[SOLD] Debt! Anyone got a good solution?

[Guest Pauly]

Thanks for the support so far folks, especially with regard to Rich's no-brained comment.

 

I'm going to cancel the protection and look into some kind of insurance with someone else. Let's just hope it doesn't end up costing me more though. I really don't want to have to pay this off all the way through my 30s.

 

Anyone know this coming weekend's lottery numbers perchance.

[susiepoosie 10]

What about getting an interest free credit card, there's loads of them about at the mo and some are for 9 - 12 months, then at least you could put a chunk of your debt onto it and not have to pay extra on it. I've just managed to pay most of mine off and I left uni 10 years ago. Good luck!

And Rich, if you can't say anything nice, don't say anything at all!!

[Sultana 10]

There are professionals who give financial advice, I dont know if they charge you, but it may be an idea to consult one to see if there is a better way of paying off your loan. Maybe a better paid job if you can find one.

 

Anyway, nice to see you are trying to do something about it - good luck.

[daverity 10]

Pauly, Perhaps try the Citizen's Advice first, their advice is free and should be totally unbiased and objective.

 

Best of luck mate:thumbsup:

[LordChaverly 10]

Thanks for the support so far folks, especially with regard to Rich's no-brained comment.

 

I'm going to cancel the protection and look into some kind of insurance with someone else. Let's just hope it doesn't end up costing me more though. I really don't want to have to pay this off all the way through my 30s.

 

Anyone know this coming weekend's lottery numbers perchance.

 

Hi Pauly,

 

I wish you well in your endeavours. The two things you intend to do here were the ones I was thinking seemed the best options. Its always difficult to recommend financial advice to others without knowing all of the circumstances, but as a general rule if your job lools safe and you are in good health, I think payment protection seldom looks like a good deal. Its always a good idea to shop around for better deals, as the financial services industry is so competitive these days. The other thing I would advise you to be (if you are not already) is to be very wary of so called independent advisors. Take a built in crap detector with you whenever you seek advice from them.

[barny_100 10]

I'm going to cancel the protection and look into some kind of insurance with someone else. Let's just hope it doesn't end up costing me more though. I really don't want to have to pay this off all the way through my 30s.

 

I wouldn't bother with any form of insurance - if you do lose your job you can come to an agreement with companies you owe to take a "repayment holiday" until you find work. They will agree to it as what else are they going to do?

 

So have that as your fall back and in the mean time put every penny you would have spent on insurance into reducing the amount of capital you owe - this reduces the interest which frees up more cash to pay of yet more of the capital. Then it's a positive circle of ever decreasing debt. These insurance schemes are where companies make a lot of money as they rarely pay up.

 

Also top site (http://www.moneysavingexpert.com) look at all your outgoings and then look at the guide for each of those area's here - should be some savings in there somewhere.

[Bago 10]

I dunno whether others know, but if a student go to uni in this day and age, they are likely to come out with at least 15k in debt, if not more. Just fees and living costs alone. Neither mind leisure costs. no such thing as a grant or free money from the government any more.

 

Well, at least you're keeping positive about it all. If I didn't have family support as a student, I dunno how I would've made it through either.

 

Maybe I've been watching too many of those tv progs. Simple maths time. Stop or limit unnecessary spending. Reduce increasing interests. Increase money earned. (Lots of notices for odd jobs here. Maximise time Vs money earned ratio.) Maybe in time it will reduce the time it needs to pay off the loan. 2013 is a loooong time ! At least u seem to acknowledge the problem now, rather than escape from it and spends further.

 

Above all, keep positive.

[willman 10]

do not even contemplate debt concolidation companies or financial advisers that charge.

the fee could be used elsewhere - i am talking fthrough experience both personal and via clients.

personal protection insurance is useful for year one - however most companies would listen to your condition and arrangements could be made for that year anyway.

if your credit is not a problem -try moving things around. unfortunately if its not then knuckle down & reduce whatever debts you can. just gone through the same procedure so my wife can change jobs & drop 4k a year.

[GHS1961 10]

 

I'm going to cancel the protection and look into some kind of insurance with someone else.

 

 

Why are so you so keen on paying through the nose for payment protection?.

 

You are paying on behalf of the lender for an expensive insurance policy that will repay them in the event of your default!. No wonder loan companies love them, they get heavy commission selling the policy and also avoid carrying much of the risk. Better to throw the insurance premiums at the outstanding capital and pay your loan off earlier.

[Yellowrose 10]

Payment protection is generally a rip off and often doesnt pay out when you want it to. I have tried twice to claim on this type of insurance. Once I had time off work with a complaint and they wrote to my doc. Because I had had this complaint before, (ie before I took out the loan) they wouldnt pay out. It was a technicality though. I was off work because I tore a disc in my back. I had in years past visited my doc with back pain (not a torn disc) but they still wouldnt pay out.

 

On another occasion I had to leave a job due to ill health, but again, another creditor used a similar argument as above and got out of paying. Although Ive got rid of my debts, I wont preach because about 5 years ago I was in a similar position. But I wont take out loan protection again.

 

I have heard many people contemplate declaring bankruptcy these days, and they end up with much smaller monthly commitments. I dont know the ins and outs of this, but I would be interested to hear from someone who has done it.

[Guest Pauly]

I'm on the phone to them now to get rid of the protection. Just waiting for them to answer.

 

Edit: All done. Let's just hope I don't lose my job or crash my van in the next few months.

[Berberis 10]

I saw one of those advert lorries in a field next to the motorway the other day with this link:

 

http://www.wecanwriteitoff.co.uk/

 

Give them a call and see what they can do, but beware some of these companies can charge you a lot for their services.