Please help me

[MissPlod]

May I first begin with my sincere apologies for what will much repetition and what some may term an over reaction, unfortunately I am so desperate.

 

My family and I are exceptionally worried; I am now actually at the point of realising that there is no way forward. I am aware that our home is at risk and with two very small babies I am at a loss what to do.

 

My Husband and I have led what you would term a normal lifestyle, each owning a credit card, and additionally I had a £25,000 Personal Loan all without payment protection insurance. We never actually dreamt that one day we would need the services of this, considering this as an addition cost.

 

Unfortunately, as with most families, overtime we spent far too much on the credit cards, although we weren’t particularly bothered as our salaries comfortably covered the minimum payment. Then in January of this year whilst on maternity leave, I lost my job due to administration. In an instant we did not have sufficient funds to cover all of our outgoing payments. As a result, and out of fear I began doing the worst thing possible. We were using other credit cards to pay monthly bills as well pay for all our living cost. Then we would apply for varies other credit cards to transfer some of the balance with 0%. You can imagine how bad things have become; monthly outgoings exceed the income by hundreds of pounds. For the past four nights I have been questioning my life worthiness, yesterday morning however I had a good talk with my husband, who quickly made me relies that taking my own life is not the answer and that he loves me very much, more importantly we have two baby twins who need a mother. We both realised enough is enough, we want to do all that we can to save our home whilst try and reduce this debt of £42,000.

 

I have ready many similar posts within this site; unfortunately, I am finding most of them very difficult to understand. There are a lot of Acronyms that I don’t understand, such as CCA, SAD’s etc…. I have read an awful lot of post on here regarding CCCS, however I am very worried that they will refuse to handle our case as a result of to low a level of surplus money.

 

At this moment if we were to calculate all of our income and subtract priority debt such as the mortgage Gas & Electricity, Council Tax and living expenses, we are left with £143 a month. We then need to find:

 

£150 - Overdraft Fees

£300 - Personal Loan

£200 - HSBC Credit Card

£125 - MBNA Credit Card

£50 - EGG Credit Card

£50 - MINT Credit Card

 

There will be some months though our calculations where we will have £200 surplus if my husband is able to work overtime. We have cancelled the telephone and sky television and don’t have any luxuries. Although we do both have an 18 month mobile telephone contracts which we are only 12 months onto. We have contacted the Carphone Warehouse to try and cancel these contracts, but are refusing stating the only way we are able to cancel the contract is if we pay the remainder. Does anyone have experience with the Carphone Warehouse.

 

Furthermore, has anyone had experience dealing with the CCCS for such a high level of debt owed to so many creditors? I have read in most posts the CCCS will not provide any help if you do not have a minimum of £100s which we don’t, as I said all we have is a surplus amount before taking all these Credit Card payments into account. Can we realistically expect the Credit Cards and Personal Loans to reduce their minimum payment – if not what other options do I have, more importantly can anyone reposes our home along as we make payments to the Mortgage each month. As of this time we are not in any areas as a result of using credit cards to make each monthly payment, but we realise that this must stop now.

 

Thank you so much for all your help and advice.

[miss muppet]

First of all Missplod, none of us is here to judge you, I'm sure all of us would admit we have made mistakes in life, there are plenty of people on here in exactly the same position, we all feel down at times but debt should never be the reason for considering drastic measures, you are far too precious to the ones you love and who love you. Don't delay ring CCCS, they will help, they could email a self-help pack to you and you just fill in your outgoings and incomings, never mind if you have more going out than in, your non-priority creditors will just have to accept this. As you say the mortgage is the important one to pay, plus things like Council Tax, you could probably come to some arrangement with the utility bills. The CCA thing is requesting a copy of the true executed agreement from your creditors, they have to supply this under s.77-78 of the Consumer Credit Act 1978, strict time limits apply and the more you read around the site, the more information you will get. You will have to decide which route you want to take but once you take control, things will start to look brighter.

Sending you hugs:-)

[honey5]

hello and welcome

things may not be as black as they look right at this moment

are your credit cards still with the OC or have they been passed onto a dept collection agency?

would it be possible for you to list all of your creditors and the amounts owing to each?

 

You have two little ones there and a loving husband that need you, yes things seem bleak right now but youve happened across the best forum on the net, to now start to get things sorted out

 

I can relate to the twin "thing" lol as i have twins too and believe me you may not realise how much they actually drain your energy (thankfully mine are 12 now )

 

YOur home and your utility bills are your main priority

 

take care, you WILL get the help and advice you need

 

the community here is second to non so please dont feel the need to apologise

some of us also use the chat room (link is at top of page) we have a laugh but we are also there for moral support

 

have you sorted or claimed all of the benefits you are entitled too?

 

honey x

Edited July 20, 2008 by honey5

[MissPlod]

Thank you so much for your reassuring words, such words really do give me so much more determination to come through this.

At this movement I’m not in any arrears with payments, as all monthly payments have been made with other credit cards. The problem is now that the monthly payments are too high and I will begin to go into arrears.

Total amounts owing and monthly payments.

