Advice need urgently with my debt

[buzzard21]

Hiya all, I'm new to this site but I am hoping that someone can offer me any advice to help with my debt problems which have got completely out of hand.

 

Basically, I am self employed and business has been terrible for some time. So bad that I have ended up in so much debt to credit cards that I can't make the monthly payments any more.

 

I am barely able to live at the moment and have only been earning enough to pay rent, council tax etc.

 

It all started with the charges I incurred on my business bank account (prob around £10,000 in last 5 years) unfortunately I didn't find this site early enough to claim that back.

 

I am now ready to tackle this problem, but have no idea which is the best way forward. I have buried my head in the sand for the last 4 months and not paid any of my credit cards, but also haven't sent any letters or spoke to them on phone. (They are ringing constantly, but I never answer it). I received a letter today from halifax who were offering help by way of a debt advisory service called cccs, I phoned them and I have an appointment with them in 2 weeks. They want me to make offers of token payments to all my creditors. I have heard about some credit cards being unenforcable, so would like to find out more about that rather than go bankrupt, but I'm really not sure what is the best thing to do.

 

Thanks !!

Edited January 14, 2010 by buzzard21
spelling mistake

[maroondevo52]

Hello and Welcome,

 

How old are your Credit Cards and do you have any idea how much has been added to them in charges.

 

Regards.

 

Scott.

[buzzard21]

Hiya Scott, they are all over 5 years old, I'm not too sure about the charges, roughly around £500

[PGH7447]

Hi and welcome to the cag

 

The cccs is ok but they will assume that any debt is enforceable

 

if you want to do it your self then you have come to the right place.

 

firstly set yourself up a nice big folder for each debt, then send each DCA if applicable or each OC if not a cca request for each credit card or loan- this can be found here

 

The Consumer Forums - Debt collectors

 

template 8

 

send recorded do not sign it and enclose a £1 postal order

 

next send template 3 or 4 for the phone calls and possibole threat of visits

 

if you have any cards assoicated with your main bank account then open a parachute account today and transfer all ingoings into it

[comebackjimmy]

Hi

 

First of all you have my deepest sympathy as I have been working in the family business for the last three years in similar circumstances.

 

Here is a partial action plan I put forward for you and other CAGers to view and comment upon.

 

1. You need to establish some peace. Therefore write to all the credit card providers with the telephone harassment letter. With any luck the calls will drop off.

 

2. You need to do a personal income and expenditure sheet to work out your priority debts. Can I ask if you operate your business separately from your household finances? If so perhaps you should do a separate business plan and cash flow forecast so that you can determine what income you will be likely to get from the business this year and when you will get it. These figures can then be punched into your personal income and expenditure sheet.

 

3. Once you have your personal sheet worked out see what spare cash you have after your priority debts. Divide this amongst your creditors and write to each of them offering what you can afford.

 

My experience of the card companies is that despite the entreaties we get to call them when you get into trouble they really do not want to know. Each of them wants there own debt paid and care not for the others.

 

Ignore any demands for additional payments. It is not them that tell you what to pay it is you who is uniquely placed to work out what you can afford. Some of them may ask for a copy of your income/expenditure sheet or ask you to fill in their own. It is up to you but you have no legal obligation to provide this to them and I personally would not do so or engage in any conversation/correspondence with them over the amount of repayments. The attitude should be that you control the repayments which you manage on behalf of all creditors as a group.

 

As a precaution I would cancel any DD’s you have with the card companies and set up standing orders instead.

 

4. If you have creditors in the business you can do the same thing. The creditors would be more likely than not to be people like trade suppliers. Write to each of them explaining your circumstances and offer them monthly figures. I have done this for three years and assure you in almost all cases the creditor will accept your offer provided you can stick to it.

 

By the way it is more than possible that your card issuers will get heavy with you. This is just business as far as they are concerned. For that reason you need have no compunction about challenging the enforceability of their agreements if they choose not work with you. That is just business too.

 

Hopefully the above actions will get you back on your feet. Now you need to start walking. If the above is under control and not occupying your time you can try to look at some positive things you can do to improve business which is easier said than done because I have been trying for three years myself and I know it is not easy.

 

Also, wait a while to see what other posts are made on your thread as others will have good ideas and likely better than mine.

 

Best of luck

[PGH7447]

Hi

 

First of all you have my deepest sympathy as I have been working in the family business for the last three years in similar circumstances.

 

Here is a partial action plan I put forward for you and other CAGers to view and comment upon.

 

1. You need to establish some peace. Therefore write to all the credit card providers with the telephone harassment letter. With any luck the calls will drop off. - good

 

2. You need to do a personal income and expenditure sheet to work out your priority debts. Can I ask if you operate your business separately from your household finances? If so perhaps you should do a separate business plan and cash flow forecast so that you can determine what income you will be likely to get from the business this year and when you will get it. These figures can then be punched into your personal income and expenditure sheet. - good

 

3. Once you have your personal sheet worked out see what spare cash you have after your priority debts. Divide this amongst your creditors and write to each of them offering what you can afford. - why, check what agreements they have - check if you had ppi - check if any charges you can claim back

 

My experience of the card companies is that despite the entreaties we get to call them when you get into trouble they really do not want to know. Each of them wants there own debt paid and care not for the others. - tough luck on them then

 

Ignore any demands for additional payments. It is not them that tell you what to pay it is you who is uniquely placed to work out what you can afford. Some of them may ask for a copy of your income/expenditure sheet or ask you to fill in their own. It is up to you but you have no legal obligation to provide this to them and I personally would not do so or engage in any conversation/correspondence with them over the amount of repayments. The attitude should be that you control the repayments which you manage on behalf of all creditors as a group. - good

 

As a precaution I would cancel any DD’s you have with the card companies and set up standing orders instead. - good

 

4. If you have creditors in the business you can do the same thing. The creditors would be more likely than not to be people like trade suppliers. Write to each of them explaining your circumstances and offer them monthly figures. I have done this for three years and assure you in almost all cases the creditor will accept your offer provided you can stick to it.

