Newbie - Needs advice on first steps to getting debt free

ann_marie77

Hello, my name is Ann and I'm a newbie to DFW. I really need any advice you all can give on the first steps to getting debt free and the process I should expect to experience.

I am currently in debt to approx £20000, which is built up of the usual unsecured loan, credit cards, store cards and catalogues. I have been very stupid, in getting into trouble as I have but have finally had my lightblub moment.

Lloyds TSB Loan - £10826.46
Skycard CC - £3753.25
Virgin CC - £2412.86
Halifax One CC - £500
Lloyds TSB - £500
Barclaycard - £260
Next - £37.37
Simply Be - £888.22
Choice - £386.95
Overdraft - £1500

I have been trying to keep my head above water for the last year, but have found that the nice people :mad: at Skycard and Virgin care so much about the debt I am getting myself in that they keep upping my APR as a reward.

I have now missed several payments on the majority of my debts and find myself trying to play catch-up each month. Although I am now unable to catch up on these missed payments to bring on account upto date and several of my creditors are now chasing me, even when I am at work.

To add further misery on my finances my bank Lloyds TSB (who I have been with since I starting working at 16, I'm now 30) has decided that my current overdraft limit wihch is £1500 is to be reduced on the 4th August to £900, leaving myself approx. £800 to survive next month, which will leave myself in even further debt, as I will not be able to meet the majority of my payments. I asked if they could bring it down gradually but they didn't want to know just shrugged their shoulder (or so I imagine as I spoke to the on the phone) and told me in a BIG FAT POINT BLANK NO!!!!

I asked my bank if I could have a payment break on my loan and they have refused, even though I have never missed a payment with my loan as it is paid via direct debit.
I have also tried to consolidate my debit (wasn't trying borrow more than I owed just tried to bring down my payments from £770 to £400 - which I would be able to manage ok) but no-one wants to know, since my credit rating is now poor due to the missed payment and probably due to the amount of creditors I owe money too.

I feel very angry and upset that the bank I have been with for nearly 15 years, do not want to know when I am experiencing problems, when it is really the last few years I was getting into debt.

I am now looking into setting up a DMP to try and get debt free. Therefore my original question is I need any advice you all can give on the first steps to getting debt free and the process I should expect to experience.

Which of the recommended DM charity organisations (CCCS or Payplan) would you recommend - what has been your experience in using these organisations.

I have also read on the forum that they request you to open a new bank account, which bank would you recommend. (I see my current bank has been slated a few times on here!!)

Also, would you recommend that I set up a new account straight away and get my August salary paid into my new account to prevent myself struggling with the reduction of my overdraft, although I don't know if I will manage to get my pay details changed in time, with it being the 18th of the month already.

I would really appreciate any advice you may have to give as I am now getting desparate!!

lynzpower

hiya Ann :wave:

have you done a fuill SOA befoe? Its at the link at the top of the page.

Once youve done this, it will be SO much easier for everyone to give great advice

gettingbetter

hi ann

just wanted to say your not alone
you will find great help and advice here

kas

SuzySu

Hi Ann and welcome to DFW.

Definitely post up your SOA - you can find this at www.makesenseofcards.com and then format it for MSE. I'm sure there will be ways of helping you save some money each month.

Please, do not go for a consolidation loan - it is never the answer (and I speak from experience) and is very often secured against your home. It might seem like a good idea as your payments look to be reduced initially, but if you aren't managing with your current commitments you need to be looking to make savings elsewhere.

Good luck and keep us informed.

maz1964

hiya ann marie

welcome and you have taken the first huge scary step by writing and asking for help. You are not alone.

great advice from lynzpower a statement of affairs would be good so everyone can help in getting to see if any cutbacks can be done on your regular spends ect

i have done my own debt management programme but have taken advice from cccs and national debtline - great online sites for info.

i found cccs always very helpful and i would have gone with them if had wanted them to deal with all my creditors but i wanted the control of dealing with my paperwork myself.

i guess loyalty is lacking - it is something ive found once i tackled my debts that the banks are really not interested in you anymore - unfortunatley with all these call centres you become just another number and the personal service is really gone.

i opened a basic co op account with an electron card, if you can open another account which does not share any of your creditors would be good.

