In such a pickle and getting v depressed

Leigh73

Hiya,

Am now owing O2 for 2 phone contracts, and I can't afford either!

http://forums.moneysavingexpert.com/showthread.html?t=1839297

Any help re this would be most appreciated, as I'm losing sleep over my mounting debts.

I also owe about £350 to Empire Stores, and another £300 to Littlewoods (never again will I use a flippin' catalogue..). Both of these have gone to their in-house DCA (LDR I think they're called?).

Now, last month I called LDR to arrange a payment plan, in order to clear this over the next year. They agreed to £25 for the 1 account, and £35 for the other.

I've since been made redundant, and am really battling against a drink problem. This is obviously not helping.

I was meant to pay my second instalments to each a/c - ie - £60 in all on Saturday, but I just haven't been able to afford to, as I'd also fallen into arrears with my rent

Rent arrears are around the £600 mark. I called my landlord, and we've come to an amicable arrangement, so the priority debt is sorted.

Capital One - stays hovering just under the £500 credit limit (wish I'd never got this damn card last year). Am up - to - date with this, but about £30 due next week. More stress :-/

Vanquis - Again, up - to - date, £225 / limit of £250 / £10 min payment due again next week, which again is adding to my stress.

Sorry to witter on here. Just really needed to share this, and would really appreciate some pointers as to where to go from here, primarily (trying to deal with all this in bite size chunks...) the O2 mobile contracts first?

Many Thanks guys,

Leigh x

Leigh73

PS -

Re the Empire Stores / Littlewoods 2 seperate catalogue debts -

1 is showing incorrectly as 3 months in arrears (should be 2) / the other is showing correctly as being 1 month in arrears on my online Equifax alerts / credit report, under "Previous Information".

Under "New Information", it then says 'I' - 'Arrangement to Pay', and yet, it tells me in the Alerts section of Equifax.."One of your accounts has recently been reported by the lender as Defaulted"

This was on the 10th of July, 2 weeks after Id paid the first months installments to each company! So, why on earth have they lodged a Default notice on my file?

Many Thanks for any pointers any of you are able to help with.

Leigh x

Leigh73

10/07/09 Default Status on Account One of your accounts has recently been reported by your lender as Defaulted. This is viewed unfavourably by lenders.
There has been a change to the Default Status on the following account, if this is incorrect, contact Equifax.
Changed Default Status Summary
Company Name Account Type Account Number Status
New Information LEGAL DIRECT RECOVERIES Mail Order Agency XXXXXX0100 I(Arrangement to pay)
Previous Information LEGAL DIRECT RECOVERIES Mail Order Agency XXXXXX0100 1(In Arrears)
Changed Default Status Summary
Company Name Account Type Account Number Status
New Information LEGAL DIRECT RECOVERIES Mail Order Agency XXXXXX8000 I(Arrangement to pay)
Previous Information LEGAL DIRECT RECOVERIES Mail Order Agency XXXXXX8000 3(In Arrears)

Thought this might help.

Thanks.

lemoncheesecake

Hi,

Firstly don't panic! I'm new to these boards but eveyone has been really helpful so I'm sure someone will be along shortly with advice. I've just started a DMP and its been the best decision we made. Perhaps you could post a statement of affairs which will help us understand your situation better?

moo2moo

If the drinkings a problem you need to tackle that first. You're not the only one, theres an enormous thread on cutting down or out alcohol which can be found here: http://forums.moneysavingexpert.com/showthread.html?t=1821615

Then you need to sit down and figure out your exact income each month, your essential outgoings and then your debts. I know its scary but most of us have been there. Being made redundant doesn't help. Did you get a lump sum redundancy payment and if so could that be used to eradicate some of your debts? Theres a link to the SOA forms at the top of the DFW board.

Good luck!

Leigh73

lemoncheesecake - Thanks. Good Luck with your DMP! I'll post a SOA asap this week.

Moo2moo - Am cracking the booze with the help of AA and Doc now :-) Have checked out the alcohol thread before, but thanks for link. Will be rejoining!

Re redundancy, I had a final payment, since blown, but I'm trying no to beat myself up about that as it was nearly 2 months ago. Need to look forwards :-)

Will sort SOA asap.

Got a new job (thank the Lord!) - training starts next Monday 3rd of August :-)

Really can't get on top of these flippin' catalogue debts :-/

Thanks again all,

G'night,

Leigh x

nobby24

Did you have any joy with O2?

Jesthar

Hey, Leigh

Just wanted to say don't let yourself get TOO stressed over the catalogue debts. The companies involved may try and put you under a lot of pressure to pay them, but at the end of the day it is unsecured debt, and therefore the worst they can realistically do is scream and shout and threaten to take you to court. And although that sounds scary, they don't really want to do that, as it costs them a fair bit of money to go that far, and if you are in financial trouble but have been making a genuine effort to pay what you can (even token payments of a few pounds), a judge is pretty likely to side with you and not when setting payments and make them accept those token payments - which they can then no longer pressure you to increase.

It's a similar story with the credit cards, too, especially as they are low limit.

Either which way, neither the catalogue nor credit card debts are your priority - food and essential bills like rent/mortgage, council tax and utilities come first, then the things you need in order to live and work (essential travel costs etc.), then everything else. True, missing payments does have a negative effect on your credit rating, but that can always be rebuilt once you are back in control.

And congratulations on the new job! Hope it goes well

~Jes

Leigh73

Thanks nobby and Jes,

Am going to call o2 now re the 2nd contract :-)

Re catalogue debts, I'm also v worried re my credit rating, which had only just got clear this last New Year :-/

I do want to pay these, however I just can't at present until I start my new job next week..won't be paid for a further 2 weeks though.

So, what I need is some breathing space!

I've started genning up on the posts on here, re 'requesting a CCA' from catalogues..is it worth me doing this, and what would be my first step / letter?

I'm a bit flummoxed as to know where to start with the catalogues.

Both Empire and Littlewoods came to an arrangement (or rather their inhouse DCA, 'LDC' collections did), of £25 a month for one a/c, and £35 a month for the other.

I paid the first months instalment for both accounts for June (27th), but have not been able to afford to pay July's..

What annoys me, is that Littlewoods have already added a 'default' to my Equifax file, or at least the Equifax says 'Default', but when I click on it, it says 'Arrangement to Pay'.

So, guys, any ideas as to how I try some damage limitation re my credit file, while I take the next month to 'regroup' and set up a proper budget as I strat my new job..would be very much appreciated!

Thanks again,

Leigh.

gfplux

Hello Leigh73,

You need to pause for breath. You appear to see all your problems together but you can only tackle one at a time.

Have you got the drink under control? If you have not then you need to sort this out. If you continue drinking you will keep getting into crazy situations like have two phones AND two contracts and then no phones.

Next Make out your SOA (link - http://www.makesenseofcards.com/soacalc.html ) Try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none. It is in fact one of the most important things you will do to start on the road to recovery. If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date.

Next start a spending diary TODAY to find out exactly where you money goes. Knowledge is power. Perhaps if you see how much you spend on the booze this will help you.

Leigh good luck,
Looking forward to your next post (SOA)

Leigh73

Many Thanks gfplux, for your support and advice.

Am famished, so off to get some grub.

Will start SOA this evening :-)

Cheers,

Leigh.