What steps do we take first? CCA? DMP? ...S.OS!!

[jboyd83]

Hi all,

in a nutshell we are up the creek without a paddle with money..

or lack of it...

and would be really grateful if anyone can help us to help ourselves please.

 

 

Background is-dont think it makes any difference to how we continue but is how we got here so will put you in the picture...

 

....hubby is a fulltime student in his 2nd year of a 3 yr degree,

I was a self employed nail tech working fulltime (and some) up until july 2011 when I ceased trading to have our little boy who is almost 1.

We now have 3 children-one in comp, one in juniors, plus baby

 

Since July this year we have been living on student finance, child benefit and child tax credits (since my maternity allowance stopped).

 

Had a few problems along the way with getting ANY other help we were entitled to including free school meals, housing benefit, healthy start vouchers.

Still dont know the exact reason why they were keep saying we didnt qualify but suspect it was due to tax credits not updating their systems correctly for months

until I rang every Tom Dick and Harry to get it sorted including CAB who confirmed we should be getting them but the 'authorities' concerned still wouldnt accept this???

 

with determination I got everything exept healthy start vouchers backdated including 600+ in housing benefit

(which was calculated wrongly TWICE by South Tyneside Borough Council might I add..)

 

Usual story,

borrowing from Peter to pay Paul and the debts we were once managing to pay pretty well are now totally consuming us.

 

These debts include 3 online catalogues,

3 credit cards,

2 payday loans,

1 store card, and

an overpayment of wages by a previous employer due to them not crossing their T's and dotting their I's when hubby finished work

but legally we have to repay back to South Tyneside Council

 

I have been scanning through past threads and have had a good look at a DIY DMP which sounds good,

but also read things such as requesting CCA's and something els about waiting then letting the debts default you.

 

...these parts have confused me a bit as there's so much to take in and I'm just not sure what we should be doing first,

CCA, DMP, something else??

 

Obviously would love to save our credit file from being totally wrecked but dont know if thats possible..

.seems DMP or default stays on file for 6 years from DMP completion/date of default.

 

We dont have ANY CCJ's and the only letter we have had was today as we missed one of the catalogue payments last statement.

 

PDL is due for payment on 17th

and then the other on 2nd Feb(I think).

 

Have printed out a letter to give to bank so they stop all CPA from my bank and have just applied for another account should they mess me about.

 

Can anyone please advise us which of the aforementioned steps we should take first if any?????

Any more info please ask...

 

Thanks so much guys

[jboyd83]

Just to add also,

we could only make token payments of a pound each debt as we are living on bare minimum ..

 

.is a DRO a suitable option for us maybe?

 

Our combined debts are just under 14500 but dont know if we would both have to apply seperately for a DRO?

 

Dont even know if this is a frequently done thing or a 'no-no'?!

 

So much info out there but not sure what options are the best

[jboyd83]

Another option possibly....

.sit and wait for them to default us

so that the default/6years on credit file starts then,

meaning we can still pay what we can afford to pay them with the benefit of it dropping off our file after the 6 years and thereafter being wiped.

 

I do shudder at the thought of paying this debt for the rest of my life on a dmp but would hate to be taken to court

- would they take us to court if we waited for them to default us then made reduced payments until it dropped off file?

 

OOPS....why didnt I just edit my initial post! Sorry for the multiple posts guys :0

Edited December 29, 2012 by jboyd83
add

[tpltpl]

Hi there, I can't really advise you, as I'm trying to figure things out to - but a bit further down the line, as my credit is now defaulted. I can't get a DRO as I've got a mortgage. I can also only pay £1 a month at the moment, and don't know how long this will last until I start getting CCJs etc. And its not sustainable paying of £1 per month forever is it! So, I was thinking of BR too. It's really confusing I know, but some people are helping and advising here which is really great. Sorry I can't be of help though, just in a similar boat!

[citizenB]

It will be a waste of time making CCA requests to the PDL company - and good news that you have contacted your bank to stop the CPA(s)

 

The credit cards - from what date are these? They need to be opened prior to 2007 for there to be any benefit in you requesting the CCA.

 

If you own your own property, then you will not be able to take advantage of a DRO. You are required not to have any assets.. eg a property, valuable car, etc, etc.

 

Are the debts in joint names ? You need to owe less than £15,000 to be able to go the DRO route. Your debts would be gone after one year.

 

You might want to have a word with National Debtline about one of these, because if you dont own your own property, it would be well worth considering. You can then start rebuilding your credit history after a year.

[jboyd83]

Hi tpltpl, as far as I can gather they wont take you to court in most cases as you are offering a payment, be it big or small...this is what Ive gathered from this sit anyway and apparantly a judge would see that you are paying so wouldnt take any action very seriously.

 

I also dont want to be paying a quid a month for the rest of my life as it already feels like a weight on my shoulders so to carry it forever would be torture.

 

I would like to clear it should our circumstances change but in the meantime want to take the best course of action for both mine and my husbands credit files and the one that will get us back up and refreshed credit wise as quickly as possible should we ever need credit in the future.

 

I think BR is a big step however I realise to some it may ease the noose from around their neck, it has a lot of implications though so I would get as much advice and info from as many places as possible before you think about BR.

 

 

Just my tuppence worth though. Hope you get some breathing space soon and thanks for taking the time to reply when you have problems of your own to deal with

Edited December 31, 2012 by citizenB

[citizenB]

A DRO is NOT bankruptcy..

[jboyd83]

Hi citizenB, thanks for your reply. I havnt actually put the letter in to the bank regarding CPA yet as have just applied for a new account and wasnt sure if they would stop us opening it?? PDL isnt due until 17th Jan so have a small bit of time to do it. We dont own our own property thank goodness, debts are in seperate names, both total under 15k even when put together. I have read now though that if you have any debts you have made preference to in the last 2 years that this is a no-no.... in January my grandmother is going to clear the doorstep loan that I haveso I fear a DRO may be unobtainable for us (this is due to the fact the agent is a good friend of the family so makes things very awkward if I include this in my debt list to DRO)

Credit cards are all post 2007 so no relief there then....

Bloody Nora....

Edited December 30, 2012 by jboyd83

[jboyd83]

Sorry citizenB and tpltpl, I didnt mean to imply that a DRO was the same as BR, I misread tpltpl's post, have realised that tpltpl said 'thinking of Br too' I just thought tpltpl meant it was an option they themselves were considering. Sorry about that.

[citizenB]

No need to apologise, I just wanted to clarify the situation regarding the DRO/BR issue.

[jboyd83]

Hi Jboyd. Two questions, one do you own your own house and two how much is the doorstep loan that you are looking to repay.

Hi Sovereign the loan equals approx 1000 to settle and I don't own my home it is rented.

Thanks