[zAndy1]

As tough as it is to admit I have some serious debt problems, many of you will have noticed I've been offloading stuff a lot recently (now you know why). This is an expensive hobby and it's very easy these days to get tempted and flash the plastic and live beyond your means. I just wanted to open this thread just to warn people that it's easy to get into trouble with debt and before you know it you're in the position I'm in now. I seriously doubt I will be able to purchase any significant new AV equipment for the next 5 years now which will be tough but hey some things are more important. We live in a very materialistic world, when something like this happens it certainly makes you question your priorities that's for sure! I will still post and keep track of things on here and hopefully help somebody out along the way but there might not be any new projector/plasma pics for a while! All the best everyone...

Cheers,
Andy.

[smelly]

Brave post mate, and a good one as there may be someone out there who needs a timely reminder of how easy it is to tot up debt on the plastic. In typical female fashion I'm a bit of a spender but I've always been lucky enough to keep myself in the black - only just sometimes though

Well done for getting yourself sorted mate, and hopefully you'll be back to buying new kit soon

[Sheks]

I would just like to reiterate what smelly has written.

Also, if I may be so bold, this is an excellent web site IMHO that I have taken a lot of tips from:

http://www.moneysavingexpert.com/

(hope I am allowed to post this url)
there is a great forum, which offers loads of support and tips for getting yourself out of debt as quickly as possible as well as saving money as efficiently as possible.

Best of luck,

Sheks

[dolph]

Originally Posted by Sheks

http://www.moneysavingexpert.com/

Just avoid the bargain forum !! - some of the bargains posted there are sometimes hard to resist!!

[MarkR]

Originally Posted by Sheks

http://www.moneysavingexpert.com/

Just had a quick look at this site and so far I am very impressed.

Great link Sheks, thanks!!

[zAndy1]

Well something good came out of posting this lol! Thanks for the support

Cheers,
Andy.

[Kopite4Ever]

i can sort of feel your pain but it hasnt hit home. finished my 3 year stint at uni last month and i have a £12,000 debt probably alot more after interest i dont even have a job yet either think buying the kit in my spec below was a big no no

as long as you get yourself sorted

[stealther]

zAndy1
Iam in the same boat mate not beeing able to purchase any new equip for some time has been the least of my worries.

There is a light at the end of the tunnel less than a year ago I was facing being made bankrupt and didnt know where the next meal was coming from all because I let my spending get out of control.

Dont even own a debit card these days so altho the urge is still there Ive removed my self from being able to buy online!

No matter what your debt is there is always a way through it.
Always seek independant advice such as http://www.nationaldebtline.co.uk/
Never take your creditors word for it, they will tell you anything to get sme money out of you!

GOOD LUCK

[MarkR]

Sorry Andy, didn't mean to come across the way I did in the last post. Seriously hope you get things sorted mate.

Have a look at that site because it looks like there are a load of good tips in there, you never know it may make things a little easier.

As Tesco would say, 'every little helps!!'

[Miyazaki]

I found setting up a savings account works. If you set aside a portion of your income to an account that incurs penalties for withdrawls it helps you stop spending so much, and you have something to show for it after a while with compound interest.

[zAndy1]

Been checking that site out.. there is some useful stuff on there, glad I posted this as I wouldn't have found that site otherwise! If nothing else 18866.com looks like it should save us a few quid!
Thanks once again for the good wishes, I'll get this sorted out eventually

Cheers,
Andy.

[shodan]

Although I've never had any real serious debt's, I've always been in debt since the age of 18. There has been times when it has really got me down and depressed but I managed to get through those times.

I've got to say, the worst thing i ever did (money wise) was to get an overdraft. that is a forever continuing circle of spite and hate!

I now earn more than twice what I have ever earned (Per year) but have possibly even less maney than ever.

Reason being, my rent is £625 per month (could find somewhere cheaper I suppose, but I do love this flat) high mobile phone bills and all the other bills etc etc. and I have approached a debt management company who have taken thigs over for me and organised lower rates with the bank and other companies and wotnot, so with me paying £200 a month to them, I'll be debt free in less than 2 years now! Hurrah!!!! Might even help me to slow up on my drinking too! (so its not all good! Hee hee!)

