Two different debts two different problems!

rluc

Hi, pretty new to the site and after some help, be it practical or emotional.
I have got two problems which are stressing me in different ways!!

Problem number 1:
After splitting with my wife 18 months ago I have been left with credit card debts of £30k and have been doing my best to reduce them ever since. I have them on three cards with two on low interest for the life of the balance and one debt of ~£3.5k moving about on 0% balance transfer deals. I have managed to get the total debt down to just over £23k and was quite happy with that. The trouble is that I am a self employed electrician and with the downturn in the industry am starting to see work become more scarce and my concern is that my cc debts on low interest for life rely on the minimum payment being met to keep that good interest rate. I worry that in the next few months I will not be able to guarantee having enough money at the right time in the bank to make these payments!!
I have already started to look into the possibility of being employed etc to see what I can do but is there anything I can do to preempt problems with the credit card companies without them getting rid of my good deals???

Problem Number 2:

My sister has a history of depression, alcoholism and attempted suicide and earlier this year my mum took her ou of the country as we found out she was in an abusive relationship.

Whilst clearing out her flat I have found unopened bills and statements going back a few years relating to a credit card debt of ~ £15k . It seems she has just been making intermittently the minimum payment on this ~£290/month for most of that time with the debt never actually dropping due to missed payments/charges etc.

She has been on long term sick leave without pay now for a few years and has been living off compensation money from a car accident which has now almost gone (down to about £3.5 k) She has no other money or assets and no real chance of getting back to work in the state she is in.

I have started to try and deal with this on her behalf and have managed to get her to sign a letter of authorisation for me to speak on her behalf but after speaking to the credit card company they tell me they have not recieved this and will send me a new one and that I will probably need power of attorney to deal with it for her!!!!!

To be fair the man was very nice and listened to everything I had to say but ultimateley could not talk to me about her account.

Does anyone else have experience of dealing with debt for someone else.

Sorry for the marathon intro. but needed to get it all off my chest as whole thing dragging me down at the moment!!!!!

blackclouds

Hi mate and welcome

I have similar problems to your problem 1 and best advice I can give you is to keep looking around for employed work while trying to get as many jobs on as possible, have a read through my thread a few down from this. I came on here a week ago in the depths of despair and have started to piece things together again and get a plan of action together, one bit at a time.

Sure others will be along with more practical advice but just wanted to say hello and PM me anytime when things are sh**y, us s/e guys need to stick together cos its getting a lot :eek: out there just now

boredofbeingathome

rluc wrote: »

Hi, pretty new to the site and after some help, be it practical or emotional.
I have got two problems which are stressing me in different ways!!

Problem number 1:
After splitting with my wife 18 months ago I have been left with credit card debts of £30k and have been doing my best to reduce them ever since. I have them on three cards with two on low interest for the life of the balance and one debt of ~£3.5k moving about on 0% balance transfer deals. I have managed to get the total debt down to just over £23k and was quite happy with that. The trouble is that I am a self employed electrician and with the downturn in the industry am starting to see work become more scarce and my concern is that my cc debts on low interest for life rely on the minimum payment being met to keep that good interest rate. I worry that in the next few months I will not be able to guarantee having enough money at the right time in the bank to make these payments!!
I have already started to look into the possibility of being employed etc to see what I can do but is there anything I can do to preempt problems with the credit card companies without them getting rid of my good deals???Well done on this so far, i would suggest looking on the credit card board for specifics. As you are aware that the money may reduce, how about looking at ways of increasing income? Could you get a system in place where you put all your past contacts in a diary and sysetmatically contact them? I would also look at estate agents as with HIP packs any electric work could sometimes be witout a certificate, you never know..keep networking.

Try colleges as well, they are always after tutors in this area.

And also look at expanding in theatres, electrical installations...anything and always worth a few phonecalls( my uncle is non stop busy in this area)

Problem Number 2:

My sister has a history of depression, alcoholism and attempted suicide and earlier this year my mum took her ou of the country as we found out she was in an abusive relationship.

Whilst clearing out her flat I have found unopened bills and statements going back a few years relating to a credit card debt of ~ £15k . It seems she has just been making intermittently the minimum payment on this ~£290/month for most of that time with the debt never actually dropping due to missed payments/charges etc.

She has been on long term sick leave without pay now for a few years and has been living off compensation money from a car accident which has now almost gone (down to about £3.5 k) She has no other money or assets and no real chance of getting back to work in the state she is in.

