Feeling helpless...overdraft/CC debt

antiheart

This is my first post here, I have been lurking but didn't have the guts to post...

So I had an overdraft with my Natwest account over 2 years ago which was 1500 pounds. I went to about 1450 and then got into a bit of a dilemma.

I had to quit my job as I was moving overseas to study (funded by my parents who were willing to take out loans and stuff for a very expensive aviation course). I was stupid not to pay off the 1450 off my Natwest account before leaving and now I'm down under and waiting to go home so I can sort this all out.

My parents did make monthly payments as much as they could afford but had to stop because they just couldn't afford to anymore (which is fair enough).

Then the charges started mounting up when I started to gain interest on the 1450 until it went OVER my overdraft limit of 1500 ...and then I got more and more charges and interest. Eventually, I started getting letters from the debt collection agency which of course my parents didn't open because they don't open my mail.

Once they got a phone call from the debt collection agency about my debt, they realised what the letters could have been, and asked my permission to open the letters.

I called up my bank from abroad and they didn't want to help - I figured it was too late anyway since it had gone to the Debt Collectors. I also called up another phone number (which I can't remember, it was about 8 months ago) and they refused to freeze the interest despite knowing that I was abroad and I was unable to do anything about it.

So I decided it was best to wait until I go back to the UK which I was scheduled to do a couple of months after that phone call. Boy was I wrong. Due to the nature of my course and the typical delays in the aviation industry, I was held up and another 6 months or so later, I'm still abroad.

I can't afford to call them up from here, because I don't have a job and I'm living off the loan my parents got for my course (and only pay a small amount of board as I'm currently living with my boyfriend). I am going back in about 3 weeks as I have 3 flights and a flight test left, but I'm panicking about what I'm going to do about my debt when I go back.

I have no idea how to get out of this. I'm only 21 and already in trouble and although my debt isn't that huge, I am worried because I have no income to pay it back.

I also have a Barclay's Card which is a credit card. I got that purely for emergencies and my balance on it has almost reached it's limit of 900 pounds. My parents are now helping me stay out of trouble on that account as much as they can financially by paying the minimum deposit on it every month. But they can't afford anymore.

Sorry about the long story I wanted to give as much detail as possible so I can get some help

catspaw

Morning,

First, don't panic.
Second: do you know which DCA it has gone to? I'm sure some helpful person on here can find you a templtae letter for the agency so that you can deal with it in writing.
You could also write to them saying you are abroad (I'm sure you don't have to give an address) and ask them to freeze interest and make token payments when you get back to the uk.

GeorgeUK

I suggest you write to the DCA from Australia and make a full and final settlement offer if possible.

Inform them that the offer takes into account unlawful charges and request confirmation that you will not be liable for any further payments towards the debt. State in the letter that you moved to Australia 2 years ago and wish to make an offer to settle the debt. I would start by offering around £300 (can you afford this?)

antiheart

catspaw: I have no idea about which DCA it is, I have asked my mum to ring me and give me all the details, or email them to me. As soon as she does that I will write to them.

GeorgeUK: Thanks for the advice. I have a feeling they won't settle for 300 pounds (which I could probably afford!) but it's certainly worth a try.

Do you think that I could get an ombudsman if they don't settle for 300 pounds? Or have I already burnt my bridges by waiting too long?

Thanks again for the advice.

GeorgeUK

I would recommend all communication be in writing only. There a re a few letters on the board that you could use as a template when making the offer - a partial/short offer is very different from a full and final offer so be aware of that when they respond.

When DCA's buy a debt, it is quite often only for a few pence in the pound so seeing that you are in Australia and there is nothing they can do to get the money from you, they may be pleased that you are making an offer at all.

Not sure what you would go to the Ombudsman for - you're not making a complaint about anything so they wouldn't be able to do anything.