[SOLD] Debt! Anyone got a good solution?

[riptony 10]

1. Well done for canceling your Loan Insurence, Egg make out that you're in lots of danger if you don't have it, however they make a lot of money out of them so they should be ignored.

 

2. If you have incurred any bank charges over say £15 for unpaid cheques, gone over overdraft limit, missed credit card payments etc and If you're persistent you should be able to get all those charges back. The website is called consumer action group, have a look.

 

3. Definately prioritise which debt your make extra payments to, starting with highest interest rates.

 

4. Shop around for better loan deals. egg will not repay your loyalty, if you can find a better interest rate apply and if successful switch. Better still, if you have the willpower to take advantage of Interest free periods on credit cards....do it.

 

5. do not make yourself bankrupt or anything of the sorts.....its giving up and as a result you'll feel **** about yourself. More organisations are using your credit reference, rental agancies, mobile phone companies and forget about getting a mortgage

[davyboy 18]

Reply deleted

[kittencapes 10]

This sounds very trivial but I left Uni with a load of debts and have also struggled to reduce them, but i found making a list of everything i spend down to the last penny really useful. Then you can see where a lot is wasted, cut back on little things like buying lunch out - take food from home, as my mum always said....look after the pennies and the pounds take care of themselves...so true!

[PeteC 10]

I asked RBS 3 years ago to rwemove the payment protection on my card - and 3 times was sent forms and sent them back - and they still charge me for it so i am taking it up with them.

 

ALso when i was made redundant after my employer went bust i was told i did not qualify - so i asked for all my payments back

 

it'll be going legal soon if they refuse to pay it back

[bendus2 10]

Payment protection is a total rip off. Banks make more money out of this than they do by lending money. Would never recommend taking it out.

 

If you run in to trouble, such as losing work, the best thing is to inform the bank. They will generally give a payment holiday.

 

Money Saving also has very good information about reclaiming bank fees.

[Cyclone 10]

Payment protection isn't always useless.

We had 6 months of mortgage payments taken care of when my SO's contract ended unexpectedly.

[bendus2 10]

Cyclone. You are correct. What I meant to say is that it is normally very expensive for the level of cover given when purchased.

 

It is often much cheaper to purchase it seperately if one wants it.

[grahamgraham 10]

get a loan to pay of the loan!!

[Rich 12]

Since the first year of my degree (1995) I've been in debt and due to bad financial decisions since college, credit cards, loans, overdrafts etc, it got slowly bigger and bigger. Over the past year or so I've managed to stop the debt getting any worse due to agreeing with the bank that they cut off my overdraft, change my switch card to a solo card and move my overdraft into a 'Managed Personal Loan' held at the bank, HSBC. The interest rate on this loan was horrendous and my monthly payment of £40 only paid £10 off the loan while the rest of it went on interest,. Robbing swines!

 

In an attempt to consolidate with my Egg loan where the interest rate is much better I have borrowed the money necessary to pay off the HSBC loan and put everything into my Egg loan. This would've been great if I hadn't taken on Payment Protection though. This has slapped an extra £7k on top of my existing loan and although I'm covered if I should lose my job, my health or whatever it's left me paying out roughly £300 every month that I could be using elsewhere, like to run a car for example. Ouch!

 

If it's possible I'd like some sensible suggestions about how to reduce this debt quicker than the final payment date which currently stands at 2013. Would it be worth me calling a few insurance companies to get a better deal on this payment protection or do you think I should just stick with what I have and just try for a better job to pay everything off quicker.

 

Just a note: I don't need telling that I should've thought about this before I spent so much in my younger years because that won't exactly help me now.

 

Cheers

 

P

 

At the risk of being pedantic, the best solution for debt, is not to get into debt problems in t' first place.

[chem1st 10]

At the risk of being pedantic, the best solution for debt, is not to get into debt problems in t' first place.

 

I cannot believe you have made the same comment after 2 years without even noticing you had made that comment two years ago!

 

Although I will agree you have a valid point, I must stress, some people due to the way the system works have to get into debt in order to Earn a living.

 

You make the perfect person to campaign for student loans to be student learners allowance. Say a person passes their course and gets a job, the loan should be wiped clear.

Opposed to somebody claiming benefits over a much longer period which total more than the student loan.

[Rich 12]

I cannot believe you have made the same comment after 2 years without even noticing you had made that comment two years ago!

 

Although I will agree you have a valid point, I must stress, some people due to the way the system works have to get into debt in order to Earn a living.

 

You make the perfect person to campaign for student loans to be student learners allowance. Say a person passes their course and gets a job, the loan should be wiped clear.

Opposed to somebody claiming benefits over a much longer period which total more than the student loan.

 

My Bold.

 

If I didn't HAVE to claim benefits as a sole source of income because of being disabled and therefore unable to do full time work, I wouldn't.

 

I am fully aware that some people on here hate me for being on benefits and consider me a "drain on their taxes", but they all read the Daily Fail and therefore their opinion is irrelevant.

[SHsheff 10]

but they all read the Daily Fail and therefore their opinion is irrelevant.

 

Dear god (any god) Rich, please drop the Daily Mail issue! If only you realise, you do more to publicise them than I'm sure you mean to. I can't see the paper without thinking ooooh, Daily Mail! (Much as previously I wouldn't have touched it)...

 

And...edit..also please stop including in every post you make about you being disabled. Again, if only you realise, there are SOME people on here who just see you as another poster, because they're new or haven't noticed you. You really don't have to keep on bashing the point home. You could actually just be a 'normal person' (as much as any other poster lol) if you didn't keep mentioning your issues!