Debt help, such a mess

[Clarkeyuk]

Hello all I'm looking for some advice my debt ha gone out of controll and yes I know it's my fault but I'm starting to lose sleep which effect my work and not eating and just stressed to the max and looking for some advice so here goes,

 

I have the following

£3000 overdraft maxed

£2000 Barclays credit card maxed

£1000 Lloyds tab credit card maxed

£1000 vanquish credit card maxed

£1200 Lloyds tsb loan (was £2500)

£625 quick quid

£375 payday uk

Car finance which I pay £289 a month

 

I pay £200 a month to live at home

 

I earn £1500 a moth to take home and I'm always overdrawn so the charge me nearly £100 a moth in overdraft fees so after I pay all my bills out of my monthly wage I'm left with nearly £200 a month to live with, I just don't know what to do, Is there any help I can get to write this debt off or even reduce payments, I need my car finance because I need te car for work so if I went to citizens advice could they help me reduce my outgoings because £200 a month to live on is so hard, would I b able to still keep my car and pay £289 if I had a UVA or something??? Any help would be great, I'm just so stressed and at wits ends here it's so depressing.

[BRIGADIER2JCS]

Hi, please be aware that debts do not get ''written off if you want to

make reduced payments you need to sort out which of the debts are

your priorities.

Are any of the creditors pressing at the present.

[freakyleaky]

This may be of help. Courtesy of CitizenB.

 

Here you go..

 

 

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.u k/

 

https://www.mymoneysteps.org/

 

 

The above 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!

[Clarkeyuk]

No I haven't missed no payment whatsoever I'm just struggling because I have neary no money to live on once I payed all my bills! I want a want to freeze interest and pay an agreed amount of say £25 to each creator each month if that's possible

[BRIGADIER2JCS]

No I haven't missed no payment whatsoever I'm just struggling because I have neary no money to live on once I payed all my bills! I want a want to freeze interest and pay an agreed amount of say £25 to each creator each month if that's possible

 

All you can do is ask and explain your situation, some creditors will agree under protest other will co-operate

whilst others will refuse any offer.

[Clarkeyuk]

Im thinking of having my wages payed into a diffrent bank account an just paying what I need to pay

[rebel11]

Hi clark

 

Have you been mis-sold PPI on any of your accounts, e.g. credit card, overdraft. Have you got any penalty charges on these accounts that you can claim back with interest.

 

http://www.financial-ombudsman.org.uk/publications/factsheets/payment-protection-insurance.pdf

 

If so you can claim these payments back over 6 years plus with interest.

 

Have a read through 1,2,3 and 7 in my signature.

[citizenB]

Follow the instructions in post 3. And yes, if any of the debts you owe are to the bank where your salary is paid in - you should apply for a basic bank account at a bank that has no connection to any of your debts.

[Clarkeyuk]

Yes thank you I am with Lloyds Tsb, I am going to open one with nat west tomorrow morning as I have the day off wok so I am going to my local citizens advice to see if they can help me,

[Clarkeyuk]

Would it be worth ringing or writing to my credit cards asking to freeze them and offer to pay £25 a month? And go into my bank and ask for the same with my loan an overdraft?

[BRIGADIER2JCS]

You can certainly try,one cannot predict with any certainty what

may happen.

[freakyleaky]

Would it be worth ringing or writing to my credit cards asking to freeze them and offer to pay £25 a month? And go into my bank and ask for the same with my loan an overdraft?

 

I have not had much success when trying that in the past.

Check out post number 3.

[assisted blonde]

have you looked into an IVA?

[citizenB]

As your debts are under £15,000 and it looks as though you dont have any assets, you might want to consider a debt relief order. You will find out more about those and other options in the link below.

 

DRO is the 5th link down - you will be discharged from your debts after one year.

 

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

[National Debtline]

Hello there,

 

There are plenty of debt-repayment options out there to help you with your situation, some of which have already been mentioned by some of the other folks that have replied to you. To get a clear idea of what options might be relevant given your situation you might wish to take a look at our My Money Steps system as it can provide you with tailored advice: http://www.mymoneysteps.org

 

If the car finance is hire-purhcase you will need to stick to the full payment to prevent the car from being repossessed. We've a great fact sheet here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_hire_purchase_debt

 

You should look to open a brand new bank account, one with an organisation that isn't linked to any of your existing creditors - this will ensure that your money is safeguarded. The old overdraft should be treated as a creditor along with your other credit cards and loans.

