Can't pay any more - Where do I start?

[Cena34]

We've been just about keeping our heads above water for the past few years but enough is enough now and I need to find a proper solution to my debts. A year ago my mortgage company agreed to reduce the payments for a year and this has now ended so I need to find another £200 to pay this so I need to find a solution to my other non-priority debts.

 

We owe - £5500 to Santander for a personal loan, this was a Cahoot flexible loan but Santander took it over a couple of years ago.

- £3600 to Tesco Credit Card

- £5500 to Barclays Personal Loan

- £8000 to Black Horse Personal Loan

 

We also owe some money to Hitachi Capital for DFS Sofas but this isn't a lot and ends next year sometime and is interest free.

 

We also have a secured loan with Welcome and as this is secured want to continue paying this.

 

I have an old Co-Op credit card debt that keeps being passed round various debt collectors but never seems to actually come to anything and I'm OK dealing with that from the advice I've gained from here already. See thread below.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?183810-Advice-Needed-Please-old-debt-getting-bounced-around&p=3501174#post3501174

 

Myself and my partner both work but are barely getting by and need to sort things out but where do I start? I don't really want to involve another company, paid or otherwise as I feel I'm more than capable (with some help off here!) of dealing with the companies.

 

I've spoken to Santander who wouldn't do anything to help until I'd actually missed a payment which seems a bit short-sighted! I've now cancelled the direct debit so I'm sure they'll be on the phone soon!

 

I was going to send them all the template letter to ask them to hold the account while I get advice, is this right?

 

Should I CCA them all?

 

I've got a possible PPI claim on the Tesco credit card and am going to look into this but no PPI on any of the others.

 

Any advice welcome, thanks for reading.

[Papa_Smurf]

First priority. I personally will only pay non-priority debts via standing order. The creditor can increase a direct debit at their end without telling you in advance which would leave you overdrawn.

 

CCA's. The decision to CCA your debt's is your decision only. People here can advise on how to do it and where to go from there. The advantage of CCA requests would be that it would give you some breathing space.

[Papa_Smurf]

I forgot to add, good for you wanting to negotiate with the creditors rather than goto payplan or CCCS. It's the way I've done with help from this site.

 

Sending the template letter to ask them to hold the account may be worth while in gaining some breathing space, I can't see how it would hurt.

[ashmk]

A CCA request is a good way of seeing their hand. That way you can put your debts in order with who will take action against you and who will not.

[BRIGADIER2JCS]

Please be aware that a CCA request does not

make the debt unenforceable or disappear

if the creditor cannot supply it, recent changes

in case law have made this very difficult with courts

accepting reconstituted agreements.

You may be better in your case attempting

to negotiate lower payments and freezing of

interest with each creditor, but you should be aware

that this will result in default entries on your credit files

and on your partners if you have joint accounts.

I would also suggest that you write truly personal letters

on this the creditors have all seen the masses of templates

from here and other self help forums and some view them

with not a little contempt, be sincere, and honest in your

own words.

 

Brig.

[brokebutnotbeatn]

And make sure yoiu have a bank account that is not connected with the loans/card you have or they will offset. Get this sorted now whilst you are not in default. You can then set up SOs (never DDs) for the amounts you can aford to pay. And do as Brigs suggested; use the template letters as a guide and add your own personal touches. GL and well done!