Newbie going BR

guitarjam

Hi All,

I had an interview yesterday with the CCCS who said the best option for me is to go BR, didn't sleep at all last night with stuff running through my head spent most of the evening on here reading lots of threads......it does scare me.......I have just short of 20k of debt spread over 4 credit cards, buried my head in the sand for a long time, kept drawing money from the credit cards to pay the credit cards, paying the minimum monthly payment but just treading water........it's the classic story.......but in december I said enough is enough and stopped payments on 3 of my credit cards (the other one is linked to my bank so I'm mangaing to keep up min payment on this only because I don't want to upset them.......£600 overdraft and my wages are still going in if they shut down the overdraft facility at the moment I won't be able to pay rent and other priority debts but I know I will have to deal with that soon) I'm with HSBC at the moment.......

How did all this come about, well split up from the OH relocated and so had to get a new job which is less money than I was earning on the last job.....but more importantly this is the most happy I have been in a while with work :j

So the CCCS worked out that after paying all my priority debts i have £5 left.......

I'm in rented accomodation, my car is 11 years old and has nearly 100k on the clock (ha I still love it though) no assets (god I'm 44 and own less than i did when I was 20)

So I have lots of questions...........

CCCS said the OR would inform my employer (I don't really want them to know) is this true

They also said that the OR would inform my landlord (rented through an estate agent) I'm am up to date with rental payments........

Bank accounts when is the best time to open a new one, this is the bit that frightens me, if I opened one now, would the OR freeze it even if I wasn't in debt with the new bank and would the new bank close it once they find out I'm BR

Oh finally that thing with the tax code.......if I went BR in March would that mean I wouldn't get a Nil tax code...........does everybody get a nil tax code when they go BR, that would mean I pay more tax and then be struggling even further........

Sorry this post is going on to long........just want to thank everybody who posts on here it's been good reading positive messages of BR and to know your not alone.......

Thanks for reading

GJ

copier_guy

Hey GJ,

welcome, to the club. Someone more clever than me will be around soon.

CG

100 posts already?

startagain_2

guitarjam wrote: »

Hi All,

I had an interview yesterday with the CCCS who said the best option for me is to go BR, didn't sleep at all last night with stuff running through my head spent most of the evening on here reading lots of threads......it does scare me.......I have just short of 20k of debt spread over 4 credit cards, buried my head in the sand for a long time, kept drawing money from the credit cards to pay the credit cards, paying the minimum monthly payment but just treading water........it's the classic story.......but in december I said enough is enough and stopped payments on 3 of my credit cards (the other one is linked to my bank so I'm mangaing to keep up min payment on this only because I don't want to upset them.......£600 overdraft and my wages are still going in if they shut down the overdraft facility at the moment I won't be able to pay rent and other priority debts but I know I will have to deal with that soon) I'm with HSBC at the moment.......

How did all this come about, well split up from the OH relocated and so had to get a new job which is less money than I was earning on the last job.....but more importantly this is the most happy I have been in a while with work :j

So the CCCS worked out that after paying all my priority debts i have £5 left.......

I'm in rented accomodation, my car is 11 years old and has nearly 100k on the clock (ha I still love it though) no assets (god I'm 44 and own less than i did when I was 20) Join the club!

So I have lots of questions...........

CCCS said the OR would inform my employer (I don't really want them to know) is this true - I don't see why they said that - there is no reason for you employer to know.

They also said that the OR would inform my landlord (rented through an estate agent) I'm am up to date with rental payments........ Is it a private tenancy - he may be informed, what does your tenancy agreement say. If there is a no BR clause, it doesn't neccessarily mean you will have to leave.

Bank accounts when is the best time to open a new one, this is the bit that frightens me, if I opened one now, would the OR freeze it even if I wasn't in debt with the new bank and would the new bank close it once they find out I'm BR - Open one a.s.a.p if you are planning on going BR and get your wages paid in to the new one. Co-op cashminder and Barclays Cashcard are both BR friendly.

Oh finally that thing with the tax code.......if I went BR in March would that mean I wouldn't get a Nil tax code...........does everybody get a nil tax code when they go BR, that would mean I pay more tax and then be struggling even further........ Correctamundo - going BR in March should mean no Nil tax code as it is so close to the end of the tax year.

Sorry this post is going on to long........just want to thank everybody who posts on here it's been good reading positive messages of BR and to know your not alone....... Not too long - we are all here to help and support - like it says at the top of the board

Thanks for reading - Welcome to the board. Good Luck

GJ

Sorry - in a bit of a rush to leave work, will log on when I get home to see how you are getting on!

SA

guitarjam

Thanks SA and CG :beer:

Just thought of something, my ex was an additional cardholder on one of the credit cards, and can't remember if I took her off, we split up about 2 1/2 years ago, but since we equally share looking after our 12 year old see her regulary.......if I go BR and she is still listed as an additional card holder will the persue her for the debt.....because I wouldn't want that to happen.....

Thanks again......

GJ

fiveyearplan

If the agreement is in your name then she cannot be held responsible for the debt.

If all your debt is between 4 credit cards have you asked for your CCA? I would do that as a matter of course as this will also delay any action they can take. How long ago did you open the accounts. If there was a way to offer full and final settlement could you come up with 30% of the debt to have everything settled and not have to go BR?

guitarjam

Thanks FYP......

3 of the cards I have had for well over 10 years, always paid them, and they always kept putting the credit limit up......

One of them MBNA was only signed up in July 2007 I remember this because I'd had a few:beer: as I was at the Summer Pops Festival and these women were getting people to sign up, sure I didn't fill the form in properly on purpose because to be fair I didn't want another credit card......I was thinking of writing a letter to tell them I was intoxicated and so couldn't be held responsible.....

Is CCA Credit Card Agreement, I've read all that stuff about some of them not being legally binding if it was pre April 2007 and I saw that programme on TV where that couple had written off loads of debt and started up a website.....

One card has served a default notice on me already........do you just write to them for the CCA and just ask for a copy ?

Wouldn't be able to do the 30% bit at all, I literally have just enough to survive and pay my priority debts..........

GJ

tigerfeet2006

If you pop on to the DFW board and do a search on CCA's there is plenty of information on there about the process.

keepmyhouse

Oooh I think ive misunderstood, so with a nil tax code, you pay more, i thought it meant you didn't pay any Oooops

tigerfeet2006

No the tax you would normally pay to the tax man is left in your pay packet and you put it to one side and pay it to the OR's rep when asked.

The closer you get to April 5th to go BR the less likely you will have to pay it as it is not worth their while.

keepmyhouse

Pheeww, im glad I just want my wage and tax to stay as it is,less complications, so Feb is a good date I suppose.

Thanks

tigerfeet2006

Can be hit and miss but more people don't get a NT code than do. So not a bad choice