Debt vicious circle

ic63

Hi All,

Have just found this site today and wished I had found it earlier (happy new year). Looks like I am not the only one worrying myself ill with debt.

I owe about £60k in unsecured debt at the last count following a failed marriage and a spell of illness which left me unable to work. but enough of the life story we are where we are!

I have no assets. My work is mainly contract based which pays me good money but is not guaranteed for long periods of time.

My problems (which compound the debt) -

I am unsure of how much I owe and who to.
None of my creditors have known where I live for the last 3 years as I've been moving around and not kept them informed (burying my head in the sand I know!).
I now have a new partner who I live with. She is wonderful but I don't want to involve her in my debt as this is my own doing. We live in a property that is rented in her name and all bills are in her name so I have kept her financially independent of me.
I am scared to tell anyone my new address in case I get debt collectors or even worse bailiffs at the door. even my bank only has my old address as I do all my banking on the internet.

I really want to pay off all these debts as quickly as possible but for the reasons stated above am even scared of asking for a credit report because then they will have my new address.

Any advice on how to at least get this started would be great.

As stated above I WANT to pay off the debt. The reason for my illness was worry over this.

poppy52

You are in the right place! My own debt is even larger than yours - I worried myself sick until I found places like this and advice that has helped me to begin to tackle my problems. You should go to CAB, or phone one of the free debt organisations - CCCS or Payplan. I use Payplan - https://www.payplan.com

ic63

Thanks poppy52.

New Year - New Start!

HenryWeston

hi, if you have no assets, maybe bankruptcy would be the most sensible way to sort your debts out ?

mrelephant_2

Hi poppy

I too am in similar situation as ic63, owing £62k and will be talking with Payplan when they come back to work, was just wandering what arrangemennts you have been able to set up with Payplans help.


Derek

poppy52

They set up a phone interview with you to see what kind of help they can offer. They go through your income/expenditure and see what money you have left over to pay off creditors. They ask for a list of all your creditors with exact details of what you owe each one. I think for a debt management plan you need a minimum of £150 or £200 each month left over. Once all the paperwork is done you pay them by standing order and they pay your creditors monthly on a pro rata basis. You send any nasty letters or threats to them and if you get phone calls from creditors just refer them to Payplan. You also get access to an internet site where you can see how much is coming off your debt each month. Mint did write and tell me they would not accept the amount offered 2 months ago when I set the plan up but I sent the letter to Payplan and they simply re-sent the income/expenditure form - they haven't moaned since. It was all quite slow to set up, and one creditor has somehow got missed off the list (need to sort that out next week when office opens) but is a huge relief. Some creditors have written to me saying they accept, others are simply taking the money and sending me statements. When they phone they seem pleased I am making the effort and I think it was Bank of Scotland who recommended Payplan in the first place. They feel the same about CCCS which is also a free service. Whatever you do, do not go to one of the fee paying organisations - they will rip you off and creditors don't like them because the fee you pay should be going to creditors instead! They will also tell you to get a basic bank account with no links to any bank you owe money too. I opened one with the Co-op - no cheque book, just an electron card and DD facilities on the internet. Some creditors will freeze interest payments straightaway, others won't but Payplan say they usually do after some time. Payplan and CCCS will also sort out IVAs and bankruptcy. I can't tell you the relief - I had months and months of worry and fear. I owe over £85,000 unsecured debt. Luckily I recently got a very good job with a big salary so can afford quite a big payment. Before that I was self employed. Now I have enough to live on each month without panicking and know that my debts are going down. I won't be debt free until about 2012 but at least it's a date to work towards! I do exam marking in the summer and plan either to use that money for things like paying son's uni fees, buying new couch(badly needed) or even having a break.

citygal

ic63 Sorry to hear about your debts You'll find that this is the best site to help you. Many people have helped me here with my own problems. I too wish I found this site before (only been on here 7 months or so) but it's better late than never! The most important thing is that you have taken a step to come on here and be honest. Many people I know, who are also in debt but are just in denial.

Here's hoping 2006 is a positive nd starting to be debt free

ic63

Thanks Citygal. Nice to have support and trust again.

ic63

Does anyone know if I contact the agencies will they keep my address private until I have arrangements to pay? I want to stop any further action until I confirm what I owe, to who, and how and when I will pay back. After this when I feel safe I don't mind giving my details. As you can see I don't trust banks etc (or those who they sell their debts too even less!) due to past experience. I want all agreemnets in writing from them.

Thanks to all who have replied so far!

sparkle84

Hi you will have to give cccs or paypal your details as they need to post you forms which you have to sign allow them to act for you

ic63

Don't mind giving details to cccs or paypal as long as they dont pass those details on to the organisations who I owe to until I have confirmed that payment arrangements are acceptable.

Also. Any idea how I can get hold of my credit file without giving the credit reference agency my current address?