Debt strategy needed

[Tinkmoon]

Hi,

 

I’m looking for some help with my debt.

Normal story of everything ticking along nicely and then my pregnancy coincided with my partner having some serious mental health issues.

He lost his job.

We thought we would use credit cards to see us through and it all snowballed. 

 

We have been making minimum payments but the situation recently got worse and I’ve already had one debt defaulted and passed to AIC. 

 

I have three main creditors.

 

£9500 Amex credit card.

Opened 2014 

Defaulted and card closed. 

Sold to AIC 

I’ve ignored all communication 

 

£9500 MBNA

Opened 2017

Will hit 3 months non payment on sept 7th and threatening closure then 

 

£7000 Barclaycard 

Opened around 2003/2004

Will hit 3 months non payment on sept 17th and threatening closure then 

 

02 phone contract £350 sold to ccs collect

I’ve ignored all communication

 

1300 overdraft from Barclays Bank (recently halved that from 2600)

Barclays is my my only bank account 

 

Questions 

Is it worth me asking for a CCA from the two accounts that were opened in 2014 and 2017. What would I achieve by this? 

 

I think it is definitely worth Asking for a CCA from the Barclaycard. I actually originally had a Barclaycard gold and then they shut that card down and automatically sent me platinum would that affect the agreement between us? I never agreed to anything for the new card. 

 

I’m trying to work on an overall strategy. My credit is shot already as the American Express card has defaulted and closed. 

 

Should I let the other cards default as well? Then ignore the debt companies, hope that no one takes me to court and that my credit clears in 6 years or is that too risky? How likely are the companies likely to try and put CCJs against me? I really don’t want those. 

 

Is it sensible to try and keep one line of credit open as it would make my credit score easier to rebuild with one positive credit card. Or is that pointless and just tackle that in 6 years when the defaults drop off. 

 

Regarding my overdraft. Barclays is my my bank and my mortgage is with them as well. What are they likely to do? I’m happy to make payments but they won’t let me setup a payment plan without doing a full income expenditure report. I don’t want to do that as it feels invasive plus my financial situation is complicated. In theory my personal income is 0 as I have a 3 month old baby.

 

Thank you in advance for any help 

 

 

 

 

 

[AndyOrch]

Hi and Welcome to CAG

 

Best to start a seperate thread for each debt in the appropriate forums otherwise it will be impossible to follow this thread.

 

Regards

 

Andy

[Tinkmoon]

Thanks Andy. I will post on the appropriate forums with the specific debts.

 

I guess I’m still interested of anyone has any advice on looking at my situation as a whole. 

 

As my credit rating is now rock bottom due to defaulting on one card is there a strategy that makes sense on defaulting on the other two now and hoping that I can make six years without getting ccjs against me. Or is that a hopelessly naive and optimistic idea? 

How likely are these debts to go to court? 

The other option is trying to scrap along making minimum payments.  Which I’m not sure is possible or not. Or I suppose setting up a payment plan of some kind?

 

Also so would it help my future recovery to have one credit card still in use or will it not make that much difference? 

 

 I would like a clear overall plan In my head. Rather than just ignoring everything which is what i have irresponsibly doing before. 

 

 

 

[AndyOrch]

Well one default is as bad as having six.....so if its time to take action do it with all of them.If you can keep one out of default and easily maintain the payments then do so....but dont spend on it.

[dx100uk]

AIC or CCS collect are not debt buyers...

who are their stated clients please?

 

 

[Tinkmoon]

AICs client is Amex and ccs is o2

[dx100uk]

then you deal with the original co NOT some powerless DCA!!

they are NOT BAILIFFS.

 

why don't you sent our pro rata letter in the debt collection section of our library to those debts you owe that are STILL with the original company.

very low sum <£10

 

your mortgage is top priority cut the rest to ensure you keep anything like CTAX/mortgage etc paid up properly

ALL other consumer credit debt is bottom of the pile.

 

dx

 

[London1971]

In my opinion, just let the cards default, let the statute barred clock start ticking.  Potential court action might be years away, or never, by that time your finances may well be in a better place, plus you can defend it and likely win.  However, it's very important to keep them updated and always make sure they have your current address.

 

Some might disagree with me here, but that's what I did, and eventually you come out the other side.  Priority Bills are everything right now, none of those consumer debts are important in comparison.   For example speaking from experience, getting behind on Council Tax (5k!!) caused me far more of a problem than any consumer debt ever did.

[Tinkmoon]

Thank you so much everyone for taking the time to reply. I really appreciate it. Debt feels like such a dirty secret so it feels quite liberating for being able to talk about with people. 

 

Thankfully I am basically up to date with my priority bills. 

 

I think I am going to continue ignoring the two debt chasing companies. I’ll take the advice given and send a letter using the template on here offering a small payment for the two cards that have not defaulted. I’ll expect them to  both default and be sold on but at least I can say I offered to pay. Then see what happens next. And that means the clock to statue barred starts going as London1971 said. 

 

I’ll definitely make sure my address details are up to date. I’ll update this thread if there are further developments or I think of any more questions.