Have reached breaking point, any advice please?

[paulh_85]

So after a long while of denial, i have finally come to the conclusion that i need help regarding my levels of debt.

 

Its been putting a severe on all aspects of my life including my job and my relationship, ive contacted PayPlan about this and this will ring me back (probably Tuesday) i think.

 

Just wondering if i can get any advice from people on here.

 

my debts (roughly) are

 

£4800 - Barcelys credit card

£3000 - halifax credit card

£5500 - tesco personal loan

£100 - halifax overdraft on current account

£100 - lloyds overdraft which is in a dormant account, also occuring charges (£40 last month)

£45 - Orange, the original debt was passed to a collection agency, when i phoned up to pay they had passed it back to orange, and i have heard nothing since. (though its still showing on my credit report.

 

the issue i now have, is the minimum payments on the credit cards mean i can no longer live from month to month, and its only going to get worse.

 

The loan, and two credit cards are still with the initial people i took them out with, i havent missed a payment on either of them since ive had the accounts

 

Ive over my credit limit on the one card, and bang on it with the other, paying a total of £240 in minimum payments and seeing the figures not moving.

 

would a DMP help me? is this the best route for me or are there other options? If im going to go down the DMP route should i cancel the minimum payments set up on the account now (as i currently have not enough money to see me through until payday) or leave them going?

 

if it would be possible to get the credit card companies to stop charging interest i might be able to get somewhere, but it feels like im choking with each and every month that passes to the point where i really cant take anymore.

 

Any help, advice or previous experiance anyone can provide would great.

 

thankyou

[dx100uk]

how old are these

when did you take them out

 

dx

[paulh_85]

how old are these

when did you take them out

 

dx

 

Hi. The loan is a three year term im halfway through.

 

The barcelycard ive had about 18 months as well

 

The halifax credit card is about 7 years now

[SabreSheep]

HI there

 

Well the biggest step is now taken. You are now in a situation to start taking control of your life again.

 

Just a quick look on your list, you may find the following threads a usefull tool. Especially for the Barclaycard Debt.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?423713-Barclaycard-Link

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?138906-mackerel-vs-barclaycard!-***WON***/page5

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?309037-Charges-older-than-6-years-***WON***-Compound-Int-t-and-**NO-SET-OFF**/page4

 

 

OK a few things things.

 

---------Stay charges and interest payments stage-------

Step 1, you might want to read up on BCOB and examine if you come under financial hardship

 

Step 2 After taking advice form here and elsewhere you might want to inform all your lenders of your financial difficulties. Completing a financial statement might help here.

Asking for them to stop charges, reduce minimum repayments and interest.

 

Step 3, If you qualify as being in financial hardship someone should be able to help you reclaim and stop current charges on OD using BCOB

 

--------------------------Info gathering time------------------------------

Step 3 CCA for the credit cards

 

Step 4 Subject Access Request all your Creditors

 

Step 5 Look for evidence of PPI and begin calculating preimiums and interest paid on them.

 

Step 6 Begin reclaims on PPI

 

Step 7, Look for overlimit fees, late payment fees on you credit cards

 

Step 8 Calculate claims and start reclaiming credit card charges (Interest in restitution is good for wiping off large amounts of debt where charges were a while ago)

[Guest]

if you do go into dmp, ensure that any interest is ceased and that what you pay goes to paying off the debts. no point otherwise.

aside from pay plan, consider also CAB (stepchange etc) for eg re a free dmp. or diy.

are you concerned about defaults?

you do need to get all those charges/interest stopped asap re financial difficulties. your dmp provider should ensure that. if not, don't go with them.

and as posted, ensure first no statute bar is applicable. and consider any poss missold ppi, reclaimable charges, unfairness, etc.

[fletch70]

Something to consider as well is what assets do you have, do you rent or own your home, do you have a decent car?

 

I would agree with a lot of what has been said, if you want some other advice on what all the options are you could do a lot worse than call National debt line , they can give you template letters to send as well as help you work out an I&E

 

One option, although it does have implications so needs research is a DRO (debt relief order) .

I mentioned that because assuming all interest and charges are frozen and there is nothing to reclaim paying 200 per month is going to take 6 or 7 years to clear, with DRO you will be debt free in 12 months and have a clean credit file in 6 years

[paulh_85]

thankyou for the replies.

 

I signed up to Noddle, i have a 5 on a payment for Orange, but its not as yet showing as a default so if i clear this with the tomorrow i should be fine there shouldnt i?

 

I am concerned about Defaulting, but im unlikely to be in a position to buy my own house for another 6 years anyway, Does entering a DMP mean an automatic deafult? will that start now or at the end of paying things off?

 

As well as wanting to sort my life, and debt out, i would like to think that 6 years from now i can be debt free and on the road at least to starting to buy my first home, would a DMP or a DRO be the best route for this?

 

Also, has anyone had any experince with PayPlan? and are do they provide a free service?

 

Many thanks again

[BRIGADIER2JCS]

thankyou for the replies.

 

I signed up to Noddle, i have a 5 on a payment for Orange, but its not as yet showing as a default so if i clear this with the tomorrow i should be fine there shouldnt i?

 

I am concerned about Defaulting, but im unlikely to be in a position to buy my own house for another 6 years anyway, Does entering a DMP mean an automatic deafult? will that start now or at the end of paying things off?

 

As well as wanting to sort my life, and debt out, i would like to think that 6 years from now i can be debt free and on the road at least to starting to buy my first home, would a DMP or a DRO be the best route for this?

 

Also, has anyone had any experince with PayPlan? and are do they provide a free service?

 

Many thanks again

 

 

How many other delinquent accounts do you have?

[dx100uk]

pp and stepchange are free

 

but so is doing it yourself.

 

if you've 5 on last payments

they are there for 6yrs anyway

 

whatever you do

 

don't goto a fee paying DMC!!

dx

[Guest]

thankyou for the replies.

 

I signed up to Noddle, i have a 5 on a payment for Orange, but its not as yet showing as a default so if i clear this with the tomorrow i should be fine there shouldnt i?

 

I am concerned about Defaulting, but im unlikely to be in a position to buy my own house for another 6 years anyway, Does entering a DMP mean an automatic deafult? will that start now or at the end of paying things off?

 

As well as wanting to sort my life, and debt out, i would like to think that 6 years from now i can be debt free and on the road at least to starting to buy my first home, would a DMP or a DRO be the best route for this?

 

Also, has anyone had any experince with PayPlan? and are do they provide a free service?

 

Many thanks again

 

if there is no default re an account, and then there is an agreed variation/arrangement to pay, then it shouldnt be noted as a default as such. but, cra files will prob be noted re an arrangement/dmp. that may or may not adversely affect any future mortgage application if still being paid? depends who you go to i suppose?

this is the ico' s recent brief guide re defaults etc

http://www.scoronline.co.uk/files/scor/high_level_prinicples_document_final.pdf