Advice on credit card debt please

[Bumbler111]

Hi

 

In a nutshell, due to husband's mental health, the credit crunch, and me being too soft, I've ended up in debt of probibly £25,000+.

 

I managed the payments for years, and have recently paid of a secured loan, and our mortgage. Unfortunately, at the beginning of this year my business took a downturn (I'm self employed)

 

In January, I took the decision to stop 2 credit card payments (both in my name), and did a serious review of my budget. Now business is picking up again, but I cannot afford to pay these cards. Everything else IS being paid.

 

I did not contact the relevant card issuers, and have, in effect stuck my head in the sand for years now. The amount owed on these cards is probably in the region of £16,000, and I have denied my own existence when they call me (statements go to another address.).

 

Can you give me a bit of advice as to what to do now? Should I write to them with a credit sheet and a postal order, as I have seen advised on forums? Do I have to cut payments to everyone else, or can keep paying the full amount to them, and just work something out with these 2 cards.

 

I need to get this sorted out now before I end up completely cracking up (hanging on by a thread here). I should be starting to cut back on the amount of work I do, and getting a bit of enjoyment out of life. Not working 7 days a week just to cover bills.

 

Please advise.

[silverfox1961]

Hi, Sorry you were almost missed and welcome to CAG.

 

Have you thought about a dmp? there are two free dmp providers CCCS and Payplan. They can help you negotiate with creditors and while there is no guarantee of getting interest frozen, you stand a better chance with them than doing it yourself.

 

If you feel you want to give it a go yourself, here is a list of letters you could use:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?20758-Creditors-and-DCAs-Letter-Templates-Budget-Planner&p=162353&viewfull=1#post162353

 

If any of your creditors start getting nasty with you, send them a CCA to see if the agreement is actually enforceable. Letter 8 here:

 

http://www.consumerforums.com/resources/templates-library/86-debt-collectors.html

 

These are for loans an credit cards NOT for overdrafts(usually) or bank charges

[Bumbler111]

Hi

 

Many thanks for your reply. Have I posted this in the wrong bit?

 

If I have, apologies. Was a bit wound up when I posted this morning.

 

Have now opened thread in proper forum -'Dealing with Debt in Scotland'.

Can moderator merge threads or something?

Edited August 24, 2010 by Bumbler111
Thread in wrong forum

[Bumbler111]

Advice on credit card debt please

 

 

I put the message below in the wrong forum, but someone was kind enough to reply anyway. Many thanks for that (sorry for forgetting your username).

 

I've reprinted it here in the hope of getting the maximum amount of help and advice possible. I've checked out the site and am impressed with the quality of the replies so far.

 

 

'In a nutshell, due to husband's mental health, the credit crunch, and me being too soft, I've ended up in debt of probibly £25,000+.

 

I managed the payments for years, and have recently paid of a secured loan, and our mortgage. Unfortunately, at the beginning of this year my business took a downturn (I'm self employed)

 

In January, I took the decision to stop 2 credit card payments (both in my name), and did a serious review of my budget. Now business is picking up again, but I cannot afford to pay these cards. Everything else IS being paid.

 

I did not contact the relevant card issuers, and have, in effect stuck my head in the sand for years now. The amount owed on these cards is probably in the region of £16,000, and I have denied my own existence when they call me (statements go to another address.).

 

Can you give me a bit of advice as to what to do now? Should I write to them with a credit sheet and a postal order, as I have seen advised on forums? Do I have to cut payments to everyone else, or can keep paying the full amount to them, and just work something out with these 2 cards.

 

I need to get this sorted out now before I end up completely cracking up (hanging on by a thread here). I should be starting to cut back on the amount of work I do, and getting a bit of enjoyment out of life. Not working 7 days a week just to cover bills.

 

Please advise.'

 

 

 

[Crocdoc]

As there is property involved, My view is a Debt Arrangement Scheme, don't confuse with debt management. Visit WWW.MoneyScotland for full details.

[Bumbler111]

Hi

 

Many thanks for reply. Does a DAS have to go through a third party, or can it be done as a diy. Should I send a 'hold action' letter now, and get myself booked into one of the official debt advisor people asap?

[Crocdoc]

It cannot be done by DIY. A full list of Approved Money Advisers (MA) can be found at WWW.MoneyScotland. The good thing about the scheme is that you are protected in law and all charges and interest is frozen from the date of approval. It also protects property and equity so long as you stick to the agreement and comply with the MA.

[dx100uk]

when was YOUR last financial in/out on these cards.

 

dx

[24233513afw]

It cannot be done by DIY. A full list of Approved Money Advisers (MA) can be found at WWW.MoneyScotland. The good thing about the scheme is that you are protected in law and all charges and interest is frozen from the date of approval. It also protects property and equity so long as you stick to the agreement and comply with the MA.

 

Hi Crocdoc

Link to Money Scotland doesn't work.

[enamae]

I Think it's because of the Capital letters in the link.

 

Try this: http://www.moneyscotland.com/das/MoneyScotland/Homepage

 

 

enamae

[Bumbler111]

when was YOUR last financial in/out on these cards.

 

dx

 

I last used these cards 4(?) years ago, and was making regular payments up until the end of January, beginning of February this year.

[dx100uk]

TBH i'd CCA them first then

 

dx

[Bumbler111]

Thank for advice. I think I'll send a hold action letter now. I can then CCA them, and while this is going on, get myself booked in for the debt advisor.

 

This sound like a plan?

[dx100uk]

hold letter...???

 

get those cca's off ..

 

also don't forget unlawful charges & mis-sold PPI.

 

as a rule of thumb, 30-40% of most cards are 'their' charges which can be reclaimed.

 

dx

[maroondevo52]

Two threads merged.