To pay or not to pay.....

[englandsno1]

Hello all,

 

This is my first post and I greatly appreciate any help offered. My debt began, like a lot of people, at University. I was offered a £500 credit card which soon became £2,000 and the rest followed.

 

By the end of University I had, and still have:

 

Barclays Graduate account student overdraft - £2200 (maxed out)

1 Barclaycard - owe £1800

1 Mint card - owe £1400

1 Asda (GE) Credit card - owe £500

1 AA Personal Loan - £10,000

 

I left University last year and unfortunately have been unable to find my desired job, which I had hoped would have helped me clear those debts. Since leaving home and moving into a rented flat I am starting to find it more and more difficult to make minimum payment and live a comfortable life. I'm making minimum payments which is obviously getting me nowhere and i'm still left with next to nothing at the end of every month.

 

I've always been on time (bar the odd occasion) with my minimum payments but a recent conversation with a work collegue has tempted me to sway over to the dark side.

 

He has suggested that I simply do not pay the money. I have no assets so there is nothing they can take from me. All of the credit cards were appyled for when I had my old job, I have since changed jobs so they have no record of my current employers. My tenancy runs out in 2 months time so he has suggested the next house we move into is registered in my girlfriends name. He has told me that if they cannot contact me at my work or my home then they cannot take me to court.

 

My only exception is with barclays. I opened a graduate account and gave them details of my current employers. I am wondering if Barclaycard would be able to obtain my work info from Barclays. If so then paying off my Barclaycard will be my priority.

 

I would like to know if this is true. Do the credit companies have to come into direct contact with you before they can do anything. Also, if they cannot contact me, is there a timeframe where the debt will be completely wiped off.

 

Thanks

[Struggling_Simon]

EnglandsNo1.

 

You are an educated person. Surely you can see that your proposed course of action is just plain wrong.

 

Simple case- You entered into agreements with your creditors. To continue to operate the accounts without the intent to pay, is (arguably) fraud.

 

Take a lesson from the Uni. of life (at least that one is free!).

You simply must be more responsible than to run away from your commitments if you are to get yourself into a better positon later. I know the prospect seems far off and your life is bleak at the moment, but stay positive.

 

Point 1 - Remember that all your(present,past and future) addresses are linked to you - so your creditors will find you even if you were to move.

 

You need to be on the electoral roll for council tax, otherwise you'll be almost a non-person and won't get access to certain services, if not found on there.

 

Also, not being on the electoral roll is certainly detrimental to your credit score, so doesn't help you in that respect either.

 

Point 2 - Yes, creditors certainly can find you through your new employer, but they need to apply for a sequestation of earnings order through court. If you have defaulted on the contract - that will sail through and you don't need to be informed of that case.

 

Point 3 - Yes, there is a limitation on when a debt can be enforced - the statute of limitations act 1980. The limit is SIX YEARS from the last payment in respect of the contract.

 

Here's another tip. Six years without access to credit and always worried about what will drop through your letter box will blight your life - beleive me - read some of the harrowing tales on here if you don't agree. That's the dark side you speak of.

 

Nobody on this forum will help you to avoid your legitmately owed debts. But, instead they will guide you to the best of their ability to reduce your payments, get back what is rightfully yours and avoid future troubles if you are careful.

 

If I were you, I would disassociate myself from your colleague who has made this suggestion - a little knowledge is a very dangerous thing. Their views are highly inaccurate and dangerous in the extreme.

 

Can I just say, you seem to look at this site as offering debt-avoidance advice - NOT SO - it's more about debt management and debt counselling. The Light and Right, you might say.

[Cornucopia]

I have to say, I agree with Simon here. If you do this with legitimate and undisputed debts, you are on a hiding to nothing and I promise you they will find you!

 

I have a friend who emigrated for years but as soon as they returned, the debts that were left behind reared their ugly heads within a matter of weeks. I will never know how, but I know it did happen!

 

I suggest you go down the tried and tested route of reclaiming any charges and also you should seek advice from one of the following :

 

National Debtline

Consumer Credit Counselling Service

Payplan

 

You could at least then enter into a debt management plan that is affordable and offers you a target date to get your debts cleared.

 

Please don't consider blighting your financial future at such a young age and with such a long life ahead of you. Take it from one who learned the hard way!

 

Good luck!

 

Best wishes,

 

Corn x:)

[BlurredFX]

Echo the above.

 

My debts started at Uni, and apart from 1 Credit card, that's where they all came from. I am now nearly 30, and battling people going for Charging Orders on my property that I have been fortunate enough to buy.

 

Believe me mate, when some swine is trying to take possession of your home, over a student loan, it bites.

 

Where you are right now is WELL manageable. From the sounds of it, you have not even got a Default registered against you!!!!!!!!!! There's people on here who would swap a limb for that, I am sure.

