£25k to eight creditors - getting to me - help!

[puddleboots]

Hi all,

I really need some straight advice.

 

I've just discovered this site..

..it has so much information that my head is spinning.

 

I'm really not sure where or how to start dealing with my debt.

 

I have debts of just over£25k to eight different creditors.

Very,

Isme,

Marisota,

Barclaycard,

Aqua (2)

Vanquis and

Next.

 

I've been with them from between 5 and 10 years.

 

Due to a change in finances (im self employed) I haven't made a payment since January.

I feel so ashamed! But I just cant afford to.

 

I have just £131.62 left over each month which calculates to just £16.45 that I could now offer each creditor.

 

I don't think they will be too happy with that but I can't afford to pay any more as I have already drastically cut all my expenditure

which I also worry about as I dont have anything put away for kids xmas/birthdays etc...

 

.I'm so very depressed and feel I have failed my children by getting myself in this situation.

 

my daughter has a heart condition which may prove to be fatal within time....perhaps another 5 or 6 years.

 

So with this in mind I wonder what advice others may have,

I went to the debtchange website,

filled out the expenditure form and

they recommed I take out an IVA which would be paid off in 5 years with whats left over written off.

 

As Im now a full time carer to my daughter my finances arent going to change much

and the thought of having and giving very little to my daughter just makes me fall apart.

 

What can I do.

 

I haven't spoken to the creditors as the ones I have 'Very' and 'Isme' were really horrible.

 

I just cant face talking to anyone.

 

Please help x

[AndyOrch]

Hi puddleboots and welcome to CAG

 

Firstly you need to calm down relax and start to prioritise your debts...all the above you refer to are secondary and can be dealt with and payments made affordable and possibly any interest frozen.

 

Take time to read the forum and look at others how they were when joining and how they are now confident in dealing with their financial problems.

 

I would advocate starting a thread for each creditor...a little background the history the age and balance outstanding.

 

You will then get responses on how to move forward and deal with each creditor.

 

Start by reading...making a request for your agreements...known as a CCA ...section 77/78 requests.

 

Regards

 

Andy

[fkofilee]

Well said Andy

 

Puddleboots; Take a deep breath. I was once in your situation and it was a great relief to find this site. Dont cry, compose yourself and remember its not a criminal offence not to pay and it doesnt mean your life is over

 

Follow our advice and we will help you.

[renegadeimp]

Youve come to the right place. We can definitley help you with all these and very likely shrink that amount you owe considerably.

 

Take some time, and list each debt you have with as much info as you can.

[Bazooka Boo]

Will certainly help you with this.

 

This is NOT insurmountable, it is only money.

 

When I found this site I was in debt in the region of 40k, might have actually been more, I can't remember?

[SabreSheep]

For each debt

 

1) Who is the original company

2) What type of debt? EG Loan, Credit card, Overdraft

3) When was the account opened?

4) Is the account been sold to a debt collector? If so Who?

5) Rough Amount

6) Was there any PPI?

7) Credit cards - Any overlimit charges or late payment fees?

 

The first step is information.

 

So for credit cards and loans I would read up on CCA requests

I would also read up on Subject Access Requests and send one to every original company.

 

The second step will be to minimize the balances - Reclaiming PPI and charges.

[Stigman]

Hi,

 

Attached below is a budget sheet to help you including reduced repayments to creditors.

 

Stigman

[renegadeimp]

For each debt

 

1) Who is the original company

2) What type of debt? EG Loan, Credit card, Overdraft

3) When was the account opened?

4) Is the account been sold to a debt collector? If so Who?

5) Rough Amount

6) Was there any PPI?

7) Credit cards - Any overlimit charges or late payment fees?

 

The first step is information.

 

So for credit cards and loans I would read up on CCA requests

I would also read up on Subject Access Requests and send one to every original company.

 

The second step will be to minimize the balances - Reclaiming PPI and charges.

 

Good advice here. Before you start thinking about repayments, or negotiations, or even contacting them, give us this info .

[p3t3r]

hi,

i am just wondering - 25k of debts, family health problems...

 

would it be easier and quicker for the OP to go bankrupt? all the debts would be extinguished

 

if the OP has little value in assets then this would be the best choice as it would end the debts and give the OP a fresh start after bankruptcy has been discharged? (that is what i understand about bankruptcy)

[renegadeimp]

Why jump the gun and go for BR? Chances are most of the debts are UE, or filled with unfair charges which can be reclaimed and drop the debt substantially. Thats why we have said info first, THEN we can see the best course of action

[p3t3r]

i thought that bankruptcy would be discharged after a year, so therefore no debts after a year and a clean start.. it would also give the OP more money each month instead of struggle to repay creditors

 

alternative without bankruptcy = a lot more hassle and fights against creditors, 25k would take more than a year to repay

 

im not saying bankruptcy would be better for the OP as it depends on their circumstances. just suggesting it incase OP has not thought about this alternative option.

