Unemployed, on JSA and £7300 CC debt

[valignya]

Hi,

Great forum you have here!

I owe £7300, spread over two credit cards - capital one (£3100) and bank of Scotland (£4200). I've been unemployed for over a year and was making the minimum monthly repayments on both cards , stupidly perhaps using what savings I had to make the monthly repayments. Now I have no spare cash left at all, I'm on £71 JSA per week and furiously searching for work. I live with my brother in a rented housing association house so there's no mortgage.

 

I've written to both companies today, outlining my situation and basically offering to make a minimum payment of £5 monthly until my situation improves. I've also asked them to freeze any penalty charges and interest from accruing.

 

I've buried my head in the sand too long with this but I've decided to face up to it. From what I've been reading, I don't really think there's too much they can do to me- I don't own any property, car or anything. The credit card debt is unsecured . I'm pig sick of this whole thing, being unemployed and other things going on in my life too and just want this thing sorted or at least controlled till things pick up:sad:

 

Any thoughts folks, as to what the next stage is likely to be? Thanks:-D

Edited December 28, 2012 by valignya

[Wintry]

Hi,

Great forum you have here!

I owe £7300, spread over two credit cards - capital one (£3100) and bank of Scotland (£4200). I've been unemployed for over a year and was making the minimum monthly repayments on both cards , stupidly perhaps using what savings I had to make the monthly repayments. Now I have no spare cash left at all, I'm on £71 JSA per week and furiously searching for work. I live with my brother in a rented housing association house so there's no mortgage.

 

I've written to both companies today, outlining my situation and basically offering to make a minimum payment of £5 monthly until my situation improves. I've also asked them to freeze any penalty charges and interest from accruing.

 

I've buried my head in the sand too long with this but I've decided to face up to it. From what I've been reading, I don't really think there's too much they can do to me- I don't own any property, car or anything. The credit card debt is unsecured . I'm pig sick of this whole thing, being unemployed and other things going on in my life too and just want this thing sorted or at least controlled till things pick up:sad:

 

Any thoughts folks, as to what the next stage is likely to be? Thanks:-D

 

Hi

 

Just going on what you have put there is not much more you can do at this stage other than consider a long term solution.

 

Look into any charges & PPI maybe?

 

Your creditors could try taking the usual forms of recovery action such as defaults, collection agencies, CCJs but if it would get them anywhere is another question.

 

There may be other more severe options such as DRO depending on your current full circumstances and where you hope to be in the future.

 

Have a look through the debt remedy and information tools below for further pointers, the CAB one has an online debt management plan that might help with the £5 offers.

 

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

 

https://www.mymoneysteps.org/

 

http://www.stepchange.org/?WT.srch=1&WT.mc_id=200012&gclid=CO2aptaAvbQCFUbKtAodOwUALw

 

Before making any decisions make sure you fully understand the pros, cons and implications of any debt solution

 

If in any doubt contact one of the charities or another agency.

 

Best wishes

[valignya]

Many thanks for the tips and links, Wintry:-D

 

As I've just sent off my two letters to the card companies, I'll sit tight till I hear from them one way or the other. There's no point getting stressed about it I know, but I do, a little bit:-(

 

I'll have a nose around on those sites over the next couple of days anyway and draw up at least an initial plan of action if they don't agree to the £5 monthly from my JSA.

[dx100uk]

you tell them not ask them

 

TELL [dont ask] them they are only going to get £xxPCM for xx mts

as a goodwill gesture

and as a reciprocal GOGW they must freeze int & refrain from levying PENALTY charges.

if they wont

drop them to £1PCM for life.

.

as an example>

.

I am currently in financial difficulties and not able to meet my normal monthly repayments.

to show my goodwill, i am going to pay £5 for 6 mts.

 

i will update you in 6mts time or before, should my situation change.

.

could you please as a reciprocal goodwill guesture,

.

refrain from levying any penalty charges & freeze the interest on my account.?

.

Should you fail to assist me during a period of financial difficulty, contrary to all the guidelines and codes

issued by the relevent bodies and authorities that govern you and the way you conduct yourselves.

.

i shall have no alternative but to reduce my offer to £1PCM for the rest of the life of the account,

.

.

as your actions would do nothing to help me.

.

i thank you for your time.

..

.

dx

.

then pay by your internet banking site

.

and get reclaiming

.

TAKE CONTROL

.

or

if you have sent the above and they refuse

then write back........

.

