My Debt with HFC/Beneficial Finance

ticklish_2
ticklish_2 Posts: 9 Forumite
in Debt-free wannabe
I borrowed 3 separate loans of £1,000 and was sadly stupid enough to get a credit card. These loans bought me everything I have wished for over the last few years, but repaying with £100 a week to spare after rent and other payments are made, not to mention food, gas, electric and water. I am struggling to repay my now £4,500 debt and am trapped in the dreaded minimum payment trap :(

Please help as I'm not financially minded as you can tell and I really want to be debt-free as soon as possible but I have no idea where to start.

Many thanks.
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Comments

  • Merlinexcalibur
    Merlinexcalibur Posts: 1,699 Forumite
    Hello.
    but repaying with £100 a week to spare after rent and other payments are made, not to mention food, gas, electric and water. I am struggling to repay my now £4,500 debt and am trapped in the dreaded minimum payment trap :(

    Ouch to that! I think there are probably ways to reduce that. To a more manageable level. But first, did you offer to pay that amount or was it 'suggested' to you by whichever people you owe debts to?
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • Misschelle_2
    Misschelle_2 Posts: 31 Forumite
    Hi, I'm not great with credit cards, but is it worth looking at swapping your cards to those that offer 0%??
    Black Horse Finance - £4870.83, Council Tax Arrears [strike]£1012[/strike] £420, Simply Be Catalogue - £1263.49, Provident [strike]£2100[/strike] £645, Barclays Bank OD £754.57, Halifax OD £76.15, Asset Financial - £180.00, CCJ[strike]£1200[/strike] £1000 + others already cleared!!
    [strike]Tot: Aug 08 £13,500.05[/strike] Tot Jan 09 £9,255.04 :DPROUD TO BE DEALING WITH MY DEBTS:D
  • ticklish_2
    ticklish_2 Posts: 9 Forumite
    I'm sorry, I didn't word it correctly. In my current position, after paying just my rent and phone/internet. I am left with around £100 which doesn't include necessities and gas/water/electric.

    So if I take that into account, I am logically only able to afford around £10-15 a week, so around £40-60 a month.

    I have twice filled in an application explaining my outgoings and still they do not understand my current position, which is why I am at wit's end as to what to do.
  • Merlinexcalibur
    Merlinexcalibur Posts: 1,699 Forumite
    Please help as I'm not financially minded as you can tell and I really want to be debt-free as soon as possible but I have no idea where to start.

    Just to say, as you say you are 'trapped in' minimum payment that it won't be a fast process. Based on what you say about your income it will be a slow one. That isn't necessarily a bad thing. I don't really think you should be paying £100 a week. If only from a sensible viewpoint. Things could change tomorrow. What would you do, then? Your income could change in a heartbeat. If you reply I can possibly point you in the right direction but first need further information. I am not financially minded, either, but there are things that can be done.

    What I would say, is don't pay any debt management company to get rid of your debts. Because you will be paying money out that you don't have. And there are other ways to get advice and for free. And most of what they charge you for you can, in fact, do for yourself. In fact, most information those companies will make you pay for can be found for free online or through someone like Consumer Credit Counselling Services. Entirely free service.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • Merlinexcalibur
    Merlinexcalibur Posts: 1,699 Forumite
    Well, I was unsure if you'd made an error so was wating to see.
    So if I take that into account, I am logically only able to afford around £10-15 a week, so around £40-60 a month.

    Okay. Only afford what you can reasonably pay. I mentioned the CCCS above? They would be an excellent starting point for you to get this all put into order and what you can actually afford left over from your disposable income. CCCS would make an appointment with you by phone, they phone you so no cost involved, and go through all your income/outgoings, then produce a financial statement for you to send to your creditors. And an offer of payment or token payments. I am not saying it's perfect, but this is one of the best places to start off with. In some cases, CCCS can contact your creditors on your behalf and explain your circumstances, make an offer. But, only if you have more than £100 pcm disposable income. As far as I know. I went to the CCCS roughly a year ago and I was amazed with what they came up with. Stuff I never knew, nor would have thought about. Cos I never needed to know it before. It did take a lot of worry off my mind.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • Merlinexcalibur
    Merlinexcalibur Posts: 1,699 Forumite
    Ignore my last post above the last one. I was typing away whilst you were posting.

    To add here. All your regular payments ie rent, utility are your priorty debts. As are council tax. Those come before any other debts. Next it's food and so on, lastly it's your debts. What CCCS would do, if you used them, would work out a proportion of what you can actually afford from your disposable income, then share it equally amongst your creditors. At this point, are you in arrears or facing problems with your creditors? Eg had letters from debt collecting agencies? Things like that.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • Merlinexcalibur
    Merlinexcalibur Posts: 1,699 Forumite
    Mmm.
    I have twice filled in an application explaining my outgoings and still they do not understand my current position, which is why I am at wit's end as to what to do
    .

    user_online.gif [EMAIL="abuse@moneysavingexpert.com?subject=Reporting%20post%20http://forums.moneysavingexpert.com/showpost.html?p=17830637"]report.gif[/EMAIL] I am afraid that they will not. They expect you to pay what they think is reasonable, not what you can actually afford. For future reference, never fill in an IE form provided to you by a creditor. That's because they ask far more than is required and not necessary. What they will then do is start disagreeing and say 'you are spending far too much on food'. That sort of thing. Remember, things are on your terms not theirs. No one can get blood from a stone. Not even a bank.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • Merlinexcalibur
    Merlinexcalibur Posts: 1,699 Forumite
    Okay. Please try not to worry over this too much tonight. I am not being patronising, just I have been there, done that. I will be in debt for quite some time to come. I can appreciate fully. I am getting a headache coming on, so I won't be at my best. And I can only be online so many hours a day because I am on capped broadband. I hope anything I have said has given you some hope and has been in some way helpful. I will try and come back tomorrow if you post anymore.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • Merlinexcalibur
    Merlinexcalibur Posts: 1,699 Forumite
    Lastly, please don't feel stupid about any of this. It's a sign of the times, of the ages we live in. We very often have to borrow, get credit cards because sometimes we have no other way to survive. Or have nowhere to live, starve. I am a stupid person because I have 3 cards. Stupid because I got them when I was quite well off. Didn't need them. Now, as I am not in anyway well off. I have fallen into debt with them. But we do what we have to. At times. To survive.
    Any help, opinions, views I may hold those are my own. Respect them as you would expect the same in return. Offered freely, is gleaned from a lifetime of experiences, knowledge gaining. Passed on to benefit others. I may be direct, ask you questions but those are to help you. Up to you if you choose to take it. I won't judge you either way.
  • ticklish_2
    ticklish_2 Posts: 9 Forumite
    Thanks merlin, I have read it all and will contact a CCCS tomorrow. Are there any particular companies you would recommend?
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