I guess the reason I'm so annoyed is because when our kids were very, very, young, we hit the red, big time. Worse time possible.
We fought, scrapped, and clawed our heads above water, without benefits or help from anyone. Heck, it was rough, but we survived. We never want to go through that again.
Now I'm older and better informed, I've a sympathy for those who struggle and try to make a go of it, even if they fail now and again. I'm happy to help out. It's pure stupidity that drives me crazy. I've also a suspicion that some people just factor any help they get into their financial equations.
They're just feathering their own nest.
If they're clever enough to do that, they're clever enough to sort themselves out, even in these difficult times. Heh :) I guess it's "Welcome to the real world, Wheelie". It's quite hurtful tho'. Not that, that matters. :(
How not to afford expensive items. Credit. Don't do it. Don't care what it is. My eldest daughter had a refund after changing her gas/electric supplier. Made a massive saving after digging around MoneySavingExpert - on my net connection, of course! First, it took two months to go through. Then her previous supplier agreed they owed HER money. Being in a hurry, she decided to go to a 'Money Shop'. By showing some ID, she was able to get the cheque cashed immediately.
She lost 10% of the value of the refund. Over £40 quid in this case. That's a lot of money if you want to catch a bus.
Don't use shops (such as the above) who might provide something like a HD TV for interest rates above 30% interest, while avoiding credit checks. 30% of anything is a lot.
Avoid banks. Silly? No it ain't. One way or another you'll end up paying them something. I'm going to keep saying this, but every penny counts. Most area's have a Credit Union. Credit Unions are for patient people. If you are just saving money, it's a doddle. Just pay in a little regularly. Downside - you may have to apply a week in advance to draw something out. But see below.
If you want a loan, most credit unions are for people on a low income. Save a small amount for twelve weeks, and you can you can borrow at 3-5 times the amount you have saved, repayable at a few percent interest. They will never touch the original amount you have saved, unlike a bank. Larger amounts, maybe £1000 or greater, even with larger weekly savings, may need to be negotiated. However, the interest rate is still very low compared to a bank.
Most credit unions have a pre-paid cash card. For a monthly fee of between £2-£5, you can pay onto the card as much as you need, and use on and off line. How cost effective that is for you depends how much you save with that credit union. You can't top up the card if you have nothing there.
Great for parents who are supporting their children through Uni, College or have left home. Down side? No money no top-up. If they (or you) aren't on the Electoral Register, it isn't going to happen.
For the record, I have a HD TV, or any other expensive item, Here's how you afford one, even if your circumstances are reduced.
The average life of a TV is 5-6 years. And remember you're going to need a TV licence - and this applies to students too. If you don't have what want at the moment, same principle applies. But I'm assuming you may have bought a TV, just as an example.
Get yourself a big jar :) Or into a Credit Union. Put £3 a week in, every week. Over 6*50 week years, you will have saved £900.
2 comments:
I like the idea of Credit Unions, we had access to one through our workplace and it worked very well. My grandmother, rest her soul, was from Hessle Road in Hull, a fishing community through and through that saw financial highs (when the lads came home and were paid) and the more frequent deep lows when the men folk were at sea and had to scrape by with nothing but help in kind from neighbours friends and family and one thing she always said was - try never to get into debt. Difficult in a modern world with the pressures it throws at us, but what you say is difficult to argue against; take your time, weigh everything up very carefully and think ahead!
Regards
I gave up using a bank account when one year I realised the amount I was paying for them to administer my money, even though we had no debt.
I suspect part of it was being a Yorkshireman (I know you're North Yorkshire, so you're easily forgiven that) :)
Credit Unions do have a few disadvantages - ours doesn't have direct debit facilities, which would save that little extra per year on fuel and phone bills.
However, we can have income paid in, so on the whole, we're quids in on balance over the year.
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