80k debt

[RodeMan]

Hi,

I have accrued some considerable debts with a number of creditors on CC and a few loans over a period of 8 years and since i split with a toxic ex and had to start again.

following a pandemic which stripped my income in half and around the time my promo offers expired and I was now being hammered with 20% average interest rates things were manageable.

I got by by using a CVPP for a year which ended in march. I have since set up a DMP with Stepchange and will no doubt be chased for the arrears soon.

4 cc have rejected the offers sent across. 2 have dropped their interest rates to 0% under persistent debt.

I have a large commission coming in May pay which could wipe a reasonable chunk off my debt and leave me about in the black in terms of income/outcome

 Ive come to the conclusion i am not going to struggle to pay this for the rest of my days.

I have opened a new bank account and plan to move my commission over. I figured, only one of my creditors needs to default me for my credit to be screwed ( even though i dont think it can go lower)

why not just accept the inevitable and let them have at it. over half of my debts are over the 5k threshold for court action so i am concerned this might not be the right path.

To be clear, I have attempted to setup payment plans with each but its taken me days to get hold of anyone to discuss renegotiating interest rates so i ended up going back to stepchange.

No one wants to discuss they just want to fill in tick boxes and no one can think outside the box or gives a monkeys to see my situation so i am getting close to going rogue and telling them to shove it. 

I genuinely want to pay this money back and rebuild my life again but i cant deal with robots anymore.

I could pay 20k off my debts end of the month, i could sell my car and pay another 10k off but cash flow is always a concern.

I need to run a business and my bank (worst offenders) are threatening to whip my overdraft away which has been my lifeline. all in the name of being " a responsible lender"

my salary resets that every month so they get a few quid from me in interest so i just see this as them trying to shut me down.

Any advice?

Ive had 1 termination letter which has given me until 3rd june to get upto date or get defaulted.

i can get all my accounts up to date by the end of the month and pay a few things off but it only barely gets me back to a positive in the bank, but not by much.

shall i stash the money and when defaulted make offers?

keep for any ccj notices?

many options but im getting a little overwhelmed here.

any advice on how best to use this money would be appreciated.

my parents spent their lives being hounded by debt collectors and threats and I dont want that for my daughter.

[dx100uk]

Welcome.

1st.. original creditors don't do court and there is no '£5k' court limit. I think you mean the old £5k (now £10k) small claims threshold between STD and fast track. But forget all that ...

I would as you have? Open a parachute account and let the bank wriggle 

How old are you debts and what are they .list them. Please

[RodeMan]

Shawbrook loan nov 2019  7.8k

HSBC loan Jun2 2019  5.8k

HSBC CC June 2018 5k

MBNA CC Nov 2016 6.4k

Virgin CC Nov 2016 7.8k

Halifax CC1 Aug 2016 9.5k

Halifax CC2 Nov 2015 7.5k

Barclaycard April 2013 8.7k

John Lewis Loan Jan 2019 8.7k

 

Rest is on a car HP which i am paying off then selling the car

[dx100uk]

how far into the car HP are you?

anywhere near 50% mark?

 

who's the OD with?

 

 

[RodeMan]

just a year into a 4 year term. I can settle early and save on the interest. the price of second hand cars now are high due to new car delays so I am hoping to make 10k extra on it and get a run around.

 

its with Audi finance (VW) i might send them an offer and see if i can shave 1k off my offer.

[dx100uk]

aw well worth an ask.

 

pers i'd do this debt stuff yourself rather than getting stepchange involved.

 

why dont you go pro rata to all of them .. or have you?

our pro rata letters are in the debt collection section of our library.

 

im always a bit wary of using any lump sums that come thru to pay debt off.

you need that to live on, you dont know income going forward.

 

lets face it, your credit file is going to be trashed

so get all the debts defaulted now

then at least in 6yrs you'll have a clean file

rather than staggering the defaults.

 

just stop paying every credit debt.

let each one issue a default notice

then go from there.

 

just keep you income out of everyones hands incase they offset it.

 

 

[RodeMan]

reason i got in touch with stepchange was because trying to contact anyone who isnt a braindead phone jockey was impossible. just the same robotic forms and rigidity in their way of working. If i could speak to someone with some authority i would have but i ran out of time so i went to stepchange.

 

Stepchange, although free dont have your interests at heart, only the creditors it seems.

 

i can deal with defaults but whats the likelihood of CCJs? would they go straight in? or would they wait until my defaults to a late stage then try and do me over for another 6 years?

[theoldrouge]

As dx has said 

Who is the OD with and who have you opened your parachute account with. Let’s check there are no bank connections 

Cancel all your DDs other than the HP and build up your cash resources 

Do you own a property?

[RodeMan]

Hi,

Not sure what you mean by OD (Original Debtor?) Parachute account is with Natwest.

Will cancel my Stepchange plan and speed things up.

