massive debts no money

simond503

stebiz wrote: »

Hi Simon,

Just to explain a bit further. I'm not a debt counsellor or anything but somebody who found themselves in an exact position as you about 6-7 years ago. People were very kind and helped me so I'll tell you what I did. What you do is upto you.

I had about £45,000 worth of debt, 2 very young children and a house with a smallish mortgage on it. I didn't want to secure the finance so rang up all my creditors and said I can't afford the payments anymore. The first thing they all did was send an income and expenditure form to me.

Contd.................

so what happens after that, do they not just keep pressuring you for more after a while or do they accept the situation was your debts from the same sources

stebiz

It meant some getting maybe £2 a month others getting £10 a month. They then default the loan and in many cases the interest is stopped (or it would be in due course). At this stage I felt I was getting somewhere because every £10 I paid each month came exactly off my debt.

stebiz

simond503 wrote: »

so what happens after that, do they not just keep pressuring you for more after a while or do they accept the situation was your debts from the same sources

The likelyhood is that the bad debt will be sold to a debt collecting company for a fraction of the price. A 10k loan might be sold for 2k for example. The debt collecting company will contact you asking for payments, each time you say you are paying the max you can afford. It may mean keeping on filling in income and expenditure forms. However they know that if you are taken to court and they obtain a CCJ that the judge will ask you to fill in just the same type of thing.

simond503

stebiz wrote: »

The likelyhood is that the bad debt will be sold to a debt collecting company for a fraction of the price. A 10k loan might be sold for 2k for example. The debt collecting company will contact you asking for payments, each time you say you are paying the max you can afford. It may mean keeping on filling in income and expenditure forms. However they know that if you are taken to court and they obtain a CCJ that the judge will ask you to fill in just the same type of thing.

and then you just end up paying the smaller amount for the length of time it will take at the agreed amount? and when its paid what then? you here of all sorts of things about not getting bank accounts we bank with nat west what will happen to the account we have. i am getting butterflies already thinking i am destroying my life, did anybody else feel that

stebiz

simond503 wrote: »

and then you just end up paying the smaller amount for the length of time it will take at the agreed amount? and when its paid what then? you here of all sorts of things about not getting bank accounts we bank with nat west what will happen to the account we have. i am getting butterflies already thinking i am destroying my life, did anybody else feel that

Simon, I felt exactly like you did. You will find life a bit different I agree. No HP or no Credit etc but life will go on and you will feel under less pressure than you do now. You need to think ahead a little. Get a parachute bank account and start using that. Then sit back and wait.

Stebiz

stebiz

I would speak to a few debt counsellors and they will probabaly say the same thing. However never pay for advice.

As soon as you default it will appear on your credit record and stay for 6 years. In the event they take you to court and get a CCJ this will also stay on your credit record for 6 years also.

bank_of_slate

I'm all chuffed now, I found a £1 coin in the filter of my dryer - mine!
Anyway, I digress.

You may or may not want to check the following out:

1) Join Freecycle
If and when you need stuff for the house or garden or kids it's amazing what's offered for free on there!
https://www.freecycle.org

2) Join https://www.seefilmfirst.com
then check each day on the Freebies -no spend required thread
http://forums.moneysavingexpert.com/showthread.html?t=606589
for codes to see great new films for free! often before they are released! E.G. I got free tickets for me, hubby & 2 kids to see WALL-E and many other films for free before it was even released.
Also - flick through the same thread for free samples of products.
This could help to reduce that entertainment cost per month and not feel like you're missing out!

3) Mystery shopping?
Sign up with Retaileyes https://secure.retaileyes.co.uk/uk/home/retaileyes_aboutus.php
they often have little missions that involve eating out and you can get paid for it!

4) Join all the baby clubs for money off vouchers etc
Tesco, Boots etc do baby clubs, check out their websites for details!

5) Do paid surveys!
join Yougov, Toluna and Valued Opinions to do little surveys and get paid for doing them, I have had a few products sent by Toluna for testing too.
http://uk.toluna.com
http://www.valuedopinions.co.uk
http://www.yougov.com/uk/panel

6) Join Quidco or another cashback site
If you purchase things or switch suppliers over the internet, by going through a cashback site you can get exactly that - cash! (read Martin's advice on the good ones)
https://www.quidco.com

7) Check out the Money saving old style thread
Everything on there including reducing grocery bills, great recipe ideas

8) comping
You could look on the competitions board, there are lots on there!
http://forums.moneysavingexpert.com/forumdisplay.html?f=72

9) Holiday savings
I save £2 coins in a jar and it's amazing how quickly they mount up!
Just been saving since our last Center Parcs jaunt in June and we're back up to £78 for our next Center Parcs jaunt in October!

