Need help with debts to Original Creditors i can now longer pay

[Stripeycat]

Currently have large amount of debt, have spoken a debt management company, as the debt us unsustainable and I can't afford the interest payments on it . Can't get through to independent debt advice companies at the moment ? 

 

Looks like I will be facing an IVA or bankruptcy. 

 

Last ditch attempt before I go down the above routes, I am wondering what my chances are of getting money back , debts reduce, or  interest paid back on the basis of unaffordable lending. 

 

My main credit card debt is £21,000, this account was started with a  £12,000 credit limit back in 2003 and there was a steady increase since then, up to present amount. My income has always been quite low,  so I believe there is an argument to challenge them on the basis that they haven't done their due diligence before making their lending decisions. I went on from 2008 to take out further credit cards and they kept increasing my limit. Showing I was struggling to sustain the debts. 

 

I think I may have a case, but I am wondering about the time limits on my claims. From browsing the internet I am aware that the legislation I am looking to enact, didn't come into force until 2008 ? will I be able to claim from 2008 onwards ? 

 

For the last 10 years or so I have just about  managed to make the minimum payments to pay the interest off, I have made no dent in the credit amount and its just increased. 

 

Thanks in advance for advice. 

 

 

[dx100uk]

doubt it sorry

 

stop use ruddy debt management companies!!

 

a dmp is easy do it yourself 

 

is all your debt still with the original creditors or have some been sold to debt buyers/dca's?

 

why dont you list your debts please 

[Stripeycat]

No not been sold. I have spoken to them all and I am currently in a 30 day grace period. 

 

It's with 4 separate cc companies. 

 

I haven't used a debt management company yet, but they are the only people I have managed to speak with. Can't seem to get independent debt advice  and I am self employed, so cannot use step change or any other others. Only business debt line - I have been trying for days to get through to, but can't. Even though its not business debt it personal debt. 

 

The debt management company I spoke to suggested and IVA, which I understand they are financially motivated to do. 

 

I really could do with independent advice to talk through my options and answer a few questions, but can't seem to obtain it at the moment. 

 

 

[honeybee13]

We're independent.

 

If you list your debts, we'll help you.

 

HB

[dx100uk]

i would do:

/assets/static/govuk-opengraph-image-dade2dad5775023b0568381c4c074b86318194edb36d3d68df721eea7deeac4b.png

Debt Respite Scheme (Breathing Space) guidance - GOV.UK

WWW.GOV.UK

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Service access and guidance for creditors and money advisers about Breathing Space

 

please list yours debts..

 

original creditor

what type of credit

when taken out

how much outstanding.

 

its consumer credit debt, that is not a crime in this country STOP PANICKING.

 

 

[Stripeycat]

MBNA - opened July 2003, unsecured CC debt approx  £21,000

Barclays, opened 2008, unsecured CC debt, approx £7,000

Cap 1, opened 2008, unsecure cc debt, approx £6,000

Marbles opened Nov 2021, unsecured CC debt, approx £4,000 

 

 

Upto December 22 -   Feb 2023, I have not missed 1 payment on any of these accounts, but for the last 10 years I have pretty much maintained the debts by making minimum payments. 

Its only when MBNA decided to upped their interest late last year to £350 per month, I spoke to them and said I cannot  afford to pay etc... and I am now considering my options. 

 

I am starting  to think I am better off with bankruptcy, its just I am self employed and I need a decent bank account to operate my business, I just don't think I can face 5 years living on a basic income to pay off the debts in an IVA that was offered as a solution. 

 

 

[dx100uk]

no 

do not ever go BK/IVA/ etc etc for consumer credit debts.

 

i suggest you read a good few 10's of threads here in the forum i've moved your thread too-  debt self help.

 

debt is not a crime

get the breathing space done

 

then investigate pro rata payments. as threads here.

stay off the phone

everything now in writing ONLY.

 

if your situation is not going to improve within breathing space/ pro rata situations then i'd honestly stop all payments NOW

await every one of the original creditors to default your debt, then move fwd with pro rata.

the quicker you get default notices issued, the quicker the debt will be removed from your file, paid or not paying or not at the DN's 6th B'day.

 

dx

 

 

 

 

[Stripeycat]

Thank you. 

If I am understanding this correctly - 

If I allow the debts to go to default, I will then offer a payment plan that will be split proportionally amongst my debtors and on the 6th birthday of the debts anything still outstanding will be written off ? 

 

I don't think realistically be able to pay the debts off within a reasonable time frame, like you say the sooner it goes to default the better, so there is little point me requesting 60 days of breathing space. 

 
I will try to get further advice  and will check out the rest of this forum, but do I need a debt charity to work out the pro rata payments, or can I work out myself what disposable income I have  and draft an offer myself? 

[dx100uk]

no the debts are not written of, when a registered default reaches it's 6th b'day, the whole account is removed from your credit file simply they can never return. debt still exists.

 

please be clear there is a difference between a D in the calendar section (that only you can see) and a Default Notice under section 87/8 of the consumer credit act.

 

await that DN letter from each creditor and check it gets registered on your credit file before your enter into a pro rata agreement.

 

you need to spend some time READING like threads here

get upto speed.

 

please dont bother going elsewhere you DONT NEED IT and all these people do is make you pay and enter into debt management plans YOU DO NOT NEED TO DO THIS.

 

once you read threads HERE all will become obvious.

all the docs are already here 

 

Debt management and Debt self-help - Consumer Action Group

 

 

[Stripeycat]

just to update all I have had since posting is lots of letters and phonencalls (ignored)  asking me to pay from my different creditors.

Barclays sent me a default notice a few weeks back, but this is just for the payments and interest missed. I have attached a copy of the letter.

Marbles have written to inform me that they have closed my account. 

Just wondering if creditors are perhaps hesitant to issue default notices because it will mean the debt disappears after 6 years ? 

 

Barclays.pdf

[dx100uk]

so you've not been reading up then?

they cant do anything else bar issue a dn.

all pages and leave in dates times figures please

or else how can we check its compliant.......

 

dx

 

[Stripeycat]

Yes I have been looking at the forums and get the gist, but its is still quite and overwhelming amount of information to take in.  

Barclays letters attached, with date and back. 

The only other thing that came with this was a generic FCA letter outlining why I have been sent a default notice. 

 

 

They just seem to be defaulting me on the interest and payments missed since I stopped paying, not the full credit balance. 

2023-05-18 BC DN.pdf

[dx100uk]

doesnt matter its still a DN. which will remove the whole A/C in 6yrs.

dx