SWIFT FINANCE LOAN. Help please?

[1stlifeline]

We are really struggling to pay off our creditors and much to our regret have decided there is no option but to sell our house in order to release some equity to pay off some of our debts. However we stupidly took out a secured loan last August thinking we would pay offf the credit cards etc and just have one payment. I never works like that does it! We now want to sell the house and pay off the loan but I have just been looking through some of the literature from the loan company and even though I cant really understand it all Im afraid that we are going to have to pay back far more then we borrowed because we want to settle early, therefore defeating the object of selling to raise equity. I know I can ring them for a settlement figure but just wondered in advance if anyone has any experience of this type of thing and what they are likely to take from us. We borrowed £1900 over 15 years. Thanks for any help.

[dx100uk]

£1900? you sure?

 

dx100uk

[1stlifeline]

Sorry, £19,000

[1stlifeline]

Anyone please?

[dx100uk]

mine both have sections mentioning early repayment, both indicate a figure much less than the total balance if you continue paying till the end. i'e you will not be paying the monthly interest for a start from pay off date.

 

anyhow, seems a bit drastic to me, why cant you just write to everyone

include a balance sheet [in/out] and ALL your creditors + total amount owed & say hey guys you are each going to get £xx PCM for xxmonths. end of story, like it or lump it.

 

if it were me i would not sell my asset or even release equity ever!

 

dx100uk

[1stlifeline]

Thanx DX100. We dont really want to lose our home but we have considered every option and also been to the consumer credit counselling service. The lady there said she thought the best way out would be to let the house go. We have sent the relevant incoming/outgoing sheets to all our creditors but the best they have offered is a 6 month period of reduced payments. I suppose that after that they may extend the period but at the moment our outgoings seem enormous. We thought that if we sell we will have some capitol to make some of the creditors offers of a reduced settlememt figure but at the same time I dont really want to end up renting. Its just that when we tried to arrange a payment scheme there was so little left over that we had to offer what are really tiny amounts to each of them and they were reluctant to accept it without some form of action plan to iomprove our circumstances as we cant offer enough long term. I dont see what else we can do. We are prioritising the mortgage and secured loan and are not behind with those. If anyone can make any suggestion I would welcome them. Im self employed and dont always make a great wage but I think kit will improve as the business gets established. My partner works EVERY hour god sends so he cant improve his income.

[1stlifeline]

Just wondered if anyone new was about that could perhaps give me advice.

Thanks

[PriorityOne]

Thanx DX100. We dont really want to lose our home but we have considered every option and also been to the consumer credit counselling service. The lady there said she thought the best way out would be to let the house go. We have sent the relevant incoming/outgoing sheets to all our creditors but the best they have offered is a 6 month period of reduced payments. I suppose that after that they may extend the period but at the moment our outgoings seem enormous. We thought that if we sell we will have some capitol to make some of the creditors offers of a reduced settlememt figure but at the same time I dont really want to end up renting. Its just that when we tried to arrange a payment scheme there was so little left over that we had to offer what are really tiny amounts to each of them and they were reluctant to accept it without some form of action plan to iomprove our circumstances as we cant offer enough long term. I dont see what else we can do. We are prioritising the mortgage and secured loan and are not behind with those. If anyone can make any suggestion I would welcome them. Im self employed and dont always make a great wage but I think kit will improve as the business gets established. My partner works EVERY hour god sends so he cant improve his income.

 

 

I also think it would be a mistake to sell your home. I was once persued for a huge amount of money, but only paid what I could afford... with all interest frozen. They can only have what you can afford. If you haven't got it, then don't go borrowing, stealing or selling your home to find it ! Your home is your security... and you need to live somewhere. Everyone has that basic human need.

 

Pay your creditors what you can afford after prioritising your mortgage and secured loan. Offer tiny amounts if that is all you can afford... and keep copies of all correspondence sent. I have paid miniscule amounts on my debts in the past... and only £5 a month for years on a debt that was far greater than yours. They tried to get more out of me several times, but my circumstances never allowed it... and so it contnued. It was finally settled for a pittance partly because I had shown such goodwill in maintaining those small payments.... but there was no way I would ever have sold my home. Not under any circumstances !!

 

Do not give in to their intimidation... you need a place to live. Keep that place your own. You have posted that you can manage the mortgage and the secured loan and those are the most important.... What are the other debts for and how old are they ?

