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Hi,

 

I currently have unsecured debts in excess of £30,000 on a number of credit cards and i've finally reached the point were i've realised its time to sort the issue out. I've been sticking my head in the sand for too long!!

 

£10,000 Barclaycard

£10,000 Halifax CC

£10,000 Virgin (MBNA)

£3,500 Santander CC

 

With this in mind i'm looking for a bit of advice. All debt payments are currently up to date but to be honest we are robbing peter to pay paul so while all the payments are being met the balances are not going down and in fact are increasing every month. I'm probably looking at using some sort of self arranged DMP to help sort this out. When i'm working out my priority and non-priority expenditure and what surplus i have to put towards debt repayment should i include my wife's income in these calculations even though all the debts are in my name? Also i also get callout\standby payments as additional payments in my salary each month, these are non contractual payments so could stop at any time should i include these in my workings out?

 

From reading other posts in the forum i get the opinion its better to stop the debt repayments completely, wait for them to default the accounts then arrange some sort of payment plan, is this correct or should i contact them now and make them aware?

 

All of the debts have been taken out post 2007 (all the cards were applied for on the internet) and i don't have any charges or PPI to reclaim, all the debts appear on my credit record as expected.

 

There is very little equity in our home.

 

Any advice greatly received.

 

Thanks

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Hmm,

 

Ok. If this were me, I would be producing a budget sheet (Common Financial Statement). You can either complete the one below, which we use for mortgage repossessions or you can contact National Debtline and ask them to help you complete a CFS. They will have all the trigger figures so will be able to advise you more accurately.

 

Once you know what your disposable income is and you have worked out the percentages you can pay each creditor, then you can approach them with your offers.

 

There is a draft letter in the CAG library which you send to each of the creditors advising them of your financial hiccup and confirming that £x amount is all you can afford to repay them. You are also asking them to freeze interest and charges as there is simply no point in entering into a reduced payment arrangement only to see the debt increase.

 

They will not enter into an agreement with you until you stop payment. Daft I know but that is how it is.

 

If you have current account banking with any of your creditors, then it is in your interest to move to another bank that has no connection - what is called a parachute account.

 

None of these debts are secured on your home are they ?

 

 

Ellens Budget Sheet.xls

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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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Yes, I think that is the first step, sorting out the CFS and then you can move forward.

 

Just yell if you are stuck or need more advice. :)

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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Hello there.

 

We've a good ten step guide on dealing with debts, the first part of the blog can be found here: http://www.consumeractiongroup.co.uk/forum/entry.php?517-Debt-Diaries-Become-Debt-Free-in-Ten-Steps-Step-One-Don-t-Panic!

It's a tiny bit out of date so I'll be updating it over the next few weeks, 99% of it is still good though!

 

Make sure you download 'Dealing with your debts' from the National Debtline website, it's bang up to date and full of some great info: http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#4

 

Regarding your wife's income - it's up to you, you don't *have* to include it if the debt is in your name, should you choose just to include you income then only include your share of the outgoings on the budget.

 

Given the information you've provided it's likely you have three key options:

 

a) Self-negotiating pro-rata payments

b) Debt Management Plan (Use a free provider, such as Payplan or Step Change)

c) Individual Voluntary Arrangement (Possible risk to property + 'equity clause'

 

A brief run down of options can be found here: http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

 

As CitizenB has mentioned your budget sheet is key here, as it's vital to ensue that you have sufficient money to meet your household's outgoings prior to then seeing what might be left to pay creditors with.

 

Here's a good interactive budget sheet which gives general advice about the best possible option, let me know what the outcome is: https://www.mymoneysteps.org/public/about/what-is-my-money-steps/

 

Best wishes,

 

Seq

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Hi,

 

I currently have unsecured debts in excess of £30,000 on a number of credit cards and i've finally reached the point were i've realised its time to sort the issue out. I've been sticking my head in the sand for too long!!

 

£10,000 Barclaycard

£10,000 Halifax CC

£10,000 Virgin (MBNA)

£3,500 Santander CC

 

With this in mind i'm looking for a bit of advice. All debt payments are currently up to date but to be honest we are robbing peter to pay paul so while all the payments are being met the balances are not going down and in fact are increasing every month. I'm probably looking at using some sort of self arranged DMP to help sort this out. When i'm working out my priority and non-priority expenditure and what surplus i have to put towards debt repayment should i include my wife's income in these calculations even though all the debts are in my name? Also i also get callout\standby payments as additional payments in my salary each month, these are non contractual payments so could stop at any time should i include these in my workings out?

 

From reading other posts in the forum i get the opinion its better to stop the debt repayments completely, wait for them to default the accounts then arrange some sort of payment plan, is this correct or should i contact them now and make them aware?

 

All of the debts have been taken out post 2007 (all the cards were applied for on the internet) and i don't have any charges or PPI to reclaim, all the debts appear on my credit record as expected.

 

There is very little equity in our home.

 

Any advice greatly received.

 

Thanks

 

Hi

 

Just following on from others -

 

It would be difficult to guide you further without knowing your full circumstances.

