View Full Version : life without credit
look around you and see what you have that you purchased on credit in one form or another this includes anything purchased on credit cards, loans, re-mortgages etc.etc.
now look and think what you would have without the credit.
your home is not included in this but your car, bike, carpets, kitchen etc.etc is included.
would you have the things you have if you had to save and buy them outright at time of purchase?
how would your lifestyle be at the moment without credit?
are you one of those people who dont have credit in any form apart from your mortgage?
....................................
the_lone_wolf
27-12-09, 04:45 PM
...are you one of those people who dont have credit in any form apart from your mortgage?
*Nervously raises hand while looking round the room to make sure someone else is too...*
I use credit cards for the convenience and buyer protection, the bill is paid in full every month and I don't (usually) spend more than I can afford
No mortgage, bought the SV on 0% but had the cash saved before I walked into the shop
The only form of loan I have is ~£10k in student loan, but I've saved enough since university to pay it off several times over, only reason it remains outstanding is that it's effectively 0% so better to put the cash into savings and earn money on it than pay off the debt
Parents always said, save for a house or possibly a car, if you can't afford it you can't have it, seems like a pretty simple rule to follow...
good man TLW.. did you grow up in the 70's?
the_lone_wolf
27-12-09, 04:49 PM
good man TLW.. did you grow up in the 70's?
You might think so given my taste in music but no...:p;)
Vintage 1984 here mate:smt080
lotta lurkers, no takers.. hhhmmm must be a bit shy on their spending habits.
i use a credit card but pay it off every month (if not sooner), no other credit.
beabert
27-12-09, 04:53 PM
I use credit cards for large purchases but only at 0% rate then balance transfer it about.
Kilted Ginger
27-12-09, 04:56 PM
credit bad, saving good young skywalker
I do not have a credit card.
Specialone
27-12-09, 05:05 PM
One thing to consider, what about saving for a large purchase and you die before you get chance to experience it, i knew someone who really wanted a saab, put it off for ages, mainly for finance reasons, dropped down dead at work aged 38.
Live for today dudes within reason, you might not be here tomorrow to enjoy the fruits of your savings.
That is all...
I do not have a creit card, and both my bike and car are paid off in full :p
Never bought anything on credit, but then I'm a youngster(24)! No credit card or mortgage. Never want to either, don't like the idea of buying on credit and don't really want to see myself tied down to a mortgage any time soon!
I'm pretty good at saving, well I was until I bought the SV and now seem to splurge cash on anything bike related.
seedy100
27-12-09, 05:27 PM
I have a credit card and use it for
:- on line purchsase
:- anything in a shop over about £5
:- all fuel
:- all cars and bikes Ive ever bought
I have had it for over 30years and never paid a penny in interest.
Many years ago my bank wanted to charge for the privalage of having one so the lost my business.
Ive not paid any bank charges since I left college either.
Oh how the greedy b******* must love me!
Von Teese
27-12-09, 05:53 PM
Only thing we have is a loan and the mortgages.
timwilky
27-12-09, 06:04 PM
yes I have a credit card, but it is paid up each month. I only use it for work hotels etc. which I then claim on expenses.
House is paid up, bought bike cash, do not own a car
wyrdness
27-12-09, 06:08 PM
I usually pay the credit card bill off at the end of the month (unless I forget). I don't usually buy anything on credit, unless it's interest free. I've got some furniture on 0% at the moment, but the cash is in the bank ready to pay for it. I don't have a mortgage on my house, but I do have one of my flat in London. Both bikes and the car were bought for cash.
So whose is this credit mountain... I don't have a credit card neither. But my business has an overdraft to fund work in progress that I can't yet invoice. I wish it didn't, but I don't have deep enough pockets to fund the business as well.
davepreston
27-12-09, 06:12 PM
all my credit is for things for the house eg sofa ,windows ,doors ,bed due to being newly weds and getting first home together, no cards ,bike paid in cash (all of them) even the cars ive owned were paid up front, tbh it was a nessity to have credit but i truely wish i could have done it without it, but such is life
mr preston seems to have the idea.
so what everyone is saying that they have never bought a sofa, carpet, bed, or other stuff on credit because they have not had the funds available at the time of purchase?
btw 0% is still credit so are store cards.
Specialone
27-12-09, 06:19 PM
mr preston seems to have the idea.
so what everyone is saying that they have never bought a sofa, carpet, bed, or other stuff on credit because they have not had the funds available at the time of purchase?
btw 0% is still credit so are store cards.
Whats so wrong with credit anyway?
As long as you can afford it.
Not sure what your point is TBH. Yes of course I've used credit in the past... I suspect that 90% of the peeps on here have...