[1stlifeline]

Thank you priority one. My partner has 2 loans which would have been paid off in about 4 years. We also have between us 4 credit cards. The most stupid thing we did was borrow to fight a court case, but it was for the best reason, for my partner to have access to his daughter. We got a secured loan to consolidate the cards but of course you then rely on them again. I started my own small business a year ago even though we both have great faith in it, it is taking time to get established and so Im not earning a great deal. The thing was that I had to give up my previuos job for health reasons so I dont have the wage I once had. We have liased with all the creditors but because of the amount we can offer they have spoken of sending debt collectors etc and so we have told them that we will try to sell the house.. We were also told by the consumer credit counseller that selling our home may be the best option as we dont want to go bankrupt. We owe around 59,000 but even if we sell the house we will only have about 25,000 to offer so wont clear the debt. We would only make our outgoings smaller in terms of the paments we need to make. The thing is that the situatiion will change in time, my business will improve, my partner pays child maintenance but that will cease in about 6 years and also the loans will finish(although not as fast as they should because the payment amount has been temporarily reduced) I also will have about 20,000 to come from an inheritance in the next year sometime. I am just frightened when they speak of sending debt collectors round. I know its our fault we have got into this mess but we are not trying to dodge it.

[dx100uk]

just got in 18hr shifts at present for mon /tues weds is just a late one.

 

look in my sig below, they are now working again the site is back up to speed after the infux from the programme on ITV.

 

fire off a few of the cred/dca offer letters below they fit your situation.

 

DON't be afraid of DCA's, THEY HAVE NO POWERS...at all.

 

they are just one and i do say this nicely ...doing their job.

 

and two. they are only human phone chasers. end of subject.

 

keep your house intact do what you are doing mortgage and loans secured on them. also dont forget, the secured loan could be negoitated to a temp lower level. ASK! if you tell them the truth most will respond.

 

TELL all the credit card Co.s or non secured loan peoples exactly what you can afford & state you are not prepared to barter, but will keep up the offer regardless of their acceptance or not. as priorityOne says, get them in every month & keep doing it month after month. even if £5.

then if any do take you to court that will go for you a very long way.

YOU made an offer of honesty & goodwill they were the ones that would not accept it.

 

now, what about charges anyone has levied, there must be quite a bit waiting to drop in your hands? another benefit here is even if it is very small claim back, once you have sent SAR's you put the A/C's in dispute, DCA cant touch it niether can the Co.s refer them out.

 

we are here with you.

 

dx100uk:lol:

 

 

do not be affraid of DCA !!

 

dx100uk

[PriorityOne]

I agree wholeheartedly with dx100UK !!

 

You have to remember that Debt Collection Agencies are not bailiffs !!... this is where your fear comes from, I think. In order to get bailiffs in, a Debt Collector would have to take you to court first... they can't just order the in !! It doesn't worlk like that. If it goes to court, once you are there, a judge will arrange repayments based upon what you can afford... so make those payments, regardless of whether the DCA accepts or not... send a cheque by recorded delivery. They will accept it.

 

As previously said, if it does go to court, this shows a great deal of goodwill on your part.. that you have tried you best. Also, if your offers have been turned down in writing, keep hold of all correspondence... file it away somewhere... even the rec. delivery receipts when you send your payments in. Once again, if it goes to court, you have evidence that payments were offered and were rejected.

 

How many loans/credit cards are with DCAs at the moment ? Which DCAs are they with ?

 

How many are with the original creditors ?... or are they all still with the original creditors ? Who are the original creditors ?

 

[1stlifeline]

Thanks people, your advice is appreciated. The credit cards are still with the orig people. Nationwide have agreed a lesser payment as have Cap One and M+s. We both have an Halifax card and as yet we have had no response at all from them evn though we have banked with them for years. However I have sent off a SAR to start a claim so maybe this has a bearing on it. American Express have been snotty. They have refused to help unless we have our phone disconected (as we are on cable it is a phone / tv package but we just have the very basic) i have explained that if we cancel NTL it will cost over 120 pounds to connect with BT who would be phone only and acceptable to them. They say we need to get rid of our mobiles but mine is vital to me for work as I am self employed. I tried to explain to them that if I dont have the mobile I will lose the work and our income will fall which in turn will make the offer off payment less but the guy said that was 'irrelevant'! They have also told us that another reason they wont help is because we are running 2 cars. They say we should share one.The reality is that we drive an old banger each ( both have the cheapest tax and insurance) My partner starts work at 3.30 am and finishes around 2pm. I work in a totally different town which is only 7 miles away if I cut through the country lanes but to use public transport I would need one bus and 2 train journeys. Its far more cost effective to use the car. The card is in my partners name and the income/expenditure sheet done by the consumer credit counselling service was a joint form for use both.

