Sick of running! But need advice from someone..

[Debtspiral]

I have defaulted on approx 12000 worth of debt for three months broken down like this.

 

Welcome Finance Loan :

4000 (15% paid but 51% APR) Monthly payments approx 200 for 4 years

Welcome Finance Car :

5000 (40% paid but 40% APR) Monthly payments 224 for a further 2 years

Burton Card:

250

29.9% APR

Capital One Card :

200

NO CCA so have requested copy to make unenforceable

Littlewoods :

500

NO CCA so have requested copy to make unenforceable

 

I have been dodging and ducking and running but the truth is I am still young, I have been DUMB but now I am earning a good enough wage to make a huge dent in it.

 

After bills (rent, tax, fuel etc) my take home pay is:

1700

After monthly minimum debt repayment my cash leftover is:

1200

 

This does not include food, travel, wife! lol etc.

 

Does anyone have any idea how I can prioritise these debts in such a way as to pay them off quickest. My credit rating is DESTROYED with all agencies. Highest rating is 150 out of 1000.

 

Other issues.

 

1 CCJ showing as unsatisfied however I paid it in full, in cash 2.5 years ago.

 

I have £3500 in bank charges and am waiting the result of the test case.

 

Does anyone have anything constructive - I am open to all suggestions.

 

Lastly, I am writing to all my creditors tomorrow to say that payments will resume and apologise for the lapse. I have chnaged banks and am going to say it was an error that I didnt notice as I have been away on business for 8 weeks. Not unrealistic in my line of work.

 

Thats it. Phew. Cheers for letting me vent.

 

Anyone care to take a shot?

[Guest Old_andrew2018]

Hi

Your ready to start repaying your debts that can only be applauded, but why not use £1.00 of the money for each, and every one using it for a CCA request.

Once you have this information, why not sent the SAR to discover what illegal charges were added, yes by all means pay off your debts, but why pay illegal charges.

Regards

Andy

[Debtspiral]

Am currently in the process of CCA Request then after that it is SAR City.

 

It is the Welcome Finance I most worried about. I have written off the car and my insurance didnt cover it. To make it more complicated it was written off in Europe where it now resides. Now quite sure how they can reclaim it. I assume if I continued none payment a judge would just rule me liable for the whole amount.

[LJL]

Hi Debt Spiral,

 

I was in a very similar situation to you a few years ago, roughly the same amount of debt, but I did not have a job at the time and a new born - okay dry your eyes(!)

 

Using advice from this site, I have managed to clear all my debts and do not have a single person chasing me - it feels great to be honest.

 

It is a slow process with a lot of letter writing (only today have I sent a recorded delivery letter to Barclays to try and get defaults removed from my credit file, 6 months after debts were paid) but as long as you are systematic and keep accurate records of everything, you can pay off your debts on your terms, not on the DCA's terms.

 

I spent (and still spend) hours on this site gleaming advice and information from same minded people (as well as giving advice when I can) - it is one of the most valuable resources on the net.

[Debtspiral]

Thanks for the advice man, hearing stories of similar people who have managed to come out of debt free and clear is encouraging.

[silverrocket]

Your car must have a GAP insurance policy on it (insisted upon by the finance company) - in the event your car is written off, it pays the difference between the insurance payout and what is left to clear the loan.

[silverrocket]

It would be worth writing a letter to the companies involved stating that you will pay off the account in full, on condition they remove the default registered against you. This should work much more easily with the Welcome loan as they have most to gain.

 

Allowing for the car to be paid by the GAP policy, that would leave you with around £5200 to pay. I would make small contributions each month and save your wages, then pay them in full - assuming they go for the above. If they do not wish to remove the default, then you can either offer them a full and final settlement in respect of the debt (20% is a good starting point), or pay as much as you can afford each month, and start with the one with the highest interest.

[alp]

before you consider paying any of your debts..especially welcome then i would CCA all creditors cost £1 to get a copy of the agreement!! 2nd dSAR all of the creditors cost £10 each... to gain an insight of their conduct and all the info they hold on you which includes notes and statements..

 

Then check the enforcability!!! the contract checker that is attatched on many threads state that welcome contracts are unenforcable due to elements which include fees added onto loans etc!!!

 

welcome subscribe to the FLA (finance leasing ass) and part of their code of conduct is to work with you sympathetically and assist you if you are struggling...get a copy!!

 

Work out you disposable income...get in touch with cccs or citizens advice they have the ammounts that by law you are expected to live on!! if you go through ccc 0800 1381111 they are very good and all creditors recognise them as you get given a referenece!! i went down this route and ended up paying a £1 a month as token payments and that was enough to stall matters and buy time whilst i investigated and got written off a lot of debt through unenforcability!!

 

As well when your self-pack comes through all the stationary is included including income exp, token letters etc *****5star rating!!

 

good luck and dont worry!!

[Helford]

Hi

 

I have to take issue with Silverrocket, GAP insurance cannot be insisted upon by a finance company. It was your call as to whether you selected such cover or indeed were offered the same. This is the same as the finance company insisting that you take PPI - not allowed!

 

H

[silverrocket]

Well, from my experience, all car finance companies have insisted on GAP being taken out, I presumed it was for the obvious reasons regarding a car being written off, as in this instance. It's the only insurance worth having, in my opinion.

[silverrocket]

And I understand what you're saying as regards them not being able to force any product onto you, but I just assumed (evidently wrongly) that there was some legal loophole which allowed them to do this. Surely noone would want car finance without it, especially considering how cheap it is?

[Hopeful1]

Hi Debtspiral, just adding my support. Let us know what responses you receive with regards to your CCA requests / S.A.Rs

[Debtspiral]

Cheers everyone!

 

especially ALP.

 

I have just checked online and saw that all of my registered post letters have been signed for so the ball is now in their court to respond to me.

 

I have told them that I will not be paying any more debt by direct debit only by standing order so they should supply with necessary details. I assume if they do not reply then if it needs to go to court then that will work against them?

 

Waiting on responses as we speak.

[make them aktiv runners]

Apart from what everyone else has said and assuming they are all enforceable, you need to be very self disciplined. You are also lucky to have £276pw for food, travel & wife.

 

Burtons card/Littlewoods is totally unnecessary, you can buy essential clothes from much cheaper shops!

 

What is the APR on the capital One card/credit limit. This card is the key to improving your credit score but you must be very disciplined with it.

 

The first to pay needs to be Welcome with the 51% APR and 4 year term, as the bulk of your monthly payment will be interest until you get to the last year. If Capital One card allows and APR is lower, transfer the balance. Pay off as much as you can every month so you can see how quickly you can repay and therefore increase your disposable income.

 

If you cannot transfer the balance, use the CapitalOne card once a month, put the money aside though so you can pay the balance off each month (this will build up your credit rating). Also, set up a standing order into a savings account so that you can pay off the Welcome loan as soon as possible (should be gone by xmas).

[Debtspiral]

Just recieved my CCA's from Welcome and it appears my original loan agreement had a glaring error. The agreement reference number was incorrect and has been scribbled out then replaced with another.

 

Is that legal?

 

Does GAP insurance cover a car WITHOUT fully comprehensive insurance?

 

Or do the 2 have to be hand in hand?

[debtsurvivor]

You have recived some good advice here but just one more thought - those 40% and 51% APRs are they legal - get down to your Citizens Advice and check that out.

 

Good luck

 

DS