Debt vicious circle

Janey51

Hiya. I finally plucked up courage to phone Payplan before Christmas and they were so helpful.They asked me whether I wanted to speak to an advisor before or after Christmas so I opted for Christmas Eve! True to their word I had a phone call from a lovely lady at 3pm on Dec 23 who took details of all our debts (£85,000+) and Income and Expenditure. She suggested an IVA paying £450 pm for 5 yrs and the creditors get 75% of the equity of a buy to let property we own in 5 yrs. As the biggest loan we have at the moment is costing us £377 per month that seems a good deal but we will have to look at everything first. An advisor will contact us when the offices re-open this week.
I think we still need to look at whether a DMP is feasible for about 6 months until we could sell the house when the tenants move out (there is about £50,000 equity) and make a Full and Final offer.
I wouldn't hesitate in contacting Payplan as they were so non judgemental and understanding. They advised us to open another bank account with someone who is not a creditor and to empty our bank accounts as the bank would freeze them as soon as they got wind of anything.I can't tell you how furtive and guilty we felt trotting along to the Autobank every day to get money out as I had just been paid. We are only late with one payment to a RBOS CC at the moment but have ignored their phone calls on Payplan's advice...aren't ansaphones wonderful?
We phoned all our other CC and loan companies to give them our case number from Payplan and say we would be only making token payments for now. I have to say that 95% were great. Marbles were a bit pushy but I think the Indian gentleman I spoke to didn't understand what I was trying to tell him and just thought I didn't know how to pay....not that I couldn't pay!
Anyway, good luck with whatever you decide to do. I feel a lot better although I know there's a long way to go.

ic63

Janey51,

Thanks for the posting and good luck! With every posting I read I have a little more faith that I can get through this and live a NORMAL life [/B]DEBT FREE

moongarden

Hi IC63

i applied for my credit file giving a friends address as a care of address a couple of years ago.

actually, getting your credit file will help you see who you owe money too and how much. If you have creditors who do not show up in your credit file then that debt is not registered against you as a problem.
the file will give you contact details etc for all the creditors plus how much you owe etc.

there are a couple of things you can do once you get the file - you could ask each company to prove the debt - show you signed credit agreements etc - if they can't then its gone. i think others have done that from this board so see other posts.

also you can write to each creditor saying that they can only contact you in writing/by email possibly - not sure about the email bit but you could set up one of the free ones and at least it would open a dialogue.

mariejader

I don't think giving a friends address is a good idea.

Have you considered opening a Post Office Box?

homersimpson_3

you can't run away for ever, eventually they will catch up with you. if you keep creditors informed and make some attempts to repay debts they're more likely to help you. getting a copy of your credit report will help you to find out who you owe money to. running away has only made problem worse- by not keeping up with paperwork you don't even know who you owe money to!. your girlfriend will be affected by association (the mere fact she lives in the same house) and it can affect her credit rating to. you have to tell her. i would be really annoyed if my partner did not tell me- i would feel he didn't trust me and think what else is he keeping from me. fighting a battle together can often bring couples closer- common bond etc. contact ccs and let them do the liasing with creditors etc.

ic63

Thanks for your comments.
I am not running away I have just not been in a position to do anything about this until now. At this moment in time I just want to get all sorted. An easy way out would be Bankrupcy but I strongly believe I should pay what I owe.
There should be no association between my financial affairs and my partners. I am not registered at this address (hence not wanting to be!) and therefore there should be no impact on her credit rating (if this is not true then tell me now because I will move out!!!).
My partner is also aware of my debt and my determination to clear this ON MY OWN as it is MY debt.
I fully intend to use one of the agencies that have been recommended.

oriana

hi ic63,

well done for starting to sort out your finances! i am in lots of debt too (45K :eek: ) and trying to sort it out. i just wanted to say that -from what ive heard, i dont think bankruptcy is an 'easy option', most people find it incredibly traumatic. However, it is one solution when faced with overwhelming debt, and the consequences are not so bad if the debt is unsecured and there are no assets. In the right circumstances it can offer a fresh start. (see http://www.insolvency.gov.uk/ for more information). But it is a drastic measure and should only be taken after professional advice.

good luck, x

ic63

Oriana.

Thanks for your posting. I agree my phrase 'easy way out' was incorrect for bankrupcy. Just wanted to get over the point that I will feel better about myself if I can pay back as much as possible and start again. Already feel better by just talking about it rather than keeping all the worry in.

mrelephant_2

Moongarden

Which credit file agendy did u use to get your file?

moongarden

mrelephant - it was equifax that time although i gave them my friends address as a "care of" address.

i told them i was living out of the country but due to return in a few weeks.