Pushed into debt, pushed into bad credit rating & negative earnings

tzen

Hi, never posted on here and i have been looking on this site recently to try and help myself out a little. I desperatly need help and advice, im stuck in a very bad situation that will get worse from here onwards.

Basically i was made redundant twice in an 18 month period. first time i tried to arrange for my PPI to start on my nationwide credit card but they kept passing me bewteen the insurance company and the bank and never go anywhere so gave up and used my savings.

Then, got made redundant for a second time, same old business but eventually got the forms and tried to claim again then they said no u need to get a signature from previous employer. This was impossible as they had gone into liquidation and the employer was nowhere to be found. I spent 3 months incurring charges and eventually ending up with default notices and bad credit. While this was going on i was claiming jobseekers allowance.

Both my credit card and current account were with nationwide. My allowance was going into my current account, i was within my overdraft so no problem (so i thought). I told them my situation and they said ok we will cancel all your direct debits.

It never happend it took 3 times of calling and a complaint to get them stopped.

While this was going on my benfits were going into my current account but because i had inccured charges it was going straight to nationwide and into a black hole! So i never saw any of my benefit and they were still demanding money and trying to take money out of my account.

I had to borrow money from friends and family and it tore a hole in my relationship with all of them as they dont have much to give either due to various reason, i eventually complained and they paid back 'some' money back which i used to pay off my friends and family.

Inbetween my redunancies whislt in work i started a course so i could get a better job as i was sick of the work i was involved in and wanted better pay, that involved taking out a loan, i did a credit check before and i was amazed that i had a rating of 946 out of 1000.

That was until these chain of events happened. Now the result of all that happening is, i have bad credit rating so i cant get a better loan rate to pay off the loan i took out that starts in a week so im paying about twice as much, i have a credit card to pay which is with an external company, due to the lack of payment as i didnt have the funds and get regular default notices from as i cant pay back the arrears amount in full. I cant pay off my overdraft in full and have an arrangement to pay or that will get default notices and i have a loan which starts next week. After all that i have had personal problems that have been caused by all this.

I earn £900 a month after tax and i will be paying out £933 a month. i am at a complete loss now. i have started a complaints process with all departments of nationwide who i have the accounts with but feel it is going to go nowhere. if anyone could help or provide me with any advice i would be very appreciative. thanks for reading my GIANT essay, lol.

Many Thanks

Dan

Mozette

This is really difficult to read and take in - would you edit it and put in paragraphs and capital letters to make it readable?

Also can you do a statement of affairs - you'll get loads of help with that.

Well done coming on here, it's the best place!

tzen

MONTHLY SPEND


Home...........................................£255.00
Insurance.....................................£0.00
Eats, Drinks & Smokes.....................£0.00
Transport & Travel..........................£223.20
Debt Repayments...........................£373.00
Savings & Investments ...................£0.00
Family..........................................£0.00
Fun & Frolics.................................£0.00
Health & Beauty............................£0.00
Clothes........................................£0.00
Education & Courses......................£0.00
Big One Offs................................£0.00
Odds & Sods................................£0.00
Total..........................................£851.20

Income Monthly

Income From Employment / Self Employment.............£900.00
Total.................................................................£900.00

Totals
.......................................................MONTHLY.......ANNUAL
Total income.......................................£900.00......£10,800.00
Total spend........................................£851.20......£10,214.40
You spend LESS than you earn...............£48.80.......£585.60



ok, well i got it slightly wrong but still not left with anything, i havnt even included stuff i might like to do to enjoy myself! lol

angelicmary85

Hiya and welcome to MSE!

You'll get loads of great advice here but post your soa using this link to help you http://www.makesenseofcards.com/soacalc.html

tzen

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 900

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 160
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 160
Road tax................................ 0
Car Insurance........................... 60
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 415


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
nationwide cc..................1300......60........16
MBNA cc........................1300......60........15
Loan for Course................4995......220.......18
nationwide overdraft...........1160......45........11
Total unsecured debts..........8755......385.......-


Monthly Budget Summary
Total monthly income.................... 900
Expenses (including HP & secured debts). 415
Available for debt repayments........... 485
Monthly UNsecured debt repayments....... 385
Amount left after debt repayments....... 100

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,755
Net Assets.............................. -8,755

Created using the SOA calculator.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

RAS

Hi

you need to tackle each of these issues separately.

1. If your PPI did not pay out, you need to appeal. See here http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

2. If they still do not pay out, then you need to reclaim the whole cost of the PPI. If you are lucky it will be a front-loaded and you will get back up to 20% of the cost of the loan.

3. You need a new bank account (basic) and to reclaim the bank charges.

tzen

Hi, thanks for getting back to me. i have opened up 2 seperate cases now with nationwide but they are argueing the fact that it i should be taking the PPI up with a 3rd party that they deal with. this doesnt make sense to me or fair, am i correct to thing that?

also, regarding my damaged financial profile do you think that i will ever get that sorted?

I feel like im fighting a losing battle with this after speaking to them about all these issues.

sorry for all these questions im new too all of this, in an ideal world i wanted to get a loan to pay it all off at a much lower rate but now im unable to do so because of the damaged profile because of how they treated my finances.

Also, i got a new account when after i started work as my first few pay packets was swallowed up by them yet again.

Thanks for getting back to me, i really appreciate the advice

gfplux

Hello Tzen,
In my opinion you need to separate the past problems with PPI from your present situation.
What I mean is that you should of course be pursuing an appeal about the past bad treatment. BUT remember this may take many months and even if you get some compensation you may not see any money for a long time. We are all sometimes guilty of counting our chickens before they have hatched and that can get in the way of today's problem.

Your present situation is you have been spending more than your income and now have debts. You need to re-look at your latest SOA and fill in the missing amounts that you are spending such as groceries, road tax etc, etc.
Re do that SOA and come back to us.
Start a spending diary TODAY to see where your money goes. You will be surprised!!
It is not going to be easy but by coming on this forum you have taken your first big step. Well done

AlwaysWorking

Hi! Is there anyway you could increase your income, allowing you to pay of your debt more quickly and/or give you some money to live on? Could you get a part time job?