The 'I'm In Debt, Help Me' Thread

aaarrrggghhh

Hi

My name's Adam and I loved money. Therefore I am now in debt.

(Insert round of applause from fellow members sat around me).

My debts are as follows:

Next Directory
Owed: £426.27

Barclaycard VISA
Owed: £252.85

Barclays Current Account (Overdraft)
Owed: £1400 approx.

C.A.R.S (a credit collection agency)
Owed: £65

RBS Current Account (Overdraft)
Owed: £1250

Triton Credit Services
Owed: £406.07 (Got as far as the 'Court Action will be taken if you don't pay us NOW' letter)

Mum & Dad
Owed: £411

So, there you go. It's not terrible, as I'm sure people are in worse situations than me. However, it is concerning, as you probably know, to get letters relating to bailiffs when you live at home with your parents.

After perusing these forums for about an hour, I have decided to do the 'letter with £1 token payment' thing. I have enclosed a copy of the letter I will be sending off tomorrow, and I was hoping someone may read it over and add or take away important bits. The one below is the template with the Next Directory information filled in:

To Whom It May Concern:

I currently have an outstanding debt of £426.27 with the Next Directory.

I am writing to you for two reasons:

a) At the time of writing I am currently out of work. I have no income to speak of, until I either find a job, or claim benefits;
b) I enclose a ‘token payment’ of £1 in the form of a cheque, which will recur each month, until my situation changes, at which point I will correspond with you further.

I hope to get the sound advice this board offers.

Thank you for reading!

THE_LONE_RANGER_4

hi, basically yes this is what you can send if out of work,as long as it is unsecured debt,some creditors will be a bit miffed but you can only pay what you can afford and to be honest when creditors lend they know you can lose your job etc reguards andrew

moozie_2

Welcome and best of luck.

Hope all works out well for you

CLAPTON

your total debts are about £4,000, so that the minimum payments are about £80 per month.
could you say why you can't meet those payments ... what is your income, do you not work, or have unemployment benefits???

southernscouser

The letter looks good mate. :beer:

Just wondered if you are aware of the impact not being able to pay your debts has on your credit rating?

Like you say, you can't pay what you can't afford but it can have major concequences (sp) later on!

aaarrrggghhh

CLAPTON wrote:

your total dents are about £4,000, so that the minimum payments are about £80 per month.
could you say why you can't meet those payments ... what is your income, do you not work, or have unemployment benefits???

Thanks for your post.

The letter example in my post states that I am currently unemployed. I lost my job a month ago, and I really don't want to sign-on if I can avoid it.

My income at the minute is basically debts owed to me by friends. I have about £200 owed to me, and it comes in in dribs and drabs.

I have looked into Jobseeker's Allowance, and if I could do it all over the phone I'd claim it straight away. I just can't bear the embarassment of going into the Job Centre!

aaarrrggghhh

southernscouser wrote:

The letter looks good mate. :beer:

Just wondered if you are aware of the impact not being able to pay your debts has on your credit rating?

Like you say, you can't pay what you can't afford but it can have major concequences (sp) later on!

Thanks for your post.

Firstly, I am aware of the impact these actions may have on my credit rating.

I do intend to get a job before the month is out. When I am earning a wage, I then have the option of full and final (is that correct) settlements, which I will gladly take.

Secondly, I am going travelling across Europe in January of next year, so I have that goal to help me pay them all off before then. Obviously, I also have to save for this as well (although I do have a savings account my parents have been paying into since the day I was born, which they are giving to me in October).

aaarrrggghhh

simonleblank wrote:

"Like you say, you can't pay what you can't afford but it can have major concequences (sp) later on!"
When mine is paid off, I don't want any more credit!

Within reason, I don't either. I would like to think i'd have a mortgage later in life, but there is no way I would commit to that at today's house prices, let alone house prices in a decades time!

southernscouser

adammccance wrote:

Secondly, I am going travelling across Europe in January of next year, so I have that goal to help me pay them all off before then. Obviously, I also have to save for this as well (although I do have a savings account my parents have been paying into since the day I was born, which they are giving to me in October).

Is there any chance they would let you have this now if you explained the situation?

aaarrrggghhh

southernscouser wrote:

Is there any chance they would let you have this now if you explained the situation?

They probably would, but I wouldn't feel right using it as almost a 'get out clause'. It's my problem and it's up to me to get myself out of it, not to use my parents each and every time. As you may have seen, I owe them over £400 due to them already paying debts off for me.

Besides, I'd feel a whole lot better if I used the money to see the world! By coincidence, the money I owe is equal to the amount of money coming my way in October.

southernscouser

adammccance wrote:

They probably would, but I wouldn't feel right using it as almost a 'get out clause'. It's my problem and it's up to me to get myself out of it, not to use my parents each and every time. As you may have seen, I owe them over £400 due to them already paying debts off for me.

Besides, I'd feel a whole lot better if I used the money to see the world! By coincidence, the money I owe is equal to the amount of money coming my way in October.

The only thing I would say is that by the time you pay them all back you may have also paid an extra £500 in interest for example!

Surely this would be better used for travelling!

If the interest you were getting from your savings was greater than what you pay on your debts then leaving the money would be the better option but this way it will be cheaper in the long run!