[shodan]

Oh and I got rid of my credit cards (cut them up) and all my bank cards and opened a new account through the debt management co with Royal Bank Of Scotland and the only card I have can only be used at a cash machine so no impulse Visa purchases either (which I was a bit good at!). Got to be cruel to be kind and need to be harsh on yourself to get through it!!!

Do have a PayPal account though so I might dig up something to sell and get some money in there and maybe it can be like a "AV Treat For Me" account or something!!!

[zAndy1]

I think much of the reason I'm in this state is because between 1994 and 1999 I earned at least £60K a year contracting. Since then I've been on a normal permanent salary and it's been difficult adjusting, when you earn £60K+ PA you can pretty much afford to buy what you want (within reason of course). A failed business venture, getting married, moving house and having a kid in the space of a year all contributed, as did the purchase and sale of 3 or 4 plasmas and 3 projectors! My priorities have changed now, when you have a holiday to Florida booked and the kids know about it and you then have to cancel it and tell em they can't go it kind of focuses the mind a bit! As long as I've got a roof over my head and my wife and kids I'm happy, anything else is a bonus

[Bristol Pete]

As long as I've got a roof over my head and my wife and kids I'm happy, anything else is a bonus

Wise words mate. Hope everything is OK for you and your family.....

Have said many times on these very forums that AV can become an obsession rather than a simple hobby. It does seem to catch many people out, myself included, chasing the tail worrying about this and that when all is said and done it is simply about watching a film or playing a video game. I can always remember Seany knocking AV on the head a couple of years back and saying did he enjoy a movie any less as it was on his 21" TV? No was the answer.....

Pete. (currently selling all my AV gear and moving back in with my parents)

STRONGLY suggest yo give these people a ring. It's a government funded charity and is totally free to you...what can you lose...?

[PaulaB]

When my father died he left a massive £130,000 worth of credit cards debts and bank loans, to be honest I think the worry about the debts finnaly killed him. What threw me is that despite the fact that in credit cards he had over £80,000 and had taken a loan to repay some of this 2 weeks after he died a new credit card arrived. I didn't have to pay the debts but dealing with banks and telling them and proving over again that he had no estate is very unpleasant.

I know exactly how it feels to have more outgoings than income - I have to find £300 a month to cover the loss of wages when I was made redundant - all the TAG gear I had was sold.

It will be at least 5 years before I can actuall save up for something.

[Squiffy]

I must admit, I'm reading this thread with a great deal of interest.

I'm due to be made redundant at the end of this month. I do have a few internal job applications on the go, and have high hopes that a 2nd interview tomorrow will result in an offer.

Unfortunately I expect that this new offer will be for around £15k LESS than I currently earn. This is going to cause substantial problems for us. We will not be able to service our current debts after that sort of pay cut.

[Mr.D]

Originally Posted by PaulaB

When my father died he left a massive £130,000 worth of credit cards debts and bank loans, to be honest I think the worry about the debts finnaly killed him. What threw me is that despite the fact that in credit cards he had over £80,000 and had taken a loan to repay some of this 2 weeks after he died a new credit card arrived. I didn't have to pay the debts but dealing with banks and telling them and proving over again that he had no estate is very unpleasant.

Had a similar problems with my Dad's estate. Never did get to the bottom of why he had so much debt , it certainly wasn't down to the lifestyle he and my mother had.

Found the Halifax were brilliant about things. I had to threaten the Royal Bank of Scotland with legal proceedings if they continued to harrass my mother over the phone ( every other day inquiring about the debt payment). Unfortunately myself and my brother had to make sure my mother was safe as the banks came after the equity in her house to secure the debt.

I myself am lucky enough to have no debt. Clear my credit card off every month. If I can't afford something I save up for it.

[stealther]

Originally Posted by Squiffy

I must admit, I'm reading this thread with a great deal of interest.

