please help me im really scared

RAS

jay_mi10 wrote: »

Hi,
just on the phone at the moment, littlewoods account 700 got reffered to nationwide debt recovery and they set me up a payment plan of 200 per month which i couldnt afford- i even stated this. So the first month payment was june- i made 100 pound payment and explained couldnt afford new payment. They said they couldnt readjust the plan so i have obviously got this letter "notice of default on your agreed arrangment" I have called up and they said they cannot re do the plan. what they can do is put it on an intrest account which would lower the monthly payments quite low, over 1,2 or 3 years but she said it is high intrest. She said someone will call me back in the next 48 hours to sort this out and tell me ins and outs. It seems like my only option so i can lower monthly payments? the total owed is 700

Hi

Please do not do this.

At present there is very little Littlewoods can do and once you start paying this off (consider how much less your monnthly spends will be by September), it will reduce quickly.

Ask if the loan can be repaid without early redemption penalty? if they say yes, then ask for the terms and conditions to be posted and then get someone like CAb to look at it. if they say no, just refuse.

I hope this is goign to sound OK, but am aware it could sound rough.

Your mum did a runner when you were 12 and although you are now back in contact there was a considerable period when you did not have someone close to help you learn some of the financial savvy that just comes from living at home with experienced parents. Not unlike kids who are in care.

This means that you are a sitting duck when it comes to the more aggressive sales types - like this lady at Littlewoods who probably gets a bonus for ever debtor she turns into a loan agreement. Apart from the fact that this loan will make them even more money than the current deal.

It is actually against OFT Guidelines to encourage or offer alternative debt arrangments to a debtor, if this means they will pay more to clear the debt.

The first thing to do is to stop speaking to creditors. Keep all your communication in writing. This reduce their opportunities to threaten you and stops them taking advantage of you.

mummyofboys

I know i sound thick here, but im 22! not so sure on some things lol what does contents include? does it cover for accidents aswell? if i got rid of my playstation, laptop and tv dixons insurance, would they be covered. I feel i need some sort of cover as i have claimed on my tv cover, laptop and boyfriend has on his playstation too, so feel we need some

The 25 charge for the bank account covers holidays, which we have already booked and paid for this september (all inclusive so not bringing spends, was paid for early last year) phones all four are insured, aa roadcover have used twice this month. Home emergency repair, when we had a leak this year and our electrics went they sent a plumber and electrician to sort out. no charges. fraud prevention (not used). and also the intrest free 500 overdraft. so what is all of your opinion on this ?

dancingfairy

jay_mi I think your idea with the overdraft is a really good one and it'll certainly make things a lot clearer.
I'm glad someone is withit today - I hadn't even realised they were trying to sell you a loan and I think it is great that RAS has ponted it out.

Oh and RAS my parents were very good with money and I like to think I am reasonably clued up but even having been on here for ages I am sure if it came down to it I could easily fall for some of the debt companies tactics so it's good to have it pointed out to you.
df

mummyofboys

RAS wrote: »

Hi

Please do not do this.

At present there is very little Littlewoods can do can they not send a baliff round? And take some things or take me to court and get a ccj (i dnt have these so far) and once you start paying this off (consider how much less your monnthly spends will be by September), it will reduce quickly.

Ask if the loan can be repaid without early redemption penalty? I asked if it could be paid off fully if came into money but i didnt mention and penalty and nor did she if they say yes, then ask for the terms and conditions to be posted and then get someone like CAb to look at it. if they say no, just refuse.

I hope this is goign to sound OK, but am aware it could sound rough.Not at all i actually agree

Your mum did a runner when you were 12 and although you are now back in contact (Not incontact havnt been since she left, I am referring to the woman my dad later married with regards to childcare)there was a considerable period when you did not have someone close to help you learn some of the financial savvy that just comes from living at home with experienced parents. Not unlike kids who are in care.

This means that you are a sitting duck when it comes to the more aggressive sales types - like this lady at Littlewoods who probably gets a bonus for ever debtor she turns into a loan agreement. Apart from the fact that this loan will make them even more money than the current deal.

It is actually against OFT Guidelines to encourage or offer alternative debt arrangments to a debtor, if this means they will pay more to clear the debt.

The first thing to do is to stop speaking to creditors. Keep all your communication in writing. This reduce their opportunities to threaten you and stops them taking advantage of you.

thanks for all your help so far, sorry if i come across stupid.

RAS

Hi

Contents insurance varies, but as long as your total value does not exceed a declared amount, you should be OK. Some insurers ask you to report any items above £500 and other set the limit a lot higher. I would expect you to cover the whole house for £12-15, including the lap-top, tv and playsation.

You may need to just check that they are covered if you take them out of the house.

martin has a whole article on not paying for bank accounts http://www.moneysavingexpert.com/banking/compare-best-bank-accounts which offer insurance as you can get the benefits a lot cheaper as stand-alone charges. At you ages, as long as you are not going to do anything like extreme sports, you would get cover for you all for a holiday in Europe for what you have paid per month for the bank account.

the_cat

Contents insurance can be bought either with or without accidental cover (best with if you have kids!)and includes all items in your home which are not attatched (eg kitchen and bathroom suite etc). There is also usually an amount covered for items taken from the home (eg cash, camera, video recorder)It covers loss or damage but not repairs. So you are covered if darling DS throws a toy through the tv by mistake :rotfl:, but not if a component breaks and the tv needs repairing.

dancingfairy

I am not sure whether accidents are covered as standard on contents insurance but we definitely have that on our policy - you would need to get some quotes and ask the question and check out the small print I think.
I think you ought to get some as if something terrible did happen - a fire or something you would need the money to replace all your clothes ,kitchen bits, cd's/dvd's/books - well everything really wouldn't you.
It needn't be that expensive either if you shop around.

To be fair it sounds like you are not getting too bad value for money from your account package. I don't know how much they would all cost individually to be honest -maybe someone else will know.
df

the_cat

Bank account charging currently £300 per year

Rough cost of buying the 'extras'
Travel insurance trip 2 europe for 2 weeks cost around £25
AA cover - annual cost online £39.99 discount often available bringing it down to £20
Home emergency repair err, you are renting, this is the landlords responsibility, not yours so not required
Overdraft (guessed at 10% interest for ease) £50
Phone insurance - expensive rip off I would say, but I'm a hard cow!!!
Fraud - comes as 'legal cover' with your contents insurance


So you are getting roughly £100 of services which you may or may not want and being charged £300 for it. I would get rid unless there are other benefits not mentioned

dancingfairy

O.k so holiday cover - less than 40 pounds as per Martin - see RAS's link
phone cover - how much do phones cost say 100 a year tops - you could pick up a cheap one and assuming you lose less than 1 a year
Aa Cover - 40 ish pounds as per Martins article - see RAS's link
emergency cover - no idea - think you can get this as an add on to contents cover and would be surprised if it cost that much extra a month.
fraud prevention ? no idea
500 pounds free overdraft -

Grand total - 180 a year plus emergency cover plus overdraft plus fraud help
You're paying 300? a year?


df

dancingfairy

Even on my generous figures it looks like you could be overpaying and by the_cat's figures you could save yourself quite a lot.
The_cat beat me to it -- boooo hooo
df