.

i'm sorry, but you have failed to assist me during a period of financial difficulty, against all the guidelines and codes

issued by the relevent bodies and authorities that govern you and the way you conduct yourselves.

i repeat again, the contents of my letter dated dd/mm/yyyy, for want of clarification:

to show my goodwill, i am going to pay £XX for XX mts

could you please as a reciprocal goodwill guesture, refraining from levying any penalty charges & freeze the interest on my account.

i will update you in 6mts time or before, should my situation chance.

should you fail to help by refraining from levying unlawful PENALTY charges & freeze my interest,

i shall have no alternative but to reduce my offer to £1PCM for the rest of the life of the account,

as your actions are doing nothing to help me.

This is contrary to the rules you should operate under.

disgruntled account holder

dx

[valignya]

Many thanks, DX - much appreciated advice which I'll certainly follow to the letter should I not receive a satisfactory reply from them in the new year

[DuffNCustard]

You may want to consider a DRO (Debt Relief Order) - its a sort of mini bankruptcy

 

http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/bankruptcy/DRO/debtors.htm

 

I recommend that you talk to one of the debt charities - check out these websites for usful info

 

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

 

http://www.stepchange.org/?WT.srch=1&WT.mc_id=200012&gclid=CK7FxojoxLQCFcVY3godNmUAMA

[valignya]

Yes, DuffNCustard, I will consider all these things but I've yet to hear back from them - doubtless I will soon. I'm in Scotland so the DRO doesnt apply here though I think something similar exists in Scotland called LILA(low income low asset) thanks for the links:-)

[Series3]

I side with dx100uk

tell them, don't ask.

 

My wife has been paying £1 a month for 3 years to Lloyds TSB.

They froze interest and all fees

the debt is £7000+.

 

Most will help if they have to.

[valignya]

Yep Series3, good advice. Dx100uk's advice is also top dollar. That's actually very encouraging to hear of your wife's debt being dealt with sensibly by Lloyds. Anyway, the letters and £5 postal order payments for January have already been sent and they've been told that's all they're getting, basically a like it or lump scenario - I was paid off from my job October 2011 and it's a nightmare trying to get another at age 44 - bloody hard.Jsa and the princely sum of £71 is my income,so they'll either have to accept it or refuse. Refuse, as dx points out, and I'll whack them onto £1 for life

Edited January 4, 2013 by valignya

[ChChing]

Hi,

Great forum you have here!

I owe £7300, spread over two credit cards - capital one (£3100) and bank of Scotland (£4200). I've been unemployed for over a year and was making the minimum monthly repayments on both cards , stupidly perhaps using what savings I had to make the monthly repayments. Now I have no spare cash left at all, I'm on £71 JSA per week and furiously searching for work. I live with my brother in a rented housing association house so there's no mortgage.

 

I've written to both companies today, outlining my situation and basically offering to make a minimum payment of £5 monthly until my situation improves. I've also asked them to freeze any penalty charges and interest from accruing.

 

I've buried my head in the sand too long with this but I've decided to face up to it. From what I've been reading, I don't really think there's too much they can do to me- I don't own any property, car or anything. The credit card debt is unsecured . I'm pig sick of this whole thing, being unemployed and other things going on in my life too and just want this thing sorted or at least controlled till things pick up:sad:

 

Any thoughts folks, as to what the next stage is likely to be? Thanks:-D

 

Have you thought about a Debt Relief Order. If you have no surplus income (less than £50), no assets and debts below £15k, you will qualify.

[Jimmy99]

I think demanding is counter productive but at the same time so is showing any weakness.

 

I would be offering affordable payments and making the creditors aware that this is the maximum you can afford. I would also send a copy of your award letter and say that you are in a vulnerable group and as such please treat me accordingly by accepting my offer and freezing interest and payments.

 

This, I think, shows you are doing your best to come to an arrangement and are a genuine can't pay as opposed to won't pay.

 

If they refuse , pay them £1 a month anyway

[valignya]

Cheers guys. Yes, Jimmy99, I was civil enough in my letters, plainly outlining to them that I can only pay £5 per month and even that much I can hardly afford, but mentioning that I'm willing to pay this much even so.

 

I haven't heard back from them yet but I will send them both a copy of my proof of benefit receipt if they ask for it.

 

chching: I would consider DRO or LILA as it is known here in Scotland. It probably won't come to that but I'll consider all options once everything becomes clearer with them

[Jimmy99]

I always think it pays to be civil (at least at the start) as if nothing else it gives you the moral high ground. Hope they get back to you asap.

[Series3]

Don't let it get you down.

 

series3

[valignya]

Update :

Capital One phoned me on Wednesday and agreed to freeze interest and charges for 6 months. They will review situation then. £5 per month payment to them in the meantime.They are sending me an expenditure form which I'll complete and send off.

