[TwoBobRob]

Hi everyone.

First post, please have a virtual drink on me and I'll take this opportunity to apologise now for stupid questions....

So I'm an ordinary working bloke who's had a bad 3-4 years like so many others. I'm now drowning in personal debt and work is patchy at best. I'm struggling currently to see a way forwards - to see the wood from the trees as the saying goes.

I was chatting to a friend of mine recently who told me he was about to start buying silver bars as an investment for his future. He felt they would appreciate better than traditional savings (ISAs, bonds etc) and, perhaps more importantly they were unlikely to loose money in the long term. Better to have something than nothing, he argues.

It got me thinking. I'm in no position to save or buy anything with a view to keeping it long term. I'm firefighting on a monthly basis and am fully trapped in what I refer to as a 'credit trap' - any money I might make each month is swallowed in minimums and overdraft charges. All my traditional instincts and beliefs tell me to keep grafting and one day I'll pay that credit card off, that loan off etc.

Deep down I know this is unlikely.

Now, my (hypothetical) question to the forum is this; If I were able to scavenge £500-1000 aside by some twist of good fortune, what should I do with it? My traditional gut instinct would be to reduce the balance of my most expensive card.

My friend however, in my position, would buy silver and continue to struggle on with his personal debt as normal. This goes against my traditional (and often blinkered) view of things, but who's to say he's not right? He feels his silver may well increase in value faster than the card debt over the forthcoming years and overall, he'll do better.

I fully understand someone who is debt free having a nice little range of investments, but for someone like me this seems a little bit maverick, frivolous even....

Your opinions please.

Cheers

Rob.

[long time lurking]

If you do not own your home (no mortgage) even better if you rent ,knock the credit cards ,refuse any communication with them especially by phone , providing your debt is not massive with any single card company ( don't really mater if it is large when multiple cards are added together)

They will normally sell the debt on to a debt collection agency after a period of time ,at that point you have won as your debt (contract) was with the card company not the debt collection agency ( you did not borrow of the latter) the IMPORTANT bit is you say noting to any of them and by nothing that means not even confirming your name especially over the phone as there aim is to get a verbal agreement/contract from you stating you owe them money without that they do not have a leg to stand on.

And don`t sing for any recorded delivery`s of the post man

[Stay Beautiful]

TwoBobRob, on 15 February 2012 - 02:19 PM, said:

Hi everyone.

First post, please have a virtual drink on me and I'll take this opportunity to apologise now for stupid questions....

So I'm an ordinary working bloke who's had a bad 3-4 years like so many others. I'm now drowning in personal debt and work is patchy at best. I'm struggling currently to see a way forwards - to see the wood from the trees as the saying goes.

I was chatting to a friend of mine recently who told me he was about to start buying silver bars as an investment for his future. He felt they would appreciate better than traditional savings (ISAs, bonds etc) and, perhaps more importantly they were unlikely to loose money in the long term. Better to have something than nothing, he argues.

It got me thinking. I'm in no position to save or buy anything with a view to keeping it long term. I'm firefighting on a monthly basis and am fully trapped in what I refer to as a 'credit trap' - any money I might make each month is swallowed in minimums and overdraft charges. All my traditional instincts and beliefs tell me to keep grafting and one day I'll pay that credit card off, that loan off etc.

Deep down I know this is unlikely.

Now, my (hypothetical) question to the forum is this; If I were able to scavenge £500-1000 aside by some twist of good fortune, what should I do with it? My traditional gut instinct would be to reduce the balance of my most expensive card.

My friend however, in my position, would buy silver and continue to struggle on with his personal debt as normal. This goes against my traditional (and often blinkered) view of things, but who's to say he's not right? He feels his silver may well increase in value faster than the card debt over the forthcoming years and overall, he'll do better.

I fully understand someone who is debt free having a nice little range of investments, but for someone like me this seems a little bit maverick, frivolous even....

Your opinions please.

Cheers

Rob.

Go with your own instinct and pay down your cc.

Buying physical silver is a very long term investment. The buy and sell spreads on physical silver bullion bars are huge and if you needed to sell in the not too distant future you would most likely be in for a loss.

Disclaimer:

All imho, not to be taken as investment advice.

[Asheron]

Here is what I would do..... consolidate debts into one.

Pay the interest every month like a good little debt slave.

Buy Gold and Silver bullion or coins each month from coinsinvestdirect.com

I believe the economy is going to get much worse, they will probably de-value the Euro, Dollar, and Pound eventually around 30 or 40%

So you could potentially pay of your debts in the future with the increasing value of real Money, Gold and Silver.

You need to start listening to a guy called Bob Chapman, write to him, he will respond to you.

http://theinternatio...com/Bob_Chapman

The bankers helped you get into debt, so play the game. Beat the system.

(At your own risk)

[TwoBobRob]

Interesting....

Of course this is all pie in the sky at the moment as there is no spare money of any description.

"good little debt slave" haha.... I can see I'm going to like this place.

[98% Chimp]

TwoBobRob, on 15 February 2012 - 08:05 PM, said:

Interesting....

Of course this is all pie in the sky at the moment as there is no spare money of any description.

"good little debt slave" haha.... I can see I'm going to like this place.

Welcome to the site TwoBobRob

If you do want to buy silver or gold coins I would really recommend looking for a local coin/medal dealer. Try Yell.com, phone any local ones and just ask if they sell 1oz silver/gold coins. You will save a lot of money in posting and packaging. Plus, when you buy regulary from a dealer you may find he/she will give you discounts.