Overdraft Fees: Monthly Payments £150 – Approx Total Continues

Personal Loan: Monthly Payments £300 – Approx Total £20,000

HSBC Credit Card: Monthly Payments £200 – Approx Total £10,000

MBNA Credit Card: Monthly Payments £125 – Approx Total £7,500

EGG Credit Card: Monthly Payments £50 – Approx Total £1,600

MINT Credit Card: Monthly Payments £50 – Approx Total £2,700

Any further help and advice is so helpful and sincerely appriciated….

[honey5]

if there are no arrears it would be pointless i would imagine to send off a SAR, i would send

HSBC Credit Card:

MBNA Credit Card:

EGG Credit Card:

MINT Credit Card:

a CCA which you will find here in the templates library, the one you need is letter N

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

 

if you choose to go the CCA route dont sign the letter, it must be accompanied by a £1 postal order, send it rec. delivery and keep any reciepts

 

that way you can ensure that they do have an enforceable copy of the agreements, there are also other letters in there that you can use to offer lower payments to your creditors

 

 

honey x

 

 

[MissPlod]

Sorry, what do you mean if there are no arrears it would be pointless? I am about to go into areas this month, which I was trying to avoid - does this mean they wont be able help me with all these credit cards or personal loan including the over drafts. Oh my goodness, I dont know what to do, I'm so scared - Will these companies be able to reposes our home or items within it. I would hope not to declare ourselves bankrupt, what other options do i have with these.

[honey5]

first of all keep calm, the SAR would show up any charges made against the accounts for late/missed payments etc as you say there arent any, Id imagine it would be a waste of £10 asking for all statements and info held on the accounts thats all, the CCA would be the original agreement with all prescribed terms and conditions, rendering it either enforceable or unenforceable;)

do you have PPI on any of these cards ?

 

honey x

[MissPlod]

Honey, I’m so sorry, I’m just so worried that I can’t actually see a way out of this mess. I thought you were implying that as a result of not being in arrears that the CCCS would not help me, which came as a shock.

No, we don’t have any payment protection insurance on these cards or personal loan. I do hope that this situation is for a short period only, a maximum of 6 months, as I am actively seeking employment but to no avail.

In your opinion what is the likely hood of the CCCS accepting to take my case with a surplus amount of only £141 and so many creditors and high monthly payments.

 

Thank you so much - you dont realise just how much help you are - THANK YOU:-)

[honey5]

awww bless please stop apologising x

 

I have never been involved with CCCS so therefore couldnt honestly say

 

heres a few links that may be of interest too you tho

 

http://www.consumeractiongroup.co.uk/forum/getting-out-debt/128587-info-cccs-payplan-experiences.html

 

 

http://www.consumeractiongroup.co.uk/forum/getting-out-debt/73030-taking-back-control-your.html

 

http://www.consumeractiongroup.co.uk/forum/getting-out-debt/130781-where-get-debt-help.html

 

http://www.consumeractiongroup.co.uk/forum/getting-out-debt/120603-how-get-out-debt.html

 

 

please try to stay calm i know how worried you are but honestly there are lots of people in the same boat and also alot of people that will be willing to help you

 

honey x

[MissPlod]

Thank you

[suzieblooz]

I've been with payplan Free Debt Management company | Debt Advice | Payplan in a debt management plan (DMP)who do the same thing as CCCS. As long as you have £100 income left after paying all your priority debts such as mortgage, gas, council tax, electricity, then that £100 will be divided pro rata among your non priority debts.

A copy of your calculations:

At this moment if we were to calculate all of our income and subtract priority debt such as the mortgage Gas & Electricity, Council Tax and living expenses, we are left with £143 a month. We then need to find:

 

£150 - Overdraft Fees

£300 - Personal Loan

£200 - HSBC Credit Card

£125 - MBNA Credit Card

£50 - EGG Credit Card

£50 - MINT Credit Card

With a DMP you wouldn't need to find the money to pay the minimum payments. The £143 you would pay to payplan who would then pay your creditors pro rata.

If you have extra income one month you can pay slightly more.

Take a deep breath, it seems really bad now, but I've been there, felt the same, and now I only have 2 years left on my DMP before everything is paid off. You'll gets loads of help on here, but visit the websites for both payplan and CCCS, National Debtline also gave me some good advise too.

You'll need to open a bank account elsewhere now, if your overdraft is going to go into arrears, so your salary isn't eaten up by the overdraft.

Hope this helps, take care

Suzi

[MissPlod]

Suzi - Thank you.

But, do you really think that a minimum of £141 a month would be a big enough ammount to pay these creditors - the monthly payments for the Personal Loan alone is £280 and the HSBC Credit Card is £200. Even if PayPlan or CCCS were to accept me, which I'm not sure if they will, I find it hard to believe that the Creditors would accept such a huge reduction . Even if Icould just get the balance cleared on some of the lower cards such as the £ and £ this would make such a difference.

Suzi - Thank you for taking the time to reasure a silly fool!

What type of bank account do I require? I also have an old Nation Wide account, would this be of any use.

