5 months, £17k of debt, Paid of £8.5k to settle accounts...Happy!

[jotto]

Hey all.

 

Just wanted to share my experience with you all. I came to this forum a little late in the game so I might have missed out on a few things but Im happy.

 

Thought I would explain a few things in the hope that it may help some others in a similar situation.

 

Basically, I was in debt. I borrowed from credit cards and basically borrowed more than I could realistically afford. I had an overdraft and 6 credit cards.

In December my bank cut my overdraft by £1k. They say they sent me a letter but I dispute this. Anyway, lots of people start ringing me up asking why direct debits had been returned blah blah. You get the picture. Christmas was coming and I had had enough. I started to read up stuff on the net and even rang one of those companies you see advertising on the TV. I thought an IVA or bankruptcy was just around the corner :o

 

I still hadnt found this site when my sister said to try the CCCS. At the time I knew nothing about them but gave it a shot.

 

I went through my income and expenditure with an advisor and when you budget for everything you can think of and break it down so as to set a little aside for it each month....its scary!

 

At the end of each month, before my unsecured debts I had about £18 per month to spread between my 7 creditors and the £17k of debt.

 

I had a car which was my 'toy' which I owned up to and said that I would sell it if required so the advisor told me to send a letter to each of my creditors explaining the situation and offering to make token payments to each of them on a pro rata basis.

 

I still didnt know about this site!

 

Very soon I started to get phone calls from the creditors asking why payments were missed and that I needed to bring my account up to date. Some were quite forceful but I was ready for them.

The CCCS advised me that the creditors would do and say almost anything to scare me into making a payment that I couldnt afford. They advised me to stay calm, be polite and firm and stick to my token payments.

The phone calls got more and more frequent, sometimes 3 or 4 a day and each time I said my piece. I was threatened with door step collections and some of the people were just downright rude. It was hard to stay calm but I did...

One company even offered me a consolidataion loan, I was like WTF!!!!!

 

Anyway, I sell my car and get around £8.5k clear. I ring the CCCS and let my advisor know and she said might as well try a cheeky offer to pay off the debts. Divide up the money on a pro rata basis and see if they will accept a 50% payment.

 

Most of the creditors laughed which to be honest I thought they would but I just said thats fine...I'll just carry on making the £1.00 per month payments etc.

 

One by one, each of the creditors have agreed and so Im happy. :grin:

 

I have written acceptance from them now and am happy that they wont come after me in the future to reclaim the written off outstanding balances.

 

I borrowed the money and knew I would have to pay it back. Didnt have a problem with that. I feel lucky that I got to pay back 50% although after finding this site I guess some people will flame me for that! lol .

 

I think what Im really trying to say is dont take what the creditors or their collection monkeys say too seriously or personally. They are just doing their ( crappy ) job like the rest of us.

Try not to get stressed when they threaten to send the heavies round, more than likely it isnt going to happen, its just a ploy to get you to part with money you can ill afford to do so with.

Smile when your on the phone, its harder to get mad that way!

Edited June 20, 2008 by jotto

[PGH7447]

Good for you, however I would keep the written proof from each creditor in a very very safe place for at least the next 25 years

[Freewilling]

Could someone tell me why people think that negotiating and reducing the total amount you have to pay back is a bad thing?? i dont want to start any arguments, if they want 100% of monies owed surely they can say no to 50%??

[PGH7447]

depends on how the total money to pay back accrued, half the time it is probably made up of charges etc

[sequenci]

Could someone tell me why people think that negotiating and reducing the total amount you have to pay back is a bad thing?? i dont want to start any arguments, if they want 100% of monies owed surely they can say no to 50%??

 

indeed they can but if the alternative is £1 per month surely a lender would feel that a lump-sum is a better deal all round.

[harrythehawk]

I could justify this in interest alone, which although known at the start that it is extortionate when accounts get into this kind of state and people are in difficulties failure to freeze or stop it is madness and not very fair, considering the interest racked up over the years ..... bit like kicking a guy when he is already on the floor ...... which I know is the best time to kick him as he can't kick you back ..... ah I see where they are coming from now !!