Quote

I believe the economy is going to get much worse, they will probably de-value the Euro, Dollar, and Pound eventually around 30 or 40%

+1 I agree completely, athough I believe this will be a slow process over 3-5 years. However, the fundamental question here is your faith in fiat currency. If, like many of the posters here, you distrust governments and fiat money then try and invest in a broad range of solid assests that would not become worthless if sterling continues to devalue.

Quote

I was chatting to a friend of mine recently who told me he was about to start buying silver bars as an investment for his future. He felt they would appreciate better than traditional savings (ISAs, bonds etc) and, perhaps more importantly they were unlikely to loose money in the long term.

They are called precious metals for a very good reason. They are finite, beautiful, valuable and the known deposits are becoming more and more difficult to obtain.

Hope this helps.

[TwoBobRob]

I would at some point like to hold some coins/bars. It makes sense to me to do so.

I own a property in France and I'm considering what to do there too. The exchange rate is in my favour if I sell now, but the prospect of that scares me as that little flat is my only asset in the whole wide world...

[Monkey]

I thought I created my own thread when I got my debts under control, but I found this post of my story

http://www.housepric...4

Over 1 year later I have 10k in my account, I live with my g/f and am enjoying having a disposible income I can enjoy, I've just booked a mini break away.

Do the hard way, you'll feel better after and you will actually learn the value of money

[paulthepunk]

+1 on the pay off more of the debt and reduce costs. Even though you could possibly gain by holding silver, it's a long term game and how much would servicing your debt swallow of those gains over whatever timescale?

The flat, do you need to own it, is it a useful commodity to you personally? If yes keep it, if not sell up and buy something else you may think will increase in value.

I think for the next few years I would only sell property for gold investment, silver is still a risk.

Good luck,
Paul.

[TwoBobRob]

Do I need to own the flat..... A very good question.

It's in Val D'Isere. I'm a snowboarder amongst other things. So on the one hand, yes it's useful to me personally, on the other it's a financial burden I could live without and just take regular package snow holidays like everyone else.

But,

It's affordable as properties go. The mortgage is reasonable and it's supplemented by income from tenants. Selling up at this point would show a loss overall but the reduction in stress for me carries a value of course.

I'm truly torn when it comes to the flat. When I bought it my plan was to keep it for the rest of my life figuring it would provide income when I'm retired and the mortgage is paid off.

With regards to soldiering on and settling my debts the hard way, that's what I've been doing for the last 20 years. I'm no stranger to going hungry and walking around in rags in order to honour my commitments. It's harder now than ever with no regular monthly income however. I've started a new business recently and if it takes off things will be ok - I am an excellent budgeter. In this short term though, it's nothing other than bloody hard.

Regarding my original question, it was slightly loaded; If I'm lucky enough to win the work I've recently quoted, then there might be £500 spare once the dust has settled.

[Stay Beautiful]

TwoBobRob, on 15 February 2012 - 02:19 PM, said:

I'm now drowning in personal debt

TwoBobRob, on 18 February 2012 - 06:38 PM, said:

there might be £500 spare once the dust has settled.

Your giving out mixed messages, which one is it, are you being a tad melodramatic?

[TwoBobRob]

I'm 45 years old. My melodramatic years are long behind me.

I'm sorry if I've confused the issue.

In my initial post I said "if by some twist of good fortune".

That twist of good fortune would be winning all the work I've recently quoted.

[GinAndPlatonic]

TwoBobRob, on 18 February 2012 - 08:11 PM, said:

I'm 45 years old. My melodramatic years are long behind me.

I'm sorry if I've confused the issue.

In my initial post I said "if by some twist of good fortune".

That twist of good fortune would be winning all the work I've recently quoted.

Sounds like you live life on a wing and a prayer. Cannot really see anything changing for you. You say you are excellent at budgeting but the flat business is being controlled by your emotions so I really do not think that cold hard rational budgeting is your talent ...talking about silver as if it could be your salvation financially is the last thing you should be working on..

[TwoBobRob]

An interesting turn of attitude in the last couple of posts.

Whilst I don't enjoy being judged by others, especially those who don't know me, it does raise points for discussion. Exactly what internet forums are for in my opinion.

I would ask that you perhaps read my posts again. I have not said, nor expect silver to by my salvation. The little reading I've done brought me to this forum where I've asked a question based upon something a friend of mine mentioned he was going to experiment with. No more, no less.

I'm genuinely interested in the subject and would like to know more.

Gin, explain to me please your statement "the fiat business is being controlled by your emotions".

[GinAndPlatonic]

TwoBobRob, on 21 February 2012 - 09:10 PM, said:

Gin, explain to me please your statement "the fiat business is being controlled by your emotions".

FLAT business..not fiat business

I own a property in France and I'm considering what to do there too. The exchange rate is in my favour if I sell now, but the prospect of that scares me as that little flat is my only asset in the whole wide world... Do you own it or have a mortgage on it..( I think someone has already asked you this)If you owe money on it, then it isnt so much an asset as maybe a liability


You go on to say you are drowning in personal debt...if so it may be wise to sell the flat, as long as you realise it may only sell at a REALISTIC price and live without any debts and start from square one and a clean sheet....it can feel very liberating to be debt free.

This post has been edited by GinAndPlatonic: 22 February 2012 - 09:40 PM