 

B/R may also be an option as you mention little or no equity (again depending on full circumstances)

 

If the home is jointly owned then your share of what little or no equity that exists would be halved (I/S info below)

 

http://www.bis.gov.uk/insolvency/personal-insolvency

 

http://www.bis.gov.uk/insolvency/personal-insolvency/bankrupts-home

 

As well as the ones mentioned there are other online debt remedy and resources such as below that may help and give a little choice.

 

Details of Citizens Advice IMA Award winning online debt resources below

 

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

 

Online Debt Remedy Resource

 

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

 

As others have said best to get full advice on all your options based on your full circumstances

 

After the above, if you end up going the DMP route and wish to administer yourself as you have alluded there is the now widely used Citizens Advice Online Debt Management Plan that is free to use, no invite needed, saves all your information, does all the letters, Financial Statements, has the trigger figures, keeps a progress check, can be flexibly amended & updated by the user and so on (this system is continually developed and updated with more features soon to be added I am reliably told)

 

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

 

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

 

There are free providers of Debt Management Plans such as Payplan & Stepchange as already mentioned

 

If you put up further info including your SOA there may be people who can help you further

 

Your decisions at the end of the day

 

Best Wishes

Edited by Wintry
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Hi Wintry!

 

Long time :)

 

Hi

 

Cheers, how are you?

 

Long time maybe, but Im quite sure you will have been looking in on the action here and there:)

 

'Tis' really hotting up my friend but I have to be professional

 

A lot more to come too Sequenci, but you probably know that - but maybe we can still pull a surprise or three for you and a few others:)

 

Best Regards as always

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I've been off for a while (exams). Should be around all summer though. Well if you can call it a summer.

 

Things are indeed looking good. Had a lot of your lot visiting us over the last ferw weeks. I think the future's pretty bright :)

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Thanks for the pointers Wintry. The house is jointly owned. I've also added a copy of my SOA. The 3 adults are myself, my wife and our older daughter who is currently unemployed and on JSA, so is still financially dependant on us. No mortgage arrears. The value of the house is an approx value but i wouldn't expect it to be worth any more than that. My wife is a carer and needs the car to travel to work and the person she cares for.

 

we live in NI.

 

Household Information

Number of adults in household........... 3

Number of children in household......... 3

Number of cars owned.................... 1

 

Monthly Income Details

Monthly income after tax................ 2100

Partners monthly income after tax....... 522

Benefits................................ 188

Other income............................ 0

Total monthly income.................... 2810

 

Monthly Expense Details

Mortgage................................ 610

Secured/HP loan repayments.............. 176

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 81

Electricity............................. 60

Gas..................................... 120

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 19

Mobile phone............................ 30

TV Licence.............................. 12.12

Satellite/Cable TV...................... 35

Internet Services....................... 5

Groceries etc. ......................... 550

Clothing................................ 60

Petrol/diesel........................... 240

Road tax................................ 16

Car Insurance........................... 56

Car maintenance (including MOT)......... 20

Car parking............................. 0

Other travel............................ 90

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 7

Buildings insurance..................... 16

Contents insurance...................... 14

Life assurance ......................... 28

Other insurance......................... 25

Presents (birthday, christmas etc)...... 100

Haircuts................................ 15

Entertainment........................... 100

Holiday................................. 20

Emergency fund.......................... 100

Child Trust Funds....................... 30

Total monthly expenses.................. 2635.12

 

 

Assets

Cash.................................... 0

House value (Gross)..................... 140000

Shares and bonds........................ 0

Car(s).................................. 6500

Other assets............................ 0

Total Assets............................ 146500

 

 

Secured & HP Debts

Description....................Debt......Monthly...APR

Mortgage...................... 132000...(610)......1.25

Hire Purchase (HP) debt ...... 8500.....(176)......0

Total secured & HP debts...... 140500....-.........-

 

Unsecured Debts

Description....................Debt......Monthly...APR

Barclaycard cc.................5861......175.......24.9

Barclaycard Plat cc............5423......134.......6.9

Halifax cc.....................10379.....140.......0

santander overdraft............1500......19........0

tesco cc.......................199.......30........0

santander cc..................3861......115.......16.9

MBNA cc........................10541.....143.......0

Total unsecured debts..........37764.....756.......-

 

 

Monthly Budget Summary

Total monthly income.................... 2,810

Expenses (including HP & secured debts). 2,635.12

Available for debt repayments........... 174.88

Monthly UNsecured debt repayments....... 756

Amount short for making debt repayments. -581.12

 

Personal Balance Sheet Summary

Total assets (things you own)........... 146,500

Total HP & Secured debt................. -140,500

Total Unsecured debt.................... -37,764

Net Assets.............................. -31,764

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Thanks for the pointers Wintry. The house is jointly owned. I've also added a copy of my SOA. The 3 adults are myself, my wife and our older daughter who is currently unemployed and on JSA, so is still financially dependant on us. No mortgage arrears. The value of the house is an approx value but i wouldn't expect it to be worth any more than that. My wife is a carer and needs the car to travel to work and the person she cares for.

