Please help! Going under.

[bladeboy]

Came across this site very recently so thought I’d ask for some advice.

 

Have roughly 60-70k worth of unsecured debt – virtually all credit cards but one loan too. It’s all spread out over roughly 7 or so cards. On all of them I am way off the credit limit but because over the years I’ve never missed a payment on any of them they kept putting my credit limits up. Never been that good at finances and this has now come to a head to failure of my wife’s business and the resultant loss of her income.

 

We’re fully up to date on all secured/priority debts such as council tax, mortgage and hp for the car we own. In fact, never missed a payment on any of them. I have secured employment grossing roughly £39k a year.

 

Our house is owned although in negative equity due to a pattern of remortgaging over the years. Recently, prices in the area have slumped too. Statements can prove this. Also, have an endowment running that’s worth next to sod all. Other than that no savings other than occupational pension.

 

Have an appointment with the CCS this Tuesday. Have roughly £350 spare income per month. Things came to a head just before Christmas when I was at that time unable to meet the payments on the card for the first time. NatWest (current account bank where salary is paid into) have been awkward. They have stung me for massive charges when direct debits have been refused etc. Anyway, I can get the charges back? Similarly, the credit card companies are racking up the interest and the penalties.

 

Getting phone calls every five minutes and letter (some of which are in hand written envelopes) saying collectors will be calling blah, blah. Have unopened mail and to be honest I’m now very scared by whole situation.

 

I have a series of letters prepared for posting that inform the companies that I’m in difficulty and seeking advice from the CCCS. I’ll also enclose a postal order for £1 to each one.

 

I could really do with someone advising me as to the best strategy from here on in terms of what and when to do things/send letters etc. Would it adversely affect my standing with the CCCS if I CCA’d the credit card companies while at the same time seeking their [CCCS] advice?

 

In desperation, Matt

[spiritgirl59]

Hello there Matt & welcome to CAG

 

First of all, there are lots of us on here who have been through a very same situation (myself included) and we will be only too happy to help you and support you.

 

I haven't dealt with the CCS myself so I'd need to know the answer to your last question before I advise you what to do, but if you are in a position to CCA all these creditors then I can certainly help you from there on in. Hopefully my reply will "bump" your post up and someone will be able to tell us the situation if you are with the CCS.

 

A few little tips I can give you now though - first of all, I know its easy to say it but please try not to worry. If all those debts are unsecured and you are managing to make your priority payments (mortgage, council tax, utility bills etc) then that is the main thing. Your priority payments MUST come before any unsecured debt.

 

I would get some folders or envelopes and put the information about each creditor separately as this will make life easier later on when you start to deal with each one of them.

 

Its important not to deal with any of them over the phone. You said that you are already getting lots of calls and I know only too well how that feels From now on simply tell all of them that you do not discuss financial matters over the phone and they should write to you, then put the phone down. They will still keep phoning but it puts YOU back in control and not them, which is very important to how you feel emotionally. Keep all letters you receive from them in your folders.

 

I am thinking of you and sending you oodles of positive supportive thoughts. I'll keep watching your thread and I know that other CAGers will come in to help you too. All is not lost, there is a light at the end of the tunnel.

 

A year ago I was being chased for over £55k in alleged debts by 13 companies Now I only have 3 of them who are persisting in chasing me and I'm well in control of what they are all up to. It will seem very daunting to you right now, but it does get easier I promise you.

 

Love SG x

[surprise]

It may be beneficial for you to complete a budget sheet. Theres an excellent one on the National Debtline site that breaks everything down for you and shows you how much you have left for creditors after essentials have been met. It also breaks down how much to offer each creditor. From some of the comments on this site regarding CCCS, whilst they were very good it appears that they are slipping a bit. You can take control of writing to creditors yourself. There is a letter in the letter templates.

[Ell-enn]

Hi there, have you thought about contacting the National Debtline? they do marvelous work and will be able to give you good advice on where to start etc.

 

National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

 

You will also get lots of support and advice from others on this forumwho are or have been in similar situations and this will be invaluable to you as you progress.

 

Please let us know how you get on.

 

Kind Regards

 

Ell-enn

[PriorityOne]

It would help if you could list who these debts are currently with, the amounts outstanding on each, how old the accounts are, etc.

 

Start with the DCAs (debt collectors)... which companies are shoving cards through your door, 'phoning, etc ? List every account with a DCA.

 

[bladeboy]

Thanks guys,

 

Will sort out all the companies into folders and then CCA them all. The cards, some of them anyway, are over ten years old now - could be interesting.

 

If the worst comes to the worst I could go down the IVA route. However, I've heard that the creditors can insist on equity release down the line anticipating an increase in the value of your property - who would lend the 'equity release' to me I don't know. Could they also insist that I stop contributing to my occupational pension too?

[tomterm8]

Well, if you have negative equity, Bankruptcy MAY be a better option than an IVA, but you can discuss that kind of option once you know how many enforceable debts there are.

 

Were the accounts subject to charges? You should be able to reclaim these back.

[PriorityOne]

Make sure you CCA for each account, don't sign the requests... just do a block capitals signature or something... and send them all by recorded delivery. Keep hold of all receipts.

 

Also, try and get hold of a couple of cheap files, so you can section off all/any correspondence you send/receive in the future. This will stop you from getting confused later on.

 

[bladeboy]

Thanks guys for all the info, really starting to get me down all this but feeling better already with your posts. Will action the CCA's next. Should I tell the CCCS I'm doing this? Will it sour my relationship with them? Will it make the creditors less amenable to reduced payments etc?

[surprise]

I negotiated my own payments with creditors. With the aid of the CCA requests. Where creditors didn't have an enforceable agreement I used this to negoitate. I reclaimed charges on each credit card and I am paying off the balance with the interest frozen.

 

If you are continuing with your meeting then you should tell them at what stage you are at with each creditor.

[tomterm8]

Realistically, I know CCCS sometimes refuses to engage in a DMP with people who go the CCA route. shrug. It's your choice, but to be honest at 60-70k a year, unless you have either equity in your home or £1,000 disposable income every month, a DMP may not be the best option anyway since, even at 1,000 a month with interest frozen it would take 5 years to pay it off.

 

An IVA or bankruptcy might be a better option OR, going the full&final settlement route.

[spiritgirl59]

Hello again Matt:)

 

You've had some fantastic advice and I am glad you are feeling a little less stressed about it all now.

 

Just popping by with more supportive cyber-hugs!

 

Love SG x