What debt has done

[Starfighter]

I cant really begin to start to tell you what debt has done to my life, its turned it up-side down, and left me at the dead bottom.

 

My lifestyle has gone from a happy, active and everything to life for one, to a sad, staying in all the time and feeling i just cant cope.

 

Some say, you brought it on your self!

 

My issue is, i did, well in a way. I had a partner who had a poor credit rating, and i got her a loan. I also lent her my credit card (3k limit) just incase of emergency. Within 3 months she failed to pay anything back on her loan, and max'd out my credit card.

 

Debt has been a barrier in our relationship for sure, and if it wasnt for the fact we have a daughter, we would have been long since over as i just cant cope.

 

I see her paying other debts, and she just push's mine to the side and says she will tomorrow, etc.

 

On-top of that, i lent her 2.5k from savings, and paid all bills from the house, plus a fair few rent payments.

 

Did i mention that i am a student?

 

All this got me deeper and deeper as i "had" a good credit rating, so had a loan to cover the shortfall in repayments, and again i was promised she would pay, and never did.

 

My repayment on all debts are 300 more than i have income, add rent and living in, and i am over 1k per month down.

 

On-top of that, student loans have had my application over 3 months and still not processed, and i bet when it is, i get little to nothing.

 

On the health side, and mental i am just drained. I have high blood-pressure despite been early 20's, i have no energy ever, i am always feeling down, and just have no self esteem or anything like it.

 

However, too look at my you'd not tell i was so down, only person who knows is my mom as i guess she knows me the best. I bottle it up, as for little to no help and never dump my issues on people. I put a smile on my face and make all is well, but deep down its far from it.

 

I have read many accounts on here of the downs of debt, and i hope all pull through, get debt free and go on to live a happy and debt free life.

[AndyOrch]

Hi Starfighter and welcome to CAG

 

Ok dont despair there are plenty on here who have been were you are now and have turned things around in a positive way.

Firstly you need to priortise your debtsie what has to be paid.

Then list the rest of your creditors and what it is ie Loan /credit card/overdraft etc

Are you on any payment plan with the unpriority debts?

Have you requested a copy of your CCA with any?

Have any instructed or threatened litigation?

 

Get all your information together and we will take it from there.

 

Regards

 

Andy

[Starfighter]

Hi

 

Thanks for the reply.

 

I have put my lists in order, i have put rent at top, followed by bills such as gas/electric and water. Next i have made sure i have enough cash spare to feed myself and family. Then i am left with very little to pay of any debts.

 

I am not on a payment plan with any debt, i did request this, but its fell on deaf ears so far with all of the 4 i sent a letter to.

 

Not sure what a CCA is, so no i have not, should i?

 

I have had threatens of court and debt collections, plus i have been defaulted twice so far.

 

I got a letter back from alliance and leicester stating that they had my letter and they accept my offer of £130 a month to be reviewed in 6 months time, funny thing here is, my agreement was only for £127.?? in the first place. I didnt offer £130. I sent my budget it and requested interest to be freezed and them to look over my budget to see that i have little at present i can offer.

 

To top it off, i have found out yesterday that i am not entitled to any student grants, just the basic student loan, and not entitled to student fees, leaving me the total of £1.5k to live of for a whole year.

 

One good thing though, i am a farther for the second time =), so the weeks not been all that bad.

 

Thanks again

[sillygirl1]

Have you gone to the entitledto website, you may have been incorrectly advised and at least should get something towards basic expenses... I'd give the website a go.

 

Also with your creditors tell all of them you can only make token payments of £5 each as you are a student, they can have a payment of £1 if they make a lot of noise. Also tell them that you cannot afford the expense of a phone so there is to be no phone contact... I can help you with the letters.

 

What you need to do is give yourself a bit of breathing space, I know it sounds impossible at the moment but it can be done, then you need to list the debts and who is collecting on them on a piece of paper and make sure the same debt isn't being collected on twice - it happened to me with Moorcroft AND Westcot, in the end I wrote to the original creditor and they called off their sharks.

