Huge debt - and lost my job

[moobelle]

Hi

 

I've been on this site a few times getting bank charges back from several of my creditors but now my life appears to have hit rock bottom and after a month of reading everything on here and researching best way forward, I'm ashamed to admit I am still really confused and have been very guilty of burying my head in the sand and hoping the problems would just disappear.

 

Debt is 49k

 

I'm a consultant who is finishing this contract in one week and then I have no income.

 

I feel as though am being backed into a corner to go down the BR route - which I really don't want to for obvious reasons.

 

As far as I see it I have the following options.....(and I am doing more bank reclaims every time I have a spare £10 for the SAR's)

 

1) CCA all my creditors and cancel all dd's so no-one getting anything at moment.

 

2) Write asking all creditors to freeze interest and accept token payment until I am back on my feet.

 

3) Apply for BR.

 

My confusion arises as can I actually do 1 and 2 at the same time - and if yes, then should I?

If people accept freezing interest will this affect my credit file - and if yes how long will this last?

 

Another question is - in a way I would like all my debts passed over to DCA's - and then agree F&F at reduced rate with them.....BUT how do you get to the DCA stage - do you have to default on payments and get CCJ's against you first?

 

Sorry am so confused - its all a bit baffling this esp when it comes to the CCA stuff - ie if non-enforcable debt then can I just walk away and fight the defaults on my credit file.

 

Questions questions questions.

 

Many thanks in advance for any help and advice I get.

 

Moobelle

[PriorityOne]

Please can you list all of the debts, including the amounts outstanding... who they are with and how old the accounts are (approx.) ?

 

Once reduced payments have been made for some time, companies will normally default you, but when you're in a dark place... this is the least of your worries really. The bottom line is that you need to survive and minimise your stress levels along the way.

 

My initial strategy has always been to write (rec. delivery) to each creditor with a brief summary of the circumstances and my proposals to repay what I can afford each month (normally £10, but you can offer less than this)... providing they agree to freeze all interest/charges on the account. I have then made those payments regardless of what they decide anyway.

 

The reaction to this has been mixed. Only 2 have been good about it and by being co-operative, have continued to receive repayments from me. Others have ignored all letters (despite proof that they've been received) and continued to add charges/interest and refuse my offer, etc . It then becomes a battle of wills, but the repayments continue on my terms.

 

When they get pig sick of me, it then gets passed to a DCA (usually internal to start) and they get a CCA request at that point.

 

While all this is going on.... have nothing whatsoever to do with anyone over the 'phone and if they try to get you into conversation... say "in writing only please" and hang up... just hang up... or refuse to go through "security". If you allow them inside your head, they will just feed your mind with a pile of bowlarks about their so-called rights and so on .

 

[moobelle]

Thanks Priority One

 

Debts are made up as follows

 

NW loan 15k - two years old though have had account with NW for 18 years

MBNA loan 3k - four years old

MBNA credit card - 9k - 15 years old

Barclaycard 6k - 20 years old (THIS ONE DOES NOT SHOW UP ON MY CREDIT FILE BTW)

Egg - 6.8k - four years old

Marbles - 3k - four years old

Tesco 2k - two years old

Capital ONe - 1k - two years old

Halaifax credit card - 3k - four years old

WElcome finance - 0.5k - one year old

Northern Rock loan - 2k - four years old

 

Egg are offering me full refund of charges at mo plus interest - but will only pay it into Egg account so can't use this money as account was terminated by them.

NW bank account claim ongoing.

Need to do all the others but can't afford the £10 fee for the SAR's.

 

My current plan is this.

Finish this job this week

Write to all creditors explaining situation and offering token payments until I find a new job (although do I have to do all these at same time - eg MBNA and NR loans nearly finished and surely would be better to carry on with those if can?)

I have about 3k of unused credit on existing cards - I am emptying all that cash out and putting it under the mattress as it were so can actually pay rent etc for next couple of months. I guess i should remove cash before alerting them to my situation?

Get a new job and then CCA and SAR every one of them!!!!

 

If I am honest and state that I have every intention of paying back this money when re-employed surely these creditors will see this as better for them than BR which if they refuse token payments seems to be my next option?

 

Will these reduced paymenst show up negatively on my credit file if they have been agreed with the creditors?

Moobelle

[PriorityOne]

 

Egg are offering me full refund of charges at mo plus interest - but will only pay it into Egg account so can't use this money as account was terminated by them. You could query this one by letter (rec. delivery) because how can they pay funds into an account that's already been terminated ? Their answer would be interesting....

 

My current plan is this.

Finish this job this week

Write to all creditors explaining situation and offering token payments until I find a new job (although do I have to do all these at same time - eg MBNA and NR loans nearly finished and surely would be better to carry on with those if can?) If they've nearly finished and you can afford to continue, then it makes sense to finish them and get rid of them for good, yes.

 

I have about 3k of unused credit on existing cards - I am emptying all that cash out and putting it under the mattress as it were so can actually pay rent etc for next couple of months. I guess i should remove cash before alerting them to my situation? If your circumstances mean that you have to take such drastic action, then yes... you would need to do that first. I can remember a time when my back was up against the wall like that... and I withdrew the last £100 from my credit card to get a TV licence before informing them of my situation. The logic was that at least I'd only be in trouble with the CC and not get a hefty fine/prison for not having a TV licence as well !! Some may argue that it's not morally right to do this.... but you have to put your own needs and those of your family first, IMO.

 

Get a new job and then CCA and S.A.R - (Subject Access Request) every one of them!!!!

 

If I am honest and state that I have every intention of paying back this money when re-employed surely these creditors will see this as better for them than BR which if they refuse token payments seems to be my next option? You're jumping way too far ahead... one step at a time.

 

Will these reduced paymenst show up negatively on my credit file if they have been agreed with the creditors? Some creditors wait longer than others before defaulting you, so it's hard to say... but your main focus is survival right now... so you need to decide what matters to you the most at the end of the day.

 

Moobelle

 

[angel_1]

Hello Moobelle,

 

and I agree with Priortyone, i wish id had this great advice at the start of my own dmp journey.

 

with the plans ive agreed with creditors it actually does show on my experian credit file as payment plan agreed - not sure how this affects me in the long run, but i wont be asking for any more credit for the time being so not bothered - only other thing is a new job and they ask to investigate my credit file, but surely paying on a plan would show im taking responsibility for my debts and have been in touch with the appropiate creditors. Maybe others can update more on the effect on the credit file.

 

other thing what about posting a full statement of affairs, so we can see what your general expenses are and help you see if any can be cancelled or reduced to get more money at the end of the month to keep you surviving until your next job comes along

 

anyway if nothing else we can all still give you a little helping hand along the way never feel uncomfortable in asking any worrying questions.

 

ive learnt all ive done so far with the help of others and the early days are scary until you get to know stuff , then it becomes easier, promise

 

Take care for now and thanks priorty one i did learn that lesson of never getting into a conversation on the phone insist on writing only, yep!

 

Ciao MAZ