Whats so wrong with credit anyway?
As long as you can afford it.
nothing if you like that sort of thing.
i was asking what your life would be like without it e.g. what things in your house would you not have if there was no credit?
Bibio, do you work for a bank:smt101
Specialone
27-12-09, 06:23 PM
nothing if you like that sort of thing.
i was asking what your life would be like without it e.g. what things in your house would you not have if there was no credit?
Probably fook all lol
Bibio, do you work for a bank:smt101
that would be a no then... :smt080
Jayneflakes
27-12-09, 06:28 PM
Only one loan and that is for the SV, half paid off and just over two years to go. :smt080
I swapped Credit cards a while back when I found out that my Bank dealt with Weapons companies. I moved to what I hope would be a more reputable company. Sadly they were sold recently and my Credit card is now own by MBNA, a real bunch of legalised sharks. Paying it off rapidly to get rid of the Damn thing. It seemed like a good idea three years ago when I was earning nearly £20K, now I am on less than half of that and a Credit Card bill every month is not what I want, I am just glad it is a small one, I have had friends who have Credit Card monthly payments that are in triple figures. Frightening. :smt101
My biggest monthly expense though is my Council Tax bill, which takes just over a sixth of my monthly income. I have just made the last payment and am now so much better off each month, at least until April 2010. :smt112
Time to get a better job, my mate who used to sell crack earned way more than me! :smt005
Jayne do a 0% transfer to another card.
Pretty much all the big purchases I've made in over 30 yrs have been via credit. Some have been paid off fairly quickly whilst others have run full term.
My ethos is pretty simple; do I wait x amount of time for something I would like or get it now and have the enjoyment of it straightaway. The interest I pay equates to the time I buy to have that product. And to me time is priceless in so much as you can't decide tomorrow to buy today's fun.
Also, there's money in the bank account but I'd prefer to spend other people's (banks') money.
If someone else does it different thats their choice - no problem either way
Specialone
27-12-09, 06:58 PM
Pretty much all the big purchases I've made in over 30 yrs have been via credit. Some have been paid off fairly quickly whilst others have run full term.
My ethos is pretty simple; do I wait x amount of time for something I would like or get it now and have the enjoyment of it straightaway. The interest I pay equates to the time I buy to have that product. And to me time is priceless in so much as you can't decide tomorrow to buy today's fun.
Also, there's money in the bank account but I'd prefer to spend other people's (banks') money.
If someone else does it different thats their choice - no problem either way
+1 couldnt have put it better myself
i'm not knocking credit.
what i'm saying i guess is, how would your lifestyle be if there were no credit?
what things would you not have as you would otherwise not have been able to afford them.
i only ask as when i grew up almost no one had credit or it was a lot harder to get and everyone i knew seemed poor by today's standards. now it seems that everyone i know is living in relative luxury but are up to their eyeballs in debt (i know of a few people who are at least £30k in debt and that not including their mortgage) which makes them utterly miserable.
slark01
27-12-09, 07:12 PM
Used all forms of credit in the past, but now we don't have any and anything we want to buy we save up and get it when it's cheaper to do so.
Our moto now is: if we don't NEED it we don't buy it.
A bit sad really but hey at least I don't have any more financial worries ;-)
Ste
how would your lifestyle be at the moment without credit?
No different other than not being able to do distance buying :)
are you one of those people who dont have credit in any form apart from your mortgage?
Yep, only use the card to pay for distance stuff or stuff I don't have the cash in my pocket for but it always gets paid up (and a bit more beyond) each month, cannot remember the last time I paid interest :D
Have no credit, bikes paid off in full, renting currently.
No savings, spend it all on rent, food and the rest on going out and getting hammered.
Living from month to month.
Dicky Ticker
27-12-09, 07:27 PM
I have used credit in the past,mainly to buy vehicles[Artics and trailers don't come cheap] but never my cars or bikes or anything household. Probably had over £500,000 at one stage but always covered by other assets if things went pear shaped.
I have a credit card for convienence but always pay it off in full at the end of the month,I treat it like a charge card not a credit card,difference being I think you have better protection on a credit card.
Three cars,one bike and a house all paid for. Skint but debt free and a lot of hard graft to get here. Not a lot of money but enough to get bye and live life as I want.
Yes I am of the older generation but as long as you have a roof over your head and food on the table,plus pay your debts I see nothing wrong with credit as long as it is within your budget
speedplay
27-12-09, 07:35 PM
Personal credit I have is a mortgage and a credit card with a 30k limit that I have never used.
