Please help! Everywhere I turn to, no-one seems able to help me =(

[MJDewey]

Hello,

 

I know people probably say this alot but this isn't a sob story, I am just really, really in need of some help, because everywhere I have turned to has given me some really ridicules pompous excuse for not being able to help me.

 

A year ago now, I wanted to join a guitar making course in Merton (near london) after a friend who had just finished his own course told me about it. I took out a loan with Halifax for £10,000 over a 7 year pay back, the only way I could afford it, and I told them there and then that I intended to use it for a full time college course.

 

This money would pay for the course (which was around £2000) a car to get me there, buy me tools, materials, a computer for coursework, which all came to about £5000,after this, I paid off ALL my direct debits and standing orders, which was combined at around £1000, the money after that was left to sit in my account towards petrol, shopping, paying back the loan, rent, bills etc etc This money dwindled slowly but steadily, having not lept out and spent stupidly, I depleted it by december but was coping easily enough from just my pay from work.

 

Everything was fine until we had that monstrous snow storm earlier this year, I spent the night on the M3 just outside of Petersfield, and just when I got back to within 2 miles of my home, I crashed the car. The repairs came to about £1000 over 2 trips, and from there everything just got worse. As I now sit, I am literally, as of this moment, £2.02 away from the end of my £1,500 overdraft, every month, I earn around £840 a month working 37.5 hours a week, but thats never guaranteed as my contract was never changed from when I asked to go to 30 hours a week for the course last year, I just work 7.5 hours overtime now.

 

I have constantly been in contact asking for help from Halifax, who pretty much have told me its my own fault and sent me on my way, there only idea was for me to pay someone to look after my money (with what?!?), they then go on to take £30 a month from me from being in my overdraft, every single day of the month!! I have even tried applying for a much cheaper A&L loan, which would have given me more money per month and knock a year off the pay-back time, but they declined, since this all happened my girlfriend became pregnant, which really is great but we cannot afford to buy anything... i've tried Payplan, who tell me i'm not enough in debt for an IVA and GAH!!! I really don't know where i'm going with this, just someone please help because i'm feeling 2 steps shy off walking off a bridge at times =(

 

Thank you for reading this anyone who can help, please I really am trying so hard but everything is just so far over my head that I can't see a way out.

 

Thank you, please anyone,

 

Mark

[cerberusalert]

How much do your total debts add up to & do you have any assets?

[sillygirl1]

Have you spoken to the Student Advisory service at the college, they should be able to give you some advice and practical help, there might even be a grant available.

 

Have you checked that you are getting any additional funds you are entitled to - try entitledto.com to check.

[MJDewey]

Hey, thank you for replying!!

 

My total debt, which is the loan amount outstanding and my overdraft, comes to £11,133.57. And assets? no, not really, I have been slowly selling all the things I own in order to have money for food and shopping. I still have the car, but its M.O.T and tax are due at the end of this month I cannot afford this, I have been trying to sell it but to no avail.

 

In terms of the college, they offered no money to begin with, as it was an NVQ course, and I was working 30 hours a week at the time. After the crash, I phoned the student loans people but they said no also due to the NVQ. I asked them for the money back for the term that I was not there for but it was non-refundable apparently, which ment I handed over the course money, and got no certificate or even a finished item out of it.

 

I will look at your site though, thank you =)

 

Mark

[cerberusalert]

Have you considered a DRO Debt Relief Order - Wikipedia, the free encyclopedia

&

Alternatives to bankruptcy

[keefyboy]

Hi Mark, I have just read your story and as Cerberusalert said a DRO may well be the solution for you.

Here is the link for you to read through to see if you qualify for it

 

Debt Relief Orders

 

As it says in the link, the DRO does take time, we applied a few months back and because creditors never rush themselves we are still not there yet to make the order, but we appear to be quite near. One final thing is that you can pay the £90 fee by installments but be warned the application for the DRO can not commence with the receiver until the FULL fee(s) have been paid

 

 

So good luck and I hope that you can get some help this way.

 

Keefyboy

[debbbbsy]

Hi,

Your priority has to be your girlfriend & your child. Nothing else matters.

 

The first thing you need to do is open a new bank account. Your money coming in, is for essential bills & not charges for an overdraft & a loan which you clearly can't afford to pay. Aslong as your paying in your salary, they will not negotiate. Its time for you to take control, you need to dictate what you can realistically afford. Ensure that everything is done in writing, & sent recorded. This will help your caes if it goes to court, it will show that you made attempts to reach a resolution.

 

Do you own your home ?

 

If they instigate legal proceedings the forum will give you guidance on what to expect, the judge will take into account your financial situation, and will only make you pay what you can afford. If its £5 p/m so be it.

 

Please stop worrying.Look forward to the future.Know your rights & exercise them.Okay you owe the money, made some mistakes, learn from them & move forward,but don't allow yourself to be bullied by these people.

 

Good Luck.

[maddiemay]

Apply on-line for a Nat West step account, its a basic account with debit card, but as above poster says your income will not get swallowed up with charges, its dead simple to open and they dont care who you are or what you owe.

Would the poster be entitled to tax credits?

[diddydicky]

i gather that you probably do NOT own your own home?

