Trying to sort things out, please help

bailey59

Hello, I was wondering if anyone can offer me some advice please.
I have not quite had my lightbulb moment yet and I am still hoping I will win the lottery and everything will be fine, but I am starting to address my debts as scary as it is. I think I have done everything the wrong way round and I just want some help.

These are mine and my husbands debts:
£25,000 Lloyds TSB credit card
£7373 Cap Quest debt recovery agency (Cap 1 credit card)
£1900 Nat West credit card
£500 Mint credit card
£300 Co-op credit card
£100 Freemans
£2500 overdraft Lloyds TSB
£1000 overdraft Nat West

We have not paid the Lloyds TSB credit card for approx 1 year, not even token payments, we didnt pay the Capital 1 card for about 6 months before it was passed to Cap Quest in May this year and again no token payments were made. The Mint and Co-op credit cards and Freemans are up to date and we are paying the minimum monthly payments to them and we are not paying anything off our overdrafts. My husband has had a wage increase (temporary) and I paid £600 off my Nat West credit card recently to take me back below the credit limit, I though by doing this I would keep them happy and just be able to concentrate on some sort of agreement with the Lloyds c card & Cap Quest. I realise now this was a mistake. I calculated an amount I thought I had spare every month and I wrote to Lloyds and Cap Quest offering a monthly payment plan to them and sent a token payment to each of them.

Should I re-calculate the amount I have spare by adding the monthly payments I make to Nat West, Co-op, Mint & Freemans into the equation then re do my budget on a pro-rata basis and write to them all, even the ones we are up to date with? This will then reduce the payments to my up top date creditors but hopefully increase the amount I offered the ones I owe the most to.

What should I do about the overdrafts? Should I ask the banks to stop the overdraft charges so that I can use the overdraft charges towards my total amount I have spare then include the 2 overdrafts in a DMP? This would mean that if they stopped interest charges I could add the money (approx £60 per month towards paying all the creditors)

I have now received a letter back from Lloyds TSB stating they will stop my interest but they have rejected the monthly amount I offered and that they will continue with their debt recovery plan. What should I do?

If I can get the overdraft charges stopped, Is this likely?? and add my monthly payments from the other credit cards etc to my spare money I can almost double the amount I can pay my creditors.

I hope this makes sense to you. Please can anyone offer me any advice?? This whole thing is such a mess and I need to sort something out quickly.

september09

Hi, Im sorry but I dont have any advice, just didnt want to read and run. Im sure someone will be along soon who has more experience and can offer some sound advice. Just wanted to bump you up a bit too!

x

Tixy

Hi Bailey

I thin you are saying you are planning to set up a self-managed DMP? Before making any more repayment offers I would advise you to speak to one of the recommended free debt advisors first to see what they would recommend in your situation. Several of them would also be able to manage the DMP for you which you might find a lot easier.
Whilst you are waiting for an appointment with them you can send you creditors a letter to say you are seeking professional advice and to offer a token payment of say £10 each. http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=54

Have you used the CCCS online debt remedy tool? If not try using this as a guide. (it also suggest guidance on the amounts for living costs to include in your SoA that you send to creditors)

If you do a DMP then there is no guarantee that any creditor will stop interest of charges. Instead you need to calculate your total debt repayment based on your income & expenditure.
Then your total payment should be apportioned based on the balance with each creditor getting the same share. Your debts are £38,673 so if you can afford say £300 per month then you should pay 77.5p for each £100 you owe to each account.

gfplux

Hello baily59,
When you say not quite your light bulb moment does it mean you are still spending more than you earn? That light at the end of the tunnel I think is a train coming towards you.

I think you should make out your SOA and post it here. (link - http://www.makesenseofcards.com/soacalc.html ) This will automatically total the numbers. It can be saved (see the help) and you can change it every day if you want.
When making out your SOA (Statement Of Affairs) 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 ever 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.
In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with.

If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
If there is “other” Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax is it over 10 or 12 months.
Electricity and gas any arrears.
Water rates meter yes or no.
Mobiles, how many and when are the contracts up for renewal.
If no contents insurance is it include with buildings insurance.
If pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more that can explain about the financial figures and circumstances the quicker the post will get advise rather than lots of questions.
When you have posted it and it does not look right or you want to change it, do so and repost it.

Start a spending diary TODAY to find out exactly where your money goes. That knowledge will shock you but also give you power. You only need a pen and a paper.




Good Luck