Haven't opened mail or paid bills for 4 months

yorkiegal

I have longstanding psychiatric problems and find it nigh on impossible to deal with paying bills most of the time. Today I've finally managed to face opening the mail, mainly because I've come into some money which will help me pay some of the debts.
One of my bills is for a lloyds credit card. I've not had a card for years but have been paying off the account. I frequently default and haven't paid them a penny this year. They are using Credit Security Ltd to manage the debt. Now this company has sent me three letters, each offering a partial settlement of 40% of the outstanding balance. The letters state that this would be seen as full and final settlement of the account. I can afford to pay the lower amount but when i phoned them today, they said the offer had expired and i would have to renegotiate. They were also very keen for me to pay a token amount today over the phone (i didn't). So i've left things as they are for now. I have a cheque for three grand (thanks dad!) to pay into my bank today, and once that's clear i can start paying the debts. Water and electricity come first. I'm just hoping lloyds don't grab the full debt from my current account once the cheque clears, as it won't leave me enough to pay my priority debts.
Any advice on how to negotiate would be appreciated.
I'm still very chuffed that i've finally managed to open the mail though. thank heavens for anti depressants lol.

embarrassed_about_my_debt

DO NOT PAY IT INTO YOUR BANK TODAY.

Go to somewhere not related and open a savings account and deposit the cheque there. Then once it clears you can pay the debts in the order YOU need to.

Other wise lloyds may take it and "offset" it

Its better to be safe than sorry!

SazM030306

Excellent advice from embarrassed.
Well done for starting to get sorted x

Jesthar

Hi yorkiegal, and welcome!

What the previous people said - do NOT take this money to your existing account, open a separate account at a different bank. If that means you can't pay your cheque in today, that's OK - it's better than not seeing your money again! My friend had HSBC appropriate a large amount of money from her savings account without her knowing, and she got into some horrible financial problems as a result. :mad:

Well done on not paying Credit Security anything - perhaps you could hold out for the F&F? Keep us informed of that. Also, have you checked they can legally enforce the debt? Not sure how the rules apply in this case, though - does anyone else know? Not my specialist subject!

You are right, utilities are a priority - but if you pay council tax and are in arrears, than needs to come first, as it can cause the most problems.

Anyway, congratulations on facing up to all this so well! :T

~Jes

skintandscared_2

Yorkie - WELL DONE on opening those letters. :T My OH has mental health problems and he can't open letters or answer the telephone a lot of the time, so I DO know what you mean.

What EAMD said - DON'T pay the cheque into your account. Lloyds will very likely take their money.

You don't mention your financial situation (ie income, etc) but are you financially stable enough to set up some direct debits so you don't have to do anything at all once that's done?

If you are generally struggling with paying things, there are some fantastic people at the Citizen's Advice Bureau who I'm sure would be really helpful. I have someone looking up some new legislation for me, about harrassing people with mental health conditions on the phone about debts.

cornishinfens

Well done!

Take on board the excellent advice from above and you'll soon be on the path to freedom, financial and emotional

Ms-Pacman

What I did when sorting out what I owed was create a list of who is owed what and worked out if I could offer a final amount. Some accepted what I offered as a final apyment and others didn't but I guess can't expect for all to go my way!
I sent them this after worked out what I could afford - this was for bank account, loan and a credit card though.

Creditors Name
Creditors Address

Dear Sir / Madam ,

Re ACCOUNT NUMBER:

I/We write with reference to the money which you are claiming on the above account.

I/We can confirm that I/we are unable to offer to pay the balance owed in full. However, I can raise £x and wish to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I/we will be released for any liability.

I/We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

I/We look forward to receiving your reply.

Yours faithfully
Name(type don't sign)