It's all come to a head

inthecrap · 22 June 2008 at 4:42PM

I originally posted this in the credit card board but the guys over there told me this is were all the gurus are so here gose:

Hi guys, im new to the forum so take it easy. I CAN'T MANAGE MY FINANCES there i admitted it for the first time instead of pretending every think is ok. I did not know were i should have posted this but as credit cards are one of my problems i thought here was as good a place to start as any. I owe what i consider to be a lot of money, between credit cards and loans about 40k. every think was under control until about 6 months ago. 12 months ago I bought into a small business that had been running and making a profit for the last 15 years and at the time was a great opportunity but unfortunately trade took a dip and as a result i have been unable to pull a wage from the place for the last 6 months. I am now unable to make payment to my credit card company's, loan company's, my bank and my monthly utility's. I really need some help as i have no idea what i should be doing about it all. I though the wage thing would sort itself out in a couple of months so just ignored my bills for a while in the hope i would be able to phone them up and bring all the payments up to date in a few months but here i am 4 months on from paying them any money and missing 3 consecutive payment and now i am getting letters from the card company's saying i have 7 days to pay the balance in full or i am in all sorts of legal trouble. What do i do???? just to make things worse i need a fast response because i have not paid my broad band bill and it is due to be switched of in the next 2 days. Thanks in advance.

jenevieve · 22 June 2008 at 4:48PM

Hi and welcome,

You have come to the right place and I am sure lots of the resident experts will be along shortly with words of wisdom.

If you could post a list of your Statement of Affairs - incomings, outgoings and all debts including APR%, then we will have a clear picture of where you are at.

If you are unable to meet your minimum payments for your CCs and if you are struggling to pay your utilities then I strongly advise that first thing in the morning, you call CCCS for advice and support.

I am sure you must be desperately worried but as dire as it seems right now, there is a way through this. Posting on here is a good start but really consider calling CCCS tomorrow morning if you can.

Keep us updated. This is a very supportive forum and no one will judge or criticise you.

bongo1 · 22 June 2008 at 4:50PM

YOu have come to the right place.....
I would ring one of the debt free charities such as payplan, cccs and your local citizens advice .... They will help you and advise you in helping you get your finances sorted......

GeorgeUK · 22 June 2008 at 5:03PM

Not making any payments at all can land you in trouble so even making £1 payment to each creditor will be a start.

As already advised, you could post up a statement of affairs so we know what you have coming in and available to throw at the debts/bills
http://www.makesenseofcards.com/soacalc.html

Also, as your credit score is probably quite low no, getting out of trouble without going on a debt management plan is very unlikely. Use one of the free debt charities and ask for advice.

(Taken from Fermi's signature)

Professional, free and impartial advice on debt problems can be obtained from several charitable and 'not for profit' organisations. They never make a penny from the advice they give, which means it will be given with only your best interests at heart. You can contact:

Your local CAB Office and ask to speak to a 'money advisor'
The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111
National Debtline - Tel: 0808 808 4000
Payplan - Tel: 0800 917 7823

inthecrap · 22 June 2008 at 5:57PM

Right then, first of all my income at the moment is £0 because of the way the buisness is performing.

Here is a list of creditors:

Barclay Card
Credit limit £10,150
Balance £10,482.91
Minimum Payment £861 Because i have mist 3

This has now been pasted to Mercers debt collections limited and they Say " we are dealing with your account on behalf of barclaycard. This account is still over due and we have been unable to contact you. WE WILL BE INSTRUCTING A LOCAL DEBT COLLECTOR TO VISIT YOU AT THE ABOVE ADDRESS TO COLLECT PAYMENT.

Loyds TSB
Credit limit £6000
Balance £6155.42
Minimum payment £348.44 Because i have mist 3

This has now been past to Sechiari, Clark & Mitchell and they basicaly say i have 7 days to pay the balance of £6155.42.

Halifax
Credit limit £5700
Balance £5711.29
Minimum payment £452.84 Because i have mist 3

Tesco personal finance

Loan repayment £400 per month I have 10 to finish it
I am behind £800

My Barclays account

Over draft limit £2300
I am £3206.46 DR

Barclays have canceled all my DD's that took care of my utilities because the is no funds and they are leaning on me to get some money back into my account.

I hope that gives u an idea of the mess im in and it's all just hit home writing it out on here. If the is any more information needed so you guys can best advise then let me know.

Thanks guys it's nice to tell some one and get it of my chest as such.

Deep_In_Debt · 22 June 2008 at 6:19PM

Hi
Mercers are part of Barclaycard. Don't wish to alarm you but they did send someone to my house. I was out at work at the time. Doorstep collectors have no legal rights, so if someone does call, tell them to bog off and do not let them in.

It might be worth changing your bank to one that you have no debts with. I opened a Natwest Step account with no overdraft but with debit card.

inthecrap · 22 June 2008 at 6:31PM

Thats an idea thanks mate. They are writing about my Barclaycard at the moment and no my Barclays account YET.

Merlot · 22 June 2008 at 6:32PM

I'm not going to beat around the bush here, I would normally say please contact one of the debt charities, but with no income they are not going to be able to help, I think you need to consider Bankruptcy.

Why is your business not making any money or paying your a salary, could you get a job in paid employment. Do you rent or have a mortgage, I am quite concerned at this moment in time for you.

Merlot.x.

GeorgeUK · 22 June 2008 at 6:44PM

Is there any chance of the business getting back into profit soon? I think you may need to sell it at a loss or just close it down. You are not making anything from it and you desperately need income. The debt charities will probably not be able to help at all as you have no income - if you have a house you may not be able to do an IVA, which leaves bankrupcy.

You will need to make some very hard decisions and soon. I take it there's no way for you to get a second job?

Timmne · 22 June 2008 at 6:50PM

One of my clients has made a loss (or very small profit) in her business for years. Last year, I sat her down and insisted she ditched the business and got a job. She now works at a supermarket nearby and is on around £12k per year.

That's my advice initially; dump the business and get a job. I can't imagine a business which is making nothing now, will make you anything substantial in the very near future so it's probably worth you taking the jump.

Sorry if this is not the news you wanted but I think it helps to step back a bit and look at why you're in business in the first place. Unless you're loaded anyway, a business should never be run for emotional reasons!

Good luck

inthecrap · 22 June 2008 at 6:56PM

A bit of history may help i think. I am 26 now and when i was 17 still lived with my mum and 2 sisters. My mum and 2 sisters moved 400 miles away to take over a pub and i wanted to stay put so kept the house on. The mortgage was taken over by me and my 2 sisters who saw it as an opportunity to put some money away so i only had to pay a 3rd of it. The bills are all mine and i paid them every month no problem. My 2 sisters at the moment are subing my 3rd of the mortgage because i can't pay it. the buisness i bought into was going to pay me 20K a year and then a profit share but things are slow and we have just had to pay the VAT, PAYE and buisness rates so no money left for wages. The are things in place to bring the trade up and they will but it is a waiting game and i can't wait any more. I am a Director and didn't think i could file for personal bankruptcy's so don't know what i can do.

It's all come to a head

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