debt letters

Cedric_Simple

Hi all.

I have a number of debts which i am doing my best to clear and am now getting letters off debt agencies.

I am prioritising with my rental and council tax arrerars and car repayments etc.

However i can't really afford to be paying some these agencies collection on behalf of electricity and a catalogue.
They are now sending letters threatening litigation or something or other and i can't agree to anything because i'd be fobbing them off.

One of these companies is called Moorcroft.

Just how much power do these people have?

Thankyou.

Tixy

You also need to prioritise elec as its a priority debt. The catalogue certainly isn't.

If you ignore them or pay them nothing then they can and may apply for a County court judgement (which will appear on your credit file for 6years).
Ultimately - how much power do they have? well if you owe the money and an individual debt was sufficently large and you paid nothing they could theoretically apply to make you bankrupt (in reality that is extremely unlikely to happen but it is possible).

If you are paying priority debts its usually advised to send non priority unsecured creditors a token payment of £1 each month, explaining that its all you can afford until your priority debts are clear.
They may well ask to see an income & expenditure statement before the agree to your token payment.

Have you sought advice on your debts and managing your money from one of these free advice organisations - http://forums.moneysavingexpert.com/showthread.html?t=2077631

Cedric_Simple

I am paying my electric on a meter but i am now behind with gas, water and an old electric bill. I wanted meters in for gas and water but they wont put them in.
I just can't do anything whilst i need to clear the others.

savingmummy

You need to start budgeting so you can pay for your utilities and debts.
Have you tried doing a SOA? this may help you to reduce outgoings and allow for you to pay some debt each month.
You also need to work out why you became behind in your bills to prevent this happening again.

Good luck x

RAS

They have to install a water meter if you ask for one.

Cedric_Simple

Sorry but i haven't heard of a SOA?

Cedric_Simple

RAS wrote: »

They have to install a water meter if you ask for one.

Sorry i meant card meters.

DarkConvict

Utility bills are a priority debt, as is rent/mortgage/council tax/fines etc, as such as spare cash should go towards them at the end of every month, and the other debts like a cataglog should be given £1 a month until your priority debts are paid off.

SOA is here - http://forums.moneysavingexpert.com/showthread.html?t=107280