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Free getting out of debt guide
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jema
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 26629
Location: escaped from Swindon
PostPosted: Fri Nov 12, 04 4:42 pm    Post subject: Free getting out of debt guide  Reply with quote    

http://www.fool.co.uk/debt/handbook/generic_handbook.asp?source=ufhgodlnk500030&logvisit=y

Might be useful? Certainly you have to manage to get in control of your finances, if you are ever to go down this road.

jema

mbeirnes



Joined: 28 Oct 2004
Posts: 100

PostPosted: Mon Dec 20, 04 4:37 pm    Post subject: Reply with quote    

My experience has lead me to believe that there are two ways to get out of debt....
1. earn more money
2. spend less

The other way is to consider consolidation even an increase in the mortgage to lower the payments so that you stop the cycle of getting in deeper.

tahir



Joined: 28 Oct 2004
Posts: 44229
Location: Essex
PostPosted: Mon Dec 20, 04 4:42 pm    Post subject: Reply with quote    

mbeirnes wrote:
My experience has lead me to believe that there are two ways to get out of debt....
1. earn more money
2. spend less


Couldn't agree with you more, unfortunately it's all keep up with the Jones's nowadays, I dunno about where you live but my street looks like piccadilly circus with all the illuminated flippin reindeers, santas, snowflakes and assorted parephenalia, every year there's more. God knows what it does for the environment

mbeirnes



Joined: 28 Oct 2004
Posts: 100

PostPosted: Mon Dec 20, 04 5:07 pm    Post subject: Reply with quote    

Cant see the other houses for the security gates
But yup the Jones's are struggling to keep up with us

Unfortunately the allotment list has grown to treble figures

jema
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 26629
Location: escaped from Swindon
PostPosted: Mon Dec 20, 04 5:19 pm    Post subject: Reply with quote    

mbeirnes wrote:
My experience has lead me to believe that there are two ways to get out of debt....
1. earn more money
2. spend less

The other way is to consider consolidation even an increase in the mortgage to lower the payments so that you stop the cycle of getting in deeper.


It's a shame that the loan companies, always pose it, that you can do this and have the cash left over for a holiday or whatever

jema

andrewheywood



Joined: 09 Dec 2004
Posts: 17

PostPosted: Wed Dec 22, 04 11:54 am    Post subject: Reply with quote    

I note that when the loan companies advertise they use phrases like "what ever life has dealt you" and "unfortunate circumstances".
As if its not your fault.

I really don't accept that the vast majority of people are in debt because they have had "bad breaks" in their life.

Generally if someone is in debt then the only person to blame is themselves (ie toal expendature > total income) sounds simple but it is true.

My point is that loan companies act as if they are your friend helping you out of a sticky situation but they are a big part of the problem. If you don't really sort out your own finances and your own attitude to how you spend money; then what is stopping you from taking out a consolidation loan and then simply carry on with the bad habbits and continue to ramp-up more debt?

"never blame anyone else for your situation" is how I look at it.

tahir



Joined: 28 Oct 2004
Posts: 44229
Location: Essex
PostPosted: Wed Dec 22, 04 12:01 pm    Post subject: Reply with quote    

andrewheywood wrote:
"never blame anyone else for your situation" is how I look at it.


That's only true to a point, sometimes things happen that are out of your control, but in general I agree we all have to take responsibilty for our finances.

Silas



Joined: 29 Oct 2004
Posts: 6848
Location: Staffordshire
PostPosted: Wed Dec 22, 04 12:02 pm    Post subject: Reply with quote    

andrewheywood wrote:
I note that when the loan companies advertise they use phrases like "what ever life has dealt you" and "unfortunate circumstances".
As if its not your fault.

I really don't accept that the vast majority of people are in debt because they have had "bad breaks" in their life.

Generally if someone is in debt then the only person to blame is themselves (ie toal expendature > total income) sounds simple but it is true.

My point is that loan companies act as if they are your friend helping you out of a sticky situation but they are a big part of the problem. If you don't really sort out your own finances and your own attitude to how you spend money; then what is stopping you from taking out a consolidation loan and then simply carry on with the bad habbits and continue to ramp-up more debt?

"never blame anyone else for your situation" is how I look at it.



Generally, yes, I would agree.

However, in the late eighties I worked in the motor trade and my earnings were mainly bonus and comission based, and, to be fair, I was earning very good money. I bought a house with a fairly large mortgage. Sadly, the economy took a severe downturn and the motor trade was hit very hard indeed, my income fell by almost 50% at the same time intrest rates rose from 8% to 12% and even 15% for a short while. This effectively doubled my mortgage repayments when my income had halved. Needless to say I got into severe difficulties and have only recently fully recovered.

