# Credit card debt



## richardi734 (Sep 4, 2007)

My best friend shocked me last night when we got talking about money. It seems he has a few full credit cards but wouldn't say how much and that he was only making minimum payments at the moment. 

He works for himself but earns good money but hasn't worked much in January becuase it's been quiet. Now I am no good at fanancial advice but surely he can get a card with 0% interest on it or bank loan as the interest must be sky high. He said "They won't give me any more money. I am just waiting for things to pick up and I will start paying it back". I would be worried to death if it was me and start selling stuff or something.

Bad news was the other 2 guys said they had credit card debt as well :doublesho, so I felt better off and thought I best get the extra round in.:lol:


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## centenary (Sep 5, 2010)

Deleted

Beep, beep:driver:


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## Kev_mk3 (Sep 10, 2007)

i cleared my card debt 6 months ago biggest weight lifted off my shoulders ever.


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## The Cueball (Feb 8, 2007)

richardi734 said:


> My best friend shocked me last night when we got talking about money. It seems he has a few full credit cards but wouldn't say how much and that he was only making minimum payments at the moment.
> 
> He works for himself but earns good money but hasn't worked much in January becuase it's been quiet. Now I am no good at fanancial advice but surely he can get a card with 0% interest on it or bank loan as the interest must be sky high. He said "They won't give me any more money. I am just waiting for things to pick up and I will start paying it back". I would be worried to death if it was me and start selling stuff or something.
> 
> Bad news was the other 2 guys said they had credit card debt as well :doublesho, so I felt better off and thought I best get the extra round in.:lol:


There are still a few cards out there with 0% deals, but you have to have a cleaner than clean credit rating to get them...

Banks have also cut down on the number of loans they are giving out...

Credit cards are great if you use them correctly, and pay the balance off either every month or 2 months (imo)

People get drawn into using them as they think it's easy money, then make the min payments, which in turn means the cc company increases your limit, which you go out and spend on more s**t you don't need....

What you own on finance ends up owning you....

Some people do the right thing and pay everything back, but more and more people are taking the easy route of a trust deed / IVA scheme...

I really hate these, and think that if you enter into one, all your statements should be looked at, and anything that you have bought and still have (clothes, tv, car etc) should be taken from you...

To take something and not pay for it (or the full price that you have agreed when taking the goods) is theft, plain and simple...

:thumb:


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## Shug (Jul 13, 2007)

The Cueball said:


> which you go out and spend on more s**t you don't need....
> 
> What you own on finance ends up owning you....


You doing a remake of fight club?
I preferred their debt solution to the more conventional ones


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## The Cueball (Feb 8, 2007)

:lol:

I just love that quote....

:thumb:


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## colarado red (Jun 5, 2008)

To many people been living on easy credit for to long.Those who have been living within there means will be ok,those with debt are in for a rough ride I'm afraid.Remember that when Milliband/ Balls start spouting there rubbish,thinking they can carry on with there tax and spend policies.


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## X-Man (Jan 3, 2011)

The Cueball said:


> Some people do the right thing and pay everything back, but more and more people are taking the easy route of a trust deed / IVA scheme...
> 
> I really hate these, and think that if you enter into one, all your statements should be looked at, and anything that you have bought and still have (clothes, tv, car etc) should be taken from you...
> 
> ...


Which is why it's nigh on impossible to get a 0% deal any more and Credit Card interest rates are now an _average_ of 18+%, the highest for over 10 years (despite baseline Interest Rates at their lowest)

It's just going to get so much more difficult to raise cash in years to come as more and more people struggle to pay back all the money they couldn't afford to borrow and default on their loans...

The free cash generation is going to come down with a little more than a bump and the rest of us will end up paying for it


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## dominic84 (Jan 27, 2007)

> Some people do the right thing and pay everything back, but more and more people are taking the easy route of a trust deed / IVA scheme...
> 
> I really hate these, and think that if you enter into one, all your statements should be looked at, and anything that you have bought and still have (clothes, tv, car etc) should be taken from you...
> 
> To take something and not pay for it (or the full price that you have agreed when taking the goods) is theft, plain and simple...


I absolutely couldn't disagree more with those comments that are imo, rediculous. Some people simply aren't in a position to do what you think is the right thing. Perhaps you would like to see prison sentences for those who can't pay back debts they owe?

@ OP - your friend is fine if he keeps paying the minimum payment, sure those things he's bought will be costing him a fortune, but if he can afford it for the time being then I don't see any need to panic.


