bank loans
Debt is a bastard. Fortunately I don't owe too much, and have never really had creditors chasing me (no bailiffs, thank fuck).

My fuck-ups, in no particular order.

1. At uni, getting £40 a month into 1 account from folks, and maxed out on the loans and overdraft from the other. Overdraw a little from the 1st (authorised? Of course not), and proceed to ignore it. Find out that I'm being charged £40 for being overdrawn, and then right after that's taken out, the £40 from my folks goes in, so it never clears. Too lazy to do anything, I must have lost about £200. Finally sorted it with help from folks.

2. Credit card. Used it to buy food whilst at uni, and not paying it back. Later, unemployed, owing the money from my credit card. Get a letter asking for it back (and mentioning courts), panic and go into lloyds, where they offer me a loan. Foolishly I take it up. Luckily folks catch it and make me cancel it, and help me pay off the credit.

3. Finally working, and the HSBC ask for the overdraft back. I am grown up and arrange a loan to pay it back with them. I decide that I'll pay the minimum and up it later (as I didn't know if I'd be able to keep my job.) Fast forward about a year and a half, and I find out the interest payments are almost as much as the minumum payments. That's £10 a month or so. Recently I upped the payments, but they didn't do anything fr three months. When I spoke to them, they credited me some of the interest back. At least that's what the guy said... I must check this soon. It's been hanging around my neck for over two years now though.

When I think about it I've never owed a great deal, only a couple of hundred for the credit card, and 1k for the overdraft, but it was made a lot worse by ignoring it, and ignoring it gives you the fears they might find you and take everything. Oh and being stoned off my face most of the time didn't help.

Never touch credit cards unless you can afford to pay it off every time. Always pay off as much as you can afford on a loan, NEVER the minumum. Try to save if you can. Don't be afraid to ask for help, it's better owing your folks money than to people who will sell the debt on to tossers who will chase you relentlessly (and who you will be scared of*).

Remember the banks make more money from you owing them money than if you have money in your account. They are not to be trusted, they don't care about you. Your bank manager might be helpful, but it's their job to make money for the bank.

*fortunately I seem to have escaped this fate.
(stapleface, Mon 27 Nov 2006, 12:55, Reply)