I used the national debtline site to send all my creditors a first letter with a 1.00 postal order each to alert them of my financial difficulties, but if you are going say with cccs they will sort the pack and info out for you and then you set up your plan with them i believe.

some of creditors have accepted my dmp for 6 or others 12 months some with no charges or interest . others with low interest only. it has been a frustrating and somewhat learning curve journey, since march this year, all are on plans now but i m hoping to get back to work and clear my debts asap.

its been a journey that has opened my eyes to lots of legal stuff, funny stuff and made some great friends here, this site has reassured me and offered me great info at times when you think what is it im supposed to be doing, then someone pops on and shows you another way to continue.

Next thing im now doing is going to tackle all my credit card charges, and the other old bank account i have closed.

so all i can further say is dont give up, we are all here to help out and if nothing else i do only to assure one other person that there is light at the end of this tunnel then ive helped someone out - like others helped me at the start of this soul searching journey of mine in paying and clearing my debts.

Have a fun weekend and keep your spirit - that is something no one can ever take away from you and costs nothing to keep.

Ciao for now MAZ

falken

HI
I really recommend CCCS. We are currentl. We are just putting a DMP in place with them. I have found the extremely helpful, professional and supportive!

Alsp put up your SOE as recommended, you will receive some great advice on here.

Another tip, can you put anything for sale on ebay, or have a car boot to help you when you have reduced income nexr month? or can you get another basic bank account open and put your wages in there in time.

Good Luck

Falken

falken

Sorry I miss read your last bit. I would go for a new bank account. We are just trying cooperative cashminder and natwest step account. Both basic, no overdrafts etc but they do have internet banking and a cash card. Each one have taken 7 days to set up.

Good Luck Again

Falken

fatbelly

Ann - you did a duplicate post at 2.33a.m. (are you working nights?) - it might be better to delete that and keep replies in one thread.

Good advice so far:
1. Ditch LTSB & open new a/c (anyone but Barclays or Halifax)
2. Post SoA
3. Contact CCCS or Payplan re DMP

You'll soon get use to the TLAs (three letter acronyms!)

Glad you've had your LBM

Regards

fb

ann_marie77

Thank you for all your advice I really do appreciate it. Will do a SOA later today. And will contact CCCS after that.

I guess luckily I don't have my own home as I am still living with my parents, which is the annoying thing about the amount of debt I have built up.

Fatbelly - Sorry that I posted twice, I thought I had messed up on my original post and re-typed it. I guess I hadn't!! Don't work nights just couldn't sleep, which has been happening this week, with all this going on. Plus I have had a really stressful week at work, in my department my boss was off ill and the other lad was on holiday so I was the only one left in, it wasn't good.



Just a small question about the bank account, would any of you agree it is better to setup the account now and get my monthly salary put into that before paydate (the last working day of month). Or struggle a bit next month, send my creditors a good will gesture payment and then open the bank account for next months pay.
I guess I need to really add the pro's and con's in doing that, ie. which path would leave myself in more debt. If I changed banks straight away I would owe them £1500 overdraft but if I did I would owe them £900 but more to my other creditors.

fermi

ann_marie77 wrote: »

Which of the recommended DM charity organisations (CCCS or Payplan) would you recommend - what has been your experience in using these organisations.

There are a lot of people here on DFW on either of those. The vast majority with each seem to be happy with the service. Like all organisations there is the occasional failing, but the same can be said for the banks and creditors (often more :rolleyes:).

Personally I would go with CCCS. Some of thier advisors post on this forum.

ann_marie77 wrote: »

I have also read on the forum that they request you to open a new bank account, which bank would you recommend. (I see my current bank has been slated a few times on here!!)

That is recommended on a DMP. Most banks get slated on here from time to time.

Just need to make sure that the bank is not connected to a current creditor.

See: http://www.payplan.com/debt-library/miscellaneous.php for a basic list of links.

It might also be worth posting an SOA on here so that people can advise and help.

fermi

fatbelly wrote: »

Ann - you did a duplicate post at 2.33a.m. (are you working nights?) - it might be better to delete that and keep replies in one thread.

Just saw that myself as I replied on the original thread at first (hence repeating what has already been said).

I will delete the other thread.