 

In all cases write to the original creditor and state that you are contacting them directly instead of a third party agent as you want to pay THEM, not inflated charges a third party will slap on the account, this again makes the original creditors think you are being 'serious' about your obligations... feel free to PM me if you want some in-depth support.

[AndyOrch]

HI Star

 

Ok what is a CCA request. Credit Consumer Agreement which you are entiltled to request by law (CCA1974)Hit the link below letter no 8 Post off to each of your creditors, Credit card running credit is a sec 78, fixed loans A&L are a sec 77.Include a £1.00 Postal Order and print your name (no signitures) send recorded Delivery.Any of the creditors which have passed the debt on to a Debt Colletion Agent Ie not the original lender its important to head the letter like this:- "I do not acknowledge any agreement with your company"

Then sit back and wait if they dont respond after 12+2 days they are in default and you call the shots and how much they get. If they do respond post it up and we will check its validity and if in fact its enforcable through a Court.

Dont bother writing letters to Tom Dick or Harry a waste of postage and your time these companies dont respond with letters they just harrass you to death on the phone.Post if you are unsure of the procedure.

 

 

Link to CAG template letters Letter 8

 

PS Congrats on the baby:)

 

Regards

 

Andy;)

Edited July 18, 2009 by Andyorch

[Starfighter]

Thanks for all that, its been great advice.

 

I am unsure of who i send the letters too, well the address and do i send to the debt collectors or the finance companies?

 

I go to the website, but cant really find the address as there are so many.

 

I have:

 

Loans (Unsecured)

 

- Alliance and Leicester

- Northern Rock

 

Credit Cards

 

- Lloyds TSB Duo

- Barclay Card (EX Morgan Stanley)

- Barclay Card (Student)

- Capital One

 

Thank you for all the help, its made me feel SO much better and like i am moving on up and dealing with the issues at hand.

 

Thanks

[AndyOrch]

Thanks for all that, its been great advice.

 

I am unsure of who i send the letters too, well the address and do i send to the debt collectors or the finance companies?

 

I go to the website, but cant really find the address as there are so many.

 

I have:

 

Loans (Unsecured)

 

- Alliance and Leicester

- Northern Rock

 

Credit Cards

 

- Lloyds TSB Duo

- Barclay Card (EX Morgan Stanley)

- Barclay Card (Student)

- Capital One

 

Thank you for all the help, its made me feel SO much better and like i am moving on up and dealing with the issues at hand.

 

Thanks

 

If the the accounts are with the original lender then the letter goes direct to them if not to the DCA dealing with the account.All the address are on the Cag main page under each bank /CC company within the stickies

 

Regards

 

Andy

[Starfighter]

Hi, thanks for all that, will do that and will get back to you when i hear more.

 

Help is very, very useful and i cant say thank you enough...

[Starfighter]

Hi

 

I have sents loads and loads of letters, as of yet only one reply though.

 

I have one from alliance and leicester.

 

They accept my token offer of £1 for the next 9 months.

 

I however asked them to refund some charges and freeze interest, but this fell on deaf ears as they have said nothing about that, and would seem them will still charge me interest whilst i pay this £1 per month.

 

The letter goes on to say arrers will still mount up, and that i can still be charges £25 per letter in regards to arrears.

 

My worry is my account will be in arrers, and they will keep sending these letters each month to tell me this.

 

Plus, by next year i will owe arrears of £1700, so then what happens after the 9 months as i will have little or no chance of been able to offer a little more than this £1 plus the arrears will be sky high.

 

Ontop of that they have defaulted me, and will update my credit file each month with a red mark.

 

Does anyone ever get charges and interest freezed?

[AndyOrch]

Hi

 

I have sents loads and loads of letters, as of yet only one reply though.

 

I have one from alliance and leicester.

 

They accept my token offer of £1 for the next 9 months.

 

I however asked them to refund some charges and freeze interest, but this fell on deaf ears as they have said nothing about that, and would seem them will still charge me interest whilst i pay this £1 per month.