10) Christmas saving
I know that there are better ways of saving for Christmas if you have the discipline but we find it very helpful to buy 2 or 3 saver stamps each week with our groceries to save up for the big Christmas shop. We're already up to £99 with over 3 months still to go and will use some of this to buy presents from the supermarket as well as everything to eat and drink over the holiday period

I hope you find some of the things I've mentioned on here useful, I know I have!
There are SO MANY tips that you pick up from Martin's site!
...Linda xx

simond503

stebiz wrote: »

Simon, I felt exactly like you did. You will find life a bit different I agree. No HP or no Credit etc but life will go on and you will feel under less pressure than you do now. You need to think ahead a little. Get a parachute bank account and start using that. Then sit back and wait.

Stebiz

whats a parachute bank account. at the moment i never want to be offered another credit card in my life. we have got the numbers for the councilors from peoples replys and will crack on tomorrow with it. i did find a site with letters already on it to download, cant remember it though do you know the one i mean, did i find it on this site?

simond503

bank_of_slate wrote: »

I'm all chuffed now, I found a £1 coin in the filter of my dryer - mine!
Anyway, I digress.

You may or may not want to check the following out:

1) Join Freecycle
If and when you need stuff for the house or garden or kids it's amazing what's offered for free on there!
https://www.freecycle.org

2) Join https://www.seefilmfirst.com
then check each day on the Freebies -no spend required thread
http://forums.moneysavingexpert.com/showthread.html?t=606589
for codes to see great new films for free! often before they are released! E.G. I got free tickets for me, hubby & 2 kids to see WALL-E and many other films for free before it was even released.
Also - flick through the same thread for free samples of products.
This could help to reduce that entertainment cost per month and not feel like you're missing out!

3) Mystery shopping?
Sign up with Retaileyes https://secure.retaileyes.co.uk/uk/home/retaileyes_aboutus.php
they often have little missions that involve eating out and you can get paid for it!

4) Join all the baby clubs for money off vouchers etc
Tesco, Boots etc do baby clubs, check out their websites for details!

5) Do paid surveys!
join Yougov, Toluna and Valued Opinions to do little surveys and get paid for doing them, I have had a few products sent by Toluna for testing too.
http://uk.toluna.com
http://www.valuedopinions.co.uk
http://www.yougov.com/uk/panel

6) Join Quidco or another cashback site
If you purchase things or switch suppliers over the internet, by going through a cashback site you can get exactly that - cash! (read Martin's advice on the good ones)
https://www.quidco.com

7) Check out the Money saving old style thread
Everything on there including reducing grocery bills, great recipe ideas

8) comping
You could look on the competitions board, there are lots on there!
http://forums.moneysavingexpert.com/forumdisplay.html?f=72

9) Holiday savings
I save £2 coins in a jar and it's amazing how quickly they mount up!
Just been saving since our last Center Parcs jaunt in June and we're back up to £78 for our next Center Parcs jaunt in October!

10) Christmas saving
I know that there are better ways of saving for Christmas if you have the discipline but we find it very helpful to buy 2 or 3 saver stamps each week with our groceries to save up for the big Christmas shop. We're already up to £99 with over 3 months still to go and will use some of this to buy presents from the supermarket as well as everything to eat and drink over the holiday period

I hope you find some of the things I've mentioned on here useful, I know I have!
There are SO MANY tips that you pick up from Martin's site!
...Linda xx

we really cant believe people are so helpful we are speechless at everyones generosity and hope that in the future when we are in a better place will be able to do the same for others thanks xxxxxxxxxxxxx

stebiz

simond503 wrote: »

whats a parachute bank account. at the moment i never want to be offered another credit card in my life. we have got the numbers for the councilors from peoples replys and will crack on tomorrow with it. i did find a site with letters already on it to download, cant remember it though do you know the one i mean, did i find it on this site?

A parachute account is basically a bail out account. You set this up before all the letters go out advising that you can no longer keep up with the loans. CCCS I'm sure will advise you of the wording for the letters or may do it for you. Walk into a bank and open a current account so at least you have a debit card and cheque book. Do not ask for any overdraft or credit. This would be wrong. Then write to all the companies - rather than the other way around.

I did mine without any help from a debt counsellor as I found so much information online, but that is upto you. One thing for sure when completing an income and expenditure form remember everything. You have young children - remember nappies and everything. It is harder to add items on later.

Stebiz