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AFoolAndHisLackOfMoney

Over £50k of Debt .....Where to Begin??

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I currently owe several debts which I am now paying on my own since divorce from my ex wife. I have reduced payments agreements in place with all of them but these will take me years to pay off and these were debts which although (apart from one) were taken in my name only, despite the fact that they were for the benefit of both of us and Im unhappy that my ex wife gets away scott free without paying a penny whereas Im left with the debt. However....such is life and thats where I am.

 

Summary as follows:

Sainsburys (Managed by Moorcroft) - owe approx 4500 paying 19 per month - in my name only

mbna (Sold To Arrow Global) - owe approx 11k paying approx 54 per month - in my name only

Northern Rock - owe approx 11k paying approx 50 per month - in my name only though my ex wife signed forms to have her income taken into account when we took out the loan

AA/Bank of Scotland managed by blair oliver and scott - currently owe approx 24500 - loan was only for 22k but interest was front loaded!! Paying approx 68 per month, my wife is paying 5 per month

 

Id like to get to a point to settle these somehow (reduced full and final?) and am looking for advise as to the best steps to follow (i would need to approach my parents for the money to offer the settlements but would like to look for any ways to potentially reduce the balances and obtain lowest possible settlement figures)

 

Ive seen various things mentioned on the forums such as cca, enforeceability etc but dont know what to do first to obtain the best outcome. Is there a step by step process which may work best.

 

I dont want to stop payments as if this were to go to court then i would likely end up having to make higher repayments.

 

Couple of other questions:

1) Northern Rock - I've heard they may have to refund interest - will I qualify for this if I am on reduced payments?

2) AA Loan loan was 22k - ive paid for several years but owe £24k as interest was added up front - is this legal/

 

Thanks in advance for all your support

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Hello,

 

To answer the question in your subject "where to begin", you have already begun by posting here. There are hundreds of members that have been or are in the same position as you so this is a great place to seek advice.

 

There are a couple of things for you to question and research...

 

Regarding whether your ex is liable, look for the phrase "joint and several" on any agreement that has her name on it. This phrase means that both of you are liable for the whole amount.

 

You should question why you want to settle. You are right that at the low rates of payment you are making, the debt will go on for a very long while. However, this isn't an impossible situation if you choose to live with it.

 

Alternatively you could try and settle at a lower amount if you can source the funds. I note that a number of those debts have been sold on to collection agencies. There is a very good thread on CAG that talks about how the DCA's buy the debts for as little as a few percent of their face value. So that might mean that they would accept a full and final settlement at a value much lower than you think you owe. They would need to be minded that your low offer of settlement is the better choice compared to you running out of money and not continuing with your payments!

 

Bankruptcy might also be an option. This will wipe clean your debts but destroy your credit rating for a few years. You will also lose any major assets you have. Read the forums at CAG to get more opinions as to whether bankruptcy is right for you.

 

Also, it is always worth checking the enforce-ability of the debts, again by following examples on this site. If the paperwork wasn't in order at the outset, you could perhaps challenge the debt. The starting point is to request a copy of the consumer credit agreement that each lender should be able to provide to you.

 

So a few things for you to research there. Have a look in the dedicated debt forums on this site and post some more questions as they arise.

 

FFP


My Background: I am not legally trained so the advice I offer is as a result of my experiences in business and being dragged through a bankruptcy process by a leading London law firm over a debt that turned out to be false. I won as a litigant in person :-)

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HI,

 

Thanks for your support.

 

In terms of why I want to settle, I have a new relationship and need to look to the future with my partner and the kids and until this is cleared somehow and my credit rating improved I have no hopes of buying a house etc and dont want my partner and kids to suffer for my mistakes.

 

Bankruptcy is unfortunately not an option due to my job.

 

Are there any specific threads that deal with what to do as I struggle to go through so many threads and pull out the points that are relevant to me. I have no PPI, I can look at whether the debts are enforcible and will obtain copies of the credit agreements.

 

In terms of the other questions:

Are you aware of the Northern Rock refunds of interest and would I still be eligible for this given that im now on a reduced payment plan.

What are the legalities around front loaded interest on loans?

 

Thanks for anymore help you can give me - hopefully I can now begin the long journey to a debt free existence

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Hello,

 

It's good to know your reasons to want to settle as it helps define what is the right way forward. It would seem to me that the appropriate steps would be to (1) ensure that the debts are lawful / correct, and (2) if they are, attempt to negotiate a reduced settlement if you can source funds.

 

To check the lawfulness of the loans, start by writing to the creditors and making a request pursuant to sections 77/78 of the Consumer Credit Act 1974, enclosing the required fee of £1. This effectively forces them to provide you with a copy of your loan agreement. If nothing else, it forces them to prove they have one! You can find a template letter on this forum (letter N) here:

http://www.consumeractiongroup.co.uk/forum/showthread.php?20758

 

Currently you are posting in the general debt forum. You will probably be able to get more specific advice for each of your questions in a more dedicated forum. For example, there is the debt>debt collection industry forum where you might ask more about the CCA request above as well as for anyone who can suggest how to negotiate a settlement. Also under the debt forum is one for "mortgages and secured loans". Since I understand (but am not sure) the Norther Rock issues only relate to secured loans, perhaps you should post a question there specifically about this issue. Finally under debt is a legal issues forum where you can seek help about your concerns about front loaded interest.

 

From my own experiences I found that all the answers I needed are here or elsewhere on this internet somewhere, but it takes many hours to find them and many hours to know what you should be searching for in the first place. So be patient, keep a cool head and you will find the solution eventually.

 

Best of luck

 

FFP


My Background: I am not legally trained so the advice I offer is as a result of my experiences in business and being dragged through a bankruptcy process by a leading London law firm over a debt that turned out to be false. I won as a litigant in person :-)

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Hi FFP,

 

Thank you again for you response. Ive taken some time reading the posts on here and the ones relating to CCA seem a few years old. Is this still effective?

 

I will be sending regardless tomorrow after one of dcas is demanding full immediate payment of the outstanding amount

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