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## The Cueball (Feb 8, 2007)

dominic84 said:


> I absolutely couldn't disagree more with those comments that are imo, rediculous. Some people simply aren't in a position to do what you think is the right thing. Perhaps you would like to see prison sentences for those who can't pay back debts they owe?


But they are in the position to take it all in the first place eh?!?!?! 

Don't borrow what you are not willing to pay back....

Don't be so shallow to lead a life you can't afford....

Don't get into unmanageable debt for the sake of the next toy, or car, or clothes, holiday etc...

If people get send to jail for stealing, then yes I do think that you should be sent away for being so stupid and pathetic to live on other people's money, then cry that you don't want to/can't be bothered to pay it back... as I said above, it's still theft!

I work in finance, I see what people are doing with the IVA's etc...and I know they keep the things they have bought on credit while not paying for it and being protected for being arrogant. It should not be allowed (imo)

The UK needs to grow up and start taking personal responsibility for their actions and the results of these decisions...

The right thing is not what I think, it's called ethics...maybe you need to look it up...:wall::wall::wall:

Got to say though, it's the first time I have been called ridiculous for wanting people to tell the truth and live within their means.... :lol:

:thumb:


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## colarado red (Jun 5, 2008)

dominic84 said:


> I absolutely couldn't disagree more with those comments that are imo, rediculous. Some people simply aren't in a position to do what you think is the right thing. Perhaps you would like to see prison sentences for those who can't pay back debts they owe?
> 
> @ OP - your friend is fine if he keeps paying the minimum payment, sure those things he's bought will be costing him a fortune, but if he can afford it for the time being then I don't see any need to panic.


People with an attitude like that, are the reason we are in this mess for years to come.


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## Pezza4u (Jun 7, 2007)

The Cueball said:


> Don't be so shallow to lead a life you can't afford....
> 
> Don't get into unmanageable debt for the sake of the next toy, or car, or clothes, holiday etc...


Not everyone can do that though, some people aren't as fortunate as you appear to be. Some don't even earn enough to live on or haven't had payrises for these last few years while everything else has gone up, meaning their outgoings are more than what's coming in.

I owe a fair amount on credit cards now and don't really have anything to show for it. I've not bought flashy cars, tv's, clothes etc...the bulk of it is food, car repairs, fuel, insurance, new fridge, oven and washing machine when they broke. Yes there is ebay but been there before and they didn't last long so I bought new. When you've got a child to feed and clothes to wash you do what you can to make sure that happens, even if it means getting into debt for it.

Any spare cash I get I pay towards the debts, I have no intention of defaulting on it and will pay back what I owe eventually. I get around the interest by transferring the debt to 0% offers, I get endless amounts of these!

Maybe if the cost of living wasn't so high alot of people wouldn't be in this kind of situation. If you're in debt over gambling, buying a car, holiday etc then yes they've only got themselves to blame.


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## alan hanson (May 21, 2008)

this is where the problem lies can see both sides, but people have never experienced the ooposite whether it be having money or not so it only seems rightc that they do what they do to get by (accept theres quite a few **** takers) but shouldnt label everyone the same i guess.

Cars being one of the worse, ive never seen so many peeps driving new cars on finance. theres always a post comin up on car forums im on saying got a new car 12 months ago but cant afford the payment wwhat do i do? do what most peeps do buy a 1.1 for a few years save the get one and face life that someone is always going to have somethin g nicer than you.

ive just found out i need a new roof, now its going to cost 4-5k so where the hell do i find that in such short time? bank wont let us add it onto the mortgage either?


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## The Cueball (Feb 8, 2007)

Pezza4u said:


> Not everyone can do that though, some people aren't as fortunate as you appear to be. Some don't even earn enough to live on or haven't had payrises for these last few years while everything else has gone up, meaning their outgoings are more than what's coming in.


I am fortunate because I work my a$$ off (I have 3 jobs btw), get paid a reasonable amount for what I do and don't waste my time or money on things I don't really need.

Now, I am not a genius, or some sort of guru, so trust me, if I can do it, anyone can.

What I am about to say may upset you, but it's the truth:

The only one that got you in your current situation is you, no one or nothing else; you have chosen to be there.

The only person that can get you out of it, it you, no one or nothing else, but you have to really want it and make sacrifices to do so.

So, the question is what have you done to improve yourself, your earning potential and your situation, or have you just been waiting for "something to happen" and blaming other people?

I'm not having a go at you, or get into a big fight (I am trying to help - honest), and don't really want the above answered on a forum, but it may help if you ask yourself those questions, and be honest to yourself with your replies...

