Out of control debts, can anyone please help me sort this mess out??

[alexpn]

Hi all.

 

I really need some friendly, level advice.

 

My adult life has basically revolved around a lot of borrowing and poor decisions being made due to one thing or another, and I need advice helping me make sense of my debt mess, facing up, organising it all and dealing with it in the right way.

 

I estimate I have about £20k on unsecured personal debts with credit cards, loans and store accounts, I stupidly have more recently taken out a number of payday loans as well, these amount to maybe another £5K.

 

No CCJs as far as I know, but I have a handful of defaults.

 

I have tried to sort these out before, but seem to end up lapsing back into more problems when I've changed jobs, had redundancies etc.

 

I am currently working self employed in an industry that does pay ok so realistically I could deal with the amounts, I think it's just the entire problem that is scaring me and stopping me, I dont know how to prioritise and I dont know whether to deal with it myself or pass to a specialist debt management firm.

 

My parents have been receiving calls clearly from people trying to find me for a year or so, and I think someone may have turned up on their doorstep today for something similar. This is obviously making me now need to sort this out.

 

Please can someone tell me what the heck to do, there are obviously creditors, and debt collectors all with a vested interest in tracking me down.

 

I am seriously considering bankruptcy, but I am a part director in a business and I dont want to have to give that up and face the embarrassment of that person knowing my personal situation.

 

Seriously desperate, and getting depressed.

 

thanks, Alex

[alexpn]

Just to add, I am currently not addressing any of these debts directly, I have pretty much gone into hiding.

[citizenB]

I have attached a budget sheet for you.

 

 

Once you know how much disposable income you have after priority spending then you can write to all your creditors and make an offer of repayment.

 

Do you know if any of these debts have either Penalty/Default charges applied or even Payment Protection Insurance that could be reclaimed ?

 

Ellens Budget Sheet.xls

[citizenB]

http://www.consumeractiongroup.co.uk/forum/content.php?987-CAG-Newsletter-May-2013

 

In the CAG newsletter you will find a list of 1- 10 steps in our CAG blog section. It might be worth having a read of those as well.

[alexpn]

Thanks for this, when you say priority debts, does this mean the larger amounts or those that are very old?

 

With regards to PPI and Charges, yes it's very likely. A lot of the credit cards that had PPI will have been passed to an agent though? What are you thinking?

[BRIGADIER2JCS]

Hello Alex welcome to CAG,

 

If you can deal with these debts yourself it will be better than using a DMC.

 

It would assist in getting the best advice for you if you could list the debts with details of:

 

The Creditor and or Debt Collector involved if any.

The amount Outstanding.

The age of the debt.

Has the account been defaulted if so when.

If any accounts are closed and no payments being made,

the date of the last payment or written acknowledgment of the debt.

 

There is a wealth of expertise and insight here to help you get this under control.

[alexpn]

Thanks! That's amazing to know

 

I will endeavour to post up the full list of financial doom as soon as I have my credit files in front of me. I have maxed out my Experian/Equifax free reports several years ago, so will do this when I get paid this week.

[determindator]

Hi Alex, I agree with all of the above advice but just to add, the Consumer Credit Counselling Service can organise an affordable payment plan to your creditors. Worth making enquiries.

[citizenB]

Hi Alex, I agree with all of the above advice but just to add, the Consumer Credit Counselling Service can organise an affordable payment plan to your creditors. Worth making enquiries.

 

And it is a free service

[citizenB]

Thanks for this, when you say priority debts, does this mean the larger amounts or those that are very old?

 

With regards to PPI and Charges, yes it's very likely. A lot of the credit cards that had PPI will have been passed to an agent though? What are you thinking?

 

If you have any secured loans, those would be priority. All unsecured debts - credit cards - loans - PDLS are non priority and should be treated equally to a percentage of the disposable income based on the size of the debt rather that its age.

 

What you need to do is to stay off the telephone to creditors otherwise you could end up being trapped in the "he who shouts the loudest/threatens the most doom and gloom" obtaining the lions share of the money and that will make life equally difficult for you.

[BRIGADIER2JCS]

Secured loans, tax debts, NI debts as your are self employed Alex, Council Tax as well.

[Conniff]

And it is a free service

 

So is CAG

[alexpn]

thanks guys, putting my mind at rest.

 

There is no council tax, parking fine mortgage type borrowings thank god, it's all unsecured. Ideally, I'd like to just speak to them all, get them off my back and pay a set amount per month for them all and stop the letter and phone calls. I have a horrible feeling it could take me well into my 40s until it's sorted.

 

So definitely not phone calls? Letters to all creditors ?

[citizenB]

So definitely not phone calls? Letters to all creditors ?

 

 

Unless you are in a position to record the telephone call then telephoning them is an absolute NONO !!

[determindator]

As it is all unsecured, the CCCS is a good call. They deal with letters to creditors. Definately look into any PPI you have as redress on that is very promising. You are on your way to being de-stressed!

[BRIGADIER2JCS]

H scarlett the image is too small follow the instructions in dx100s signature.

[determindator]

The CCCS is now known as Stepchange here is the link http://www.stepchange.org/debttest.aspx?WT.srch=1&WT.mc_id=200012&WT.seg_1=step%20change%20debt%20charity&gclid=CMfovvKvgrgCFajKtAodgjUAig

 

This is the history http://www.stepchange.org/Aboutus/CCCS.aspx

[dx100uk]

get your cra file

 

make SURE all your debts show BEFORE entering into any DMP.

 

dx

[JurgenMK]

Before making any big mistakes by trying to fix things yourself I would also strongly recommend to take professional advice.

 

Already mentioned by other post - Stepchange is a very good starting point and they answer many questions already on their website.

 

Same applies to other options http://www.debtadvicefoundation.org/ or http://www.nationaldebtline.co.uk/

 

These are all Charities.

[alexpn]

you're all really helpful. I will check the above out, and perhaps give them a call tomorrow.

 

I have just been reading several other threads regarding MMF/Motormile Finance, one of the firms after me, I am scared!

[BRIGADIER2JCS]

Hi, MMF are full of bluster and threats, and need a very forceful reply to any of their letters ie treat them to some of their own behaviour!!