 

we live in NI.

 

Household Information

Number of adults in household........... 3

Number of children in household......... 3

Number of cars owned.................... 1

 

Monthly Income Details

Monthly income after tax................ 2100

Partners monthly income after tax....... 522

Benefits................................ 188

Other income............................ 0

Total monthly income.................... 2810

 

Monthly Expense Details

Mortgage................................ 610

Secured/HP loan repayments.............. 176

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 81

Electricity............................. 60

Gas..................................... 120

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 19

Mobile phone............................ 30

TV Licence.............................. 12.12

Satellite/Cable TV...................... 35

Internet Services....................... 5

Groceries etc. ......................... 550

Clothing................................ 60

Petrol/diesel........................... 240

Road tax................................ 16

Car Insurance........................... 56

Car maintenance (including MOT)......... 20

Car parking............................. 0

Other travel............................ 90

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 7

Buildings insurance..................... 16

Contents insurance...................... 14

Life assurance ......................... 28

Other insurance......................... 25

Presents (birthday, christmas etc)...... 100

Haircuts................................ 15

Entertainment........................... 100

Holiday................................. 20

Emergency fund.......................... 100

Child Trust Funds....................... 30

Total monthly expenses.................. 2635.12

 

 

Assets

Cash.................................... 0

House value (Gross)..................... 140000

Shares and bonds........................ 0

Car(s).................................. 6500

Other assets............................ 0

Total Assets............................ 146500

 

 

Secured & HP Debts

Description....................Debt......Monthly...APR

Mortgage...................... 132000...(610)......1.25

Hire Purchase (HP) debt ...... 8500.....(176)......0

Total secured & HP debts...... 140500....-.........-

 

Unsecured Debts

Description....................Debt......Monthly...APR

Barclaycard cc.................5861......175.......24.9

Barclaycard Plat cc............5423......134.......6.9

Halifax cc.....................10379.....140.......0

santander overdraft............1500......19........0

tesco cc.......................199.......30........0

santander cc..................3861......115.......16.9

MBNA cc........................10541.....143.......0

Total unsecured debts..........37764.....756.......-

 

 

Monthly Budget Summary

Total monthly income.................... 2,810

Expenses (including HP & secured debts). 2,635.12

Available for debt repayments........... 174.88

Monthly UNsecured debt repayments....... 756

Amount short for making debt repayments. -581.12

 

Personal Balance Sheet Summary

Total assets (things you own)........... 146,500

Total HP & Secured debt................. -140,500

Total Unsecured debt.................... -37,764

Net Assets.............................. -31,764

 

Hi alan

 

Thanks for the reply

 

Just spotted that you are in NI

 

Bankruptcy in NI is different to England & Wales

 

It may be best to have a look at the site link below and contact one of the free NI agencies listed on there for full in depth advice on all your options & solutions.

 

http://www.nidirect.gov.uk/what-happens-when-you-become-bankrupt/

 

Best Wishes

Edited by Wintry
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I've been off for a while (exams). Should be around all summer though. Well if you can call it a summer.

 

Things are indeed looking good. Had a lot of your lot visiting us over the last ferw weeks. I think the future's pretty bright :)

 

Hi

 

Debt advice does not stand still for exams, best wishes with the results though.

 

Depends on who you mean by 'a lot of our lot' and who you listen to:)

 

If its the ones who are local to Brummie then it should be OK:)

 

The genie is out of the bottle Sequenci and everybody knows it, try as some may, but they wont get him back in again.

 

It is just a matter of time now and why not? we are all supposed to have the best interests of those in debt at heart and in mind are we not?

 

These are very difficult times for people, set to get worse for some and they need all the genuine independent, impartial advice and assistance they can get.

 

The big guns are still in their hangers, but are primed and ready to be wheeled out if necessary.

 

Like the referrals to the CFS by the way, wonder if SC have looked in?

 

A bit tongue in cheek but Im quite sure that you get the drift:)

 

Best Regards as always

Edited by Wintry
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I do not think you should provide any creditor with that amount of information about your finances.

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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I do not think you should provide any creditor with that amount of information about your finances.

 

The correct approach is to provide the name of creditor, the amount owing, and the type of credit agreement. This allows all creditors to consider fair and reasonable amounts of payment - this is typically, for non-priority creditors, on a pro-rata basis if there is some spare money available. You wouldn't need to provide account specific information like reference numbers etc.

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"the type of credit agreement" i.e.' credit card' or 'loan'.

:lol:

Successfully claimed back mis-sold PPI (Barclays Bank) 2009-10 (£8500)

Ran a paid-for DMP. Deeply respect those who self-manage a DMP; it is possible to do with the help of fellow CAGGERS

Offered F&F to all my creditors. All closed out including a particularly intransigent and stubborn one - who eventually saw sense after 10 months of nonsense!

Does not condone debt avoidance but violently disagrees with the antics of debt collectors and their behavior towards the ones trying to pay. I am a great believer in what goes around, comes around. Keep up the good fight!

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