At the end of the day, anyone who is moaning about debt, or saying it's ok for me or easy for me, I will listen to, but I know the s**t I have been through to get where I am, and it's not a pretty or easy fight I can assure you of that.

:thumb:


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## Nanoman (Jan 17, 2009)

My 2p worth...

I think the problem is with the banks to be honest. If they are happy to lend money to people who obviously can't afford it then they need to take a very large piece of the blame. The charge extortionate rates of interest and benefit from it - they also quite openly target vulnerable individuals because it's an easy way to make money (otherwise they wouldn't be in the business of lending money).

When I was a student at my first freshers week they gave me a credit card with a £500 limit. When I got to £500 it went up and up and up until I realised there was a problem. Even when I was paying it back they kept upping my credit limit.

If the banks lent money sensibly the country wouldn't be in this position.

The people who DO pay it back are only funding the people that don't while lining the banks coffers - that's the banks business model.

I blame the banks not the customers.

Incidentally I'm in the process of paying back every debt I have including mortgage. Cash is king and will be for a long time and I don't want to be left behind.


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## PaulN (Jan 17, 2008)

Pezza4u said:


> Not everyone can do that though, some people aren't as fortunate as you appear to be. Some don't even earn enough to live on or haven't had payrises for these last few years while everything else has gone up, meaning their outgoings are more than what's coming in.
> 
> I owe a fair amount on credit cards now and don't really have anything to show for it. I've not bought flashy cars, tv's, clothes etc...the bulk of it is food, car repairs, fuel, insurance, new fridge, oven and washing machine when they broke. Yes there is ebay but been there before and they didn't last long so I bought new. When you've got a child to feed and clothes to wash you do what you can to make sure that happens, even if it means getting into debt for it.
> 
> ...


You seem like youve got your debts in order which is good. Regarding the OPs mate he also has it in hand but some very simple transfers and he would have some breathing space.

I know people without credit cards and some who go out and take everything they can and move it about to work for them....

Finally i know people people who are skint, and spend all their spare cash on clothes which they dont need... then moan about being even more skint.

I have credit cars but use them as a middle man between companys and me. From past experience credit card companys get their money back faster than banks if your been hit by fraud.

For the record you tend to find people who have a few quid havent just been given it, they work hard ish, dont live out their means and pay their taxes and bill on time. :thumb:

Cheers

PaulN

Ps Que Ball lend a few quid till pay day!


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## Dixondmn (Oct 12, 2007)

PaulN said:


> For the record you tend to find people who have a few quid havent just been given it, they work hard ish, dont live out their means and pay their taxes and bill on time. :thumb:
> 
> Cheers
> 
> ...


Indeed, the wealthy stay wealthy by 1) not shouting about it 2) not spending it on junk.

I understand the view that people NEED to wash their offspings clothes etc... but.... much like myself, my wife and I would love to have Children, but going down to one salay isnt an option. In short its our CHOICE not to have kids because I know we can't afford to support them without going into debt.

What I'm left with is a situation where I'm in 'control'. I'm absolutely spanking my mortgage payments because its my biggest (and only) overhead. As soon as its paid of (circa 5 years) I'll be free to have as many kids as we can afford, and maybe go and do a job which I relish the thought of, rather than one which pays the bills.

Similar to Cueball I've worked my conks off to get where I am (and still do) but its all part of a bigger strategy to become mortgage free by the time I'm 35.... and start living my life, not living so I can spend 11 or 12 hours a day in a place where I don't particularly want to be, just to keep the wolf from the door.


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## Tricky Red (Mar 3, 2007)

I managed to get a 0% purchase and 0% balance transfer deal this year. 

It can be done, but as Cueball says, you do need a decent credit rating.


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## Gruffs (Dec 10, 2007)

I have had Credit Card debt (£17K if your interested). I have worked hard, saved hard and got myself out of it. It's a good feeling. 

We have just taken on a mortgage and will be spending the next 5 years paying as much of it as we can. 

Now, it's easy to blame the banks. But they are going to make money out of you, it's what they do. You have the choice whether to take it or not. I know that i pissed that £17K up a wall. I enjoyed every minute let me tell you and i paid for it too. I could have been in a position to buy a house 10 years ago. I would have some serious positive equity now. I paid for my choices. 

"every choice has consequence, Every action, a reaction".

You cannot blame the banks for choices that you make.


