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  • FIRST POST
    • Mark80
    • By Mark80 30th Nov 17, 4:56 PM
    • 15Posts
    • 1Thanks
    Mark80
    Need help with my debts
    • #1
    • 30th Nov 17, 4:56 PM
    Need help with my debts 30th Nov 17 at 4:56 PM
    Hi,

    I have quite a lot of debs, cleared some of them thanks to Debtcamel and Financial Ombudsman but still in big debt, around £28-30k. The most money I owe to HSBC around 16k in total for personal loan, overdraft and credit card, all defaulted.
    The rest are Barclaycard sold to Asset Link Financial, Avant Credit sold to Asset Collections each around 4k, and a lot o small payday loans around 10, complained for all at FOS.
    I have no mortgage, no car, no assets, just an income. I had payment plan made by myself with all lenders except Link and Asset Collection but cancelled all when I starting to complain.

    How should I deal with my situation?
    1. Should I restart payment plan with HSBC, or to wait until they sell the debt? They gave that three debts to 3 different DCA but haven't spoke with them.
    2. Link Financial and Asset Collection, should I request from them to prove I owe money to them or to start a payment plan? Should I be afraid if they go to court?

    I have received a letter Asset Collection, but I don't know how to attach. Can someone explain how to do it?

    I am in this situation for almost one year and any advice is more than welcome.
Page 1
    • datlex
    • By datlex 30th Nov 17, 6:35 PM
    • 1,455 Posts
    • 1,235 Thanks
    datlex
    • #2
    • 30th Nov 17, 6:35 PM
    • #2
    • 30th Nov 17, 6:35 PM
    Well first you need to work out you strategy for paying these.

    Post an SOA then it is easier to work out where you could start to save.
    • Mark80
    • By Mark80 30th Nov 17, 6:44 PM
    • 15 Posts
    • 1 Thanks
    Mark80
    • #3
    • 30th Nov 17, 6:44 PM
    • #3
    • 30th Nov 17, 6:44 PM
    Thank for reply Datlex.

    What is SOA?
    • fatbelly
    • By fatbelly 30th Nov 17, 6:53 PM
    • 11,646 Posts
    • 8,779 Thanks
    fatbelly
    • #4
    • 30th Nov 17, 6:53 PM
    • #4
    • 30th Nov 17, 6:53 PM
    statement of affairs

    http://www.stoozing.com/calculator/soa.php

    We're thinking : maybe dmp, maybe bankruptcy, maybe get those debts down a bit more and do a dro.

    It's difficult to know which is best without more detail.

    As for the Asset letter, just give us the gist of what it says.
    • Mark80
    • By Mark80 30th Nov 17, 7:14 PM
    • 15 Posts
    • 1 Thanks
    Mark80
    • #5
    • 30th Nov 17, 7:14 PM
    • #5
    • 30th Nov 17, 7:14 PM
    Thanks for reply Fatbelly. Can I have my own dmp with lenders and use the soa calculator?

    What is dro?

    Regarding Asset letter:
    1. Provision of the Agreement breached by you. Failure to comply the clauses and oblig....
    2. Failed to pay the agreed contractual terms...
    3. Action required. You must pay the total instalments in arrears until 5.12.2017...
    if you don't take the action required the further action set out below may be taken against you.
    4. Action we intend to take: enforce any security in respect of the Agreement; take court action, if necessary, in connection with the above.
    If you can't pay the arrears in full by the date, you are strongly urged to contact us.

    They didn't sent me anything that I own them money. I thing they bought the debt from Avant Credit. Anyway I have a complaint against Avant for irresponsible lending on FOS and I hope the will reduce the interest for the loan.

    How should I deal with Asset in this case?
    • Sarastro
    • By Sarastro 30th Nov 17, 9:16 PM
    • 339 Posts
    • 273 Thanks
    Sarastro
    • #6
    • 30th Nov 17, 9:16 PM
    • #6
    • 30th Nov 17, 9:16 PM

    We're thinking : maybe dmp, maybe bankruptcy, maybe get those debts down a bit more and do a dro.
    .
    Originally posted by fatbelly
    You might be thinking that but you're getting ahead of yourself. Other options exist OP, depending on your circumstances.
    • sourcrates
    • By sourcrates 30th Nov 17, 9:19 PM
    • 12,681 Posts
    • 12,026 Thanks
    sourcrates
    • #7
    • 30th Nov 17, 9:19 PM
    • #7
    • 30th Nov 17, 9:19 PM
    I would say that with 30k of debt and no assets, bankrupcy would be a good option, your completed SOA will either confirm or suggest another strategy.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • sourcrates
    • By sourcrates 30th Nov 17, 9:23 PM
    • 12,681 Posts
    • 12,026 Thanks
    sourcrates
    • #8
    • 30th Nov 17, 9:23 PM
    • #8
    • 30th Nov 17, 9:23 PM
    You might be thinking that but you're getting ahead of yourself. Other options exist OP, depending on your circumstances.
    Originally posted by Sarastro
    One other option only, an IVA, but with no assets why bother, that’s why Fatbelly didn’t mention it.