[suzieblooz]

The creditors will be glad to get something every month rather than ending up with a bad debt on their hands. Some people do their own DMP, but I found it easier going with payplan as they made all the offers. The fact you are seeking help with your debts shows the creditors you are dealing with this in a responsible way. As far as I know as long as you have £100 surplus it is enought to start a DMP. The ones you owe most to will get the biggest amount. One of my creditors gets £131 a month, one gets £1.40. I'm by no means an expert on this, I'm just going by my experiance. But once you phone them and they can advise the sooner you can sleep at night.

About the bank accounts, there is a sticky somewhere explaining 'parachute' accounts. I will try and find it and post the link for you. As long as your nationwide account is not with the bank you are presently with, it should be ok.

I was in default with most of my creditors and they were constantly phoning and threatening all sorts. I wish I had found this site earlier than I did. You will get through this. I'll post back with the link

Suzi

[MissPlod]

Suzi thank you so much.

[suzieblooz]

Sorry can't find link to parachute accounts. Anyone else help?

Try this link though, it will explain some of abbreviations that are used. They used to confuse me at the start too. Any help you need just ask.

http://www.consumeractiongroup.co.uk/forum/general/29888-glossary-abbreviations-used-forums.html

I'll be back on tomorrow after work, so I'll catch up with you then, but its now hubbys turn for the PC!

Suzi

[honey5]

here you go heres the link

 

 

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/58685-do-you-need-parachute.html

 

 

 

honey x

[MissPlod]

Thank you Honey so much.

[suzieblooz]

How are you getting on? I know it takes some time to absorb all the information. In the meantime why not write to all your creditors, telling them you are facing financial difficulties and you are trying to sort something out formally. Tell them you will be making token payments until you are in a position to send income & expenditure sheets, either through the likes of payplan or ones you have done yourself. They will get nasty and will start hitting you with charges but at least you are showing you are doing something about sorting out future payments.Don't talk to them on the phone, insist it is all in writing, that way they can't pressure you in to agreeing to payments you can't afford. That way you are not putting out all your money on repayments and have nothing left to live on.

However if anyone has a better idea, please shout. As I said I'm no expert, just going by experience.

Take care Suzi

Edited July 21, 2008 by suzieblooz
didn't read right

[MissPlod]

Suzi - Oh my goodness, I've had an awful day. I've actually called all the creditors as was advised by the CCCS and informed them that I will be making a token payment for this month whilst my case was being dealt with. Unsuprisingly, they didn't accept these offers, furtheremore, they were adament that they would not work with me if I am refused assistance by the CCCS. I'm now so worried that the CCCS will not help me.

[suzieblooz]

Please try not to worry. Don't phone them again. They will say stuff on he phone to upset you. Put all offers in writing only, and if they phone tell them you will only accept anything in writing. The worst they can do is take you to court, and if you show the judge you have been paying what you can afford, it won't put them in a good light refusing the payments. Thats why you must have everything in writing. BUT its highly unlikely to end in court. They'll huff and they'll puff, but at the end of the day they'll eventually accept a payment plan. I can so sympathise - been there, its not nice, but its like that old saying - no pain, no gain.

I've asked Sequenci to have a look at your thread, he is an expert on debt, hopefully he'll be along to have a look and help.

So tomorrow, put all your offers in writing, keep a copy and remember they cannot demand what you don't have.Send the token payments, again that will go in your favour that you are attempting to make payments.

If the CCCS don't help, then try Payplan and remember there's plenty people here to help you. Try and read some of the threads in the debt forum (if you haven't already). Sometimes you can find one thats similar to your situation.

Chin up MissP, I'll check back tomorrow.

Suzi

[suzieblooz]

Don't know if you have read this thread, but everything you need to know is there: http://www.consumeractiongroup.co.uk/forum/getting-out-debt/120603-how-get-out-debt.html

it tells you how to pro rata your surplus income and loads of useful info.

S

[sequenci]

Some great advice by Suzie.

 

I think (given your situation) a DMP would certainly be a great idea, both CCCS and Payplan offer to run them at no cost for you providing your surplus is at least £100 per month.

 

As mentioned previously, the golden rule is to NEVER EVER speak to your creditors on the telephone.

 

If you would like some free, impartial advice please consider calling National Debtline on 0808 808 4000

[suzieblooz]

Hi MissP, hope you are ok. Just checked with my case officer at payplan, you can have a DMP even if you are not in arrears at the moment. If you're happy with CCCS that great. If not, payplan number is 0800716239 and their line is open 9am till 9pm Mon - Fri.

Hope it's all going ok for you

Suzi

[MissPlod]

Oh hello, Suzi thank you so, so much.

 

I have an appointment with the CCCS on the 9 August. I'm just so affraid that they will be unable to help me. I'm just a silly fool, and am so worried, I love my family so much, yet i've caused them so much pain.

 

I really wished there was something more that I could do.

 

Take care x

[Dispirited]

MissPlod, please stop beating yourself up!

 

In the great scheme of things it is ONLY money.

 

You have now taken the first step by joining this fantastic forum where you'll get lots of invaluable help.

 

From now on the only way is up!