Overwhelming debt – Where to Start

[shaunyshaun1234]

Hi,

 

I've managed to get myself in a lot of debt. Around 30k. 

 

I've sat down this morning and worked out my income and outgoings etc and as it stands at the minute (with paying the minimum payments) I have around £50 disposable income per month.

 

I've put together a spreadsheet that assumes the creditors would freeze interest and then divide the current balance over 6 years. This would leave me with £450 disposable income (going into savings as much as can for the first time in my life).

 

The debts are :-

Barclaycard £12800 Defaulted (currently with moorcroft chasing me, although I have made no contact with them)

Natwest CC1 £3560 (Currently 9 months into an 18 month payment plan to get my account back on track, now £300 below credit limit)

Natwest CC2 £3271 (Currently 9 months into an 18 month payment plan to get my account back on track, now £390 below credit limit)

Capital One £3341 (currently being chased for arrears)

Next £945 (currently being chased for arrears)

Paypal Credit £6060 (plodding along ok)

 

Would a plan of such be acceptable to my creditors using the Pro Rata letter template?

 

Or would they want paying more over a shorter period to squeeze down on disposable income?

 

Can I "hide" some of my disposable income on the expenditure template? With 2 small children to buy clothes and go on small UK holidays I need some form of disposable income? Even if most of it is going into savings.

 

My credit rating is already trashed but after reading the IVA horror stories on here, I really dont want to go down that route.

 

Throughout this week I wil speaking to mortgage advisors and explaining my situation and seeing if there is anything that can be done. I will also be speaking CAB and Stepchange to take advice from them. i'm trying to attack it from various different angles.

 

I had been hiding it from my wife but was forced to come clean over the weekend. She is devastated as its all new to her. I'm partly scared to death but also partly excited to some light at the end of an already 7 year long tunnel that has played havoc withmy health (depression etc).

 

Any advice is much appreciated.

 

Thanks

 

[shaunyshaun1234]

Thanks for the advice. I'm on hold to citzens advice at the minute. Not sure how long I'll be on for.

 

I have always made sure that BYOB debt is paid on time every time. The only debts that are racking up are the unsecured.

[AndyOrch]

Hi and Welcome to the Forum.

 

If I may suggest you don't bother with external debt advice...you will be no better off in the long run. All the the answers and advice and proven cases are here on CAG.....just take your time to look around the forum and find similar posters in the same position.

 

Andy

[shaunyshaun1234]

Thanks @andyorch. This is the process I want to go down but my wife (understandably so) is insisting that I get some professional advice. I'm going to mock up the letters and send them out as there is no downside (that I can see) to doing this. 

 

My only concern is that my left over disposable income would be too high for them to accept. I suppose that will require some discussion.

 

As I'm new around here, would you be able to point me in the right direction of some of the successful cases?

 

Thanks

[AndyOrch]

Okay well you are surrounded here in this forum with others in similar situations and advice already given to get them started...just return to the main page of the forum for starters.

 

If you could list the take out dates of the credit cards and if you have already received any default notices.

I see all the debt are still with the original creditors at this stage..

 

With regards to Moocroft ///completely ignore them...deal with the OC

[AndyOrch]

Here is the link to the CAG Library for all your templates....

 

 https://www.consumeractiongroup.co.uk/forum/370-cag-library-subforums/

[dx100uk]

don't be pursuaded by the like of stepchange / CAB to ever go down the road of IVA etc as this secures the debts.

 

pers i'd be using our pro rata letter and doing this yourself

but we need all the info on each debt:

 

original creditor

what type of credit

when taken out

outstanding

who you pay now

what is the defaulted date

[shaunyshaun1234]

Barclaycard £12800 Defaulted 26/06/20 (currently with moorcroft chasing me, although I have made no contact with them) Taken out approx 16 years ago. Not paying anything now. 

 

Natwest CC1 £3560 (Currently 9 months into an 18 month payment plan to get my account back on track, now £300 below credit limit, paying £80 per month) Taken out approx 7 years ago.

Natwest CC2 £3271 (Currently 9 months into an 18 month payment plan to get my account back on track, now £390 below credit limit, paying £80 per month)Taken out approx 7 years ago.

 

Capital One £3341 (currently being chased for arrears) Taken out approx 12 years ago. Have stopped paying and am being chased for arrears.

 

Next £945 (currently being chased for arrears) Taken out approx 10 years ago. Have stopped paying and am being chased for arrears.

 

Paypal Credit £6060 (plodding along ok) Taken out approx 8 years ago

 

[BankFodder]

@shaunyshaun1234 you've obviously got yourself into a bit of a mess and you need some stability and it's great that you are now starting to examine your position – and hopefully your wife will be supportive. I can fully understand that she's a bit devastated to begin with.

You are in very good hands here – and my site team colleague @dx100uk will take you through it and help you.

One of the things that the debt management agencies never do is examine the enforceability of your debts. We always do.

Debt management agencies try to restructure your debts and then try to arrange for you to pay them off – even if they are not enforceable. You should also be aware that debt management companies make their money by taking a commission which might be better off going to the debts which are enforceable rather than simply to an adviser.

Discuss your situation with the site team members here and consider their advice carefully. If in a week or two you are convinced then certainly go and see a debt management agency and see what they have to say.

However, you come to this forum and I suggest that you give it a chance. The only thing that is "not professional" about the help that we give is that we don't charge anything to you or to anybody else. It's all free.

I notice that one of our members seem to be rather over-enthusiastic about sending you off to Stepchange but I felt that it was already dissolving into an unhelpful and destabilising disagreement – so that person will not be visiting this thread any more.

Lay it all out. Answer the questions that you are asked and by and large follow the advice that you are given. And see how it goes.

[dx100uk]

drop/ignore everything else bar the natwest cards, have natwest frozen interest and charges since they agreed the payment plan.?

 

paypal credit, is this owned by newday UK, paypal credit UK or paypal eu? who was the stated creditor?

 

let everything else get sold on to dca's and keep ignoring them until/unless you get a letter of claim then comeback here for help.

 

thats a tiny tiny amount of debt and most of it stems from a time whereby enforceable paperwork will be very difficult for a dca debt buyer to get other than by faking it now.

 

just remember the golden rule

a DCA is NOT A BAILIFF

and has

ZERO legal powers on ANY debt no matter what its type.

[AndyOrch]

Given that your Credit Files are already trashed.....I would also consider sending requests for the credit agreements (section 78) 

 

BC/NW/Capital One/Next.

[shaunyshaun1234]

@Andyorch forgive my lack of knowledge but what will that do?

 

[AndyOrch]

Its checks if they actually have a copy of the agreement and mores so if its enforceable should they issue a court claim....if they cant comply with your request then there would be little point in raising a court claim.

 

This is the advise that CAB/SC wont tell you.

 

But only use this if they have issued a default notice already.