    Common sense would say go bankrupt.
    Last edited by sourcrates; 30-11-2017 at 9:27 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 30th Nov 17, 10:18 PM
    • 11,646 Posts
    • 8,779 Thanks
    fatbelly
    • #9
    • 30th Nov 17, 10:18 PM
    • #9
    • 30th Nov 17, 10:18 PM
    Thanks for reply Fatbelly. Can I have my own dmp with lenders and use the soa calculator?

    What is dro?

    Regarding Asset letter:
    1. Provision of the Agreement breached by you. Failure to comply the clauses and oblig....
    2. Failed to pay the agreed contractual terms...
    3. Action required. You must pay the total instalments in arrears until 5.12.2017...
    if you don't take the action required the further action set out below may be taken against you.
    4. Action we intend to take: enforce any security in respect of the Agreement; take court action, if necessary, in connection with the above.
    If you can't pay the arrears in full by the date, you are strongly urged to contact us.

    They didn't sent me anything that I own them money. I thing they bought the debt from Avant Credit. Anyway I have a complaint against Avant for irresponsible lending on FOS and I hope the will reduce the interest for the loan.

    How should I deal with Asset in this case?
    Originally posted by Mark80
    Thanks, sourcrates - It's rare that I recommend an IVA. As you say, no assets to protect, so bankruptcy is going to be better than IVA. But we could do with seeing how much suplus income there is here and how much the debt total might be if the FOS complaints are upheld.

    Mark - if you can fill in and post the soa here, formatting for mse, it'll be useful for you and us.

    The Asset letter is a sort of arrears notice. If you get one of these:

    https://debtcamel.co.uk/letter-before-claim-ccj/

    there should be a reply form, and debt camel explains how to complete it. It sounds like they are not quite at that stage.

    DROs are a cut-down version of bankruptcy for those with debts under 20k, surplus income less than 50 per month and a car (if you have one) worth less than £1000. They only cost £90
    • Mark80
    • By Mark80 30th Nov 17, 10:56 PM
    • 15 Posts
    • 1 Thanks
    Mark80

    Mark - if you can fill in and post the soa here, formatting for mse, it'll be useful for you and us.
    Originally posted by fatbelly
    Thank you all for help.

    I was also thinking to bankruptcy, but I am not sure if I can keep my job with this. So if no income for a period, no money for rent, food or other regular spending. How log does it take the bankruptcy? 1 or 3 years?

    @Fatbelly, I completed the soa and I've got this: ,,Your Offer to Creditors is probably only suitable as a temporary measure. Because of the size of your debts (more than 20K) you need to consider more reliable ways of solving your debt situation. Press OK to create your Offer to Creditors or Cancel to change your SOA.''
    What do you mean by formatting for mse? Should I attach the file or just copy and paste the result the gave it to me? Sorry beacause I am not familiar with the terms.

    Regarding the Asset Collection, I replied earlier in the morning that I am disputing the account with Avant Credit. Should I do more than that? Should I be worried about if they decide at one point to go to court, or I should try to get a payment plan with them soon?
    • fatbelly
    • By fatbelly 30th Nov 17, 11:13 PM
    • 11,646 Posts
    • 8,779 Thanks
    fatbelly
    That's not the soa calculator I linked to earlier. Did you click on an advert?

    You should check what the effect of bankruptcy would be with your job.

