Desperately in need of Help/Advice... Please!!

[Enigma38]

I really don't know where to begin... :? I've never been in debt in my life before and never even owned a credit card before 2006!

 

My partner lost his job mid 2007 and didn't find work again until 16 months later. As a way of surviving we lived off my credit cards and racked up HUGE debts. We didn't spend it on luxuries... just rent, bills, food, car, petrol and lastly juggling the credit cards Anyway due to the current climate we lost our jobs in Jan and we've been looking for work ever since.

 

Our debts are horrendous and I'm ashamed to say that they mount up to £64,310 (of which £23,200 is a fixed lease agreement which has another 3 1/2 years to go)

 

The monthly interest on my Abbey card alone is 2.175% and I have only been able to afford to pay the minimum payment of £5 up to now...

 

We're down to our last £100 and have no money left to live on! We've just registered for JSA and have asked for help towards our rent which is a start I know but I just don't know where to begin on the rest of our mess!!

 

We've lost our mojo and desperately want it back

 

Can anyone please please please help/point me the right direction because I want to try and sort this out but because I don't have any money left to pay my debts I just don't know what to do first.

[clemma]

Hi and welcome to CAG. You will get all the help you need here. I am sorry to read about your problems, but being in debt is nothing to be ashamed about. Have you contacted any of the companies to explain your situation? There is a letter you can send to your creditors which may help:

 

Dear Sir/Madam

 

Re Account No/Reference No:−

 

Since making that above agreement with you, our circumstances have changed.

 

We cannot now afford to agreed monthly payments because ... [your paragraph added here]

 

We enclose a Personal Budget sheet which shows our total income from all sources, and our outgoings. As you can see we have only £xx per month left for our creditors. The offers we have made to our creditors have worked out on a pro−rata basis, and we have written to all our creditors asking them to accept reduced payments.

 

In view of our circumstances, please would you agree to accept a reduced offer of £x per month. If interest or other charges are being added to the account we would be grateful if you would freeze these so that all payments made will reduce what I owe you.

 

Should our circumstances improve we will contact you again.

 

We would be grateful if you would send a paying−in book to make it easier to pay you. Thank you for your assistance. We look forward to hearing from you as soon as possible.

 

Yours faithfully

 

There is a great letter template library HERE which has many other useful letters you could consider using.

 

You can also buy sometime with the credit card debts, by sending them a CCA request (if you wish). They have 12+2 working days to produce a valid, enforceable agreement. If they don't then the account goes into default and you can lawfully stop paying them (until they do produce something valid - IF they do). The letter you need to send is below. Send it recorded delivery and include a £1 postal order (that is the cost of the request). Also PRINT your name, do not sign.

 

I DO NOT ACKNOWLEDGE ANY DEBT TO YOUR COMPANY

 

Dear Sir/Madam

 

Re: Account no: xxxxxxxx

 

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77(6) will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

 

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

 

 

 

Yours etc

 

This same letter can also be used for any loans you may have.

Edited February 26, 2009 by clemma

[Enigma38]

Thank you for the advice/templates Clemma

 

The only problem with listing all my debts in the template letters is...

We don't have any spare money left over to pay our debts I'm still waiting to hear if our benefit claim has been accepted to get help with our rent + council tax. I am also waiting to see if we are allowed income based Jobseekers Allowance. We've not even got enough to pay our utilities bills as of end of this coming week

 

We are living on stress and nerves at the moment. Daily searching the job boards/agencies to get jobs so we can pay our bills and at least the minimum payments on the credit cards.

 

 

I am going to start defaulting on our utilities and my credit cards end of this coming week...

• How long does it normally take before the credit card companies sell my/our debts and the baliffs start knocking at our door??
  
• How long before they can reposess my car?? If we don't have a car we have no chance in hell getting a job.
  
• If I default on my utilitiy bills does that mean I will never be able to have a utility bill in my name again?
  
• If I default on all my credit cards that could mean 6 - 7 baliffs turning up on our door step.
  
• Am I over panicking or am I being realistic?
  

I really don't want to have to declare bankruptcy because I know the effects will be absolutely dire!!

 

I know it's our own fault but we truly thought we could pay these debts off and then the credit crunch/recession hit!! The credit card companies will be able to see that ALL the amounts on the credit cards are for utilitiy bills and rent.

 

I don't know how much more of this we can take ... I feel as if I am fighting a losing battle and do not know if I have the strength to fight this. We'll probably end up losing our home. I love my partner very much but the effects its having on our relationship could destroy it

 

So many questions - sorry. Any advise/help would be greatly appreciated.

[clemma]

T

[*]How long does it normally take before the credit card companies sell my/our debts and the baliffs start knocking at our door??

 

If you send the CCA requests to the companies and they do not reply/send unenforceable agreements, then you can LAWFULLY stop paying them. They may well pass it on to DCA, but if the account is in dispute, they can not do this, and I have an ideal letter for you. Bailiffs can ONLY be sent by the courts - not the DCA's. They have the same rights as the local paperboy....

 

[*]How long before they can reposess my car?? If we don't have a car we have no chance in hell getting a job.