I still have Business accounts with totals more than enough to build my house 10 times over as most businesses have 30 day credit accounts, but they are dormant now.
Everything else is paid off and theres cash in the bank too :)
I don't buy something unless I have the money for. If I don't have the money I do without. I have no overdraft or credit card either.
The only credit I have as such is my mortgage, but short of inheriting it's impossible to have a house otherwise.
I don't even like using cards, on rideouts i'm normally the one dropping money everywhere from my washing machine pouch lol
Biker Biggles
27-12-09, 09:28 PM
Apart from a mortgage I have no items bought on credit.I have a credit card for convenience but pay it off every month.I did once buy a car with a loan many years ago for business reasons but thats about it.Everything else I only buy it if I can afford to pay for it.Up front.
hhhmmm, this is interesting as it seems only those that 'dont do' credit are the biggest posters.
dirtydog
27-12-09, 09:39 PM
The only thing we have on credit at the moment is the new TV which was bought on buy now pay later thing which doesn't have to be paid until February and then it's mor ethan likely i'll pay it off in one go (got a fair bit of work booked in for next month)
Have bought things on credit and loans in the past including cars, bikes, furniture, TVs etc etc and am still paying most of it off (lots of debt from a previous relationship). Would I buy something on credit again? Yeah why not? I'd rather have something now and pay extra for it with the interest on the loan then wait ages for it while we saved
speedplay
27-12-09, 09:43 PM
hhhmmm, this is interesting as it seems only those that 'dont do' credit are the biggest posters.
Nobody is going to come onto a public forum and announce that they have 20-30k in debt though are they?
Only those with a decent credit background or at least a comfortable financial record will will be happy to openly talk about it.
There was a time a few months ago when I was working away that Jenn said to me that we were in financial s**t.
Now I had just gone out that week and bought the KTM so was a little shocked to hear about it.
I had a chat with VT one afternoon and couldnt understand what the hell had gone wrong.
It seems that money had been moved from my account into a savings account and wasnt showing on the billing account (as it was paid into the wrong place for 2 months:rolleyes:).
I was prepaired to sell my toys etc to get back to balance but it really did bug me.
A bit of digging found it (and a bit of interest too:rolleyes:).
I never thought about loans or credit cards though, more "how can I raise cash with what I have got".
But if I had been seriously in problems, I doubt I would have been on here telling everyone about it.
dirtydog
27-12-09, 09:50 PM
Nobody is going to come onto a public forum and announce that they have 20-30k in debt though are they?
Only those with a decent credit background or at least a comfortable financial record will will be happy to openly talk about it.
TBH I was in real s**t street a few years ago with about 35k of debt
I've now got that down by quite a bit and should be completely clear in a couple of years time.
But even with that debt I still have my SV and bought a Focus ST170 last month as well as owning a Galaxy which I use for work
dirtydog
27-12-09, 09:52 PM
hmmm I just had a thought, technically anyone with a phone line or mobile contract has credit or how many people here who have said no I don't do credit has paid their car/bike insurance in monthly instalments? Or does that not count?
Von Teese
27-12-09, 09:53 PM
Speedplay, thats only because you chain Jenn to the computer and make her work day and night for you...I have evidence!
davepreston
27-12-09, 09:53 PM
i would discount mobiles etc as its a service not a purchase
only had a loan for my curvy didnt like it much but i wouldnt be riding if i hadnt or at least i'd still be on a 125 nothing wrong with credit as long as it's not in a vicious spiral which can happen a bit easily if you dont keep tabs on it or something crops up.
dirtydog
27-12-09, 09:59 PM
i would discount mobiles etc as its a service not a purchase
But surely credit is credit is it not? You cna still get into debt with it
have you seen how much some of these iphone contracts are.
DD is technically right as to my questions. without credit some people would not have a phone as some companies insist it is paid by credit card rather than debit card.
speedplay
27-12-09, 10:08 PM
Speedplay, thats only because you chain Jenn to the computer and make her work day and night for you...I have evidence!
I'd like to see that "evidence".
Its bad enough getting her away from work as it is.
[QUOTE=speedplay;2133733]Nobody is going to come onto a public forum and announce that they have 20-30k in debt though are they?
QUOTE]
I'd guess I have about £15k of credit, excluding the mortgage. Its servicable, and there is almost double in the deposit account.
I juggle the money/accounts/cards around and I'm comfortable with what I do. And I know that if needs be I could clear the debt.
Especially whilst interest rates are low, or with the 0% deals, I'd rather 'play' with the bank's money.