[dx100uk]

well lets make sure the debts are:

 

1. enforceable

2. all owed with no reclaiming to do

3. time left on credit file from default.

 

al very well BK/DRO/IVA etc etc

but I'm always sceptical of doing the above until we fully know the situation.

 

PB....go get your credit file please

 

are all you debts showing?

 

dx

[ScarletPimpernel]

Although you might feel ashamed about your situation, there's no need to be. Bad things sometimes happen to good people, and the fact that you have acknowledged the problem and are finding ways to deal with it shows that far from failing your children, you are doing the right thing.If you are depressed, please go and see your GP. Dealing with problems is hard enough without being unwell at the same time.

[puddleboots]

Thank you all so much, I've read each reply carefully and spent all yesterday and last night reading other peoples experiences.....gulp!!

 

I'm not sure if I could ever be that assertive although I suppose I have made a start by removing head from sand

 

OK, as requested I have all the details that I think you might need.

 

I've checked my credit file and this is what it says;

(although I know that on some accounts I've had longer than they are showing

- maybe they just show from a max amount of years, but some Ive had longer than the 09 date it's showing.

 

1. Aqua (cc) balance £0, (actually £3475.52 ) account opened March 09

shows 5 missed payments from Oct 14 up to Feb 15 and 2 other 'I month' missed paymets in 2011 & 14.

I'm sure I received a notice of default from them but I think I put it in the recycling....yes, I know....sorry!

 

2. AQUA (cc) balance £2515, account opened Oct 12, two missed payments Jan & Feb 15

 

3.VANQUIS (cc) balance £3330, opened July 11, 2 missed payments Jan & Feb 15.

I have recieved a Notice of Default asking for £429.28 to be paid by 29th March...or else!

 

4.BARCLAYCARD (cc) balance £3022, opened March 2009, 2 consecutive missed payments in 2010 and now Dec and Jan,

although I haven't paid Feb or March this isn't yet showing.

 

5.MARISOTA (catalogue) balance £2582, opened Sept 2009, showing 2 missed payments for Jan and Feb this year and 4 singular for 2010 and one 2009

 

6.VERY (catalogue) balance £3170.42), opened June 2011, showing 1 missed payment for Feb

 

7.ISME (catalogue) balance £3685, opened Aug 10, showing missed payments for Jan & Feb and 1 in 2011. They have sent a letter saying debt will be transferred to Nationwide Debt Recovery on 12th March although I haven't recieved anything from them yet.

 

8.NEXT (store card/catalogue) balance £3709 opened 09, showing missed payment Jan and Feb although i know I missed Dec but that is showing as being paid for some reason.

 

So all have recieved late payments, charges etc but just for the few months I've missed as in general I have managed to rob Peter to pay Paul quite well!

 

Bonus Debt Alert..

..which I didn't mention before as I'm confused and that is I also have two overdrafts with Natwest which I always rely on.

 

One for £1500 and the other for £2500.

My credit report is all green with them but I always seem to go over each month and end up with lovely charges.

I don't know what to do about them as I'm worried that if I make a fuss they will take back their overdraft

and keep any money that gets paid into my accounts.

 

Oh, also I have a C/C with them too for £450 which I pay for the same reason (payment is just under £10 month so manageable).

So debt is really around £29000 ish

 

Actually just reading back advice....should I of listed each debt in a seperate thread? Will do if you think it's easier to reply to....there is quite a lot.

[SabreSheep]

OK looks like a lot but really not as bad as you may feel it is.

 

One thing I would do is open a new basic bank account and switch bills to it. This will help stop those charges on the overdraft. THEN inform the bank that you are in financial hardship and that they are obliged under BCOBS so consider your position and treat you fairly. Back that up with a I+E.

 

Also use that I+E to work out how much you can afford to pay. Total up the debt and then total up yoru disposable income after priority debts have been paid

Devide that amount by the total debt to get amount X

For each debt you times X by the amount owed. THAT is the figure you will be paying them. See the CAG library for templates for token payments and I+E templates.

 

Some of these may be in the process of being sold to dcas which is why they show as satisfied even though the balance is outstanding.

 

VERY - Probably loaded with insurances and charges I bet.

 

In summary this will take some time to sort out but remember, noone can do anything to you or take your stuff or take you to prison. To get bailiff involved you have to lose in court first. AND if it ever came to that we have people here that can help you defend.

 

As for assetiveness, it grows on you after your first few victories, speaking from experience

[puddleboots]

Thank you SabreSheep, I feel encouraged already

 

I have just opened up a new basic bank account online (yeah) so when I get the documents through the post I will then transfer all my bills/payments over then send the Natwest and the rest my I/E which I'm nearly finished.....

[Bazooka Boo]

Glad you came back..

 

The four catalogues are the easiest, in fact the other debts, are all non-priority debts. Meaning that they fall right to the very bottom

of the list of people to pay, this is after you've had a good night out on a Friday and paid the chauffeur, and had your bi-annual holiday in the Bahamas!