I'm due to be made redundant at the end of this month. I do have a few internal job applications on the go, and have high hopes that a 2nd interview tomorrow will result in an offer.

Unfortunately I expect that this new offer will be for around £15k LESS than I currently earn. This is going to cause substantial problems for us. We will not be able to service our current debts after that sort of pay cut.

Squiffy If it does transpire that you can not afford to make payments then get in touch with your creditors straight away. There are more options open to you before you start defaulting payments.

Most Creditors Ive dealt with of which Iam ashamed to say there are quite a lot! Act perfectly reasonable providing proper comunication is maintained and some payment is made.

I think at one point I was sending them all £1 a month while I was between jobs!

Good Luck with the jobs

[zAndy1]

Yeah it only takes something unexpected to happen (in my case my wife had to leave her previous well paid job for health reasons) and all of a sudden you can find yourself in difficulties. I've already spoken to the CCCS and they recommended an IVA with debt free direct which I'm looking into at the moment.

[Squiffy]

I've thought about IVAs, and have read various bits about them. How is it going to work in practice Andy? It seems that they freeze interest and write off some of the debt. Do they cost anything to setup? How does it impact your bank accounts, mortgage, etc.

[Ian J]

Originally Posted by Squiffy

I've thought about IVAs, and have read various bits about them. How is it going to work in practice Andy? It seems that they freeze interest and write off some of the debt. Do they cost anything to setup? How does it impact your bank accounts, mortgage, etc.

An IVA is a legally binding "Individual Voluntary Arrangement" made between an individual and his creditors whereby his debts are rescheduled over a period. The individual will make agreed montly repayments to his arrangement supervisor who will then distribute the payments to the creditors.

It is one step up from bankruptcy and should only be considered as a last resort as it is expensive and will go on your credit file meaning that you will be unable to obtain credit (even stupid things like a mobile phone needs a credit check) for many years to come.

[Squiffy]

Thanks for the info Ian.

Would an IVA mean that our home would be secure though? I'd be more than happy to forgo credit for a few years as long as the roof over our heads was safeguarded.

[Ian J]

One of the advantages of having a wife and family is that they are all stakeholders in the family home so the house will not be touched.

I have a business relationship with the Financial Helpline and they have a useful section of their website here that gives quite comprehensive details about IVA's

I think it is something every parent can teach their kids (even though I'll never be a parent). My parents really taught us to never borrow money. They also led by example. The only money they borrowed in life was for a house and the cars. It is far too easy to live beyond your means today. Walking past a book store, it is so easy to walk in, see a nice book, and give that piece of plastic to the cashier.

I don't have any debts. I had a student loan the first year of university, but that got paid off before I graduated. I guess I'm a wee bit lucky and fortunate.

Squiffy, good luck to you. I hope things work out for you.

[Squiffy]

I have to say that zAndy1 is very brave starting this thread.

I am actually quite embarrased about this. I doubt I'd have been quite so brave as to talk about these problems without someone else leading the way.

So well done zAndy1!

With my current salary, things are fine. Unfortunately the bottom has dropped out of the market I work in, and I can't get anywhere near the same salary elsewhere. With a probable £750 after-tax drop in income, I am going to seriously struggle.

[Decadence]

Being in debt is an awful feeling, it affects everything you do. I racked up almost £30k on credit cards and bank loans. I am less embarrassed to admit to being in debt than I am to admit that I went to my parents in desperation and they paid it all off.

[Ed Selley]

I am paying my student loan and my mortgage which is debt albeit in structured form. I have an addictive and mildly compulsive personality so I have always had to be very tough with myself on hire purchase and monthly payments- I avoid them wherever I can. If I want something, I will force myself to get the money together to buy it outright. I'd love a big shiny new television but could not countenence buying it on the never, never as I would be afraid of losing control of everything. I do have a credit card which I used for online purchases and covering some extraneous purchases. I think Barclaycard probably hate me though as I have never paid a penny of interest on it.

Kudos to the thread starter for bringing this up.