If I bought a £4k bike with a £2k loan. Kept it a year then sold it for £3k I'd pay off the balance of the credit. Probaly have in excess of a grand left of the £2k I put into the deal and would write the 'loss' off as the cost of a years worth of fun. And I'd still have the £2k I hadn't put into the deal for emergencies.
Maybe my thought process is a bit skewed if viewed by an accountant but it works for me.
To go back to Bibio's question; I must admit to being a little uncomfortable with the thought of not having the option of credit to fund the fun.
not so much a case of funding the fun, more a case of comforts. how many people here would not have the suite, carpets or TV they have if it were not for credit?
so far its nice to see that people on this forum are quite sensible about their credit.
No loans or card debts at all here, just the house. (snug mode)
punyXpress
27-12-09, 10:34 PM
[QUOTE=Bibio;
so far its nice to see that people on this forum are quite sensible about their credit.[/QUOTE]
Oh, & we don't tell porkies about speeding & other misdemeanours ? ;)
(snug mode)
heres your m ;) :D
rictus01
27-12-09, 10:41 PM
never used credit apart from a morgage and even that was the bare minimum for mira at the time, and did have a credit card twice, both times were for holidays in the states as after a certain time at night alot of places didn't take cash, each time I saved £1000 and put it in a separate account before hand and spent no more than that on the card, paid it off directly I returned and cancelled the card. all major purchase's have been made with cash even some years ago £11,000 for a car, the KTM I bought recently was paid for with an envelope of folding, personally I wouldn't feel comfortable riding a bike I didn't own outright but that's just me.
Cheers Mark.
thats good if you can do it but your a bit screwed if you have to get too work and need a bike but no cash too buy outright i see where your coming from though it's almost like you've nicked it untill it's paid off.
heres your m ;) :D
Doh! I blame the keybaord ;)
rictus01
27-12-09, 10:52 PM
thats good if you can do it but your a bit screwed if you have to get too work and need a bike but no cash too buy outright i see where your coming from though it's almost like you've nicked it untill it's paid off.
no it's not, been it that very situation, I cycled until I could afford a nail (and I do mean a nail came in a couple of tea chests) built it myself and was on the road for a couple of hundred £'s, people these days seem to think a couple of thousand is the minimum to get a bike :smt102.
But as I said, that's just me ...:D
Cheers Mark.
fair doo's even my old nail of a kwak cost me £1300 at the time and for a 17 year old that's a lotta money borrowed from the bank o dad cheers.
rictus01
27-12-09, 11:03 PM
yeah it's everyones own priorities, recently someone was complaining he had no money to run his bike, and yet when I pointed out the option ot selling it buying one for half the money and use the rest to run it for the whole year, he wasn't that interested :smt102
Cheers Mark.
sunshine
27-12-09, 11:09 PM
curvy on loan wouldnt be riding after my hit and run, no bike = no work, no work = im claiming job seekers so the bank gave me to loan so i could keep my crappy jobs. so to me credit=essential.
timwilky
28-12-09, 01:09 AM
I was probably not totally honest with my previous reply in this thread, as I answered in current circumstances, that I have no credit debts.
However, in years gone by I have been very nieve. I once bought a suite from DFS and they offered me three years interest free credit on it.
Fool me, says I can I take it on one year?
of course they sold it to me for the same price, I had not realised they add their interest fee to the upfront price. So I paid for 3 years interest on a 1 year deal, even worse I was prepared to pay cash and thought I was getting a bargain as I could leave the money in the building society.
Now I am embarrassing. I ask in shops what they will do for cash. Strangely many wont play ball. They want to get their commission from a credit deal
barwel1992
28-12-09, 03:21 AM
mum and dad are both accountants and own evory thing out right house,cars,mybike theres nothing we have that they dont own PS they dont spend a lot and are tight when it come to cash
MattCollins
28-12-09, 06:47 AM
I haven't had a loan since I was 17 which was a long time ago. I wised to that trap real early. Since then I have paid cash for everything that I own including my house. All of my bills are paid as I go in advance. Credit cards (personal and business) are only used as debit cards.
IMO, the only way to use credit is to make more money, not to buy stuff that depreciates.
kwak zzr
28-12-09, 08:20 AM
I haven't had a loan since I was 17 which was a long time ago. I wised to that trap real early. Since then I have paid cash for everything that I own including my house. All of my bills are paid as I go in advance. Credit cards (personal and business) are only used as debit cards.
IMO, the only way to use credit is to make more money, not to buy stuff that depreciates.
spot on! this is how i try to do it but sometimes mortgages and car/bike loans are the only way to go depending on your circumstances, i had a mortgage for 18 years and was glad to see the back of it but TBH i do waste alot of money now so am looking into buying another house, as for credit cards ive only ever owned one (Salisbury's) and they took it off me because i never used it, my credit rating is prob poor because i haven't really had an active credit history.
