Debt help/Advice desperately needed??

[mack187]

Due to various circumstances (illness etc) I have managed to get myself into a large debt, about £12,000, I have really found this almost impossible to manage and have turned to payplan and entered into a debt management plan, I thought my problems were over. However due to my creditors hitting me with charge after charge I am slipping deeper and deeper into debt, I am now over the limit with all my creditors and because I only have enough money to make my payplan payments I cant pay the money to get back under my limits, the banks make me sick because they know I am in terrible financial difficulties and am trying to get help with payplan but they ae just keeping me in debt and offering no help.

But now the scariest thing is I have started getting default notices from creditors demanding money I simply do not have, they are threatening court action if I do not repay the full amounts and Im worried they will send the debt collectors round(they have threatened this also), I would really appreciate any advice anyone may have? I feel very scared and unsure what to do at this time

[installspark]

Setting up the DMP with Payplan was a good move. For further advice and support there is a very good forum available here where you can get advice and support from people who have been in the same situation as you.

As for the charges that have been applied to your accounts why not reclaim them?

[mack187]

Thank you for the reply, I have tried to reclaim some of the charges but my creditors are standing firm, Probably knowing I cant afford to go to court, The worst thingi is that the overdue amounts that they have sent me the default notices for are made up of the unfair charges, They seem to want to ruin me and I feel in an impossible position to fight back

[Karnevil]

With regards your charges, how much do you think they are on with each seperate creditor ?

The court claim might only cost you £30 - and there is help for people on low incomes /benefits - have a look on the Her Majesty's Courts Service - Home site or do a search on here.

You could claim against one at a time - and I believe that once you have said the account balance is in dispute they cant take further action against you.
Then use the settlement from the first claim to pay off the debt thus freeing up from the repayment to pay for the next claim.


Also I thought the point of payplan was to stop them hassling you for the money as its made through payplan ? I'm with CCCS now and although i have only just begun but thats how I understand it to work. They have contacted my creditors and asked a freeze of interest - reduced settlements and stopping of charges.

edit: Installspark - thanks for the link to the debt site - I'm going to have a look over there too !

[Shanks]

I don't know much about payplan but on their site say "Payplan help you to manage your debts by offering reduced payments to each of your creditors and then negotiate to feeeze interest and charges"

You need this so that you can manage and reduce the debt accordingly

Get onto them and ask them what they can do. I have been in a very simailar position so know how you feel. But this is agreat site and there are plenty of people willing to help. Post back with their response and we'll take it from there.

Cheers, Shanks

[sues35]

Originally Posted by mack187

Due to various circumstances (illness etc) I have managed to get myself into a large debt, about £12,000, I have really found this almost impossible to manage and have turned to payplan and entered into a debt management plan, I thought my problems were over. However due to my creditors hitting me with charge after charge I am slipping deeper and deeper into debt, I am now over the limit with all my creditors and because I only have enough money to make my payplan payments I cant pay the money to get back under my limits, the banks make me sick because they know I am in terrible financial difficulties and am trying to get help with payplan but they ae just keeping me in debt and offering no help.

But now the scariest thing is I have started getting default notices from creditors demanding money I simply do not have, they are threatening court action if I do not repay the full amounts and Im worried they will send the debt collectors round(they have threatened this also), I would really appreciate any advice anyone may have? I feel very scared and unsure what to do at this time

This is a hard situation to be in, your best move was the DMP. Write to each of you creditors and explain your situation (keep copies of these letters and offer a small amount to each). If they refuse the amount let them take you to court. The court will see you have offered payment which the companies have refused, as will set the payment to a manageable level and in sone cases freeze interest. My sister went through this process with her house and other loans, and now she is still in her home and is finally seeing the end on the debts (it has taken few years). Also visit your CAB and get their advice, they can help stop interest and will be with you at court should it go that far. If your not working or on low money, there are other ways of raising the money for small loans to be cleared without having to pay any interest. PLease feel free to email / IM me for more info on this (its not a credit service or something you have to pay for)

Sue

[pmhread]

Tough situation to be in but you need to marshall your thought processes with these and deal with them fairly sharpish whilst also keeping a firm eye on the bigger picture.

As far as claiming charges back, do you feel confident enough to post on here what debts you have, who they are with and what charges you think have been made. We can then help you work through them in a methodical order and tell you what procedure you need to follow.

If the charges seem to high (£20 here and there for a missed payment etc) then it's because they are. These charges are unlawful and can be claimed back with a little determination. The defaults may also be removed as part of the action.

[mack187]

Hello, thanks for the reply, I dont mind posting the details of my debts if you think it would help!

Lloyds TSB Personal Loan- £4,000
Lloyds TSB Overdraft - £1,750- £100 overlimit- 6 years charges amounting to £1,600 ( I want to claim these back)
MBNA Credit Card - £1000- £250 of charges
Lloyds TSB credit Card- £2000- £100 over limit- £300 of charges against me


I am now in debt management and obviously reclaiming osme of these charges would be a major help, especially because I am now getting default notices asking me to pay back over the limit amounts that are basically made up of these charges, It so sick that the creditors are doing their damdest to keep me in debt

Any advice??

[MARTIN3030]

The 1600 quid would be a good place to start.
Any action that you start should put a hold on further recovery action from DCAs (assuming it is connected to the same charges) whilst its in dispute.

If you know the figures from statements then you can send them a prelim letter with a summary of the charges which were imposed.
If you have been defaulted then theres also action for that
You can also send the DCAs a letter with 2.00 demanding to see a true copy of the agreements between yourself and the creditors they bought the debt off /are trying to recover for.They have 14 days to send that.

You will need as prev suggested to work through this step by step.
I know it will look difficult from the outset but there are people here who have lots of knowledge and experiences of a similar and even worse case scenarios.