The end is in sight - or is it?

CLAPTON

You might what to check your credit record (only £2 per agency) but if your debts are with a DCA then your record is probably awful already and will stay on your credit record for 6 years from the date of default.

However, if you have run your afffairs well for a couple of years AND saved a significant deposit this should not stop you get a mortgage in due course.

your basic debts add to £12,813 plus overdraft but you say the DCAs will settle for less meaning you only need to pay £11,229 plus overdraft and you have £12,000.

seems very good to me although there may be scope for further discussion but get the offers in writing before continuing.

best of luck

southernscouser

Firefly wrote:

3 x 2k debts paid at £20 month each by arrangement
£1.5k loan
£3k credit cards
overdraft
£400 store cards
£1k legal aid repayment

Apologies if I've missed something but these debts total £12814.31 as you have underestimated the debts by arrangement by nearly £1000.

Now with the reduced amounts you have been offered they total £11229.91.

With a £12,000 inheritance you could clear all your debts minus the overdraft. However it makes the most sense to pay off the debts with the highest APR first.

We need a bit more information I'm afraid!

How much are you overdrawn by and whats the APR?

Can you break down the credit cards with exact balances, APR's and credit limits?

Do you pay interest on the legal aid?

Whats the APR on your store card?

What are the details of the loan, APR, term of loan, time left?

Without seeing the requested information I can only guess that the store card and overdraft are charging you the most interest!

If you don't know any of the information phone up the companies and demand it!

Firefly

Thanks for your responses.

I will check the APR on everything tomorrow but for now my legal aid story:

I received a letter from them a month ago telling me that my monthly payments had been going into the wrong account and that they needed an interest agreement form signed by me. I asked how much the interest was and apparently it is now 8% but they haven't informed me of this before. My payment I thought was about £200 was actually more like £950.

I wrote and asked why after 7 years of paying my debt, I hadn't been informed of the interest but they can't tell me until I sign the form!! They also can't tell me the exact balance until they have the signed interest form.

CLAPTON

Could you provide more detail about the legal aid situation. how was the debt incurred? who exactly owns the debts? it would seem to me you could demand a full statement etc of their records including a statement of the account under the DPA (data protection act) for a £10 fee.
Certainly don't sign the form.
Where has the money been going exactly?

beanielou

Go to your CAB
That is truely outrageous
I8f I client came into me & told me that i would(try)to bend over backwards to help

Firefly

My legal aid debt was incurred as a result of my divorce settlement. The house was transferred into my sole name (although the mortgage remains in both names despite my ex not having been seen for 7 years). I understood that I would have to pay it back but didn't understand that it had been incurring 8% interest. I've been paying back at between £25-50 for seven years now! It is secured against my house with the land registry.

I have a statement from two years ago which said nothing about interest. I haven't and won't sign yet. One member of staff gave me a verbal balance over the phone, the next said under Data Protection they couldn't do that.

Floss

Firefly, I've been in a similar situation where an inheritance enabled me to pay off most of my debts.

I managed to reduce my total by asking for settlement figures, and they are now showing as settled on my credit report. some off them show the default balance, but they also show that the amount outstanding is £0.00 & the settled date.

Also, remember that it is a way to keep your benefactor in your memories as the one who helped your finances recover, try not to dwell on your loss. They wanted to help you in the best way they could (even if they weren't aware of your situation). My mum :A didn't know that when she died, 2 of her 4 children were able to clear most of their debts, but I will always remember the relief of paying people off, rather than the worry & sadness of her illness.

Firefly

Ok, I've now got a lovely cheque and can't wait to pay it into the bank.

In preparation for my debt free days, I've got to get to grips with keeping a spreadsheet for my spending.

I've just discovered I'm not good with excel. Martins spreadsheet is very comprehensive but I could so with something more simple. :money:

Can anyone recommend one?

I want to write all my figures onto one spreadsheet before I make my final decision as to a payback plan.

Thanks.

jessicamb

Hi Firefly

If you're not a whiz on the spreadies I would recommend laying it out as follows

Income:
Type of Income Value

Total income = £

Expenditure
Type of Expenditure Value

Total Expenditure = £

Surplus/Deficit = Total Income less Total Costs

You could take the categories for Martins spreadsheet so you dont forget anything?

If you need any help I'm a bit of an excel techie so PM and I'll see what I can do.

Firefly

1. Outstanding - 2340.07 will accept payment of 1775.05 Paid £1500
2. Outstanding - 2473.15 will accept payment of 1854.86 Paid £1500
3. Outstanding - 2101.09 will accept payment of 1700.00 Paid £1475

Barclaycard Paid in Full

Ikea Card Paid in Full

Loans Paid in Full

I am almost debt free this weekend! I just need to get an up to date bank statement and tally the last few bits! :j

I cannot express how good this feels and what I high I feel; it's not too much of a statement to say this has been really life changing.

Good luck everyone on your DF quest. It's soooooooo worth it!