Debt management businesses opinions.

buddy92 · 15-07-2012, 07:09 PM

Hey guys.

As some know I have got myself in a little debt, being young and having no one to guide me through my years ect I've learnt the hard way.

I am in a small ammount of debt with phone companies ect, and I really would like to clear this all out to help my future of financing a Turbo, GT or something.

Has anyone got any experience with any of these debt finance companies you see I was thinking of one to help me out.

I have 2 phones, and a $700 loan that hasn't been paid one of the phones was cancelled and I know owe ~$1000 and the other is currently still going just haven't paid it. and the loan, I don't know what happen.

Anyways, yeah anyone able to assist as I really want to clear this out.

Kryton · 15-07-2012, 07:15 PM

Steer clear of the debt companies.
Pay the money you owe and cancel the phones or whatever is causing the debt.
Realistically, if you cant afford to pay these debts, you shouldnt even be considering financing a vehicle.
Most likely the debt is already on your credit rating so the damage is already done.

buddy92 · 15-07-2012, 07:17 PM

Quote:

Originally Posted by davway

Steer clear of the debt companies.
Pay the money you owe and cancel the phones or whatever is causing the debt.
Realistically, if you cant afford to pay these debts, you shouldnt even be considering financing a vehicle.
Most likely the debt is already on your credit rating so the damage is already done.

I know that I shouldn't of got them, and I already have my car financed which is always #1 to pay, always have paid it. And if it's as easy as "just pay them the money" I would, but for me it isn't. And yes it probably is, but I can still pay it which will help my rating in the future.

Kryton · 15-07-2012, 07:21 PM

Well i dont really know what you want then
You have to pay the debt, you have no choice.
Some debt agency isnt going to change the fact, they'll just charge you extra for them telling you the same thing i have just told you.
Ring whoever the debt is with, make a payment plan and pay the debt.
Stop spending money or go and earn more than you spend.

buddy92 · 15-07-2012, 07:24 PM

Quote:

Originally Posted by davway

Well i dont really know what you want then
You have to pay the debt, you have no choice.
Some debt agency isnt going to change the fact, they'll just charge you extra for them telling you the same thing i have just told you.
Ring whoever the debt is with, make a payment plan and pay the debt.
Stop spending money or go and earn more than you spend.

I know I have to pay the debt, and I want to, but it's not as easy as giving this person $1000 this person another $1000 this person another $800 ect, I cannot do that.

Yellow_Festiva · 15-07-2012, 07:26 PM

Are you paying penalty interest? If so, at what rate?

It may be worth consolidating your outstanding defaults into a personal loan through a bank.

Oh, don't entertain your motoring desires till this is all well and truly gone.

buddy92 · 15-07-2012, 07:28 PM

Quote:

Originally Posted by Yellow_Festiva

Are you paying penalty interest? If so, at what rate?

It may be worth consolidating your outstanding defaults into a personal loan through a bank.

Oh, don't entertain your motoring desires till this is all well and truly gone.

I have thought of getting a loan, paying them then just paying back the loan, but then not sure who would give me a loan and don't want to go through 5 different companies.

and not sure what you mean by penalty rate.

buddy92 · 15-07-2012, 07:34 PM

I had these debts when I got my car, had no idea I wouuld of got it, didnt have the loan though.

Yellow_Festiva · 15-07-2012, 07:36 PM

If you don't pay a debt on time the company will generally add daily interest to your debt, say 10-13% pa. If that is the case you need to try and find a lower rate and put your payments into I loan to try and get on top of it.

buddy92 · 15-07-2012, 07:38 PM

got it now so what suggestions would you have

Auslandau · 15-07-2012, 07:47 PM

Seeing my son is 23 and if he asked me what you have above I would be as blunt as this to him:

Get rid of the car .... number 1 priority. Get rid of 1 of the phones. 2 phones? Once these are done, buy a cheap daily, then come and talk to me as there is no need to discuss things further until that is done.

That is it. If you cannot afford (in the scheme of things) a measly $1000.00 on a bill, you are in over your head with the car.

If he said "I want to keep the car but" I would tell him he is on his own and please do not bother asking for anymore advice from me if he isn't going to listen to it.

Anyway .... that is how I would say it to him

buddy92 · 15-07-2012, 07:50 PM

Quote:

Originally Posted by Auslandau

Seeing my son is 23 and if he asked me what you have above I would be as blunt as this to him:

Get rid of the car .... number 1 priority. Get rid of 1 of the phones. 2 phones? Once these are done, buy a cheap daily, then come and talk to me as there is no need to discuss things further until that is done.