 

if not then stop worrying because if you are renting- have no real assets then you are in a very strong negotiating position

 

First off- write to all your creditors and tell them that you are in financial difficulties and you are imposing a two month moritorium on your debts so that you can get proper financial advice (which you can do here)

 

now, work out your total income- your essential outgoings and a fair amount for fags, a reasonable holiday etc and transfer the balance left onto another sheet of paper- which SHOULD be a figure you can easily afford to pay your creditors each month.

 

do NOT make promises of what you can pay if this is not EASIL:Y done since you will otherwise get further into debt

 

now pro rata the amount you have per month by the value of the individual debts (ask if you do not know how to do this)

 

now, write to each debtor with the figures and tell them that this is ALL you can afford to pay them against their debt and it would help if they were to freeze all interest and charges and review the situation in 12 months

 

if your payment does not reduce the debt (because of the interest/charges they might add monthly) then tell them that the offer is conditional upon them freezing all interest and charges so that you can actually reduce the debt.

 

it matters not a jot if what you have to offer them is £50 a month or £1 per month- if that is all your disposable income after reasonable expenses then that is just tough

 

Tell them that you hope that they will help you through this difficult time but in the event that they cannot or will not then you will only be able to make the same offer to a court if this is where the matter ends up

 

have a nice cuppa- get some sleep- you just took control of your life

[MJDewey]

i gather that you probably do NOT own your own home?

 

if not then stop worrying because if you are renting- have no real assets then you are in a very strong negotiating position

 

First off- write to all your creditors and tell them that you are in financial difficulties and you are imposing a two month moritorium on your debts so that you can get proper financial advice (which you can do here)

 

now, work out your total income- your essential outgoings and a fair amount for fags, a reasonable holiday etc and transfer the balance left onto another sheet of paper- which SHOULD be a figure you can easily afford to pay your creditors each month.

 

do NOT make promises of what you can pay if this is not EASIL:Y done since you will otherwise get further into debt

 

now pro rata the amount you have per month by the value of the individual debts (ask if you do not know how to do this)

 

now, write to each debtor with the figures and tell them that this is ALL you can afford to pay them against their debt and it would help if they were to freeze all interest and charges and review the situation in 12 months

 

if your payment does not reduce the debt (because of the interest/charges they might add monthly) then tell them that the offer is conditional upon them freezing all interest and charges so that you can actually reduce the debt.

 

it matters not a jot if what you have to offer them is £50 a month or £1 per month- if that is all your disposable income after reasonable expenses then that is just tough

 

Tell them that you hope that they will help you through this difficult time but in the event that they cannot or will not then you will only be able to make the same offer to a court if this is where the matter ends up

 

have a nice cuppa- get some sleep- you just took control of your life

 

Hi there,

 

Would it be possible at all to get an example or a template of such a letter from somewhere? this seems like a good avenue to go down, and it seems to be the universal conclusion that people have come too?

 

I would also just like to say thank you to everyone who has left a reply, you don't know how good it feels to know there are still people in this world willing to help out others. Thank you =)

 

Mark

[silverfox1961]

Hi,

Not added anything to your thread as you have been getting great advice so far.

 

Here are a selection of letters you could use to negotiate with your creditors:

 

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

[debbbbsy]

Realise from the outset that the Halifax is not going to want to reach a settlement which reduces your payments to them.

They will wriggle & argue & threaten legal action. But aslong as you are fully aware of your rights as a consumer. If you understand and accept what action they can & can't take against you, you will be able to control this unfortunate situation.

Most people ignore the threats because they fear the worst. But if you know from the outset what the worst possible scenario is(Possibly a CCJ). No surprises & no upsets. You will be able to deal with this, and still look forward to the future.

Get yourself a file. Keep copies of all the letters you send. Everything in writing, no verbal agreements. Send everything recorded delivery.

All letters from them. Read & file. & always respond.

 

Good Luck

Debs x

[keefyboy]

One other thing to be very careful of is with NatWest step account, there is nothing with it, like an overdraft or anything, and if you have a Direct Debit due out on Monday they will freeze that amount of available money (if sufficient on Friday)so that it will be paid, but if you rely on your money going in on Monday to pay a DD or SO, they will bounce it at midnight on Sunday as not enough in the account as they deal with outgoings before incomings into the account, and then charge you the princely sum of £38 for doing it. Also if you get a problem you will get NO HELP at all from them. They don't like giving out a step account as they don't seem to get enough fees from them. I have had mine for 4 years and I am arguing with them about a £38 fee for a rejected DD, after I had written to them 7 months previous stopping ALL DD's and SO's. They are ruthless believe you me. I have found that Yorkshire Bank is sympathetic and now have 3 accounts with them and no problems at all.

 

Good luck and listen to what these guys and girls say on here, we have won so many battles with financial companies and their followers (DCA's So called Solicitors etc)

[ashmk]

Apply on-line for a Nat West step account, its a basic account with debit card, but as above poster says your income will not get swallowed up with charges, its dead simple to open and they dont care who you are or what you owe.

 

I have to disagree a little there, Natwest declined me on the step account so I went to the co-op for their version and was accepted.

 

(And for reference the Halifax also accepted me with their basic account but ofc thatsd no good to you.)