    Bankruptcy lasts one year but if you have to make payments from your income, you pay for 3 years
    • Mark80
    • By Mark80 30th Nov 17, 11:20 PM
    • 15 Posts
    • 1 Thanks
    Mark80
    I used the link from you to calculate soa.

    http://www.stoozing.com/calculator/soa.php

    Is there any other link?
    • sourcrates
    • By sourcrates 30th Nov 17, 11:44 PM
    • 12,681 Posts
    • 12,026 Thanks
    sourcrates
    I used the link from you to calculate soa.

    http://www.stoozing.com/calculator/soa.php

    Is there any other link?
    Originally posted by Mark80
    That’s the correct link, when you have finished

    Where it says :

    “Format results for discussion boards (optional)“

    Stoozing. Motley fool. MSE

    Click MSE.
    Last edited by sourcrates; 30-11-2017 at 11:46 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Mark80
    • By Mark80 1st Dec 17, 11:46 AM
    • 15 Posts
    • 1 Thanks
    Mark80
    Done

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 2000
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2000


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 850
    Management charge (leasehold property).. 0
    Council tax............................. 50
    Electricity............................. 50
    Gas..................................... 50
    Oil..................................... 0
    Water rates............................. 10
    Telephone (land line)................... 0
    Mobile phone............................ 70
    TV Licence.............................. 10
    Satellite/Cable TV...................... 40
    Internet Services....................... 25
    Groceries etc. ......................... 350
    Clothing................................ 50
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 120
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1685



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    loan...........................9300......200...... .0
    overdraft......................5300......70....... .0
    credit card....................1060......10........0
    credit card....................200.......5.........0
    credit card....................350.......5.........0
    loan...........................500.......5........ .0
    loan...........................650.......5........ .0
    loan...........................250.......5........ .0
    loan...........................120.......1........ .0
    loan...........................300.......5........ .0
    loan...........................800.......5........ .0
    loan...........................500.......5........ .0
    loan...........................2500......15....... .0
    loan...........................3750......25....... .0
    loan...........................3800......25....... .0
    Total unsecured debts..........29380.....386.......-



    Monthly Budget Summary

    Total monthly income.................... 2,000
    Expenses (including HP & secured debts). 1,685
    Available for debt repayments........... 315
    Monthly UNsecured debt repayments....... 386
    Amount short for making debt repayments. -71


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -29,380
    Net Assets.............................. -29,380


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    • Tarambor
    • By Tarambor 1st Dec 17, 12:09 PM
    • 1,751 Posts
    • 1,203 Thanks
    Tarambor
    You need to add the APR of the loans and credit cards. It makes a bit of a difference to the advice given.
    • enthusiasticsaver
    • By enthusiasticsaver 1st Dec 17, 12:18 PM
    • 4,848 Posts
    • 9,162 Thanks
    enthusiasticsaver
    I think you need to ring stepchange and see what they suggest.

    Does going bankrupt affect your job? There is a fee so you will need to keep some money back to pay this

    How did the debts arise in the first place? Is it general overspending (your groceries and rent is very high as a proportion of your income) or do you have a gambling or other issue which you need help with?

    You need to post the interest rates but I would think that you have defaulted on most of these and if they are payday loans the interest rate will be very high.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Mark80
    • By Mark80 1st Dec 17, 12:33 PM
    • 15 Posts
    • 1 Thanks
    Mark80
    All loans are defaulted, so I am not sure if interest is important.

    I started with gambling, than continued with payday loans. Payday loans rolling and rolling and now in this situation.

    Why do you say grocery and rent are high? Is £12 per day too much? And housekeeping or lunch included. And the rent is normal for London. I can't move outside and pay for travel.
    • Silver Queen
    • By Silver Queen 1st Dec 17, 12:46 PM
    • 165 Posts
    • 1,003 Thanks
    Silver Queen
    Your grocery spend is huge. £350 for one person is enormous. I feed two of us in London for £130 per month and we eat very well. Do you eat out every day?

    Your mobile phone bill is massive as well. £70 for one mobile phone is crazy. I pay £35/month for mine and I think that's bad enough, there are others on here who would suggest getting a £10/month contract.

    You can't afford a TV package. I would suggest that you go freeview.

    Assuming you switch to a £35/month mobile, get rid of the TV package and feed yourself for £150 a month (already generous) that's already a saving of about £300 a month.
    Debt Totals November 17:
    £350 Natwest Credit Card / Now £0 £15,500 Loan from Parents 1 / Now £12,500 £500 Loan from Parents 2 / £500 £2,000 Overdraft Now £1,700
    • Pixie5740
    • By Pixie5740 1st Dec 17, 6:31 PM
    • 11,202 Posts
    • 15,655 Thanks
    Pixie5740
    I agree that your grocery bill for one person is huge, London or not. You can also get much better deals on mobile phones and if you are serious about clearing your debts you will get rid of any TV packages that you have as well.

    Have you looked into getting some/all of your pay day loans refunded if the loans were unaffordable to you at the time of borrowing?

    https://debtcamel.co.uk/payday-loan-refunds/
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
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