That is it. If you cannot afford (in the scheme of things) a measly $1000.00 on a bill, you are in over your head with the car.

If he said "I want to keep the car but" I would tell him he is on his own and please do not bother asking for anymore advice from me if he isn't going to listen to it.

Anyway .... that is how I would say it to him

That's what someone that doesn't give a ****** would say, sorry.

My car is only $90 a fortnight, and you did not understand my OP, I don't have the phones, I sold them for reasons. And may I ask why getting rid of the car is going to help, I will then have another debt and no way to get where I want when I need to ect, selling the car will make things worse in my eyes.

And putting things "blunt" is no help at all sorry.

Auslandau · 15-07-2012, 07:58 PM

You ask for opinions ..... you received but don't like the answers. If you think I do not give a ****, why the **** did I put my thoughts in your thread.

WTF you want to hear from people???? Please tell us the answers you want to hear before anyone else trys and give you some advice you have asked for????? It will save everyones time.

buddy92 · 15-07-2012, 08:01 PM

Quote:

Originally Posted by Auslandau

You ask for opinions ..... you received but don't like the answers. If you think I do not give a ****, why the **** did I put my thoughts in your thread.

WTF you want to hear from people???? Please tell us the answers you want to hear before anyone else trys and give you some advice you have asked for????? It will save everyones time.

You're blunt, not your reply.

Why get rid of the car, it's $45 a week, the thing is I have money each weel left over, but what to pay to who and when ect is all a hassle, I thought the debt people make it all 1 big debt then pay them they pay the people ect, I don't know.

I will then be stuck with no car, no where to go, no chance of getting another one for a long time, mean while I could keep it and still pay my debts, If I had a path to follow.

I have left 3 forums because of people's rudeness in replies, I might be leaving this one to.

Yellow_Festiva · 15-07-2012, 08:09 PM

Every persons debt started with something seemingly insignificant per week.

Take the advice you have been given. Sometimes sacrifice is the best option. You don't NEED an expensive car, its a lifestyle choice.

buddy92 · 15-07-2012, 08:10 PM

Quote:

Originally Posted by Yellow_Festiva

Every persons debt started with something seemingly insignificant per week.

Take the advice you have been given. Sometimes sacrifice is the best option. You don't NEED an expensive car, its a lifestyle choice.

And then I'll never get the chance to get one at $45 a week ever again, plus what am I going to get out of it? if I sell it, I don't get the money, the finance company does.

Ben73 · 15-07-2012, 08:17 PM

I would hate to have your credit history. You will have trouble getting future loans and contracts for a while.
I have always paid my car on time, always paid credit card 100% off before accumulating interest but for some reason many companies don't like my credit history.

Only thing I can think of was I was declined for 2 cars loans due to not being at my job long enough. That is the only negative on my credit history and it's ******* annoying.

Now for me getting a car loan or a house loan has been simple, but try getting a phone or internet contract and it's ridiculous. They don't want to deal with me.

On the topic of selling your car. Find out what your payout amount is, then look at how much you will likely sell your car for.
If that does not leave you with enough $$ to pay off your debts and buy a cheaper car then it would be a pointless exercise.

Auslandau · 15-07-2012, 08:17 PM

Asking for advice and you will recveive. Do not like the advice, do not ask. Wanting things to be all sugar coated when it comes to keeping costs down doenst happen. When someone (everyone) who is in debt and asks for ways to imprive the situation gets told to downscale ( most obvious of obvious of answer) goes on the defensive are on their own.

Think people are blunt on Forums when giving advice on these matters?? Bloody oath they are. If someone and anyone takes the 3 minutes to throw up some advice .... take it or leave it but do not carry on.

Debt is such an easy thing to fix if you have something to fall back on with people willing to offer opinions on the way. Blunt or otherwise. But then what the **** do I know .... really.

buddy92 · 15-07-2012, 08:21 PM

I sell my car, what's going to happen? I don't get the money do I the finance company does, then I'll have an extra $45 a week.

V3RSAC3 · 15-07-2012, 08:28 PM

Quote:

Originally Posted by buddy92

You're blunt, not your reply.

Why get rid of the car, it's $45 a week, the thing is I have money each weel left over, but what to pay to who and when ect is all a hassle, I thought the debt people make it all 1 big debt then pay them they pay the people ect, I don't know.

