your able to work fully again. It's a better solution that going through a Debt management agency (they are unlikely to get the interest frozen at all).

 

[Evo]

Don't suppose you know when you're going to go back to work? I'd suggest taking up an internet job. Such as website design, producing random programs or the like. It might be enough to cover the immediate problems.

*waves at Parrot* woot! Manchester!

That is actually a good idea!

If you know web-design etc. then it can be worthwhile i think

 

[Druckles]

You can get a few hundred squid for a website. Unfortunately, it can take a while to actually create a decent website, but I guess it wouldn't be much of a problem if you're not working. Graphic design is another alternative.

Can you not work from home?

 

[Kadayi]

Downloading Adobe CS3 and dabbling does not make you a graphic designer. :dozey:

 

[Druckles]

Downloading Adobe CS3 and dabbling does not make you a graphic designer. :dozey:

What's that supposed to mean? It's where everyone started off.

 

[repiV]

I haven't read all 5 pages so maybe someone mentioned this but if things are really, really bad you could declare Bankruptcy.

Fortunately, the situation isn't that bad. Thanks though.

Creditors aren't stupid. They understand the difference between getting something, and nothing.

Despite what they say about how much you must pay, its up to you to work out exactly how much you have each month, and to split that between the debts you have. The debts on which you pay the most interest have priority, but stick to your guns and tell them exactly how much you can afford to pay them back. As long as you are reducing each of your debts it makes sense for them to accept whatever you offer.

Oh and none of these companies can impose financial penalties on late payments or overdraft charges beyond what it costs them to process such things. Credit card companies can only issue standard industry-wide charges, banks haven't been reeled in yet but its a matter of time. This is a matter of contract law.

I suggest you trawl through your banking history and check if you've been charged ?30 for being overdrawn - while any claims are on hold as a result of an OFT investigation, it will give you moral ammunition when dealing with them.

I have been charged ?30 for being overdrawn on numerous occassions - in fact a returned direct debit the other day will incur another such charge.

Don't suppose you know when you're going to go back to work? I'd suggest taking up an internet job. Such as website design, producing random programs or the like. It might be enough to cover the immediate problems.

I'm hoping to return to work in January. This is dependent on the external fixation being removed from my leg on Christmas Eve, and me being able to buy or borrow a light, manageable, low-maintenance (since I'm in no condition to do any work on it) motorcycle that I can safely ride with a broken leg. At the very latest, it should be another month on top that the fixation is taken out so providing everything else goes smoothly then we should be talking February latest.
Until I can ride a bike again, I simply can't get to work. Unfortunately I have no marketable technical skills whatsoever - I build, install, maintain, upgrade all the PCs and the home network in the house but stuff like programming and web design is way beyond me.
I've been thinking of setting up a little home business doing telesales on a commission only basis for various clients, but I'm sure there must be a lot of legal nonsense that needs to be sorted out before business can actually be done.

If you haven't missed a payment than your credit rating should be ok. What you seem to be in is a temporary crisis situation, in that in a few months you'll be able to work again and service your debts. So what I'd consider doing is applying for a long term personal loan. Get the lowest interest you can get try [...] for deals..or at worst try your bank (interest is higher generally) as they tend to agree to loans that replace overdrafts as a matter of course. Ensure the loan consolidates everything you owe (CC, rest of existing loan, OD) then put a grand on top. You can use that extra money to service the loan repayments for the few months you require until your able to work fully again. It's a better solution that going through a Debt management agency (they are unlikely to get the interest frozen at all).

I tried to get a debt consolidation loan but the application was rejected. I asked for five grand over 2 years and then over 3, wouldn't accept either.

That is actually a good idea!

If you know web-design etc. then it can be worthwhile i think

If only.

You can get a few hundred squid for a website. Unfortunately, it can take a while to actually create a decent website, but I guess it wouldn't be much of a problem if you're not working. Graphic design is another alternative.

Can you not work from home?

Well the only option I can think of is doing telesales from home, but I'm not much of an expert at drawing up contracts.

 

[Druckles]

Until I can ride a bike again, I simply can't get to work. Unfortunately I have no marketable technical skills whatsoever - I build, install, maintain, upgrade all the PCs and the home network in the house but stuff like programming and web design is way beyond me.

It sounds to me, from that, it'd be ideal setting up a home business. You should start selling custom built PCs, or the like. It's an ok business, and if you enjoy it, it's quite fun. Only problem is finding someone who wants one, and sticking to it.

 

[repiV]

It sounds to me, from that, it'd be ideal setting up a home business. You should start selling custom built PCs, or the like. It's an ok business, and if you enjoy it, it's quite fun. Only problem is finding someone who wants one, and sticking to it.

Can you actually make any real money doing it?

Other problem is I'd have to ask for payment upfront because I've got nothing to buy parts with.

 

[Druckles]

Yeah, that would pose a problem. I knew a guy who set up an electronics business at home. He seemed to be doing pretty well. I don't know where he went, so I wouldn't be able to ask how he did it for you...

You should be able to make real money. You buy the parts (cheaply, from somewhere), stick them all together, and then sell the machine for more than its seperate parts. It does work, but I'm not very good with the whole business thing, so you'll have to ask someone else on here about that.

 

[repiV]

Yeah, that would pose a problem. I knew a guy who set up an electronics business at home. He seemed to be doing pretty well. I don't know where he went, so I wouldn't be able to ask how he did it for you...

You should be able to make real money. You buy the parts (cheaply, from somewhere), stick them all together, and then sell the machine for more than its seperate parts. It does work, but I'm not very good with the whole business thing, so you'll have to ask someone else on here about that.

It's cool, I'm good with the business thing. It's my job after all.
Could make quite a bit of money on each machine indeed, the problem as I see it is getting customers. I don't see what niche I could occupy or how I could market myself.
Well, actually, there is one way - tell your friends!

My dad and I have regularly discussed setting up a little PC building business in the past, but it always seemed like too much hassle to be worthwhile.