can't afford my contract anymore on o2

overdrawn

:eek: hi i have 2 contracts with o2.
one is the £16 minimum will end in feb
the other is £30 a month and only 3 months into contract
( 2 contracts cos hub had one in my name)

anyway,we are seperating and i cannot afford to pay for either of them at the moment. any ideas as to what i can do?
i have cancelled the direct debits to avoid bank charges.
have phoned o2 they will not budge an inch in either way i am really stuck.
(THIS NOT DON'T WANT TO PAY IT'S CAN'T PAY)
Hub won't help either.
any suggestions?
what will happen now?

matrix999

Your contract is legally binding as you have signed a 12 month agreement to pay line rental to O2.

If you have cancelled the direct debit this will save you from bank charges but your O2 account will become defaulted and this will be recorded on your credit reference file with Equifax/Experian etc etc..

The account will then probably be passed over to a collections company who will contact you to arrange payment or court action.

Sorry for the bad news

overdrawn

thankyou. i thought that was the case. is that my only way out of this ?
if it goes to debt collectors i may be able to pay it slower due to being on benefits at the mo.

matrix999

Yeah, thats one option!

The debt collection company will negotiate a repayment plan with you.

When they contact you its a good idea to send them a statement of means which shows all your priority bills/debts etc etc...ie Rent/Mortgage Council Tax Tv Licence all have a priority over the O2 debt.

Whatever you have left over at the end of the month should be used to clear the O2 debt and this is what the court would expect if it went that far

crossleydd42

If you have other likely diets brewing, go to the Citizen's Advice Bureau and get some debt managment advice now. They will help to arrange 'consolidation of debts' with everyone at the beginning and avoid any nastiness. It's no use companies like o2 getting uppity if you can't pay.

Good Luck

mike_wall15

Sell the phones you have (Must have 2 of them) on ebay and pay off the debt, simple!

:j

Edinburghlass_2

overdrawn, how about posting on the Debt Free Wanna board about any debt you have and the lovely people across there will help you sort out that part of your problems plus there is a great support network of users.