Thursday, Jun 22, 2006

Debt Diary Entry 4

BBC News: Reader diary: Dealing with my debt

Thousands of people in the UK are struggling with ever-increasing levels of personal debt.
BBC News website reader Sayara Beg, 36, a freelance IT consultant from East London, has been telling her story of dealing with debt.

Posted by Geed @ 11:06 AM (2944 views)
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19 Comments

1. Waiting For The Crash said...

I have no sympathy for stuipid people who have fuelled the problem! Why have a baby when you are in debt? Why buy a second home if you can not afford it?
This is the reason we are all here waiting to buy a house in the real world!!!
Come on HPC get on with it, i am bored of reading how we 'should feel sorry' for these poor people who can not pay there debts off to have a family....SHOULD HAVE THOUGHT ABOUT THAT BEFORE YOU BORROWED IT LUV!!

Thursday, June 22, 2006 12:10PM Report Comment
 

2. sebastian said...

Interesting read again.

"Basically, I feel I am being punished just because I wanted to have more children and needed to take a maternity break. Great!"

In what way is she being punished? Did I miss something? She took on more debt then she could manage and then carelessly decided to have a child and think the world would make way for her. Almost reminds me of the way mums with prams will often push the child out onto the road first without looking...

"I have never fallen into arrears before, so this is a new - and not pleasant - experience for me. "

She might not have but she has certianly done it in style this time. I actually feel for the tennants of her home (having been in a similar situation). Like with the debt and risks she took she only seems to have ever thought about herself and not the affects this may have on others. This also seems to apply to the baby she doesnt seem to have thought at all about how her finances would have affected the child / birth (until now).

She doesn't really seem to have many options, bankruptcy anyone?

Deep down though I would like to see a happy ending to all this..How many people are in this situation? How many people like myself probably won't even risk having a child for some time to come due to the costs. Seems tough these days but as I often hear on the radio it has always been tough and that it's just our generation basically being selfish.

Thursday, June 22, 2006 12:20PM Report Comment
 

3. Superruss said...

"Barclaycard have said that as long as I pay 1% of the outstanding balance for the next six months, they will freeze my interest from month three to six.

I am grateful for this but I am a little worried about that my credit rating will be affected. "

love, sounds like you are in debt to the hilt! what do you expect will happen to your credit rating. Turf out the tennants and flog your btls. If this doesnt clear your debt, itll certainly help.

Thats pretty much what she is going to be told at this meeting thats costing her another 100.... Am I wrong???

Thursday, June 22, 2006 01:36PM Report Comment
 

4. Dadm said...

she make out she is on the bread line....which is the point which makes me angry as she holds a buy to let.

Simple plan...sell it.....

..oh dear...I forgot...it is already in negative equity...

...can someone reopen the debtors jails and workhouses.

Thursday, June 22, 2006 01:42PM Report Comment
 

5. inbreda said...

The imbecile needs to face the fact that if she can't cover the mortgage the property will be repossessed anyway - and the charges/fees/costs will be VERY high. If there is any shortfall, she will still owe it to the bank. They will not be concerned at selling her properties at a loss, because she will still owe the difference (plus fees!). At the end of it she will have a shocking credit rating.

The best way is to flog the BTLs (if it's at a loss, then at least it won't be as large a loss as if she leaves it for another few months), and repay the bank. Cover any shortfall by selling the car or CDs, or clothes, or any other rubbish that she's probably accumulated on MEW. Credit rating intact.

Get a part time job, or something working from home. Sell as many possessions as possible to cover credit card interest, and hold on for dear life.

With a bit of luck she'll have a fairly decent credit rating and will be in a good position once house prices have halfed to start again.

I say luck ... with a person as incredibly stupid as this moron it will have to be 100% luck.

Thursday, June 22, 2006 02:55PM Report Comment
 

6. Inbreda said...

"Over the weekend I meet up with a friend who tells me that a good friend of hers, in her early 30's, has just had to have an abortion.

The reason? She was in debt and did not think she could manage to bring up a baby"

That's a shame isn't it. Quite different to the situation where a woman has an abortion because - thanks to BTL greed pushing up house prices - she cannot afford a place big enough for a family.

Now - whos fault would that be then?

Thursday, June 22, 2006 02:59PM Report Comment
 

7. Inbreda said...

"I call their collections department but they are busy and I am asked to call again later. How many customers are calling them, I wonder, with similar debt problems? "

Twice as many as before, but not half as many as there will be soon!!!!

I cannot feel sorry for people this stupid, but it's clear that the crunch is coming.

Houses Under the Hammer - or some similar VI type program was on this morning making out that a street sweeper was a super intelligent hero for building up a property "empire" worth 3 million pounds. He has 62 bedsits. So what's that - 50K per bedsit? I want to know which bank lent a street sweeper 3 million pounds - because I want to make sure I do NOT keep my savings with that bank!

