Debt building up, funds running low

[debtgalorehelp]

Hello there, just found this website thanks to google

 

As the title goes, my debt is too much to handle, and I'm currently on JSA due to redundancy some time ago,

I've been struggling with payments, basically I've been getting 0% interest cards and shifting them over when I can,

but I cannot continue in this way for much longer, its really making life hard at the moment, I owe

 

£7k to Halifax

£8k to Barclays

and also other cards below £2k.

 

I've phoned debt consolidation,

they said they could get it down to £100 amonth (currently paying almost £400, but I use it back around £250 of it).

Thought that could help, but I heard its better to get in contact with the creditors themselves than rather call a second party so to speak.

 

I've read here briefly of offering £1 amonth, is this doable?

I mean can it be done?

if so, be a tremendous help!

and I can relax and get better food and spend some of the cash on getting some new clothes for my kids which I haven't done so for such a long time!

 

I've never missed a payment btw, and I feel like enough is enough cannot go on, cannot afford it any longer..

 

Sorry if such a topic has already been opened or discussed, as I have limited time on the net.

 

Thank you all for your time.

[BRIGADIER2JCS]

Hi Welcome to Cag,

 

Please remember these debts are not priorities!!

You need to do an income & expenditure sheet.

 

List all priority debts.

 

Rent/mortgage

Council Tax

Court orders if any

Utility Bills

Arrears on any ac****s that you

are paying off.

Food

Clothing

Travel exspences for work

school meals

Insrances

TV livence

 

set the total against total income

the result is what you hve avaiable

to pay creditors.

[citizenB]

Do you have any charges or PPI on any of your loans/credit cards ?

If so, you could reclaim those in order to reduce the debts.

If you prepare yourself a proper income and expenditure sheet, you will be able to include in your budget for childrens clothes as well.

Armed with a proper income and expenditure sheet showing your situation you should be able to ask your creditors to accept lower/token payments and freeze interest until you can sort your finances out.

If you are experiencing difficulty in repaying your debts, CASHflow is a way for you to negotiate affordable repayments with your creditors. Before you can use CASHflow, you must have spoken to one of the free advice agencies licensed to offer CASHflow to their clients. The advice agency will start by talking to you about all of the options available, and can help you to decide if CASHflow is the right one for you.

 

If you decide to use CASHflow, you will be provided with all of the tools you need to be able to complete your own financial statement and negotiate offers of repayment with creditors yourself. This will enable you to stay in control of your situation, but still have support from an adviser at any stage if you need it.

 

You can contact a local advice agency to check if they offer CASHflow. You can find a list of free advice agencies that are near to you by searching for a money adviser in England or Wales, Scotland, or Northern Ireland.

Alternatively, you can call National Debtline on 0808 808 4000

CASHflow: http://www.cashflow.uk.net/

National Debtline: http://www.nationaldebtline.co.u k/

https://www.mymoneysteps.org/

Also as highlighted in the CAG newsletter...

There is the new CAB system that might also be worth a look, this system saves all your details, has guidance allowance figures to work with if you wish and you do not need to be invited / signed off etc with this system, just log in and away you go (see below)

 

(Also, there are a number of other self help tools and systems around so might be worth a little exploration if this is what you eventually decide on.)

 

http://mymoney.nedcab.org.uk/moneyadvice/

 

http://mymoney.nedcab.org.uk/moneyadvice/ (example of completed dmp)

[debtgalorehelp]

WoW thanks for the fast replies.

 

I felt more relaxed hearing that they aren't my priorities, made me relax abit, as I'm a type of person I can worry pretty quick. My wife been saying the same to me, and seeing this from you has made me smile and relax.

 

I guess your right in that I need to do a income/expenditure sheet, but I'm on JSA at the moment been on it for along time, jobs been there but so to has hundreds of people applying, and the current economic situation we are in, I feel that the jobs will be given to the youth more(over 35). I shall do a sheet before I do anything.

 

Also what does DCA mean? sorry newbie here :S also can £1 amonth be offered and be accepted by them? I have a friend whom is in the same boat as me, and has successfully done it, but myself being a person of researching it before I do it, I would like to know what are the other options if they refuse the £1 amonth offer? or shall I ask them to make me a offer of what I can pay back?

 

Sorry if this doesn't make perfect sense, just curious and in need of advice and help

[citizenB]

DCA = Debt Collection Agency

 

Yes, if you are on JSA then there is insufficient to keep body and soul together as it is.. without having to pay huge amounts to creditors. You will be making £1.00 token offers and at the same time requesting that the creditor ceases adding interest and charges in order that the debts dont escalate.

 

In the information I posted earlier, the agencies will have many template letters that will be useful CAG has draft letters in the libray , which you can link to at the top left hand side of each screen.

 

What dates did you enter into the agreements ?

[debtgalorehelp]

Thanks again for the replies.

 

I haven't yet started anything (phone call, letter etc) I will need to though very soon, will though doing this will lower my credit score? I mean I have another credit card, will that be affected? such as the limit of the card be lowered etc?

 

Many thanks again.

[citizenB]

Almost certainly your credit score will suffer.

[BRIGADIER2JCS]

Sorry to say your ''credit score'' will all ready have been affected.

Have you checked lately.

[debtgalorehelp]

Sorry to say your ''credit score'' will all ready have been affected.

Have you checked lately.

 

 

Hey guys,

 

Sorry for the long delay, been having pc login problems and pc itself problems..

 

Ok update.

