My debts and some clarity

[mikeymack2002]

My debts and some clarity:

 

Since becoming involved with CAG some 6 years ago I have learned so much,

but sometimes my mind is clouded and confused.

 

Story:

I am long term disabled and in receipt of some benefits

and have been debt free twice in this period.

But due to moving and having a bad credit rating and a horrible bank I switched to a new bank.

 

I was offered a nice account with Nationwide with a good overdraft and a new credit card,

my OD was at £650 and used often, free for a period, this is now sorted and in credit,

the credit card was issued with a limit of £1800-00 or thereabouts.

 

It was used to help me move to suitable accommodation and to purchase items for my new home.

Deferred interest now expired.

Fees are small about a £1 per day interest.

 

 

I have been slowly reducing the amount of used credit over the past few months

and now considering reducing this amount owed rapidly to save me money on interest (which was/is cheaper than HP)

I can clear this debt in full within a few months and then consider cancelling the card

and going back to cash/debit card only purchases.

 

I have a second card with a very low limit of £500-00 interest is negligible and nearly paid off in full.

 

Finally I have a credit agreement with less than £300 O/S and considering early settlement. (3 year term)

9 months left saving of one months payment.

 

The reasons behind this is to have more money to live on and no more debt.

 

I am also in advance with my rent with my LA by nearly 2 weeks (£250)

I can use this to wipe out the HP overnight and save £34pm

 

Gas and electric both in credit as well.

 

By clearing my last debts I would be better off in pocket by £188pm which is a great thing for me...

 

Also all defaults are now off of my credit file and it is creeping up nicely. As of today.

 

I now have no negative marker on my CRF would clearing off these remaining debts early help my credit increase?

 

 

Is it worth going a little short for say 6 months to get out of debt nearly 18 months early?

 

Thx for reading this long post thoughts welcome...

. the reason for clearing my debts is to lease/rent/buy a mobiltiy scooter that will improve my life so much...

 

MM

[dx100uk]

as long as the accounts showing on your CRA file

are not defaulted nor have any calendar markers to a negative effect

paying those debts off early would not improve your score.

 

 

paying off debts not showing will have no effect at all

 

 

if paying a debt off cuts the long term interest

then that's where the bonus is.

[mikeymack2002]

Thanks dx. I know what you say is true but after all financially I would be better off, I thought that showing you are a responsible borrower what help your rating?

 

 

I have no debts other than those listed nor am I subject to any collections from any DCA's because of the help I have had here. Oh well onwards and debt free sooner then...

 

 

I would save several £100's in interest by clearing and cancelling, so will do so within financial time frames...

[Mr.P]

. the reason for clearing my debts is to lease/rent/buy a mobiltiy scooter that will improve my life so much...

 

A word of advice from someone that is trying to sell a mobility scooter. Do not buy new. The resale value is atrocious the minute you take it out the door of the showroom. For example, you buy new for £1400 and you'd be lucky to get £200 back. You would do better to purchase a low mileage model along with a set of new batteries (shouldn't cost more than £500).

[mikeymack2002]

The Mr P I am considering going back to Motility later this year. I would buy the new one for the reasons stated.

[silverfox1961]

The Mr P I am considering going back to Motility later this year. I would buy the new one for the reasons stated.

 

I once had a Motability car. ONCE! Never again. The benefits of the scheme are well known but I found that by having the money instead gave me more choice of what to get. Did I want drive around in a shiny new car with the insurance, servicing and certain sundries all paid for or use the money to get a cheap runabout and then save up to buy a newer model. I chose the latter.

 

My current car (05 meriva) has been well looked after, 119k on the clock, no damage anywhere and cost me a grand (trade in from a dealer). OK, I have to insure it myself (including breakdown cover) and organise the servicing but that, to me is much better than losing all of my Mobility component on a new car.

 

The same applies to Scooters. I live in an area where a lot of elderly people live and used scooters are cheap as chips. If I needed one, a visit to a local charity shop will let me get an almost new one for £250 and an older one for around £100-150. All in good condition.

[mikeymack2002]

Further to my posting and unknown to me I have literally just now taken delivery of a lovely very newish mobility scooter. I had no idea where it came from till someone special to me gave me a call.

 

 

For this you will need to read post #35 here >> http://www.consumeractiongroup.co.uk/forum/showthread.php?454549-Carers-I-feel-many-are-worried-and-stressed.-Under-pressure.&p=4919882#post4919882 I have been left amazed and very very grateful so this now takes care of this issue.

 

 

I have decided to clear rapidly the remaining debts so that I can have a good standard of living and buy decent food instead of reduced items. I am looking towards being debt free and credit card free within 6 months. This is achievable and will help me so much.

[silverfox1961]

Wow! She is brilliant. I wish my children thought that much of me.

 

You are one lucky person.

[mikeymack2002]

SF I know I am very lucky and we are fighting to keep me in my home and she fights a great battle. Also her demeanour in Court is awesome...