Thursday, June 22, 2006 03:08PM Report Comment
 

8. Ticktock said...

Hey, we could head of the energy crisis by burning debtors, morons, and poor people instead of coal and oil. The tree huggers wouldn't like it, but then we could burn them too.

Nobody lacking a good education, sound financial understanding, and at least an above average IQ should be entitled to share the air of this Country with us. After we've dealt with the debtors and other of lifes failures, we could move on to the elderly and disabled too. I mean, all that tax, and for what? so some old bag of bones can loaf about in a perfectly good home that could be occupied by decent, hard working, middle class folk? I think not.

Thursday, June 22, 2006 03:10PM Report Comment
 

9. Retiredbanker said...

Ticktock,

Being very perceptive I sense a touch of irony in your post!!

What worries me however is that your scenario seems almost kindly compared to what some of the environmental websites are forecasting for the future.

Thursday, June 22, 2006 03:39PM Report Comment
 

10. Paul said...

I don't know why the BBC is even covering this. Oh yes I do! Because they are rooting for her not to lose her BTLs, and pervade the idea that living with massive unmanageable debt is kinda okay.

Her credit rating is already in tatters. She won't be running off buying any more BTLs for the rest of her life. Very good, lets move along.

NEXT!

Thursday, June 22, 2006 04:03PM Report Comment
 

11. Monkey68 said...

I totally sympathise with the author of this article. Although I got into financial problems following my divorce, losing my house and car in the process, the banks were equally totally unhelpful.

they would not listen when I approached then seeking help, but merely charged me for every unpaid direct debit, charged me for being over my limit, in fact charged me so ,much every month, i had nothing left with which to pay their bills. it is a very tight vicious circle the banks use to squeeze as much money as they can.

I urge anyone to see citizens advice ASAP when they start to feel the pinch. Do not wait until the banks are biting at your heels - by then its too late.

The financial institution lend out far too much money far too easily, then turn nasty when you find you are in trouble. they should be seriously taken in hand before they bankrupt the whole country.

Thursday, June 22, 2006 04:36PM Report Comment
 

12. Ticktock said...

retiredbanker - indeed!

Monkey68 - I sympathise entirely with the situation you have described in your post. As the saying goings, a bank is something that lends you an umberella in fair weather, then asks for it back when it rains! (no offence intended to the retired banker of course!)

Thursday, June 22, 2006 07:20PM Report Comment
 

13. Chin1969 said...

There is a more recent update to this sad story of woe, have a look at: http://search.bbc.co.uk/cgi-bin/search/results.pl?scope=all&edition=d&q=Sayara+Beg&go.x=25&go.y=8&go=go
Enjoy!!

Thursday, June 22, 2006 11:15PM Report Comment
 

14. inbreda said...

I imagine in the past the banks have taken their umbrella back through nastiness - this time round the scale of personal indebtedness is so huge that they will have to grab back their umbreallas in order to try to ride out the storm. Tightening their credit is going to make the situation worse. It's going to be sooooo bad this time round.

Friday, June 23, 2006 05:54AM Report Comment
 

15. inbreda said...

...and are rainy day funds a thing of the past? Jeez - she's self employed/freelance - if ANYONE should have a cash cushion, it's someone who's self employed! But no, large amounts of debt, that's the way to go.

Sorry for the numerous posts people, but this article really annoys me. My sensible actions are paying for her payment holidays.

Friday, June 23, 2006 06:02AM Report Comment
 

16. talking rot said...

"The overriding impression I am given is that I should be ashamed, humiliated by not being able to meet my debt repayments for a short period of time"

The answer is YES. Like my children, you took all the cookies to school in one go and are now sad that there are no cookies left. You should have noticed by now that you are an ADULT and an adult with responsibilities - one of which is planning ahead, financially and socially. No one forced you to take on the debts. If you fell into debt just to meet basic bills then you would have my total sympathy. But I suspect your debt is due to buying luxuries on a whim.

Friday, June 23, 2006 08:49AM Report Comment
 

17. Sloth said...

Inbreda,
She's just acting out what the welfare state taught her;

1/ take no responsibility for your actions.
2/ expect everyone else to bail you out of problems.
3/ punish people behaving responsibly.

Friday, June 23, 2006 12:15PM Report Comment
 

18. sebastian said...

"Sorry for the numerous posts people, but this article really annoys me. "

It is very frustrating reading how careless someone has been yet she owns 3 homes and a restaurant while the rest of us can't even afford one home.

I am very interested to see how this situation turns out though, she should probably think about selling her computer though.

Friday, June 23, 2006 12:16PM Report Comment
 

19. Ticktock said...

sloth,

The welfare state came in to being in order to protect the Middle Class from the Working Class.

Be very careful what you wish for in this regard.


Friday, June 23, 2006 03:14PM Report Comment
 

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