I have started to try and deal with this on her behalf and have managed to get her to sign a letter of authorisation for me to speak on her behalf but after speaking to the credit card company they tell me they have not recieved this and will send me a new one and that I will probably need power of attorney to deal with it for her!!!!!

To be fair the man was very nice and listened to everything I had to say but ultimateley could not talk to me about her account.

Does anyone else have experience of dealing with debt for someone else.

Sorry for the marathon intro. but needed to get it all off my chest as whole thing dragging me down at the moment!!!!!

With regards to your sis, i am very sorry she has suffered so much and it has obviously had a massive impact on you all, so well done for taking upthe reigns on her behalf.

I would personally write letters to her creditors, on her behalf..far easier to have it all in writing and makes it less easier for them to wriggle out of agreements.That way you and she will have agreements.If she has a lump sum to offer then full and final settlements can be negotiated, but make sure she has enough for living expenses as well.

IF it all becomes too much for you, then rather than write them your self then i would contact a debt charity..who will give you excellent advice and tell you more about the legalities. Also it will be more difficult given your sisters health problems and a possibilty of erratic income. With the proper help and specialist legal advice then i think it would provide you with a better outcome. If all that makes sense.

Good luck with it all...the darkest hour eh? I truely hope you keep posting and let us all know how you get on.

And after all that welcome to the boards.:D


Here are some links for letters.

http://forums.moneysavingexpert.com/showthread.html?t=963087

DebtBgone_2

Re Problem two

When my mum was terminally ill i had to call up the credit card companies. i had her with me when i called and she just gave her permission over the phone they then told me the amount of debt it was and agreed to send something in the post.

Alternatively send the letter via first class recorded delivery it only cost 72p extra and you have the reassurance that someone has had to sign for it at the other end. good luck

rluc

Thanks for the replies. It feels better just to know there are people out there dealing with similar problems and getting through them. It is very hard to speak to family about it( feel my mum has enough problems dealing with my sister) and friends have been great but feel too embarrased to admit full scale of problems with people!!
I have started to try and drum up more business and not let myself get down about the fact that it is scarce, some possibilities turning up.
Have already started to try and cut out all unnecessary expenses and get my bills as low as possible. The difficulty is when you are self employed is the rolling capital needed so will need to try and keep on top of that. Have managed to live for 18 months without using my credit cards at all and don't want to start now!!
With regards to my sister , should have sent the first letter registered I guess and will definitely do it with the next one.
Thanks again

RAS

Hi

With respect to your sister's situation, please contact one of the debt charities below http://www.moneysavingexpert.com/loans/debt-help-plan#help and talk to them.

As she is out of the country, there is not a lot that the creditors can do until she returns. I would suggest that rather then trying to deal with the debts, you should advise the creditors that she is no longer in the UK and that she has been on long-term sick with little prospect of future employment.

It may be appropraite to pay a £1 per month to each creditor as she is on benefits and to reclaim all charges to reduce her liabilities. It may also be appropriate for her to consider bankruptcy, but she would probably need to return to the UK to do this.

rluc

Thanks RAS will look at that asap for my sister.
Some good news just got a job today as another electrician let someone down, start tomorrow:j so that should be this months bills taken care of!!! Feel very lucky and relieved today but still going to keep plugging away looking for more work.

RAS

rluc wrote: »

Some good news just got a job today as another electrician let someone down, start tomorrow:j so that should be this months bills taken care of!!! Feel very lucky and relieved today but still going to keep plugging away looking for more work.

Really glad for you. Given how hard it is to get a reliable tradesperson, you shopuld be OK, but as people cut back, i can see the problems.

Do you know how to install renewable energy systems?

BlueFleur

If your sister is looking to stay in another country for a long time, or is not going to be in a situation to deal with this sort of thing then it may be worth considering power of attorney. I don’t know about the details, but it’d definitely be a more long term solution.

rluc

Ras- no idea on renewable energy- maybe it is something i should look into, could be a new money maker!
Bluefleur- LLoyds suggested power of attorney will have a look and see if it is a possibility

BlueFleur

It's something my family have used following an illness. I don't mean this in a negative way, but it is worth double checking that you won't be culpable for the debt if she can't pay. It'll only add to your problems otherwise. If it is something you go for then at least you'd know what to expect.