 

A new bank account is a DEFINITE! Open one with a different banking group, try Co-op or even the Post office.

Although I did bump Lloyds a few years back and switched to Halifax (who own Halifax) and so far so good!

 

Do your own I&E form linked above in Stig's post,

Then get onto the bank and the catalogues and inform them you're in financial hardship, and you want them to work with you in order to

come to an amicable arrangement to pay, but this will be at an amount that YOU decide, NOT them.

Those that don't or won't help, get £1 a month end of.

 

Is there any PPI on any of these accounts?

Do you know how much charges have been added to the accounts?

[Bazooka Boo]

I have just opened up a new basic bank account online (yeah) so when I get the documents through the post I will then transfer all my bills/payments over then send the Natwest and the rest my I/E which I'm nearly finished.....

 

Excellent!!

[renegadeimp]

Make sur ethe basic bank account isnt tied to the same banking group as natwest. Otherwise they may try and offset your overdraft to it.

[puddleboots]

Bazooka Boo you do make me laugh Thank you so much

 

I don't think there is any PPI on any accounts but yes they have aquired charges in the last few months, not so sure yet how much, I will have to go over each account to tot it up.

 

My bank accounts though have had a lot of charges.....loads and loads over many years 14 +. Am I right in thinking that I can claim back all the £35 charges within the last 6 years but not the £6 charge that they now charge as this is seen as a reasonable amount?

 

I've seen £12 late payment fees and admin fees on my c/c and catalogues, in one I've just picked up I've been charged two £12 admin fees on the same day for that month....is this seen as reasonable? Am I able to claim this back? I know the answer is somewhere in the forum....I've read so much in the past 24 hours but I couldn't see anything for catalogues....do they still come under what I've read about re the bank charges?

 

If I were to claim back charges is this something I would do after I send off my I/E form and letter?

 

Thanking you in advance

[puddleboots]

Thanks, Ive opened a Halifax account now so I think after a quick check they should be OK....

[puddleboots]

Okay, I've now finished my I/E form and I was looking for a template letter to send with it but I couldn't find the right one.....there's millions!

 

So would a quick covering letter saying,

 

Dear Sir/MAdam

 

with regards to your recent correspondence reguarding account no. xxxx I would like to inform you that I am no longer able to keep up with those payments at the amount you have requested. I have enclosed an I/E form for your perusal and look forward to hearing from you.

 

 

 

Kind Regards

 

Me

 

 

 

Is that OK? Or is it too Short and sweet?

 

Thanks x

[dx100uk]

you dont send anyone the I&E!!

its for your use only. read BB post properly!!

 

 

TELL [dont ask] them they are only going to get £xxPCM for xx mts

as a goodwill gesture

and as a reciprocal GOGW they must freeze int & refrain from levying PENALTY charges.

if they wont

drop them to £1PCM for life.

.

as an example>

.

I am currently in financial difficulties and not able to meet my normal monthly repayments.

to show my goodwill, i am going to pay £5 for 6 mts.

 

i will update you in 6mts time or before, should my situation change.

.

could you please as a reciprocal goodwill guesture,

.

refrain from levying any penalty charges & freeze the interest on my account.?

.

Should you fail to assist me during a period of financial difficulty, contrary to all the guidelines and codes

issued by the relevent bodies and authorities that govern you and the way you conduct yourselves.

.

i shall have no alternative but to reduce my offer to £1PCM for the rest of the life of the account,

.

.

as your actions would do nothing to help me.

.

i thank you for your time.

..

.

dx

.

then pay by your internet banking site

.

and get reclaiming

.

TAKE CONTROL

.

or

if you have sent the above and they refuse

then write back........

.

.

i'm sorry, but you have failed to assist me during a period of financial difficulty, against all the guidelines and codes

issued by the relevent bodies and authorities that govern you and the way you conduct yourselves.

i repeat again, the contents of my letter dated dd/mm/yyyy, for want of clarification:

to show my goodwill, i am going to pay £XX for XX mts

could you please as a reciprocal goodwill guesture, refraining from levying any penalty charges & freeze the interest on my account.

i will update you in 6mts time or before, should my situation chance.

should you fail to help by refraining from levying unlawful PENALTY charges & freeze my interest,

i shall have no alternative but to reduce my offer to £1PCM for the rest of the life of the account,

as your actions are doing nothing to help me.

This is contrary to the rules you should operate under.

disgruntled account holder

dx

[puddleboots]

Oh my! I'm glad I checked now....I think I'm going to have to be a lot tougher....what if they ask for the I/E ?

 

I haven't sent if off yet, I've just now worked out how much I can afford to give them and I don't think they will be impressed.

 

I have to say though I am a tad worried that if they don't accept it they might take me to court....would I have to actually turn up if they did....

 

Thank you so much dx for your advice

 

Okay...letter typed out and printed as suggested, typed signature, no I/E form enclosed!

 

Boots on, coat on and off to the post office....

 

Fingers crossed...

[Bazooka Boo]