 

Good news, have a job!

Bad news, I live in a rented property with my wife and two children and another on the way

Council now saying I am not entitled to any benefit at all....which was a real shocker, as take home wage is £1000 amonth just!

 

The credit card bills are still there, waying heavy on me, I cannot afford to pay them all, which amounts to £400 amonth, my rent is £550. I get child tax credits etc, but the payments to the cc are too much to handle, they will eventually lead me bankrupt..its going that bad, even with this new job that I managed to find and started almost 4 weeks ago.

 

Any help on this matter of what to do, how to explain to the creditors please please please!

[citizenB]

First of all, congratulations that you have new employment : )

 

Are there any default charges on any of these debts..e g late or missed payments ?

 

Is there any PPI on any of the accounts ?

 

You have no assets, so making you bankrupt is not in anyone's interest.. other than yours as it would mean that any and all debts that you have would be hoovered up and you would be discharged within the year. You could then start putting your life back together again.

 

I think you are just outside the amount for a Debt Relief order. For this, your debts would need to be under £15,000 and you would be discharged within one year.

 

See attached Nat Debtline fact sheet.

 

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

 

Your only other option is as advised in post # 3 where you work out exactly what your disposable income will be after PRIORITY debts of which none of your creditors are.. then write to them and offer a percentage of the disposable income - this will only really work if the creditor will freeze interest and charges. Little point in paying token/reduced payments only to see the debt increase.

[debtgalorehelp]

First of all, congratulations that you have new employment : )

 

Are there any default charges on any of these debts..e g late or missed payments ?

 

Is there any PPI on any of the accounts ?

 

You have no assets, so making you bankrupt is not in anyone's interest.. other than yours as it would mean that any and all debts that you have would be hoovered up and you would be discharged within the year. You could then start putting your life back together again.

 

I think you are just outside the amount for a Debt Relief order. For this, your debts would need to be under £15,000 and you would be discharged within one year.

 

Your only other option is as advised in post # 3 where you work out exactly what your disposable income will be after PRIORITY debts of which none of your creditors are.. then write to them and offer a percentage of the disposable income - this will only really work if the creditor will freeze interest and charges. Little point in paying token/reduced payments only to see the debt increase.

 

No I do not have any PPI ... I think.

 

My debts are above £15,000

 

Halifax Mastercard £6,900

Barclays Visa £8600

Virgin Visa £2400

RBS Visa £1900

 

Could you please advise what to say to them over the phone, or can I go and visit them (Halifax branch) and please advise me what to say, really unsure on how to approach and what to say. You can even PM if you like. Just really need precise information on how to handle this and what to say etc.

 

Many thanks again for your fast replies, really really appreciated.

[debtgalorehelp]

Post 3?

[citizenB]

I left the following information for you in post number 3..

 

 

 

 

Do you have any charges or PPI on any of your loans/credit cards ?

 

If so, you could reclaim those in order to reduce the debts.

 

If you prepare yourself a proper income and expenditure sheet, you will be able to include in your budget for childrens clothes as well.

 

Armed with a proper income and expenditure sheet showing your situation you should be able to ask your creditors to accept lower/token payments and freeze interest until you can sort your finances out.

 

 

 

 

 

 

If you are experiencing difficulty in repaying your debts, CASHflow is a way for you to negotiate affordable repayments with your creditors. Before you can use CASHflow, you must have spoken to one of the free advice agencies licensed to offer CASHflow to their clients. The advice agency will start by talking to you about all of the options available, and can help you to decide if CASHflow is the right one for you.

 

If you decide to use CASHflow, you will be provided with all of the tools you need to be able to complete your own financial statement and negotiate offers of repayment with creditors yourself. This will enable you to stay in control of your situation, but still have support from an adviser at any stage if you need it.

 

You can contact a local advice agency to check if they offer CASHflow. You can find a list of free advice agencies that are near to you by searching for a money adviser in England or Wales, Scotland, or Northern Ireland.

Alternatively, you can call National Debtline on 0808 808 4000

CASHflow: http://www.cashflow.uk.net/

National Debtline: http://www.nationaldebtline.co.u k/

https://www.mymoneysteps.org/

Also as highlighted in the CAGnewsletter...

There is the new CAB system that might also be worth a look, this system saves all your details, has guidance allowance figures to work with if you wish and you do not need to be invited / signed off etc with this system, just log in and away you go (see below)

 

(Also, there are a number of other self help tools and systems around so might be worth a little exploration if this is what you eventually decide on.)

 

http://mymoney.nedcab.org.uk/moneyadvice/

 

http://mymoney.nedcab.org.uk/moneyadvice/ (example of completed dmp)

 

 

 

 

Post 3?

[debtgalorehelp]

Thanks

 

Just called Halifax, and they were really really good with me, they refereed me to ww.cccs.co.uk (Consumer Credit Counseling Service) and instructed me NOT to pay and to cancel my direct debits, to actually miss a payment and then call Collections Officer after acouple of days explaining your situation etc.

 

Was really overwhelmed with the kindness of them over the phone... thought it was going to be much different..

 

Will keep you all posted, many thanks again for your instant replies guys!

[DuffNCustard]

do call the CCCS - they are a debt charity and sorted me out a treat. I paid off £92k worth of debt with a DMP that they ran - best thing I ever did - I'm now debt free, employed and have a ;arge disposable income thanks to no credit - wished I'd done it years ago instead of struggling on robbing Peter to par Paul