Default (or so i believe) via HSBC...help appreciated :)

floyde

Evening all,

New to the forum myself. Appears too many years of having my head buried in the sand has ensured I haven't seen this forum until recently!

I've been reading through many many posts and the help so many of you are providing is unbelievable. I'm certainly not expecting the world from anyone, but your expertise or a point in the right direction would be brilliant

In a nutshell, I had a £8000 loan with HSBC, a £3000 credit card and a £1500 overdraft with HSBC. I was doing my utmost to reclaim bank charges with little attention to what I was doing or where I was upto. Sent back a repayment agreement to HSBC when I realised everything became very bad (final notice) which was never received or actioned. Basically this whole ball of debt got passed across to the lovely Metropolitan Collection Services in February 2008 (approx) where it is still held at present. It was agreed with MCS to pay £290 a month which to my knowledge has been paid every month.

I have about £3500 owing to MCS so another 12 months and I'm done. Right now my outgoings are minimal (£550 pm incl this £290) and I earn £1550 per month into my account.

I've never done any credit report on my name but have really struggled to acquire any form of credit. I'm guessing this debt transferred to MCS is a default? Is there anyway to have this removed? For the last 6 months I've been saving £600 pm which has been clearing other credit cards.

Situation right now:

MCS - £3500
Britannia CC (19%) - £3500
Lloyds TSB CC (5more months 0% thanks to being offered a BT on an old card) - £1250 (paying off £250 per month out of savings)

I know there are loans to reduce the Britannia CC but I'm not eligible even though my income and expenditure makes it easy.

Really wondering what you would do and if there's anything I should/can do differently.

Thanks in advance people. Sorry for chatting away...!

MrsTinks

Yes likelyhood is the debt has defaulted and the only way to get it off your file is to pay it off - it will then be marked settled and have less of an effect on your creditworthyness. And in 6 years from when you defaulted it will drop off your file.

I'd suggest doing a full SOA so we can have a look at the nitty gritty of things...

niccatw

Hiya and welcome to the forum! Well done on attempting to take back control over your finances!

Perswonally I wouldn't go for a loan. From experience, I can say you need to be very dedicated to getting rid of your debt to take out a loan and close all the accounts you are trtnsferring to the loan. So I consolidated from 10, to 15 to 20K :eek::eek::eek: If only I could turn back time and know what I now know! If your outigoing are really that low, I'd be tempted to throw my surplus at the highest APR debt and the minimums to the rest and reduce them that way. That may not be suitable for you, but have a look at the snowball calculator http://www.whatsthecost.com/snowball.aspx. You can play about with your debts and amounts you pay back to see how long it could potentially take to pay them off.

Good luck

savingmummy

Do a full accurate SOA with ALL monthly Incomings and outgoings http://www.makesenseofcards.com/soacalc.html this will be easier for us to see whats happening and we may be able to reduce some monthly outgoings x

floyde

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3 (moved back to parents in november 09)
Number of children in household......... 0
Number of cars owned.................... 1 (bought brand new via inheritance in jan 09)

Monthly Income Details
Monthly income after tax................ 1550
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1550

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 25 (paying for my parents)
Mobile phone............................ 70 (£30 to go in may - 3 phones in total. 1 is my mums)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 25 (started 12 month contract in november)
Groceries etc. ......................... 60 (£3 per working day on lunch)
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 12
Car Insurance........................... 35 (includes bank fee - AA+bits)
Car maintenance (including MOT)......... 0
Car parking............................. 24
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 50
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 406


Assets
Cash.................................... 800
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
MCS............................3500......290.......0
Britannia CC...................3500......71........15.9
Lloyds CC......................1217......25........0 (22.9 in 5 may/june)
Total unsecured debts..........8217......386.......-


Monthly Budget Summary
Total monthly income.................... 1,550
Expenses (including HP & secured debts). 406
Available for debt repayments........... 1,144
Monthly UNsecured debt repayments....... 386
Amount left after debt repayments....... 758

Personal Balance Sheet Summary
Total assets (things you own)........... 4,800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,217
Net Assets.............................. -3,417


thanks guys

MrsTinks

Well given you live at home virtually for free the only areas really to cut are entertainment and your lifeassurance - is there a particular reason you are paying £50 a month for life assurance????

floyde

hi MrsTine and thanks...
well i'm 24. £50 entertainment a month is pretty much money for a few drinks here n there in the month with friends. I pay £50 for life ins purely because it covers me for everything (or as good as) from income protection, accident/sickness, critical illness and life. i appreciate it it's probably not the absolute cheapest out there but i'm happy thinking most perils are covered should something happen to me. I've quit smoking in the new year so after a year that'll be about half the cost (or thereabouts)

given this mishap with HSBC and the clearing MCS debt would this have a big impact on any potential mortgage applications? i don't apply for credit cos i'm confident i'll get shot down. last time i did was 7 months ago and i was told there's something on my file (obv the default)

thanks again