Any Advice Welcomed

Debtworry_2

Hi all, this is my first post, and am looking forward to my stay here

Basically back in 1999 i was offered a credit card from my bank L***TSB anyway i accepted and the limit was a thousand pounds, anyhow since then it has increased even tho shortly after being given the card i became unemployed, the limit finally reached £4800!! my bank kindly offered me a loan to pay the credit card of this was just over 2yrs ago, so was given a loan paid the card oof, but then thought Ooohhhh i have nearly 5 grand on my card, so again went mad and spent the lot again to the limit where i went over my £4800 limit with the interest they charged on top.

So i got in touch with CCCS debt services who told me to approach my credit card company with an offer of payment, which was £20 per month and they accepted, then literally 2weeks ago i noticed on the loan i took out payment protection and thought, well i'm not working due to depression i'll see if i can claim on the insurance....no such luck, the people at LTSB customer services told me that i shouldn't have been offered payment protection while i wasn't working (interesting i thought) so made an appointment to speak to someone at my local branch who told me i have every right to have payment protection in the event i get hospitalized or terminally ill they will pay out.

The trouble is i'm struggling to keep up the loan repayments, when i spoke to them the best they could offer me was to open up another bank account, then stop paying my loan and when the 3rd party contacts me for payments offer them an acceptable monthly repayment!

All this worry with debt is making me consider declaring myself bankrupt, and just starting afresh as i'm older and smarter with money now. I would also like to know how i got a loan while being unemployed, they can see my benefits being paid straight into my account so no excuse

Sorry for the long post, but is there anything you can suggest?

Thanks

buzzby

I'm seriously thinking of going down the bankrupcy route aswell, made a lot of mistakes when i was younger, and I am goin through payplan but still missing payments through not having the money.
I've tried to look for extra work as stated in a previous post, But had no luck.
It seems it easier to go bankrupt.

Debtworry_2

I'm the same, made plenty of mistakes with money when i was younger, and now struggling, at least going bankrupt only lasts for a few years (5 ithink isn't it?) and you're debt free, might have to look into this tomorrow

poppy_f1

you could try seeing if you can get what you have paid in the payment protection refunded if you werent eligible for it when you took the loan out if the bank were aware you werent working
or find the loan documents and see exactl what you are covered for, it is possible the advisor at the bank is making things easier for themselves by saying your not covered

Dr.Shoe_2

I've been there and done that.

Firstly, explain the situation to the credit card and loan company. You have two options, firstly enter into an IVA (individual voluntary agreement?) which is what you've already done, or, if you have savings offer a full and final settlement; you could offer 20% of the outstanding balance but they'd be unlikely to accept less than 35% plus it will harm your credit rating, though you may be able to negotiate a more favourable entry on your record. Don't forget to ask for interest and charges to be stopped in the meantime though you will have to provide a "statement of affairs" (income and expenditure) so have this ready when you call them.

Something else that occurs is if you've paid any charges for late payments, overlimit or unpaid items then you should be able to cliam these back.

BTW If the debt is passed to a DCA (debt collection agency) this'll mean that the interest is automatically stopped but do check. They will accept as little as a pound per week sometimes though you have to have a lot of neck when you deal with them!

The thing about payment protection is is that it's only there to protect the lender, not you.

Dr.Shoe_2

poppy_f1 wrote:

you could try seeing if you can get what you have paid in the payment protection refunded if you werent eligible for it when you took the loan out if the bank were aware you werent working
or find the loan documents and see exactl what you are covered for, it is possible the advisor at the bank is making things easier for themselves by saying your not covered

Actually it would be easier for them if it could pay out... they wouldn't have to go through the hassle of chasing them would they?