 

The letter goes on to say arrers will still mount up, and that i can still be charges £25 per letter in regards to arrears.

 

My worry is my account will be in arrers, and they will keep sending these letters each month to tell me this.

 

Plus, by next year i will owe arrears of £1700, so then what happens after the 9 months as i will have little or no chance of been able to offer a little more than this £1 plus the arrears will be sky high.

 

The interest should be frozen and the Creditor is being very unhelpful towards your position and adding to the arrears.Whilst they have accepted your offer, then they are bound to the payment agreement and during said 9 mths the agreement as been varied.In theory they should issue a Default notice with the above in mind as a temporary agreement,interest should be frozen and no further penalty charges issued.Request this by way of a further letter and inform them also you will report their conduct to the FSA/OFT and even TS.

In the meantime consider claiming back all unfair penalty charges and interest applied and issue your own proceedings.

 

Ontop of that they have defaulted me, and will update my credit file each month with a red mark.They are within their rights to do that

 

Does anyone ever get charges and interest freezed?

Yes

 

 

 

 

 

Regards

Andy

[Starfighter]

Hi

 

Thanks for that. Should i re-request the freeze of interest, or ask why they didnt respond to my request?

 

In the same letter should i request charges be refunded and froze too?

 

They have issued me with a default, no big deal right now as i dont want any credit, but when i graduate next year i may want some, will this have a massive or slight impact on my rating?

 

thanks again, great and useful advice as always.

[Starfighter]

Hi

 

Following up, as i am a little confused.

 

I have got some letters back saying they accept my token, some saying if i can do x, they accept, and others saying they would not consider at this time.

 

Only two of the seven have froze interest and charges, thats Barclay Card x2 which was a shock.

 

My account is going to slip further and futher into arrears, so how does one over come the fact arrears of over £300 will mount up each month? what happens in six months when its reviewed? can they just ask for all arrears?

 

I am a little confused on this one, not sure whats going to happen and what should happen. I dont expect them to write my debt off, but mounting it up each month is going to prove more trouble in the long run.

 

Thanks for you time, again =)

[AndyOrch]

Hi

 

Following up, as i am a little confused.

 

I have got some letters back saying they accept my token, some saying if i can do x, they accept, and others saying they would not consider at this time. Tough they will have to reconsider

 

Only two of the seven have froze interest and charges, thats Barclay Card x2 which was a shock. Excellent

 

My account is going to slip further and futher into arrears, so how does one over come the fact arrears of over £300 will mount up each month? what happens in six months when its reviewed? can they just ask for all arrears? It wont go 6 months once a default notice as been issued the interest and charges will stop however its your choice to stop paying completely or a token.Once the creditor has accepted your payment agreement they are bound also and as so the interest should be adjusted and any penalty charges stopped

 

I am a little confused on this one, not sure whats going to happen and what should happen. I dont expect them to write my debt off, but mounting it up each month is going to prove more trouble in the long run.Not really if you have it in writing that you have an agreement to make token payments then its them that are increasing the debt and at such time if litigtion is comenced, you will have the ness paperwork to prove it that £x as been added since and therefore you dispute that amount.

 

Thanks for you time, again =)

 

 

Regards

 

Andy

[GreatWonder]

They have issued me with a default, no big deal right now as i dont want any credit, but when i graduate next year i may want some, will this have a massive or slight impact on my rating?

 

 

I would say from experience a default has a significant effect on your credit worthiness (in the eyes of most companies). It's considered just as negative as a CCJ by most lenders at the moment.

 

On the subject of maybe taking credit next year, I would strongly recommend avoiding any further commitments until you have resolved your current situation (which may take some time). Seriously, I've been there and the extra commitment on top of what I already owed really did me no favours.

[geoffthechef]

I would dump the leech.....you only get one chance at this life..make sure you use it well..

[bengateway]

I would dump the leech.....you only get one chance at this life..make sure you use it well..

 

Spot on, there are good and bad out there, sorry mate thats not the good you have on board. ;-)

[jas1304]

'subbing' - please ignore this post