 

By the way it is more than possible that your card issuers will get heavy with you. This is just business as far as they are concerned. For that reason you need have no compunction about challenging the enforceability of their agreements if they choose not work with you. That is just business too.

 

Hopefully the above actions will get you back on your feet. Now you need to start walking. If the above is under control and not occupying your time you can try to look at some positive things you can do to improve business which is easier said than done because I have been trying for three years myself and I know it is not easy.

 

Also, wait a while to see what other posts are made on your thread as others will have good ideas and likely better than mine.

 

Best of luck

 

not bad:) - apart from offering them until they prove a debt is enforceable

[comebackjimmy]

Hi PGH

 

Thanks for your endorsements and I completely agree with your additional comments. I am just personally a little nervous about being seen to encourage someone to avoid debt, as my posting on another thread attracted a rebuke. However, if it was me I would do what you suggested, as it is completely legal.

[PGH7447]

I dont endorse not paying but I do endorse making them prove a debt is enforceable, if it is then I pay, if it aint then I have no moral compunction to pay them a single farthing

[comebackjimmy]

Hi PGH

 

I am completely with you, never fear. Just personally cautious about what I want to advise.

[PGH7447]

so was I when I first started, used to get cagbotted quite a bit and slapped down by other caggers, still live and learn:D

[comebackjimmy]

PGH

[wrungout]

not bad:) - apart from offering them until they prove a debt is enforceable

 

Hi, I'm in a similar situation to Buzzard so will be watching this thread with interest.

 

PGH & cbJimmy, sounds like you would recommend sending off C78 request first before writing to all CC's to offer reduced & affordable payments. Have I got this the right way round?

 

I did do CCA to Mvna and got copy of agreement which has prescribed terms albeit they are in tiny print and not easily read without magnification but don't feel i can put account in dispute on this basis. What do you think.

[PGH7447]

would need to see the agreement, I would be suprised unless it is a recent agreement that an mbna one is any good, but yes always cca first before making attempts to reduce payments or stopping altogether - although it does really depend on the card provider, some can be quite reasonable

[comebackjimmy]

Hi wrungout

 

Yes. Do the C78 request first. Do all the other things and be prepared to offer reduced payments on those agreements that are enforceable. Even these may be challengeable in part due to unfair fees etc.

 

I cant speak for PGH but looking back on his posts it seems he takes that view.

[PGH7447]

always look at reclaiming any charges they apply

 

always offer what you can afford not what they state

 

always ask for the interest to be frozen

 

always ask for the cca

 

always refuse to do anything by phone - everything in writing

 

if the OC passes it to a DCA then always play hard to get because they have NO RIGHT whatsoever to demand money from you

[buzzard21]

Hiya all, I've just logged back on here to read through things and decide what to do next, I am grateful for all your help, but reading through my thread, it seems like it's been hijacked and I'm not sure that the advice given is for me or not? Thanks!

[comebackjimmy]

Hi Buzzard

 

I would say the advice is for both of you.

[buzzard21]

Thanks for clarifying that comebackjimmy! I'm still reading through a few of the other threads to gain a bit more knowledge. I shall make my decision later on today as to which road I'm going down.

[buzzard21]

Right, I've made my decision, I am going to send the cca requests on monday with £1 postal order and send them recorded delivery. Thanks for all your help! I shall keep you posted when the cca does or does not come back. cheers!

[comebackjimmy]

Best of Luck.

[PGH7447]

advice is for everybody, how you use the advice is up to you

[buzzard21]

Thank you!

[buzzard21]

I'm just doing the template letters now for no calls or doorstep visits and also the cca request.

 

On the cca request letter do I need to change the s.77(1) to s.78 ? I am sending these letters out to 4 seperate credit card companies. Thanks!

[wrungout]

Hiya all, I've just logged back on here to read through things and decide what to do next, I am grateful for all your help, but reading through my thread, it seems like it's been hijacked and I'm not sure that the advice given is for me or not? Thanks!

 

Hello Buzzard, 1000 apologies from me, didn't intend to hijack your thread, it's just we have some similarities in our circumstances and I was interested in some of the comment made by PGH and cbJimmy. Hoped that any response to my own Q's, which they very kindly gave, might be helpful to both of us.

 

Your CCA requests should be s78 if they are for credit cards, but best wait for confirmation from someone more experienced, I'm still new to it all.

[buzzard10]

Thanks wrungout, no worries at all about the 'hijack', I just got a bit confused that the advice was only for you and not relevant to my stuff. As I'm new to all this, I wanted to make sure!

 

I thought it was s78 too, but I wont be sending them till tomorrow now anyway, so hopefully someone else will clairfy it too!