Looking for advice on how to deal with my debts...

[krayg]

hi all, I am looking for some help on how to deal with my debts.

 

I built up a large amount of debt during my time at university. A couple of these creditors have caught up with me over the last few years, but most don't seem to have tracked me down and there has been no communication between us for years.

 

I realise the stupidity of ignoring these debts and I would like to face up to my responsibilities and stop worrying everytime there is a knock on the door in case it is a bailiff.

 

So I would like to start repaying these debts. I have been reading the site, looking at debt management plans etc but I would like to know the best way to go about this. The idea of a debt management plan sounds good as I work a lot and dont have much time to spend writing letters/making phone calls myself.

 

So I would like some advice on where to start. Should I get my credit report first - as I honestly couldnt list all the companies I owe money to. If so then which credit agency should I sign up to for my credit report?

 

And what do you guys think of debt management plans where a company would deal with everything for me and just take a single monthly payment? my friend has one and it seems a lot simpler than doing all the paperwork myself.

 

Many thanks for any help!

[rory32]

How many years?

[krayg]

about 4 to 5 years at the most.

anyone??

[rory32]

Well the first thing I would do is send the CCA request (it's in the templates library but if you need a link to it just say) as you want to know if the account is legally enforceable.

 

Also if the accounts are enforceable you should look at reclaiming any penalty charges on the accounts as there will be lots of these and they are unlawful.

If so then which credit agency should I sign up to for my credit report?

Different companies use different CRA's although the two main ones are Experian and Equifax. Please be aware though that as soon as you sign up to them your creditors or DCA's will be crawlling all over you as the CRA's pass this info on. Edited October 2, 2008 by rory32
typo's

[krayg]

what does it mean for an account to be unenforcable? why wouldnt they be abl to enforce it? And should I sign up to more than one credit agency then to discover who i owe what to? thanks

[rory32]

What this means is that a creditor can not enforce an account even in a court of law.

all they would be able to do is ask you to pay - a court could not make you pay by granting a CCJ for example.

It then becomes your choice whether you pay or not and what sort of settlement you reach.

For example you may give them 10% of the amount in return for repairing your credit file on this account or if that is not important to you you may decide that you wish to give them nothing.

[krayg]

but why would an account be unenforceable?

[rory32]

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/105315-my-agreement-enforceable-useful.html

[huggys boss]

I agree with Rory32, if you are ready to deal with this then you need to start with CCA's. Letter N here http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Send a £1 postal order with every request you send, send it either recorded or special delivery and KEEP YOUR RECEIPTS.

 

NEVER SIGN ANYTHING YOU SEND TO A DCA.

 

You need to decide whether you want to tackle the whole lot head on or not. If you do, then apply to the 3 main credit ref agencies for a copy of your file and take it from there.

 

Or just take it one at a time as they come through the door, because as sure as eggs are eggs, once you start paying one the rest will follow.

 

If you want to set up a DMP use either PAY PLAN or CCCS - they are the free ones. The other ones will charge you.