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## The Cueball (Feb 8, 2007)

grantwils said:


> My 2p worth...
> 
> I think the problem is with the banks to be honest. If they are happy to lend money to people who obviously can't afford it then they need to take a very large piece of the blame. The charge extortionate rates of interest and benefit from it - they also quite openly target vulnerable individuals because it's an easy way to make money (otherwise they wouldn't be in the business of lending money).





Gruffs said:


> Now, it's easy to blame the banks. But they are going to make money out of you, it's what they do. You have the choice whether to take it or not.
> 
> "every choice has consequence, Every action, a reaction".
> 
> You cannot blame the banks for choices that you make.


To my knowledge, no one was forced at gun point to take out loans or credit cards... :wall::wall::wall:

Banks are there to make money, not protect individual finances...

That would be up to that person to manage...we come back to personal responsibility.

It's very simple, if you only get £1000 a month, you can only live with £1000 a month..... how you make that work is your job, not someone in a bank!

It is their job however to sell you things! :lol:

:thumb:


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## Exotica (Feb 27, 2006)

Good old Dad. "Can't afford it, then save up for it".


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## Gruffs (Dec 10, 2007)

The Cueball said:


> To my knowledge, no one was forced at gun point to take out loans or credit cards... :wall::wall::wall:
> 
> Banks are there to make money, not protect individual finances...
> 
> ...


Sometimes, the lesson has to be learned the hard way. I am now terrified of Credit cards and would sell everything i had before using one.

Luckily, the house we have bought can be rented for a tidy sum to keep the wolves from the door should it come to that.


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## The Cueball (Feb 8, 2007)

Gruffs said:


> Sometimes, the lesson has to be learned the hard way. I am now terrified of Credit cards and would sell everything i had before using one.
> 
> Luckily, the house we have bought can be rented for a tidy sum to keep the wolves from the door should it come to that.


Yeah I agree, but just can't stand people blaming everyone else for their own mistakes...

It's right up there with the "you are making me feel/do" etc etc statements...

:wall::wall::wall:


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## justina3 (Jan 11, 2008)

not getting into the whos fault it is argument can see both sides of the fence so moving on

I had an email today from moneysavingexpert.com you know the guy martin something or other on radio 2 all the time and shed loads of tv money programs from his website there is a credit card on there being offerd at 0% for 3 months so in principal he could transfer a small amount of money from the larger interest card onto the 0% and make sure he pays the 0% every month this in turn will help him re-build his credit rating i presume they wont allow him any more money as this is poor, it excepts people with low credit scores so your friend might be excepted

have a read and maybe pass it on of course this is only a suggestion i am by now means an expert

www.moneysavingexpert.com/


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## Pezza4u (Jun 7, 2007)

alan hanson said:


> this is where the problem lies can see both sides, but people have never experienced the ooposite whether it be having money or not so it only seems rightc that they do what they do to get by (accept theres quite a few **** takers) but shouldnt label everyone the same i guess.
> 
> ive just found out i need a new roof, now its going to cost 4-5k so where the hell do i find that in such short time? bank wont let us add it onto the mortgage either?


I can see it from both sides as well cos my parents are reasonably wealthy and don't have any money worries. When I started working I used to save alot every month and also spend it on stuff I wanted...going out, clothes etc. I had never been in debt until I hit about 25 and left home to move in with my missus. Her family don't have much cash though and it was then I realised just how much some people do struggle with the basics...rent, council tax, utility bills and food. They never buy new clothes, never go out, never buy luxuries and so on cos they just can't afford it. Their income pays for all the essentials so when a big purchase comes along they're pretty much screwed.

Your roof problem is a good example of how easily people can get into debt. It's not something you can leave, the bank won't loan you the money so what other choice do you have? The same when my fridge packed up, it's something you need and if you don't have that kind of disposable income there aren't many other options. It's easy to see why some people turn to loan sharks when they get really desperate.



The Cueball said:


> The only one that got you in your current situation is you, no one or nothing else; you have chosen to be there.
> 
> The only person that can get you out of it, it you, no one or nothing else, but you have to really want it and make sacrifices to do so.
> 
> ...


Who am I blaming? I'm merely saying not everyone earns enough to even pay for the basics in life and everyone's situation is different. It's all very well having 3 jobs but I've seen peoples health deteriorate doing that or they become depressed from constantly working and not being able to spend time with their family...there is more to life than work otherwise you're just existing not living.

By all means I'm not on the breadline but over the last 2 or 3 years the essentials have increased alot, yet wages have been frozen, the same for most people. So once I've paid for those and the minimum on the cards I have hardly any spare cash left. When a big essential purchase is needed I have to put it on the credit card, but that's my choice, no one makes me do it.

