Debt management advice ; credit card debt passed to Link Financial

[jim88888888]

Hi,

 

I have three credit card debts which I have not been able to meet the repayments on for over a year.

 

I make token payment of £1 per month on each and have done so for 6 months.

 

The total of all three debts is just short of £21,000 The largest creditor (under £15,000) now with Link Financial.

 

The other creditors are B. Diamond card £4,000 and Nationalised bank £1,500

 

The reason for my token payments is that I am unemployed at present - on JSA.

 

Successfully claimed back charges on the MBNA debt 4 years ago but did not do so with others.

 

I am going to ask my family to loan me the money for full and final settlement.

 

Any advice as to the best actions to move forwards ?

 

Thanks.

Edited March 29, 2012 by jim88888888
anonymity.

[Wintry]

Hi jim

 

To start with (If you have not already done so) it might be worth having a good look through the links below to get a general idea on your options / information etc

 

https://debtremedy.cccs.co.uk/start.aspx

 

http://mymoney.nedcab.org.uk/moneyadvice/ (not funded by banks, lenders & creditors)

 

https://www.mymoneysteps.org/

 

Nat Debtline fact sheet on Full & Final

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

 

Any chance of you putting up more information on your overall circumstances as this may help us give you further guidence?

 

Best wishes

[victoria_siempre]

Hi Jim

 

Welcome to CAG.

 

First, you should reclaim before attempting to settle; see other threads and search the site.

 

Second, since you are on JSA what exactly do you hope to achieve by a F&F?

 

love

 

vic

[jim88888888]

Hi Wintry,

 

Thanks for the links, I've just spent a while going through them mymoneysteps, nedcab and full & final on national debtline are to the point & useful.

 

I have a sub £1K overdraft that I pay a pound a day for.

 

Why I'm asking about full and final settlement :

 

If I get work and creditors again start charging interest I will be in a catch 22 position unable to pay down the capital amount (as I was for three years before my current unemployment).

 

I do not want to enter bankruptcy as it will harm my employment prospects both now and in the future.

 

That is why I want to make settlement now whilst the creditors may accept it ?

 

In short :

 

Rather end my debt mess and the financial insecurity it bring by repaying a loan to family members at small interest than sit it out until what appears to be a protracted piecemeal 100% repayment with interest that has a large risk of failing return to square one due to some other financial / health / employment misfortune

 

 

Please ask if there is more info that would be of use.

 

Thanks again.

Edited March 29, 2012 by jim88888888
anonymity

[victoria_siempre]

Hi Jim

 

The blunt truth is that your CRF will be b*ggered for 6 years from when they defaulted you, and if they haven't yet....

 

Bankruptcy is inadvisable.

 

I return to my original question, 'What do you hope to achieve by a F&F?' (which ain't f&F).

 

x

 

v

[jim88888888]

Hi Vic,

 

Thanks for the reply, it's nice to be here.

 

I've outlined all of my debt financial circumstance in my reply to Wintry with some of the reasoning behind wanting a settlement.

 

Being on JSA is O.K. in terms of dealing with creditors but not somewhere I can stay - literally ; rent exceeds JSA/welfare.

 

The charges reclaim process from experience takes a long while so I'm weighing the risk of the amount of charges I may receive back (£1,000 to £2,000) against the potential of having interest reinstated on debts and having to repay the full amounts.

 

What I hope to achieve :

 

Remove credit card debt as cost effectively and relatively quickly as possible without entering bankruptcy, whilst importantly for me maintaining some chance that I may one day be able to get a mortgage.

 

My plan was to write to the creditors asking for copies of the loan agreements (all the credit cards have been held for over 10 years - MBNA 20 years old next year) IF the agreements are valid & I can get a loan from my family to simply offer settlement as advised on the boards here.

 

Reading up on the site presently - any pointers to threads welcome

 

Thanks again,

 

V.

 

N.B. just seen your reply - yep defaulted already so know credit is buggered, just want debt ended with banks/recovery agencies ASAP.

Edited March 29, 2012 by jim88888888
add acknowledgement to Vic post and anonymity

[victoria_siempre]

Hi again Jim

 

OK, so your CRF and mortgage prospects are b*ggered for 6 years where they have defaulted you; where they have not a simple solution is to stop paying until they do.

 

You are on JSA so they have no choice but to accept £1pm and freeze interest and charges; they then quicly lose interest.

 

Were you to start offering F&Fs they would smell blood and this is not helpful.

 

It is all a matter of tactics; in the end it's your call.

 

x

 

v

[jim88888888]

Hi,

 

Understood credit is b*ggered for 6 years - all three credit cards are in default and have been for 6 months so not a question of waiting to default.

 

As I understand it the implied course of action is to do nothing and continue to pay one pound a month to them? As offering settlement will cause them to ask for more !

 

is my best course of action to begin the process to reclaim charges & obtain original loan agreements ?

 

When I find employment would it not be normal for creditors to simply reinstate all of the debt & resume interest charges ?

 

I'm obviously missing/unaware of something here.

 

Thanks again,

 

V.

Edited March 29, 2012 by jim88888888
anonymity