Very poor indeedy

sparkysi

Well I am in a bit of mess financially and not too sure what to do next. As everyone in my situation, I have a story, I shan't bore you with it suffice to say the last couple of years have been really bad.

I have just got my credit report from Equifax using the online service, which is pretty nifty btw. Had to do this as I have no paperwork relating to any of my financial affairs for the last couple of years, both personal and business. Basically I have about £40k in defaulted unsettled debt, around £20k of current up to date debt, one CCJ for £100 and thats about it. I have just got rid of my overdraft facility as Im sick of living in it, also just got a replacement credit card through but I've hacked it up and binned it instead of activating it as I seem to spend what I've paid off almost immediately. In addition I have two SA tax returns which I have not yet done, for years ending 2003 and 2004. I have the forms and Im working through them but I am worried about what will happen when I send them back as I cannot afford to pay anything if I owe it. I will be sending them anyway or the fines are just going to mount up more.

The difficult bit is the defaulted debt. The companies I owe money to are not contacting me for the debts, they are mostly declared as defaulted around the end of 2003 and early 2004. These are the biggest worry in my financial life as if they start knocking on the door I am really in trouble. But how do I move on? If I don't do something then its just going to sit there, but then again the TSB gave me a loan and credit card last year so what on earth is going on?

I am starting out as an electrician on my own, waiting on my CIS4 card to arrive. Hopefully I will be able to start earning a decent amount again and get myself out of the hole I am in with my current managed debt. Its all a bit of a worry really as I have a child due in March and I am starting to panic that things are going to catch up and bite me on the bum at just the wrong time.

Am I worrying over nothing? Have I had my head in the sand for too long? Any opinions?

Thanks

Simon

Little_Miss_Winner

Hi Simon,

Welcome aboard, you have found the right place to find some answers and try and work through this.

I will be the first to ask, before everyone else comes along shortly. But you need to supply us with details of all monies that come in, against all monies you have going out. So we can see how much you have left over each month, to throw at the debts.

Why do you not have any details of who you owe money to? I know you say most are defaulted from 03/04, but you must know the company names?

I would say before you can do anything really you need to have all your information to hand, before you can work out, whether you will actually be able in reality to pay it all back.

Keep posting,
pot

sparkysi

Hi and thanks for the response.

I guess I didnt get accross wat I meant. I dont have any of the original documentation, I can find from the Equifax credit report which companies are listed as default. My other issue is tat I dont have financial records for the tax years in question for my SA forms, I am going to best guess it based on what little evidence I have and just hope they accept it.

I will put together an I&E. I think I can manage my current debt ok, its just whats the option for sorting the older stuff out. I really cant believe its just going to go away.

southernscouser

To help you out we will need a SOA (state of affairs).

Have a look at the thread below for a guide.

http://forums.moneysavingexpert.com/showthread.html?t=107280

rainbowseeker

Basically I have about £40k in defaulted unsettled debt,
The difficult bit is the defaulted debt. The companies I owe money to are not contacting me for the debts, they are mostly declared as defaulted around the end of 2003 and early 2004. These are the biggest worry in my financial life as if they start knocking on the door I am really in trouble. But how do I move on? If I don't do something then its just going to sit there, but then again the TSB gave me a loan and credit card last year so what on earth is going on?

Hey, what?! I don't understand, how can you have £40k defaulted debt from two years and not have them chase you up for it? Your credit rating should be shot to pieces so how come's you got a loan and credit card? You say your current debt is manageable does this mean you haven't been paying anything, even token payments towards the £40k defaulted debt? And they're not contacting you about the debt? How can this be? Is is because you've moved address? Confused.
I'm about to default on debts and have written begging letters to creditors to be given time to sort things out. I'm just assuming that it was better to write them first as I was bound to start getting threatening letters in due course.
Has anyone else out there gone into default with creditors and not been contacted by them?

asandwhen

This is probably not going to be a popular answer but here goes :-

I would suggest that the 40k defaulted debt stay where it is in limbo for the time being only start making token payments when and if they contact you - If after 6 years the debt has not been acknowledged then it is no longer recoverable by the creditor.

Let them come to you - why chase them - The worse thing that will happen is a company will come to your door (more likely to send you a letter first) then you contact them over the telephone/mail and sort out a token payment.

loubie_lou

If I was in this situation and had any sort of morals I'd want to get this situation sorted. I couldn't live knowing I had all this defaulted debt from a couple of years ago, it would really screw with my mind.

If i also had a baby on the way i'd want to sort it so it doesn't come back to back you on the bum as you described it earlier.

For the babies sake find out what is going on with the defaulted debts....

jellycat40

Hi there

You pay your money and take your choice on what advice you take. Personally I would not wake the sleeping Tiger. Let the defaulted debt go for now and concentrate on paying off the immediate debt. If you are asked for the £40k later deal with it then.

I suppose when it comes to big financial organisations I have very little in the way of morals!

Good Luck

Louise

sashacat

was the defaulted debt to big organisations or small people who may have gone bankrupt as a result...why not go to a charity advice organisation and make a voluntary agreement to pay the debts off...they would maybe be able to advise about the defaulted debt