Advice on where to go now voluntarily surrendered car most grateful

[purple25]

Hi all I am very new to CAG, but have had some great advice so far and from reading other posts I have got lots of advice and I am working hard to tackle debt problems.

 

Advice about what I am to do now I have voluntarily surrendered my car would be most appreciated.

After reading other posts and advice I am not sure we did the right thing, I had not discover CAG prior to my action!

Didnt know there was surrender or termination and still not sure if I had a choice.

 

I suppose it is done now anyway, I surrendered the car, but I am not sure where I now stand or where to go from here.

 

My partner has lost his job twice since the beginning of the year, he now has a new job just a couple of weeks ago, we have two children and I am a second year uni student and work part-time. As a result of his job losses we have got into a state with various bills, loans etc and were struggling so badly in private rental that we have had to move in with my mother.

 

I was getting very anxious about the car, advantage were constantly hassling me on the phone at home, work and mobile. I need a car to get kids to school and me to uni and my sister-in-law said we could have her old car that she was going to sell, if it helped us. So we thought the best thing was to give the car back to save being taken to court which scared life out of me.

 

I purchased the car in 2009, purchase price £4000 we paid a £250 deposit and got finance from Advantage Finance for the rest.

Total credit provided was £8,548.84 It included gap insurance.

 

The car was voluntarily surrendered last month and our balance with advantage was £5,135.82

From a statement sent after I had surrendered the car!, I have since discovered it includes loads of collections charges for the issue of letters and texts ranging from 50p to £50

 

They have sold the car at auction and I have recieved the following letter

 

Further to the repossession of the vehicle under the agreement, you are advised that a shortfall of £4,174.82 remains owing on the account. (Was definitely a surrender not repossession, signed a form to surrender)

 

This account however can be settled on or before 27/09/2011 at £2,951.26

 

If you are unable to comply with the above, or wish to make arrangements for more time to pay, please contact the office upon receipt of this letter so we may discuss the account in full and arrange a mutually acceptable arrangement to resolve matters.

 

Should you ignore this letter your account will be passed to the litigation manager to recover the full debt outstanding through the county court.

 

I understand that I am liable for the money after surrendering car, but what I need help with is there any way that I can reduce the amount I owe?, seeing as I feel gutted they got hardly anything for the car and I am virtually paying the full amount despite not even having the car.

 

can I ask for the charges to be removed from the amount owing?

 

If they are offering a settlement amount is this because they cant pursue me for full amount?

 

If I am liable for full amount, how do I go about making an offer? does it have to be by phone?

 

how much is reasonable monthly amount to offer?

 

Lots of questions, sorry am in a right state about it, any advice gratefully appreciated

Thank you in advance