 

Again, ONLY the courts can do this. IF this went to court, and you are on benefits then the Judge will order you pay a minimum of £1 per month (as long as you defend). You are a LONG LONG way from this happening though.

 

[*]If I default on my utilitiy bills does that mean I will never be able to have a utility bill in my name again?

 

Not necessarily. Everyone has the basic human right to gas and electricity, so you need not worry about this. Also, if the CCA's come back unenforceable, then they can not default you or put any marks on your file. If they do, then come back here to receive the help you need to remove these.

 

[*]If I default on all my credit cards that could mean 6 - 7 baliffs turning up on our door step.

NO bailiffs will turn up at your door. IF you received a CCJ, then defaulted on the agreed payments made in court, then and ONLY then could the judge order bailiffs. Again - you are a LONG way from this happening.

 

[*]Am I over panicking or am I being realistic?

 

I understand that you are worried and panicking. I have been here, been scared, but to date, not one of the threatening letters have been followed through

 

I don't know how much more of this we can take ... I feel as if I am fighting a losing battle and do not know if I have the strength to fight this. We'll probably end up losing our home. I love my partner very much but the effects its having on our relationship could destroy it

 

You can only lose your home if you declare yourself bankrupt. I am confident we can help you avoid this.

 

 

So many questions - sorry. Any advise/help would be greatly appreciated.

 

Not a problem - this is what we are here for. Please, please try to remain calm. Easier said than done but you are many months away from the worst case scenario.

[MarkedCard]

Hi Enigma

 

I'm very new to site and in a similar position to you and your partner. i.e more going out, than coming in each. Some very good advise from Clemma and all I would like to add is, try to stay calm (I know easier said than done) and start to plan and organise. I would definitely sent CCA requests off and get an appointment at your local CAB to discuss your current problems.

 

Finally, don't give up, there is some great help from people on this site and very quickly you realise you're not alone.

 

Good Luck

[spindoctor]

Hi Enigma

Clemma is suggesting a debt management plan (dmp) and I don't mean to be disrespectful Clemma but this would not be correct for you. An IVA would also be the wrong thing. To be sure you will need to a full list of all your outgoings and your incomings but unless you have a lot of equity in your house or something then I'm pretty sure that your only choice is bankruptcy. Don't be frightened by this because I promise you that you will feel much better.

 

The first thing you should do is to stop paying all your debts other than rent/mortgage and utility bills. You can try CCCS but don't let them talk you into an IVA or dmp because they are paid by the industry. Better than them are www.nationaldebtline.co.uk .

 

Hope you get sorted.

 

Spindoctor

 

I don't know what

Edited March 11, 2009 by Rooster-UK
unauthorised link removed

[clemma]

Hi Enigma

Clemma is suggesting a debt management plan (dmp) and I don't mean to be disrespectful Clemma but this would not be correct for you. An IVA would also be the wrong thing. To be sure you will need to a full list of all your outgoings and your incomings but unless you have a lot of equity in your house or something then I'm pretty sure that your only choice is bankruptcy. Don't be frightened by this because I promise you that you will feel much better.

 

The first thing you should do is to stop paying all your debts other than rent/mortgage and utility bills. You can try CCCS but don't let them talk you into an IVA or dmp because they are paid by the industry. Better than them are www.nationaldebtline.co.uk .

 

Hope you get sorted.

 

Spindoctor

 

I don't know what

 

I was not, and have not suggested a DMP (although this would be the OP's choice). The OP does not want to declare himself bankrupt and has been given the advice to help him in his current situation. As soon as the OP replies or has a question, someone will be along to help.

 

As for suggesting a different website - CAG is an amazing resource and has members who have a vast knowledge. We are all volunteers on CAG and use our spare time to help those who need it. The OP has not yet posted since the 8th Match, but I am positive, that when he does, he will get a reply.

 

Simply stopping paying non-essential bills will not ease the situation, which is why I posted 2 letters for the OP to consider.

Edited March 11, 2009 by Rooster-UK
unautorised link removed

[Enigma38]

Thank you for ALL for the different advice/templates...

 

I phoned up National Debtline and with the information I gave them I made the decision on Friday to go bankrupt My partner and I have been walking zombies; emotional and crying one minute, then silence the next, shortly followed by arguing and feeling we had no future and just waiting for it to happen! I know that wasn't the right way to handle it but my partner sank into a deeper depression (there's other problems going on apart from debt) that I just felt I couldn't do it on my own anymore.

 

This weekend my family offered to 'loan' me some money to pay off 'some' of our credit card debts to which I am extremely grateful. It feels like a hollow victory I know cos we've not been able to do it ourselves but its given us a chance to breath again!!

 

I think the best route for us is to pay the cards with the highest APR first and wondered 'if' anyone thought that 'any' of the banks would accept slighlty less than the amount I owe in full and final settlement or would they just laugh and say I've got to be joking?? I'm just trying to sensibly budget the money we've been lent and stretch it as far as I can to clear some of our debts off.

 

Thank you

 

p.s. OP is female