I'm collapsing under crashing debt - really need your advice

[Laiste]

Hi Mallanx,

 

A very warm welcome to CAG, you are in absolutely the right place to find out about how to take control of your situation.

 

First of all, don't beat yourself up about the situation you find yourself in. There are a multitude of reasons why people find themselves in debt and berating yourself for it, won't help you resolve the problem any faster! I mean that in the nicest possible way!

 

It is not uncommon for people when they get into debt, to start picturing all manner of horrendous things that they believe are going to happen to them; which is, I imagine, why you are having sleepless nights and you're health is suffering. Unpleasant things only happen when these situations are neglected, leaving a creditor to pursue whatever course of action they deem appropriate.

 

You have been given advice regarding your options and I want to add my views also for you to consider. Under no circumstances whatsoever consider IVA's or Bankruptcy, these are extreme options, which are wholly unnecessary, please disregard both.

 

Regarding CCCS and other agencies that negotiate lower payments with your creditors; these organisations have their place, but they should not be your first choice in terms of dealing with your creditors.

 

To begin with, you need to establish if your creditors hold valid credit agreements in respect of the debts you have. As many people here will tell you, you may be paying for credit cards/loans that are not legally enforceable because the Company in question, either doesn't hold any agreement at all, or produces a document that is not an agreement. This will probably not make much sense at the moment, and you may be thinking, I've had the loan/use of the card, so I must have to pay it back...? The bank/credit card company would like you to think that, but unless they have a legally valid agreement in place, the debt cannot be enforced against you, which means you are not liable for the debt.

 

You must find out first before you consider any other options what the position is in respect of agreements held (or not, as the case may be) by your creditors, before you do anything else. In my experience, the chances of all your creditors producing valid agreements is highly unlikely.

 

I have yet to see anyone who has 8 creditors for example, be liable for even 50% of the total amount of the debt. I am of course basing my statement upon the people I've helped, who have found themselves in exactly the same situation you are in. There are no guarantees what proportion of your debts will/won't be enforceable, but I've found something wrong with every single agreement I've seen so far, so there's every reason to believe that your situation will be similar!

 

You will find plenty of information on here about CCA requests, which are what you send to get the ball rolling to ask for copies of agreements. This should be done as soon as possible, but take enough time so that you don't make mistakes! Ignore anyone who says to send such requests by recorded delivery. The service is entirely unreliable and these letters must be sent by guaranteed next day delivery, yes it's more expensive but absolutely essential. Also, if you have to make more than one request to a Company, say for example, you have a loan and credit card, send them separately, do not put them in the same envelope and send them together!

 

I am a bit short of time, so what I haven't given reasons for, I'm sure others will explain, or you will find out as you read around the forums!

 

Above all, don't panic, we are here to help you to resolve your problems and if you have any questions, just ask!

 

I wish you well!

 

Kind regards,

 

Laiste.