I need new tyres soon but don't have the cash so that'll have to go on the card. It's not always convenient or cheaper for people to ditch the car though before you say it. When your missus has back problems and can't walk far, plus your son has severe learning difficulties public transport or walking is not an alternative option.

I know you're trying to help mate but sometimes it's difficult to see it from the otherside unless you're actually there. I've gone from having lots of spare cash to none but I'll get through it :thumb:



PaulN said:


> You seem like youve got your debts in order which is good.
> 
> I have credit cars but use them as a middle man between companys and me. From past experience credit card companys get their money back faster than banks if your been hit by fraud.


I've shuffled my debts for the last 5 years, I have a very good credit rating and get new cards easily. Or I'll take up the 0% offers from exisiting cards when they send them.

I have one card, which I use solely for purchases (for the protection) and pay this off asap. The other cards just have the balances transferred around and they're not even activated, just put in the drawer.



dixon75 said:


> I understand the view that people NEED to wash their offspings clothes etc... but.... much like myself, my wife and I would love to have Children, but going down to one salay isnt an option. In short its our CHOICE not to have kids because I know we can't afford to support them without going into debt.


That's abit of a naive comment TBH, life rarely pans out the way we plan/want it to. My missus had her son before she met me, he wasn't planned, it just happened but she would never change that and you just have to adapt to the current situation.


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## The Cueball (Feb 8, 2007)

Pezza4u said:


> Who am I blaming? I'm merely saying not everyone earns enough to even pay for the basics in life and everyone's situation is different. It's all very well having 3 jobs but I've seen peoples health deteriorate doing that or they become depressed from constantly working and not being able to spend time with their family...there is more to life than work otherwise you're just existing not living.
> 
> I know you're trying to help mate but sometimes it's difficult to see it from the otherside unless you're actually there. I've gone from having lots of spare cash to none but I'll get through it :thumb:


I'm lucky that my 3 jobs are for me, I don't work for anyone else...but have 3 different areas of work...and very lucky that I love what I do..

I know what you are going through (on some level - not with the kids, I don't have any), I have been there and had to go through it and sleep in my car with no where to go...I can tell you the back of a citroen zx is quite a nice bed! 

Keep fighting and you'll be sure to get through it...you have the right attitude anyway!

:thumb:


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## s2kpaul (Jul 27, 2006)

not a credit card person myself, i think a lot of people use them to obtain a lifestyle of keeping up with the jones . 
Llike next door just bought a 3d on credit just becuase its the latest trend but in the end your take home pay will become less with the more debts you take on its a vicious circle. Id rather be skint one month than take out credit etc. I have a mortgage thats enough credit for me to pay off.


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## richardi734 (Sep 4, 2007)

Well I saw my mate on Thursday and trying to convince him to sell some stuff first. 

For instance he has a newish laptop which cost £399 which is never used as he has a desktop. If he sold it, would have thought he would get £300 for it. I calculated that for every £100 you knock off the debt you will save around £2 in interest per month. So the £6 saved can pay off more next month, I hope he got the idea without feeling like I am sticking my oar in.


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## Phil23 (Nov 29, 2008)

richardi734 said:


> Well I saw my mate on Thursday and trying to convince him to sell some stuff first.
> 
> For instance he has a newish laptop which cost £399 which is never used as he has a desktop. If he sold it, would have thought he would get £300 for it. I calculated that for every £100 you knock off the debt you will save around £2 in interest per month. So the £6 saved can pay off more next month, I hope he got the idea without feeling like I am sticking my oar in.


He's lucky to have a such a good friend as you are , hope he takes the advice.

Me, I'm taking a second job, not because my debt isn't manageable but purely because I like to stay ahead of the curve, and I don't see the cost of living going down in any shape or form in the near or distant future. :thumb:


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## powelly (Aug 9, 2007)

Interesting thread this, the wife and I have wound up a fair bit of debt, fortunatley for us we both earn good money and have always been able to keep pace with payments,to be honest though we feel rather stupid for putting ourselves in the position we are in with owing so much money, no more though, we now plan our finances down to the penny and are paying around £700 a month off our debts, credit cards have been transfererred to 0% deals and we have managed to increase payments on our loan, most of our debt will be cleared by about november 2012, we keep about £100 a month back as disposable for going out buying clothes etc.
The sole blame lays with me (and the wife) we spent the money, we made the wrong decisions but WE are doing something about it, what I find is strange is how my mind set has changed, I now get excited about the prospect of paying something off instead of paying for something, it's a great feeling, everything penny we get from other sources, be it overtime, a bit of detailing, the odd bit of work I do for a bodyshop all gets paid off our debt, I can't wait for it all to be gone, our aim is to have just a mortgage and I don't really want that to be honest!!!!