I dont own a property no i rent 

[dx100uk]

overdraft 

 

puts you in quite a good position if you own no property then, 

[RodeMan]

my overdraft is with HSBC. this is the thing that would kick me in the balls if i lost it as its been my lifeline so far. its 4.5k.

 

I do have a car i need to sell (as much as I really dont want too...) and ill get 20k for that but i have to pay the early settlement which is just under 10k.

 

l have the month end of month and it saves me £342.30 and my car allowance from work means im 742.30 better off a month. plus the sale of the car and buying another which i plan to put in on of my parents names

[dx100uk]

what do you mean if you 'lost it'?

its in credit then?
 

[RodeMan]

They have been talking about doing something with it. Wanting me to discuss it with them and reduce it. I have been expecting them to just whip it from under me for a while now. 

 

It gets cleared every payday 

[Badtimes123]

Welcome Rodeman.

 

Always listen to the posters with thousands of posts over anything I might say, however I'm keen to start helping people where I can and sharing my experience.

 

Your total debt amount is similar to mine, see my thread, I'm now over a year since my last payment to any of them, nothing has happened with the exception of a ludicrous amount of paper being jammed through my letter box.

 

I cannot comment on your car finance, but I will say that anything that is consumer credit (credit cards, loans etc) and are solely in your name, cannot hurt you and likely are unenforcable if you follow the guidance you will get here.

If I were you and I had a lump sum coming (you seem to suggest this), I would secure that into another account (one not linked by finance group to the original creditors, co-op I hear is a good one looking at your list of creditor's) and take dx's advice in post #6.

 

Don't answer the phone - letter correspondence only

Keep all letters in separate folders - trust me, this will help in the months to come when they start selling things on.

Never discuss your income and expenditure with anyone.

And last but certainly not least, relax - everything's going to be fine

 

BT

 

Edited May 7, 2022 by Badtimes123

[dx100uk]

Stop all income going into that ruddy od 

Get every penny of income paid into a parachute account.

 

Do not set up any dd's from this 

Pay your priority bills by Bacs.

 

Dx

 

[RodeMan]

Thanks, I appreciate it. My car is on hp so I am assuming it's something they can't take as it doesn't belong to me?

 

So setup standing orders with my priority debts like rent etc.

 

My hp is DD but they won't take more than the set amount plus I am not in arrears and intend to keep paying as it's safer to have hp (I assume) than my own car from say court bailiffs if it came to that.

 

Just to note my parachute account is NatWest. Are they affiliated to my list of creditors?

 

 

Edited May 7, 2022 by RodeMan

[Badtimes123]

Ref affiliation, had dig around and you should be fine. Natwest are part of RBS group.

 

My parachute account has affiliation (noted after the fact) with some of my creditors and nothing has happened because the Original Creditors are so quick to sell the accounts onto debt purchasers, who have no financial affiliation with any banking groups.

 

From what I understand co-op would have been a good choice for me having a similar list of creditors to you but I wouldn't worry RodeMan

[RodeMan]

Thanks, I appreciate it. Time to get my pay into the new account and ditch stepchange who are useless

[dx100uk]

On 07/05/2022 at 17:43, RodeMan said:

My car is on hp I am assuming it's something they can't take as it doesn't belong to me?

who can't take it and why would 'they'???

On 07/05/2022 at 17:43, RodeMan said:

My hp is DD but they won't take more than the set amount plus I am not in arrears and intend to keep paying as it's safer to have hp (I assume) than my own car from say court bailiffs if it came to that.

court bailiffs are YEARS away if ever

[RodeMan]

Car isn't technically mine I'm just a registered keeper. If they took it they would essentially be stealing from a finance company. But I'm aware some will try and clamp or act as if they have the right even though court bailiffs couldn't as it's not my property.

[dx100uk]

not sure why you are worrying about bailiffs and cars being clamped/involved.

 

OC's don't do court

the debts are not sold yet.

 

and even if they are purchased by a DCA

they are NOT BAILIFFS

and have

absolutely ZERO legal powers on ANY debt.

 

[RodeMan]

hi all.

 

HSBC has just sent me a small cheque for the interest charged during my breathing space period. Im suspicious it might be a way to find my new account. could this be the case or am i just being paranoid?

[dx100uk]

Yes Paranoid.

They can't do anything like that 

[RodeMan]

Hi all,

 

Just a quick update.

 

The majority of my accounts are defaulted and 2 are now sold on. I have been keeping records in folders, keeping the letters in the original envelopes dated when received.

 

I have read another thread from MrPloppy who has been told to pay token payments to the new creditors, I dont believe this was explained to me. Should I be expected to offer this? or will this prolong the statute barred process so they can summon me to court whenever they please?

[dx100uk]

OC's very very rarely do court.

 

mr ploppy was advised to resume paying debts still owned by original creditors once defaulted if he wished 

you 3 2019 loans MIGHT be candidates if you wish

 

but yes it does extend the SB of course, payment by YOU is acknowledgement