This was not my fault - I blame, and still blame the conservative government and would not trust them with the economy as far as I could spit.

jema
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 26629
Location: escaped from Swindon
PostPosted: Wed Dec 22, 04 12:04 pm    Post subject: Reply with quote    

I think we could argue for ever about how situations arise. I have had debt problems through bad breaks, and other stuff.

For example we struggled badly when we first bought a house at a time when you could forget council waiting lists, our income was crap, and renting was an even worse option. We also wanted to have children at the time of life that was right for us. Many first time buyers at a time of high interest rates are automatically prone to debt. It doesn;t have to result through high living, we did not even have a car.

But ultimately as you say no one is your friend, the loan companies are blood suckers out for only one thing. If you look for an option that is an "easy way out" rather than realising that you are in a "no pain, no gain" situation, then you will never really learn anything.

jema

Treacodactyl
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Joined: 28 Oct 2004
Posts: 25697
Location: Jumping on the bandwagon of opportunism
PostPosted: Wed Dec 22, 04 12:06 pm    Post subject: Reply with quote    

Silas wrote:
This was not my fault - I blame, and still blame the conservative government and would not trust them with the economy as far as I could spit.


I cannot see why people should not accept more blame, you did not have to over stretch and plenty of people don't.

At the moment it also looks like the current Government is going to leave the country in an even worse state.

jema
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 26629
Location: escaped from Swindon
PostPosted: Wed Dec 22, 04 12:12 pm    Post subject: Reply with quote    

Treacodactyl wrote:
Silas wrote:
This was not my fault - I blame, and still blame the conservative government and would not trust them with the economy as far as I could spit.


I cannot see why people should not accept more blame, you did not have to over stretch and plenty of people don't.

At the moment it also looks like the current Government is going to leave the country in an even worse state.


Accepted common sense, was that over stretching was a good idea at the time. When we bought we had to overstretch to get anything People may need to accept more blame; For example I bought tech stocks at a silly time, that is my fault. I also put buckets of money into equitable life, the system is to blame there

jema

Treacodactyl
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 25697
Location: Jumping on the bandwagon of opportunism
PostPosted: Wed Dec 22, 04 12:26 pm    Post subject: Reply with quote    

Interest rates going to 15% could not be expected, but a sudden loss of income can be.

There are problems with the industry (I can go into more detail at home) but people need to take more care.

I also think it very important for people to at least think the country could be in deep trouble because of what the current Government is doing, especially because of the ways it's trying to buy its next election victory and the state the country will be in.

It's not a party political statement, just something worth thinking about.

Silas



Joined: 29 Oct 2004
Posts: 6848
Location: Staffordshire
PostPosted: Wed Dec 22, 04 12:31 pm    Post subject: Reply with quote    

No, there was no excuse for interest rates to be so high, they were being used as atool to try to curb inflation. I did not overstrech myself. I had no other loans or credit arrangements, I didn't even have a credit card!

For a short while I worked part time in our local Cons Club, just to try to earn a bit more cash to help out. This area is very affluent and if you could have heard the comments about just how fantastic the high rates were for these people, you may have a better understandind of the conservative philosophy.

If you have loads of money and your house is paid for, high interst rates are a VERY GOOD THING - so wach out for how you vote next time!!

Treacodactyl
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 25697
Location: Jumping on the bandwagon of opportunism
PostPosted: Wed Dec 22, 04 12:44 pm    Post subject: Reply with quote    

I said there was no good reason for the interest rates to be that high!

There are many people who benefit from high interest rates, most pensioners for instance.

I would agree some of the things done by the Conservatives were very bad for the economy, but some things were good. The current government inheritied quite a robust economy but has taken too much out IMHO leading to an unsustainable situation. Whoever gets in next year will have to take drastic action so people still need to be carful of their finances, IMHO.

Silas



Joined: 29 Oct 2004
Posts: 6848
Location: Staffordshire
PostPosted: Wed Dec 22, 04 12:49 pm    Post subject: Reply with quote    

Treacodactyl wrote:
I said there was no good reason for the interest rates to be that high!

. The current government inheritied quite a robust economy but has taken too much out IMHO leading to an unsustainable situation. Whoever gets in next year will have to take drastic action so people still need to be carful of their finances, IMHO.



Bollocks quite frankly. The torys have been saying this for the past 7 years.

People always need to be carful of their finances. The economy of this country has never been better managed than it is now. We have record emplyment levels, lowest ever sustainable interest rates, lowest inflation rates, lowest mortgage repayments that anyone can remember. You think the torys could do half so well? I don't think so.

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