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Hi, I have made some terrible mistakes and although I probably dont deserve help I really need advice on how I can protect my family. Quick background, I was made redundant last year and believed I could make a living investing in the financial markets. Even though this was also my occupation this was a ridiculous concept and ended disastrously with me rackign up about 40k of debt in loans and credit cards.

 

My wife stood by me and we agreed to downsize our nice home to something smaller and mortgage free. We was left with about 9k of credit card debt.

I have still not found work and crazily made the same mistake depsite promising my wife i would close the cards down.

 

I therefore now have an additional 30k in unsecured credit card debt that my wife is unaware of. Trust me I hate myself and I am seeking help for gamblign addiction and depression but my only concern is my wife and children, I really dont care what happens to me.

 

We are in the process of transferring the house in to my wifes name at her suggestion from the last episode and also our only other asset the car.

 

My question is what should I do with the 2 lenders I now owe the 30k to, one is my bank and includes 3k of overdraft. Will the house and car be safe for my wife? If she and I separate when this comes out will her credit record be safe? is their anythign I can do to protect her credit? we have one joint account but obviosuly have had mortgages together in the past. I just want to know I havent screwed her life up as well as mine.

 

 

We currently pay about 220 a month on the one card, would it be feasible to do a DMP with that amount for the whole outstanding 40k? my wife earns about 1500 a month at the moment. If I find work quickly and can start making full payments again will my credit record be irreversibly damaged?

 

sorry for so many questions, I appreciate any help

Edited by citizenB
popped in some spacing for easier reading
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CAG doesnt make judgments on people.. Hopefully we are able to offer help to everyone.

 

Right.. Your wife isnt responsible for your debts and vice versa (if that were the case) .

 

Your credit history could be trashed if you default on debts.

 

I dont think your wife's credit history could be trashed because of yours.. However, I will try and find the answer to that one.

 

TBH, I would suggest your wife starts her own bank account and starts having any monies paid into that.

 

You would both need to write to the bank holding the joint account to have her name removed from the account.

 

It might even be a good idea for you to start a parachute account, one that isnt connected to any of your debts and the current bank. Again start having any monies by way of income go into that. That way the bank with the overdraft cant start taking monies going in to service the over draft.

 

Once you have ensured your income is safe from the current bank - you need to write to both the bank and the other creditor.. explain your financial situation is making it difficult for you to maintain the current repayment schedule and ask for a reduce payment scheme.. and stick to it. You may find later on that you are in a position to offer more, bring your payments up to date.

 

Other than that, I suggest you speak to National Debtline - linked below - also on the link are some alternative Debt management solutions.. :)

 

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

 

The other debt.. is is Credit card/loan ? Are there any charges or PPI that you might be able to reclaim to reduce the liability ?

 

HTH

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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  • 2 weeks later...

thanks for that, its taken a while but Im trying to pull myself together and get this sorted. Ive opened a new bank account and ive written to the 3 creditors and told them I am experiencing financial difficulties and to hold interest etc while I attempt to resolve this. Its been over 10 days since I sent those letters and I have heard nothing back. I had payments due to all 3 so Ive taken the 240 a month we was paying to the one card and split it pro rata amongst the 3 and paid them that without waiting for any kind of reply.

I will now write to them explaining that going forward that is the amount I can afford to pay.

However should they ask for proof in fact we do not have any spare funds for even this amount, my wife brings in about 1500 a month and that is pretty much all taken up on household expenses. My wife recently recieved about 1400 from a PPI claim and she has been drip feeding this in to the account each month as we need it. Should I carry on making this payment even if I dont hear from anyone?

also a question regarding CCA requests is this something I should be looking at or would that just antagonise the situation?

 

many thanks for help

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It always looks good if you continue making payments - if the contractual payments are too high - then start making the pro rata payments. You might want to have a read of hte following. If you provide a budget sheet that has been confirmed by these peeps, I think it has to be accepted..

 

The following has recently been brought to my attention and could prove very useful. Especially now the OFT guidance specifically states it's an Unfair practice to ignore a cashflow budget!

If you are experiencing difficulty in repaying your debts, CASHflow is a way for you to negotiate affordable repayments with your creditors. Before you can use CASHflow, you must have spoken to one of the free advice agencies licensed to offer CASHflow to their clients. The advice agency will start by talking to you about all of the options available, and can help you to decide if CASHflow is the right one for you.

 

If you decide to use CASHflow, you will be provided with all of the tools you need to be able to complete your own financial statement and negotiate offers of repayment with creditors yourself. This will enable you to stay in control of your situation, but still have support from an adviser at any stage if you need it.

 

You can contact a local advice agency to check if they offer CASHflow. You can find a list of free advice agencies that are near to you by searching for a money adviser in England or Wales, Scotland, or Northern Ireland.

Alternatively, you can call National Debtline on 0808 808 4000

CASHflow: http://www.cashflow.uk.net/

National Debtline: http://www.nationaldebtline.co.uk/

https://www.mymoneysteps.org/

xx

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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  • 5 months later...

hi all

 

not sure if this will get picked up again on this old post but I just wanted to get some follow up advice if anybody has any regarding the situation I am in now.

 

Since my last rambling posts some months back I have now managed to get myself back together and have found a new job, one that is reasonably paid and enjoyable, so the future now looks a lot brighter. My question is now how to best deal with my debts and repair my destroyed credit rating.

 

I have been on arrangements with 3 credit cards for the past 4 or 5 months making nominal payments, these have all been registered with the credit agencies as late or missed payments so the picture looks pretty bad. I would imagine the cards are very close to defaulting me. I want to contact them and explain my change in circumstances but if everyone demands i catch up with overdue amounts and excess of limits we are looking at 5 or 6000 pounds which obviously I dont have. Similarly if they resume interest and expect full monthly payments we wont have enough left to live on. If I increase the payments and they are still holding off interest so Im not meeting my agreement then it will be as bad as defaulting on my file.. Therefore would I be better off just not paying and taking the defaults and spend the next 6 years rebuilding my life and negotiating with debt collection companies? ( as morally questionable as that may be ).

 

I want to do the right thing but I just think that each company is going to want their share and its going to put us back to square one.

 

any advice appreciated, thanks

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Forget your credit rating its shot to bits and your extremely unlikely to get any further credit - why would you want it anyway? Best thing might be a debt management plan - you could do this for yourself or use one of the debt charities - Payplan and the CCCS both run free debt plans and are recognised by most of the banks and service providers. DMPS are based upon sharing out your disposable income on a pro-rata basis to each of your creditors. You would complete and income and expenditure sheet which is based on the guidelines provided to the courts. Whilst I certainly couldn't afford vintage port life was not too restricted but did require an amount of self discipline I had never ever been used to before! I finished my DMP last year clearing £93k worth of debt - life is very pleasant now!

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I forget to mention it is the DMP provider that tells the creditors what they are going to get - they stand between you and your creditors acting on your behalf. The CCCS certtainly came through for me.

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