So whose is this credit mountain...
Good question - I guess all the people who havent replied to this thread!
I have a mortgage and an overdraft but no loans or credit card. Used loans and credit cards throughout my 20s but they are all paid off now. Overdraft will be cleared by February too - woohoo!
Bluefish
28-12-09, 09:01 AM
Good question - I guess all the people who havent replied to this thread!
I have a mortgage and an overdraft but no loans or credit card. Used loans and credit cards throughout my 20s but they are all paid off now. Overdraft will be cleared by February too - woohoo!
You been waiting for moi,
loadsa credit, car bike phones telly +sofa (paid off), ex wifes bedroom furniture, 2x loans, one used to be the credit card was 13 grand. used to be about 35-40 grand come down abit now, and one loan finishes in 7 months will be a fair bit better off then, then tother finishes year after.
If i had not used credit then i would not have been able to buy my bike,even a £500 one, but we have been lucky, touch wood in that we both have jobs and all the bills get paid, and hopefully we are starting to see the light at the end of the tunnel, it gets too depressing to think about it at times, and hopefully we can go on holiday in 2011, is it my/our fault we are in this position?, to a certain extent yes, but i did not ask for a divorce and the bills that caused, judge won't let me sell the house so now that puts my credit rating into poo street due to ex, and if i had not taken any credit than i could not have bought my current house and would still be renting, ce la vie.
amnesia
28-12-09, 09:32 AM
I have a credit card that gets paid for each month. Used like many other posters as an additional level of protection since so many transactions don't involve real cash or even face to face contact anymore.
We have a mortgage
We have a sofa from DFS so its on their 'interst free credit over four years' (I am not niave enough to think its free credit. I know its not worth what I paid!)
We have had two 10 or 12 month interest free deals with Hein Gericke - again the interest is built into the cash price I guess.
Never had a loan
Would our life be different without credit? Not much I don't think. It would mean more up-front planning for big purchases and I guess I would have to have another way to protect my current account from online fruad - such a s a savings acccount to replace the credit card.
Another thing to remember is that while it is financially sustainable should one of us fall off a bridge. I am worth a hell of a lot more dead!
Miss Alpinestarhero
28-12-09, 01:10 PM
Well, my lifestyle wouldn't be any different.
I have a credit card for emergencies and if I have to make big purchases over the internet (for the protection). However, I only buy things if I have the money in my bank already - so I pay the bill off in full every month.
The only loan I have is a student loan, but I reckon that is an acceptable debt because it was an investment in my future. I've now managed to get the job i've always wanted as a result. My next career move involves further study (3 yrs to become a clinical psychologist) but I will not need to take out a loan for it.
I bought my car outright by saving all leftover student loan money as I needed a car at the time for work purposes.
My motto is: if you dont have the money in the first place, dont buy it.
up to my eyeballs. No pension either. Slowly paying it off. I had a bad start getting married and having a child while still at university, now I'm divorced and the CSA are fleecing me.
I might actually get some money saved before I retire.
Mr Speirs
28-12-09, 01:27 PM
I have no Credit Cards and never have done.
I have had 2 loans, 1 which was paid in full and never defaulted which was for a Mini Cooper Sports (old style)
I bought my current car on finance but when I wanted to start biking I took out a loan which paid off the car finance and bought my SV, still paying that loan back but again never defaulted and am very close to having enough money saved to pay that loan off in full early which would leave me almost debt free...(however this has been the most painful amount of debt due to crashing my SV and the value of my car has plummeted, but I have learnt a lot from it)
The only other credit I have got is for my Ducati again never defaulted.
Oh and student loan which will be paid off in March's pay check.
So in a few months time I will only have the Ducati on credit so about £3500.
Credit is fine as long as you are sure you can pay it back, its when you default that you will get stung. I have always thought the only thing I would get credit on is vehicles and a house. Everything else is paid for.
so what everyone is saying that they have never bought a sofa, carpet, bed, or other stuff on credit because they have not had the funds available at the time of purchase?
Yup, bought stuff on credit when younger and just married, etc. Interest-free credit for white goods quite often.
Times change and 19 years after leaving Uni with a £4500 loan and 18 years after buying first house things are different.
No mortgage (but never actually begrudged having one as most folks have at some point, eh?)
3 credit cards, all with zero balance (used for online purchases)
Paid of car loan at work (real low rate of interest) last month after 18 months of 5-year loan
M & S store-card, haven't used it for years, zero balance
Now saving for the first time.
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