Need Advice!!

[scratchblack]

Hi there I recently purchased some equipment off a website under a 'buy now pay later' scheme. The goods total £2500. I have to pay the debt in a years time after the date of the sale in full else i go into a pay monthly scene where i pay extortionate interest. I am now worried as I have recently lost my job and need advice if I should and when to declare myself bankrupt if I am still in the same situation when the money is due. I have no assets and live with my parents but might be homeless soon especially if the debt goes to them. i am 23 so i don't think it does but am worried! Thanks for your help, Jack

[andrew1]

Hi there I recently purchased some equipment off a website under a 'buy now pay later' scheme. The goods total £2500. I have to pay the debt in a years time after the date of the sale in full else i go into a pay monthly scene where i pay extortionate interest. I am now worried as I have recently lost my job and need advice if I should and when to declare myself bankrupt if I am still in the same situation when the money is due. I have no assets and live with my parents but might be homeless soon especially if the debt goes to them. i am 23 so i don't think it does but am worried! Thanks for your help, Jack

 

Bankruptcy is a very, very last resort and at 23 yrs of age and just beginning your life I wonder if you have considered what you are doing? Bankruptcy changes your life in more ways than one and sticks with you for years. At your age you need that like a hole in the head so lets see what the problem is before you even think about it.

 

Open up a little and tell us what has brought you to that kind of thinking, list out your debts and lets see what you have to deal with and we'll take them one by one. And do not worry, coming on here is a good first step, just keep walking......

 

 

Sarah

[freakyleaky]

Hi and welcome to the site Scratchblack!

 

As Andrew says you really should consider all alternatives before thinking of bankruptcy.

 

The first thing you could do is consider selling the equipment you purchased and using the money raised to pay off part of the total owed. You would then have to find a much smaller amount to clear the debt.

 

Give us some more details so we know what you have to deal with and we can take it to the next step!

 

Stay positive and things will work out, with a little help from this site!

[scratchblack]

Thanks for the quick response!

 

About a month ago I applied for some music equipment totaling £2500 from a 'buynowpaylater' 0% finance company. I have 11months of nothing to pay then I have to sort the debt else I go in2 this contract of high interest of monthly payments. I have recently lost my job and just wondering what would be the best option for me if i was still in this position 11months down the line. My credit rating is very bad(or should be) anyways so I must of got the credit check from my parents address.Would this affect the credit check on the house or them in anyway if I couldn't get the money to pay back??

 

I have 2 bank accounts currently in arrears (both awaiting bank charges test case ) but even after charges reclaimed the balance would still be almost nothing and another bank account where my JSA is currently being paid in2. lol in other words im skint! I do not have any DD's at present and do not have nothing in my name part from my car which I could sign over to my mum or dad if the baliffs came round so I think my assets are safe cause I have none .

 

I do not want to sell the equipment for the fact ive only just got it and it would put me out of pocket straight away and that I might be able to raise the funds and should be able to 'touch wood'. The only thing that has me worried is the fact that I am going to college to study music tech in next sept' so it has leaven me less time being in full time employment when I get a new job if I do 'touch wood'.

 

What do you reckon my best option would be without selling the goods on a worst case scenario when the payment is nearly due and getting the debt written off. Seeing I have no assets, no mortgage, no DD, no women problems , no major funds and will be going to college for 3 years and not planning to move out would it affect me if I got the finance canceled or reduced if i can do that?

 

Thanks,

Jack

[N.P]

Hi scratchblank,

 

I am right in saying your have 11 months (from now) left to pay the balance?

 

Couldn`t you open a savings account and put so much of your JSA away and save up for that time? Then, maybe in the near future you might find another job and then you will only have a few hundred pounds or so to add to it.

 

I don`t know, but it was just a thought.

 

Regards

 

 

N.P

[andrew1]

Jack, if I read this rightly you are saying this is your only debt? Your first payment is not until due November and you are thinking Bankruptcy?

 

Are you not planning to get any work at all during now and September when you start studying?

 

I can only make suggestions here as I do not know all your circumstances, so if I am out of line I apologise before hand, but is it not possible to get some temporary work during this time, get yourself off Job Seekers Allowance and from your temp work put some monies aside to pay for this equipment if you prefer to keep it?

 

It worries me a little you are considering writing off the debt or cancelling it, not quite sure what you mean there, but the aim for keeping the equipment is to find a way to pay for it as soon as, irrespective of the free credit for one year.

 

Forget Bankruptcy, that is not an option on debt like this, and effectively you are not in debt until the first payment is due so why not do as NP suggests and try to put some aside?

 

I think you might be helped a little by reading through some of the threads on here, take a look at the budget planner in the Templates Library and decide which way you are heading financially as there is nothing worse than starting life with the idea you can live off credit like this - we all live off credit with mortgages (for those that have them) and other credit cards etc, but you will enjoy a freedom far better than most if you can escape the credit trap the banks and finance companies so desperately want us to be in so we can be beholdant to them for most of our lives...think freedom, keep control of your life by not owing to anyone and trade (work)your way out of debt if it is at all possible for you. As I say, I speak without knowing your circumstances fully, but your life is ahead of you, you have time to learn from our mistakes - read the threads you'll be empowered.

 

Good luck

 

Sarah

[Rhia]

Sorry to sound like a party pooper but if you've only just acquired this equipment then it should be in excellent condition so give it all back to the retailer and pay back the difference (which will be smallish). You obviously couldn't afford it to start with if you're just one month down the line. You wouldn't and shouldn't get it written off like this.