 

Bank of Scotland phoned me today and initially got a bit shirty and asked me to complete the expenditure form over the phone. I said no way, I haven't the exact details to hand and told them to send it to me and I'd complete it and send it back. I basically told them it was a fiver or nowt. I was transferred to someone else who then told me they'll freeze interest and charges for 6 months to be reviewed then. They'll send confirmation by letter. £5 to them every month too.

 

Just to say to anyone reading this who is on benefit like JSA - don't panic, for the situation is hopeless for them to get their money while you're on the dole so they'll accept a token amount: it's either that or nothing:-)

[havinastella]

Val

 

Are there any charges to reclaim? PPi?

[valignya]

No PPI, Havinastella, I didn't take it . I'd also like to add that, by and large, the people from both companies were pretty decent and courteous on the phone, apart from the slightly cheeky girl from BOS.Easily dealt with, though:wink:

 

I'd also like to thank all the people who gave me advice - it was much appreciated. I'll keep this thread alive with any further updates, primarily to act as a sort of rough guide for anyone else in the same boat as me.

[valignya]

Update on this folks: I received today a letter from Moorcroft debt recovery who state they are working on behalf of HBOS to recover the £4200 from me.

 

The letter says I must settle this debt without delay:lol: which is hilarious as I'm still on JSA as my only source of income.

Bank of Scotland did agree to accept £5 per month as did Capital one (who say they will contact me in August to see if my circumstances remain the same)

 

The HBOS **** must have realised they've backed the wrong horse to get their money back so they've got Moorcroft on board to help them.

 

I will write to Moorcroft and tell them exactly what I've previously told Hbos about my income/circumstances.

 

I'll offer £5 per month - like it or lump it.

 

Taking in to consideration what I've learned about this mob,

 

I won't be taking any phone calls from them whatsoever - everything in writing.

 

Cheers!

[TommyCat]

Hi,

 

How are things with Capital One at your end?

 

I'm still waiting for them to accept my payment plan, they have been playing a delaying game with me!

 

TommyCat

Edited June 1, 2013 by TommyCat

[valignya]

Yes, Tommycat, thinks are still ok with cap1.

 

I found them surprisingly reasonable, unlike HBOS who acted like total wombles which I've heard is par for the course with them.

 

I told cap1in my letter that I could only afford £5 per month.

 

I said quite a few things in that letter, the gist of which was either accept the £5 - like it or lump it

- I ain't got a pot to p!ss in, I know it, you know it so take the fiver per month and leave me alone.

 

They said they'd contact me again in August to review my situation.

 

My situation is identical to what it was in January, so when they write to me again I'll tell them this and that I still can't afford any more than a fiver.

Chances are they'll drop me like a hot potato and sell my debt to Moorcroft or something:lol:

 

Just let them do the work, Tommy and don't accept them phoning you all the time either.

 

Tell them in writing only.

 

If you're on JSA or even a low income job there's nowt they can realistically do.

 

Relax and things will pan out ok for you

[cagmee]

valignya, would you mind pm'ing me a copy of the letter you sent to your creditors (obviously with personal information removed) - I find myself in a similar position to yourself except I have no income at all for at least a few weeks and as your letter worked quite well I would like to use it as a template!

 

Many thanks.

[cagmee]

Also do you address these letters to a particular department or title at the CC companies? Or just the main company address? Thanks

[dx100uk]

look for the named bank forum

 

the addresses are all there

 

you'd be better to start your own thread

 

dx

[valignya]

Ok I can certainly send the scanned copies of my letters if that'll help anyone.Or to make things simpler, I'll type up exactly what I wrote and put it on a newly created thread?

 

I sent the letters to the main company HQ - BOS is in Edinburgh and Cap1 in Nottingham

 

Always remember - you are in control regarding paying these people, particularly if you are on low income or no income save for benefits. Remain courteous but firm and always state that you are willing to pay something every month, no matter how small, to service your debt. This is really, really important. To ignore the problem or tell them they're getting nowt is to invite trouble, I believe.

Edited June 4, 2013 by valignya

[nks22]

My advice would be to offer only £1/month to each and to pay by standing order (then no money wasted on postage or POs). If necessary open a basic bank account just for this purpose.

 

I've always written something like this:

 

If xxxxx will suspend interest on the balance of £xxxx.xx (the amount stated in the default notice of xxxx) I will agree to a payment of £1.00 per month by standing order until further notice. I can, if required, provide another financial statement and will commence payments upon receipt of xxxx’s acceptance. I have made a similar arrangement with other creditors.

 

While you are not obliged to accept my offer, should you seek a County Court Order I will draw the court’s attention to this offer and your awareness of my current financial difficulty...

 

All have accepted and also stopped any hassling. I just get a letter about once a year requesting a review of my repayments but reply that my circumstances are unchanged.