 

For further reading we have a self-help guide, you can find it here:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#4

 

We hope you find this information useful!

 

National Debtline.

[Clarkeyuk]

I have been to my local cab office on Friday and they are getting someone to look at my case, I'm just worried all the time about what will happen, would it be wise to take my pay at the end of the month and put it into a new account I have opens up with natwest so all my wages do not get taken, if I leave it with my current bank one everything has come out I will have about £200 for the no th to live on which will prob just cover my fuel cost for work i feel so depressed at the min and I hate it, all that aside I have been reading about a debt relief order this looks like my best open but not sure if I will qualify for it so will have to wait for the cab to get back in touch!!! Should I inform all my creditors of the situation or just wait and see what happens with my local cab!!! Sorry to go on but im just finishing times hard

[cerberusalert]

Open a separate a/c with a totally unrelated bank otherwise your present bank will offset from your existing a/c to pay O/D, credit card etc.

 

When you've done that keep up with your car finance but pay the remaining creditors a token payment until things are sorted with CAB.

[Wintry]

Yes thank you I am with Lloyds Tsb, I am going to open one with nat west tomorrow morning as I have the day off wok so I am going to my local citizens advice to see if they can help me,

 

Hi Clarkey

 

Along with what others have put The CAB have a free new online debt remedy resource that includes an Online Debt Management Plan that saves all your details, you dont need an invite, is confidential, has expenditure guidence / trigger figures, it is not locked after the Financial Statement is done, meaning you are basically in control to review and change if necessary without having to go back to an adviser or agency, just log in and away you go, (I understand that this system has been entered for this years (May 2012) Institute of Money Advisers (IMA) awards for the best new initiative.

 

http://mymoney.nedcab.org.uk/moneyadvice/ (also not funded by creditors)

 

CCCS also have a good debt tool

 

https://debtremedy.cccs.co.uk/start.aspx

 

Always get full independent advice on all options, and your choice / decisions at the end of the day

 

Best Wishes

Edited April 22, 2012 by Wintry

[Clarkeyuk]

My bank has asked to go in and talk about my overdraft should I hold off Untill I have sorted things out with the CAB?? Don't really want the bank chucking loans and stupid things at me

[assisted blonde]

If you are having problems with your overdraft sometimes the bank will convert it to a managed loan whereby you pay a fixed some each month for whatever period of time is decided until it is cleared, this is usually at a much better rate than the overdraft. No point in avoiding the bank as you have not defaulted any payments yet and it would be better to stay on reasonable terms with them for now (avoiding them makes them think the worst) they may just want to talk to you, but dont agree to pay anything that you are not comfortable with and get that other account up and running.

[snowdragon]

hi, the CCCS page seems to be having problems as one page I was filling in keeps asking same question over and over again,numeric reply needed,yet I am putting in numbers as asked,is there any other free site like it please

[citizenB]

National Debtline or any of the other agencies mentioned in the following

 

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.u k/

https://www.mymoneysteps.org/

Also as highlighted in the CAG newsletter...

There is the new CAB system that might also be worth a look, this system saves all your details, has guidance allowance figures to work with if you wish and you do not need to be invited / signed off etc with this system, just log in and away you go (see below)

 

(Also, there are a number of other self help tools and systems around so might be worth a little exploration if this is what you eventually decide on.)

 

http://mymoney.nedcab.org.uk/moneyadvice/

 

http://mymoney.nedcab.org.uk/moneyadvice/ (example of completed dmp)

[freakyleaky]

Be very careful where managed loans are concerned. I remember reading lots of threads on that subject and none were happy threads.

I'll try and dig out some links for you.

[freakyleaky]

I know its an old thread and things have changed but I think the principals are the same re managed loans.

http://www.consumeractiongroup.co.uk/forum/showthread.php?60923-managed-loan-hsbc-66-interest

[assisted blonde]

I suggested this from personal experience, as it worked well for us, the bank gave him the managed loan and he paid a fixed amount each month over a set period of time. This was a great help as we kept our ordinary bank account but instead of our wages going stright out to cover the unauthorised overdraft leaving us with very little we only paid proportion of it out this way and kept the rest to live on.

We are still with the same bank and they are happy for us to have credit cards etc with them now as we are now stright took about 2 years to pay off the loan but it was worth it and the bank were really helpful. I am not sure if I am allowed to say which bank but it was a main high street one.