 

I stopped paying a student overdraft, then started paying it again - via a DCA. There was no Default ever entered. That could well be my good luck - ask round the forum!!!

 

Either way, your situation isn't that bad. It may be scary because you are not familiar with it - but it isn't that bad from what I see.

 

Sort it out lad.

[englandsno1]

To all who took the time to read and reply to my post,

 

Thank you for the words of wisdom and encouragement. I would never be so foolish to follow such advice from one person without at least considering all other options, which is why I'm on this site now

 

Would anyone recommened entering into an IVA?

 

Thanks again

 

Richard.

[N.P]

Hi there,

 

I wouldn`t enter into anything just yet, you need to see exactly where you are first.

 

You haven`t stated if any of these alleged debts are in the hands of DCA`s (Debt Collection Agency) yet. Are they?

 

Also, how old is each Debt? When was each account opened?

 

You could start by sending each Creditor a S.A.R - (Subject Access Request), to see if any unlawful charges have been added. If so, you could then start the reclaim process and lower the amount owed on each account. A SAR will cost you £10 per application.

 

Do you know if any charges have been applied to any of the accounts?

 

I would start with the Asda account as this seems by far the easiest to tackle.

 

If your interested in the SAR, let us know and we`ll put you on the right track.

 

Everyone on here has the same problems as you, some larger, some smaller, but we`ll all in the same boat and will help any way we can.

 

I hope this helps, if so, please click my scales (to the right

 

Good luck with the journey ahead, it will be interesting to say the least

 

Regards

 

 

N.P

[2Grumpy]

Try to start off by paying the highest rate card first.

 

Where there are two with the same rate, go for the lowest balance first - then you will get a sense of achievement when you pay it off.

 

When you have a card with nothing on it, try not to use it unless you can pay off the full balance immediately.

 

I have a friend who managed to get a loan from his life insurance company - secured against the policy - that was at a low rate. He used that to pay off his credit cards. If you have a policy then it might be worth asking.

 

Another ploy might be to ring the credit card companies, tell them that as soon as you pay off your balance then you are going to close the account because the rate is too high. I've heard of rate reductions being offered, but I'm not sure if they would be interested in doing that if you are maxed out & making minimum repayments.

 

Good luck

 

Grumpy

[spotnot]

If you are really struggling to make the minimum payments, write to your creditors and ask them to accept lower payments. As you have no real issues with any of them at the moment, you might be pleasantly surprised by their responses.

 

The template you need is here:

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

and use letter B.

 

Please take the advice of those here who are much further down the road than you and have a wealth of experience.

 

Try this first and if the creditors don't agree at first, come back to us and we can advice you what to do.

 

Good luck

 

Spotnot

[Struggling_Simon]

hehe a 'wealth of experience'.

 

Finallly, I'm wealthy.

[Newborn]

Hi englandsno1,

 

IVAs and bankruptcy are absolute last resorts.

IVAs, as I understand them, are designed to allow the protection of assets and are mis-sold to people as the answer to their prayers - they are not. Without assets full bankruptcy is a better route.

But in your position please take full note of the EXCELLENT advice above and do everything you possibly can to repay the money!! You will be very thankful later.

 

Newborn

[tifo]

I left University last year and unfortunately have been unable to find my desired job, which I had hoped would have helped me clear those debts.

 

Since leaving home and moving into a rented flat I am starting to find it more and more difficult to make minimum payment and live a comfortable life.

 

In life, we all struggle to find our desired jobs, means we have to try something else.

 

Sometimes we have to sacrifice some of our comforts when times are hard. You cannot complain about being in debt and want (or live) a good life!

 

Most of us are here because we have been pushed into this situation by the banks and their mates. We didn't get here by choice. Your credit score seems to be good so you'll be destroying that for more than 6 years (as creditors will default you at different times) and will fall down the long spiral of debt. It may even affect your job prospects as some positions require a clean record.

[BlurredFX]

Not sure how valid this is (especially in the era of the Credit Crunch), but if your credit record is reasonably clean, and you are making all your minimumn payments, it might be worth being a bit of a "rate tart" - 0% balance transfers for 12 months and things like that.

 

Looks to me like you may already have had a consolidation loan. Perhaps there is an opportunity to consolidate your credit cards to a sensible rate of interest?

 

Get a copy of your credit reports from Eqifax, Experion, and there's another one - you'll find it on here.

 

It's cheapest if you do it by post, and send them each a postal order for £2 i think.

 

Do it right, take your time, and you will hopefully walk away with nothing more than a bruised ego.

 

One lesson I have learned is that you cannot borrow your way out of debt!! Moving your liabilities around and acting sensibly is a slightly different process that involves less of the boozer, but with much better results! Take it from someone who knows! ;-)

[BlurredFX]

or at least thinks s/he does lol