I will then be stuck with no car, no where to go, no chance of getting another one for a long time, mean while I could keep it and still pay my debts, If I had a path to follow.

I have left 3 forums because of people's rudeness in replies, I might be leaving this one to.

Mate, you've come onto a forum asking for advice, you're going to get 1,00 different opinions, you have to know that before starting a thread like this. Now Auslandu has given you what you have asked for and you were fairly rude about it. With that type of attitude you're going to find it hard getting any more help in case somebody says something that you don't like to hear.

I'm not going to give you any advice, what I'm going to do is tell you what I would do if I was in your situation whether it's what you'd like to hear or not, because that is what you have asked.. If it was me, I would phone the company in which I have the debt with and tell the person on the phone that I cannot pay this bill in whole. The person who is on the phone it's their job to make sure the company gets it's money and if that is by setting up a monthly installment package then that's what they will do.

You say you have money left over after your car loan, this should be no problem.

You're welcome :-)

gtxb67 · 15-07-2012, 08:28 PM

Quote:

Originally Posted by buddy92

That's what someone that doesn't give a ****** would say, sorry

no it is what someone with life experience would say
if you disagree, there are diplomatic ways to say so and then guys like auslandau might look at your situation and give slightly different advice
it is not smart to put down people who are taking the time to give you advice you asked for - especially, when in the most part it is correct

good luck with everything, but at the very least some of the people who have given advice are well worth listening to

buddy92 · 15-07-2012, 08:33 PM

I've asked 3 times now, what is selling my car going to do?

It's $45 a week, I have money left after my car, easy.

If I sell it, I don't get the money do I? so I can't use that to pay debts, so selling it is going to do nothing but make **** hard for me......

Yellow_Festiva · 15-07-2012, 08:33 PM

You save on interest and payments on something that is going down in value daily.

Sell the car, if you break even you will still be ahead. Buy something that doesn't need finance and that will be the start of getting back on your feet.

Yellow_Festiva · 15-07-2012, 08:34 PM

Double post.

buddy92 · 15-07-2012, 08:36 PM

I don't understand, buy something that doesn't need financing out of what? I don't have that much money, and I would rather keep my car for $45 then buy a car I can pay debts with.

I don't understand sorry.

bingoTE50 · 15-07-2012, 08:43 PM

Well do a budget for a start. Itemise your spending and analyse what is essential and what isn't. Things like making a sandwich for lunch instead of buying your saves $40-50 per week. Limit your car use to reduce your fuel bill. If you smoke ,can them. If you drink ,stop or halve it. If you gamble stop. Pretty basic things to free up cash for debts .
If you can ,work out a payment plan with the creditors and pay them off asap. I would not suggest a credit card and a personal loan you would not probably get.
Rule of thumb is pay off the highest interest rate first.

Ben73 · 15-07-2012, 08:46 PM

Yellow festiva I don't understand where you are coming from.
If he breaks even he will be $45 a week richer, still have the same debt and have no car. Where does he get money to buy a cheaper car.

Sure selling the car will save money on interest in the long run, but his immediate problem is still there.

Auslandau · 15-07-2012, 08:50 PM

Simple ...... a car worth $20,000 vs a car worth $5,000.

At $45 per week and myself having 5 cars on a lease at the moment ..... first thing in the morning my bank manager gets the ***!

How many years is the $45 over and how much equity is in the car at present is the number 1 question.

buddy92 · 15-07-2012, 08:53 PM

Quote:

Originally Posted by Auslandau

Simple ...... a car worth $20,000 vs a car worth $5,000.

At $45 per week and myself having 5 cars on a lease at the moment ..... first thing in the morning my bank manager gets the ***!

How many years is the $45 over and how much equity is in the car at present is the number 1 question.

It's over 7 years I think, but the reason it's $45 is that they were given so much deposit to put towards the car at purchase, making the final value less which means less re-payments.

I owe $18,000 last time I called.

Auslandau · 15-07-2012, 09:00 PM

I am going to be blunt again .............

Go and see someone from your bank or a financial advicer ASAP.

You are not in the poop yet but with that car debt being so high .... payments will not keep up with depreciation which means you are going to owe WAY more than what it is worth and with in 12 months or so, if you are struggling with some phone bills now, you may find yourself in a worse position. The loan is too long and payments too low for such a depreciating asset. You get yourself in strife in 6 months and the sale will not cover the loan which is not a good place to be.

You say $45 is not much ..... it may not be ...... but it is not enough to keep up with what it is worth. That alone can cause issues.