This site is brilliant at helping people who have run into difficulties and are trying to make an honest attempt at resolving it. I am sorry but this is one that needs the moral overview...you can't afford it, take it all back and sort out the debt.

[elizabeth1]

The only other suggestion I can think of above the good advice already given here (but bare in mind I only know what details I can see here) is perhaps there would be room to down grade your car to a cheaper model perhaps - use any money towards the bill/debt at the appropriate time.

 

You mentioned you'd transfer ownership of your car to your mother earlier in the thread - so from that I assume it's your only asset? I don't know the value of the car etc.. - so not sure if this would be a helpful option.

 

Other than that - like others suggested you do your best to gain employment and use the next few months to save and live within your means and perhaps will be in a position to salvage your situation by Nov 2008.

[scratchblack]

Thanks for all your advice. Theres a great possibility that I will get the money raised for this debt I just needed some reassurence what I could fall back on if I didn't. Just on interest what sort of debt would you really need to have for bankruptsy?

[andrew1]

Thanks for all your advice. Theres a great possibility that I will get the money raised for this debt I just needed some reassurence what I could fall back on if I didn't. Just on interest what sort of debt would you really need to have for bankruptsy?

 

If you take my advice, you'll forget the word 'bankruptcy' exists. As for reassurance, take it from one who knows after 30 odd years in business and a few life skills packed in to back it up (No, old folks were not born at 40! We've done all you younger ones have done and worse!) Don't think 'credit' or 'debt' think 'education about money' and always make sure you try and live within your means. Buy nothing unless you can afford it and if you do suffer loss of job, illness or other things experienced by thousands on the forum which change your circumstances, think about how you can raise money to pay off what you owe, not 'how can I get it written off'. Now this might sound a little boring and old motherly advice, but believe me you have a life ahead of you and the last thing you need in your life at your age is debt - freedom is about having control over what you do, whether it's going to the pub, on holiday or buying a new sound system without debt you are a free man - think about it - owing nothing to no-one. Keep adding the pence and the pounds will look after themselves my ole mum used to drum into me and I'm telling you the same. Bankruptcy is for people who's debt has got beyond worrying about, people who are desperate and the debt has spiraled out of control and it is NOT a way out to freedom because it's got sticky stuff attached to it that stays with you for years - it's called stigma, lack of self esteem, bad credit rating, paying more for anything you want, failure, embarrassment, rejection, depression, hurt - it's all of those and more so don't even go there my friend.

 

Start thinking success, richer than others, high self esteem, discounts for cash, control of your life, purchasing power, then you will be in control of your life and answerable to no bank manager, finance company, debt collection agencies or anyone you owe money to putting you under an obligation to them.

 

Yes it might sound old fashioned because that's the way the banks brain wash our kids by making money, credit, flashy goods easy to get, but why do you think they build in these high penalties if you don't keep to your payment dates? Cos that's where they make their money, they see suckers coming a mile off and build it into their business plans, they know you and thousands like you will take up their wonderful offer to have the goods now and pay later and FAIL - Ask yourself who are the rich people you see in those big houses? - It's the ones who see you coming, that's who.... take a read of this and enlighten yourself http://www.consumeractiongroup.co.uk/forum/general-reviews-write-review/117495-money-secret-rob-parsons.html. Your best fall back position is in your own soul and that is to have reserves, for every £10 you earn or get, stick one aside and make it grow.

 

I can't help feeling you are like so many thousands of 23 yr olds out there - So ask yourself "what are you going to tell your kids? "

 

I wish you well in your life.

Sarah

[credit allergy]

I could not agree more. I am 43 and just coming out the other side of house repossession. Cash is king i am down to last 50 pounds before pay day next friday. However my sons present on xmas day (x box 360 £400.00) is paid for. I am very concerned because in sept my daughter starts university. She has worked hard at a part time job for two years and has savings and a good current account. I know that the bank will start their offers anytime now. She will be 21 years old and thousands of pounds in debt. I would have planned, but the government didnt give me a lot of notice, she had already been born when fees were introduced! She has worked since 16 in a dept store and has been told since day 1 to push store cards formerly at 29% is this responsible lending? No supervisor is called to speak to applicant my daughter just makes a phone call.

[elizabeth1]

I could not agree more. I am 43 and just coming out the other side of house repossession. Cash is king i am down to last 50 pounds before pay day next friday. However my sons present on xmas day (x box 360 £400.00) is paid for. I am very concerned because in sept my daughter starts university. She has worked hard at a part time job for two years and has savings and a good current account. I know that the bank will start their offers anytime now. She will be 21 years old and thousands of pounds in debt. I would have planned, but the government didnt give me a lot of notice, she had already been born when fees were introduced! She has worked since 16 in a dept store and has been told since day 1 to push store cards formerly at 29% is this responsible lending? No supervisor is called to speak to applicant my daughter just makes a phone call.

 

Credit Allergy - these storecards are being pushed where ever we shop - and yes the 29% interest seems to be the going rates etc..

The best we can do is try to educate our own youngsters with what we know and try encourage our youngsters away from such deals.

I was shopping with my youngest son in Debenhams recently and the checkout girl offered him 10% discount on his shopping if he took a storecard out there and then - fortunately my son was on the ball and declined the offer telling the lady "yes you'll discount this purchase by 10% - but the card company want 29% off me when they bill me in the New Year - so I would be paying 19% above the prices here now - do I look nuts?" he asked her ha ha - seems everywhere we shop there is temptations to have something now and pay later - such a temptation for anyone isn't it?

 

As Sarah posts above there does need to be some education for people of all ages about money and debts etc..