In debt for ages?

LittleMonkey16

Hi Everyone

I'm new here so I'm sorry if I'm not posting this in the correct place- I'm still learning. I was looking through the site and I noticed a lot of people here in similar situations to me. My debt is relatively low (I owe just under 4K on 9 separate credit/overdraft debts now). The debts are fairly old (all from around 2003/04, when I had first left home and didn't have clue about money or the pitfalls of credit and so on- it hardly needs saying that I've learned my lesson now), and I have been paying a total of around £50 per month for quite a while now, through mediation with the CAB. Due to a recent change in circumstances I went back to the CAB a few months ago, offering a total of £100 per month towards my debts, which I figured must have been a good thing (you're meant to look to up your payments regularly rather than cutting them, right?). Of course, the CAB needed time to contact my creditors, make them new offers etc. In the meantime, I've kept making payments in accordance with my original financial statement. About four months have elapsed now, and today, out of the blue, I received a letter saying that they need to see me urgently and if I didn't come in within seven days they would close my case.

Now this wouldn't have been a huge problem, but the letter was dated exactly 7 days before today- so I'm already out of time. Plus, as my bad luck would have it, my CAB closes on a Thursday afternoon, so I can't get anyone on the phone or anything. So this three-line letter ('come and see us/ in seven days/ or we close your case/') has arrived out of the blue and I have no way of knowing what they need to see me about (they have up-to-date details from me, and I had been waiting to hear from them, on their instruction, about my new payment amounts and so on) or indeed whether they've gone ahead and closed my account because the seven days have elapsed. I am hugely remorseful about going into debt (I do feel the tactics used on an 18 year old straight out of home were a touch predatory, but ultimately no-one forced my hand and I accept full responsibility for my actions) and I have always paid my repayments on time and have taken the bullying and unprofessionalism of many debt collection agencies as simply part of my punishment for being so stupid. I have also always fully co-operated with the CAB, and to be honest, I don't think they're being very responsible in sending out such blunt and inexplanatory letters- I'm now in a complete state, and will have to worry sick about this until they get back into the office tomorrow. I am so grateful to them for helping me with my problem, but when I get inconsiderate letters like this I can't help but be resentful.

I've been in nervous tears since I opened it. I know debt is, by its very nature, stressful. But I really feel like I'm going to be in this debt forever, constantly having to go the slow, agonising way with CAB because I can't afford any other help. I'm sick to death of waiting for the axe to fall- waiting for one or several (or all!) of my creditors to suddenly take me to court (should probably point out that I'm in Scotland) and the whole bailiff thing. I'm not materialistic (the prospect of having the few things I actually own taken from me by bailiffs has stopped me from becoming too attached to my worldly goods!) but I do hate the idea of what I have collected over my few years (I'm 25) being taken from me. Ironically what I do own isn't worth very much (I have a small book collection- some of great sentimental value, some DVDs, a pretty standard selection of clothes (no fancy labels)- no car (I don't drive) and I rent my furnished flat). I have very little to show for 4K of debt, mainly because most of that is charges and interest.

I'm sorry if this seems like a rant, I suppose it probably is a bit, but my feelings of dread about the future have become gradually worse over the time I've been in debt. I'm in a relationship with a lovely chap and we would, one day, like to get a mortgage, or a joint account, and have kids- basically all the normal things. Deep down I know I'm never going to be able to do those things, and it leaves me feeling like there really isn't a great deal of point anymore. I alos know people who have literally run away from their debt- just changed address and hoped the debt never found them. In many cases it didn't, and most of them are now in 'statute barred' territory, while I'm still dreaming of a day when a holiday is even an outside possibility and bandying words with vicious operatives on the telephone from debt collection firms. I know I did the right thing by facing up to it and getting my head from out of the sand, but when I have days like this it sometimes takes a lot of work to see it that way.

I suppose I just needed to get that off my chest (and a big bravo and thanks to anyone who didn't actually drop off half way through it!).

DarkConvict

There has been a postal strike on that has delayed a lot of mail, I would not worry. just get in touch with them as soon as possible and explain what has happened, as I am sure they will understand as you are having to work between their opening times and a delay in the mail.

In addition to CAB, there is professional free advice available from CCCS, National Debtline and PayPlan.

LittleMonkey16

Hi DarkConvict- thanks for taking time to respond.

I'm sure you're right about it, it's just the whole situation getting me down really. It seems like such a small amount and yet because I can't spare more than 100 a month it's sort of not going anywhere. It's always like waiting for something bad to happen. I absolutely dread hearing the postman!

GeorgeUK

Hi LittleMonkey, i totally agree with DarkConvict. The mail was probably delayed so they should take that into account and there are other free debt charities that can assist so you are far from being left high and dry.

You may want to have a look at this link. It shows you how you can reclaim unlawful panalty charges for credit card and bank accounts. Hopefully this will help you to knock lumps out of the debt.
http://www.moneysavingexpert.com/reclaim/

LittleMonkey16

Hi GeorgeUK- thank you for this. I'm just left wondering whether this would be applicable to debts that are around 5, 6 years old in some cases? Or doesn't it matter? I'm also concerned that antagonising my creditors might make the situation worse.

GeorgeUK

Define

debts that are around 5, 6 years old

Do you mean because the debt may be statute barred?
Or do you mean you are unsure if you can claim back that far?

LittleMonkey16

Hi again George- n, they would certainly not be statute barred; these are debts which are 5 or 6 years old BUT I am still in the process of repaying. I would be keen to find out if I could realistically attempt to claim back some charges etc, if only to minimise the debt a little, without making the situation a whole lot worse for myself (I can't afford, as is obvious, to pay my debts off if payment is demanded in full, which I have a suspicion it would be if I started making noise about claiming 'unfair' charges back). To me it seems like, unfair or not, my creditors have me over a barrel. Just to illustrate my point, I've heard of many a case where a customer has successfully reclaimed charges from a bank only to be told that 'the relationship between customer and bank has broken down' (or some such) and the account closed- with a demand for full repayment of any overdrafts, which leaves the customer in a much worse position for the sake of claiming back charges.

DarkConvict

Yes, i heard of alliance and Leicester doing this sometime ago before reclaiming really picked up. I presumed it was an attempt at showing power to try and make people back off from reclaiming what is rightfully theirs. Most people have no trouble with reclaiming.

There is a full guide on remaining up at the top Reclaim £1,000s

In addition it maybe worth reading this topic, although i wouldn't always suggust trying to just get loans/credit wiped off due to a poor paperwork trial. But the topic is atleast useful in getting up to date information form a creditor using CCA/SAR letters - Unenforceability & Template Letters

LittleMonkey16

Thanks DarkConvict. I also notice (having used the link) that credit card companies are wont to charge up to £10 to release the required information so you can see what you've been charged over the years. As I'm talking about 9 different debts, this isn't the kind of money I can afford to pay really.

But I do appreciate all of your help- I think that, in theory, it's a great idea, but there's enough there to worry me that I could be opening a can of worms for myself.

GeorgeUK

Making threats like that is against the agreements that the banks came to with the FOS. This was so that court claims on overdrafts charges were put on hold.

The £10 Sar's may be a bit much to send right now, but if any of them do start to give you a problem, the £1 CCA's may be an option worth bearing in mind.