[dx100uk]

who the hell are AE to tell you to ditch phones/tv & cars!

go tell em to p@ss off.

 

can i give you a bit of advice here:

STOP USING THE PHONES TO TALK TO THESE PEOPLE!"

 

they never abide by what they say and always try to get away with what they can.

 

anyobody on your cred list that is not happy, fire them off one of the letters below, stating you will only be paying £** & that you do not want any more phone calls everything is to be put in writing.

clearly state that you will consider it harassement if they call you.

 

DON'T let these people pull your strings...you control them its your money and your life.!! bar the secured loan & mortgage, everything else is unsecured, it goes to the bottom of the list & on the very minimum payment priority.

 

another good one is to keep firing of letters to freeze the interest on everything. then if they do write you make ref to WHY can they not freeze it.

 

i have today [thurs] just got GE money to pay me back over £700 in interest, having continually ask and pointed out they were only 1 of 2 companies out of 9 CC debtors i have that had not made some effort TO HELP ME pay my debt during a period of poor financial income.

 

i went through 5 people, being nice and continually stating my situation over and over again. the last was a senior supervisor, who rang me! after she was told i had made a complaint.

 

 

i had not, other than 'why will you not help me!'

 

end result, no more charges for 12mts no interest £25PCM .

 

they really do not like it when you stick to your guns and demand they help, esp if you play on the bit that 'other' companies have agree to this level of payment/no charges/no interest.

 

keep your chin up.

 

dx100uk

[PriorityOne]

Thanks people, your advice is appreciated. The credit cards are still with the orig people. Nationwide have agreed a lesser payment as have Cap One and M+s. We both have an Halifax card and as yet we have had no response at all from them evn though we have banked with them for years. However I have sent off a SAR to start a claim so maybe this has a bearing on it. American Express have been snotty. They have refused to help unless we have our phone disconected (as we are on cable it is a phone / tv package but we just have the very basic) i have explained that if we cancel NTL it will cost over 120 pounds to connect with BT who would be phone only and acceptable to them. They say we need to get rid of our mobiles but mine is vital to me for work as I am self employed. I tried to explain to them that if I dont have the mobile I will lose the work and our income will fall which in turn will make the offer off payment less but the guy said that was 'irrelevant'! They have also told us that another reason they wont help is because we are running 2 cars. They say we should share one.The reality is that we drive an old banger each ( both have the cheapest tax and insurance) My partner starts work at 3.30 am and finishes around 2pm. I work in a totally different town which is only 7 miles away if I cut through the country lanes but to use public transport I would need one bus and 2 train journeys. Its far more cost effective to use the car. The card is in my partners name and the income/expenditure sheet done by the consumer credit counselling service was a joint form for use both.

 

I have to say that I think you have given them too much information. As advised, do not have any more dealings with them over the 'phone. If they 'phone you, tell them that you will only deal with the matter in writing from now on. If they persist in 'phoning, then you can fire off a telephone harrassment letter in the bank forum...

 

Re. the accounts that have accepted reduced payments.... have they also agreed to freeze all interest ?... and are these reduced payment really manageable by you or do you need them to be reduced further ?

 

Am. Express have no right to tell you to get rid of anything. Please do not assume that you have to tell them all the ins and outs of your life either. Make a monthly offer of payment and enclose a cheque with your letter. Send it recorded delivery and keep the receipt.

 

By my reckoning, you will then have 5 accounts on reduced payments... once AE are on board. This only leaves Halifax... who have been sent a SAR to re-claim charges. Is that all of them ?... and if they were all brought down to a manageable level, could you afford to live ?

 

If so, a SAR can be served on all of them... one by one.... at your leisure. There must be plenty of charges on these accounts, which will help to get the debts reduced.

 

Are you able to say what the outstanding balance is on each account ?

 

Nationwide... ?

M & S......... ?

Cap. 1........ ?

Halifax........ ?

Am. Ex........ ?