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## kikaz (Feb 16, 2011)

my wife and i are in a similar place to powelly we owe in the region of 8k on cards between us i used to think this was alot until i spoke to few friends and work mates who have run up 15K plus have dried out there credit and can no longer get 0% deals.

some of them are seriously considering ivas.

while we're not paying £700 a month we are managing to get the debts down.I work in the catering industry and so far throughout the entire resession we have not to badly effected by it.In fact the owners are just building an extra 100 seat restaurant and 10 more bedrooms on the hotel if all goes to plan i will find myself earning another 3k on top of my current salary plus bonus all in all the future actually looks pretty good for myself anyway. 

our morgage is up for renewal in july even if the goverment put up the base rate we won't feel the pinch as we are already on a fixed rate of 6% which was the best deal we could get in 2008.

i'm hoping they leave the base rate rise (which is totally coming don't even kid yourself it's not) until the third quarter so i can get on a 3% 3 year fixed rate term that my morgage provider is offering to existing customers.


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## Mirror Finish Details (Aug 21, 2008)

From experience 10 years ago my ex wife shafted me and I landed up with £9k on a credit card.

Rather than take any advice from debt management companies that charge I went directly to the card company.

They have departments that will listen.

I filled in a household budget and once they received that they stopped interest and charges straght away and gave me 6 months to sort the situation out and only pay them £1 a month.

I then sorted the problem, released equity from the house for the ex less the cc debt and paid it all off before the 6 months was up. My credit rating was clear from then.

Credit Card companies will listen, by law they have to listen. Ring them and don't be afraid. 

DO NOT EVER PAY ANY DEBT MANAGEMENT COMPANY FOR ADVICE, THEY WILL SHAFT YOU!!!!!!!

I have survived now 10 years without a Credit Card, I only have an Amex Charge Card for fuel etc and a pre paid Visa card for my day to day expenses.


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## Dixondmn (Oct 12, 2007)

kikaz said:


> our morgage is up for renewal in july even if the goverment put up the base rate we won't feel the pinch as we are already on a fixed rate of 6% which was the best deal we could get in 2008.
> 
> i'm hoping they leave the base rate rise (which is totally coming don't even kid yourself it's not) until the third quarter so i can get on a 3% 3 year fixed rate term that my morgage provider is offering to existing customers.


3% is very good for a fixed rate at the moment. Do you have to have a certain amount of equity in the property or a specific LTV?

There will always be conflicting advice on mortgages, but i'm sticking to a tracker for the foreseable future.
Working in the finance industry i cant see the rates going up this year at all.


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## kikaz (Feb 16, 2011)

I called my morgage provider at the beginning of the year to find out when it was due for renewal turns out it is in july but the very helpful young lady i spoke to told me to call back the the beginning of april and ask for another quote the quote i get off them in april will be good for 12 weeks afterwards so they would honour the offer come renewal time.

with respect to our morgage we are very lucky due to the fact our house is atm worth £115k with only a £50k morgage on it.which i think is why we can get some good deals due to the fact that even if the **** dropped well and truely out of the housing market we would still have a reasonable buffer. Houses in our area dropped to a minimum of £90k last year but having had it valued recently they seem to have gone back up again.

we paid £20k for ours 9 years ago but it took another 20 to bring it up to the standard it is now,we consider ourselves very lucky to have been able to get onto the ladder when we did.

i have no idea about morgages but i do know a good offer when i see it as long as i can keep my payments at the level i want to b paying i am happy.


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## kh904 (Dec 18, 2006)

dixon75 said:


> 3% is very good for a fixed rate at the moment. Do you have to have a certain amount of equity in the property or a specific LTV?
> 
> There will always be conflicting advice on mortgages, but i'm sticking to a tracker for the foreseable future.
> Working in the finance industry i cant see the rates going up this year at all.


I'm going to disagree, I think rates will go up soon. People thought that i was mad when i predicted base rates aiming to rise to around 4% (I said this before christmas 2010). 
After the new year, Mervin King iirc said that they are looking to do just that in the medium term future.
Obviously they won't do this in one go (due to the frailty of the economy), but inflation is above the BoE target. You have to remember average interest rates historically are around 5/6%.


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