Normal Practise

geek0

I have been speaking to my credit card company or the people who are dealing with the debt at least today, they say that they cant take a payment from me as i dont really have any money spare after outgoings so are going to pass it on to a company that buys debt, therefore i am going to have to go through the same process again with the company who buys the debt, is this normal practise, and if they cant take money off me because i dont have any left after essential outgoings how can the next company be expected to do so.

WASHER

They won't be able to take money you don't have. simple as that. Have you taken advice on your situation, you could post an SOA and the peeps will take a look at it for you.

Expect phone calls when the debt is sold on, my advice is, change your number, or write a letter to the company that all dealings are to be in writing only, or simply do not give them any security details.

Ames

From the credit card company point of view, you don't have money so they can't get anything from you, so instead of wasting money chasing you they're going to sell it on so that they get something for it.

From your point of view, this unfortunately sets off a process of get chased, make token payments, have it sold on to someone else and repeat. I've been going through it for years.

As Washer said, post your statement of affairs (link below), and someone will be along with the letters you'll need to deal with it, like the one for contact in writing only. It's a pain, but with this site you'll get the knowledge to deal with them and their tricks. The main thing to keep in mind is that they can't have what you don't have. Don't let them tell you otherwise, and don't let them talk you into paying an amount that leaves you short for more important stuff. Oh, and read letters carefully - they might sound like they're saying something will happen, when it's only could or may happen.

http://www.makesenseofcards.com/soacalc.html

geek0

This is my SOA on a monthly basis

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 931.65
Other income............................ 0
Total monthly income.................... 931.65
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 430
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 30.1
Telephone (land line)................... 11.25
Mobile phone............................ 35
TV Licence.............................. 12.3
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 250
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 5
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
pet food/bedding........................ 10
Total monthly expenses.................. 913.65

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
credit card....................3100......0.........0
credit card....................746.......10........0
career loan....................450.......0.........0
overdraught....................700.......5.........0
Total unsecured debts..........4996......15........-

Monthly Budget Summary
Total monthly income.................... 931.65
Expenses (including HP & secured debts). 913.65
Available for debt repayments........... 18
Monthly UNsecured debt repayments....... 15
Amount left after debt repayments....... 3
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,996
Net Assets.............................. -4,996
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

WASHER

geek0 wrote: »

This is my SOA on a monthly basis

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 931.65
Other income............................ 0
Total monthly income.................... 931.65
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 430 - Do you not get housing benefit? Your benefits are really low compared to your rent
Management charge (leasehold property).. 0
Council tax............................. 0 - you must pay Council Tax
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 30.1 - thats high, you need to reduce this, turn taps off when brushing teeth etc
Telephone (land line)................... 11.25
Mobile phone............................ 35 - you cannot afford this
TV Licence.............................. 12.3
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 250 - Too high, reduce to £175
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 5
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
pet food/bedding........................ 10
Total monthly expenses.................. 913.65

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
credit card....................3100......0.........0
credit card....................746.......10........0
career loan....................450.......0.........0
overdraught....................700.......5.........0
Total unsecured debts..........4996......15........-

Monthly Budget Summary
Total monthly income.................... 931.65
Expenses (including HP & secured debts). 913.65
Available for debt repayments........... 18
Monthly UNsecured debt repayments....... 15
Amount left after debt repayments....... 3
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,996
Net Assets.............................. -4,996
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I've added in comments above.

geek0

The housing benefit is included in my income along with income support and family allowance, thats what makes up the £961, you are right i cant afford the mobile phone but i am in the middle of an 18 month contract and i dont have the money to pay the get out fee, would it be best to create another debt there or keep paying til its up?
The water rates are set i dont see how i can reduce them i dont have a water meter?
I dont pay council tax because im on income support.
I am willing to look at the groceries bill but that does include personal products and cleaning items too and i am very wary of not eating properly as i am diabetic and have already made myself ill once this year not eating properly so i could pay bills, i have also had my son in hospital with a bowel blockage through eating badly, all due to trying to pay these debts, so not something im willing to compromise on that too much, i am a regular lurker on the old style board and have already taken on much of their advice. I didnt think 60 pounds a week for shopping/household and personal items was that much for 2 lol have i been living in lala land

Ames

You should look into a water meter. I've just changed and my bill has gone from £28 to £17, and I overestimated usage. If you look on your water company website they'll have a calculator that'll give you an idea of whether you'd be better off, and if you find you're not you can have it removed within 12 months.

Cheap food doesn't have to be bad food. If you've been lurking on OS you'll have plenty of ideas of how to eat cheaply by meal planning, batch cooking and bulking out meals with lentils etc.

You need to cut the mobile as soon as you're out of contract, in the meantime contact them and try and drop a tariff.

BeautyandtheBeast_3

Hi,i regulary do shopping at asda for £35-40 per week thats 2 of us and a dog! i keep my eyes peeled for bargains and cook from scratch. That also includes washing/cleaning products. I do have some value stuff like kitchen towels and sweetcorn tins but generally everything else is own brand or branded itself. xxx

moneybuster

hi you are allowed a limit to feed yourself and your family and for four its about 450 per month so i think you are well in with 250, don't cut back on your shopping as it is essential for you being diabetic and your youngster will need nourishment through the early years. if you haven't got it they can not have it simple. we manage on about 70 per week for four of us and thats with nappys.

regards MB

geek0

Well i will definately look into the water meter as it is expensive and i will speak to vodafone and see if they can help, its annoying because i cant afford it and no longer need it, i will try harder with the shopping bill, believe it or not it used to be more