How Can I Deal With This?

JuicyLou

When I went to uni in 2001 I opened a student account with an overdraft facility with Barclays.

After a few years it changed into a regular account and I tried to make regular payments (or at least pay the interest) every month, but due to illness and other things I haven't been able to pay for a couple of years, except for the odd £10 when they phone and demand a payment immediately. I owe about £1300 in total.

I've seen an adviser at the CAB and she recommended a debt relief order. I've filled in the paperwork and she's pretty sure it will be approved.

It sounded great at first, but after reading about it, it seems like it will destroy my credit rating and ruin my life. Unfortunately it seems to be the only option.

I have already tried asking Barclays to freeze the interest so I can try to pay off the debt, but they wouldn't consider it. I tried requesting a list of charges last year, but I just got a letter saying they were included, but there was nothing else in the envelope.

Is a DRO my only option? How badly will it screw up my life to have that on my file?

Any help hugely appreciated. Thanks. x

wornoutmumoftwo

How is your credit rating? Could you get a 0% credit card and put the debt on there? Do you still bank with Barclays?

I'm sure someone with more advice will be here soon to help you.

JuicyLou

My credit rating is pretty bad because of all the times I've missed payments. I'm also in the process of having something removed from the credit reports after the person who lives at my old address opened an account with Studio catalogue in my name. Studio say they have asked the credit agencies to remove it, but it's still showing up. No idea how long it will take to sort out.

Should also have mentioned that I have no income. I am a full time carer for my partner and he receives DLA and income support with a bit thrown in for me, but I get nothing. I don't think anyone would give me a credit card without a regular income.

Poosmate

If you are a full time carer you should be recieving carers allowance. I think it's only about £53 per week but it's better than the nothing you get at the moment.

I'm not sure about this and I'm sure someone will correct me if I'm wrong but if the debt is still with Barclays they will keep putting on interest and charges whilst you are paying them. You may be better off not paying anything and waiting for them to sell the debt off to a debt collecting agent. The interest will stop then (I believe) and then you can enter into a payment plan with the debt collection agent. Offer to make a payment of say £2 per week (or more if you can afford it) and send it to them religiously. I don't think they can add any more charges or interest (this is where someone can step in and confirm this or not) and you will have peace of mind that you are solving this problem which is weighing you down.

Hope that helps

Poo

JuicyLou

Thanks for the advice about carer's allowance, but I don't qualify as my OH is not on a high enough rate of DLA.

I hoped that Barclays would sell the debt to a collections company, but they sent a letter saying they would take me to court themselves if they didn't receive payment. My CAB adviser has written to them to say that she is dealing with it, so she says I won't get a court summons.

I'm sorry to keep shooting down all the good ideas. I think I just like being difficult!:)

10past6

JuicyLou wrote: »

Should also have mentioned that I have no income. I am a full time carer for my partner and he receives DLA and income support with a bit thrown in for me

Have you checked out this site?

JuicyLou

Thanks for the link. Unfortunately I don't qualify for anything extra. Would be nice though!:)

JuicyLou

So is a DRO my best option? How much will it screw up my life?

dancingfairy

Well as far as I can see you have have 3 options - 1 keep paying what you can afford to Barclays even if it's 1 pound a month and hope that things improve financially for you.
2) stop paying barclays and wait for them to either send it to a dca or take you to court - yes you could then get a ccj but hopefully the repayments would be set at a level you could afford ie 1 pound a month
3) go for the DRO.

You may get the barclays debt passed to a dca who will then accept a reduced offer or they may take you to court - it's difficult to say really - it's a risky strategy in that sense.
I would definitley try and get hold of your account details and find out how much is charges etc and then write a complaint letter - it's probably a different department so they may look at things differently and set out your circumstances etc with your offer of 1 pound a month or 2 and ask that they stop charges. If this fails to produce a result then a dro is looking like a good option.
Yes it will affect your credit file but at least you would have any more problems with Barclays.
I'm not sure how long it would stay on your credit file - maybe 6 years? (most things stay on ther for 6 years) and whether you would need to declare it on anything like mortgages or credit applications in the future , also you need to check whether it would have an impact on your future careers like bankruptcy does - the CAB should be able to advise you on this.
I don't think it will ruin your life - things have by the sounds of it unfortunately changed for you for the worse recently (hopefully they will improve again).
I really don't know what would be best but I am sure you will cope with whichever option you choose.
Good Luck
df

bargainbetty

If you are a full time carer, then surely your partner should get a higher level of DLA? If he needs full time care, then he/you should qualify. You could ask for a reassessment of his allowances.

If not, could you consider getting a part-time job (less than 16 hours per week)? you wouldn't lose on some of the benefits, but you would be bringing in some additional income.

Good luck x

Poosmate

bargainbetty wrote: »

If you are a full time carer, then surely your partner should get a higher level of DLA? If he needs full time care, then he/you should qualify. You could ask for a reassessment of his allowances.

If not, could you consider getting a part-time job (less than 16 hours per week)? you wouldn't lose on some of the benefits, but you would be bringing in some additional income.

Good luck x

I was wondering this myself. Forgive me, I don't understand the whole DLA/Benefits/carers allowance thing but surely if he requires full time care and you are caring for him you should be entitled to the carers allowance.

I don't mean to sound harsh but is your other half keeping you out of his benefits? I mean, does he pay for all food, bills, rent/mortgage etc. for both of you out of his benefits? If so, then is this reflected (you being a dependant on him) in his benefits?

Who is in charge of the finances? Could you post a SOA using this link:

http://www.makesenseofcards.com/soacalc.html

Sorry for all the questions but you are a person too and you need to either be paid something to look after someone or have the right to be able to go out and earn a wage yourself.

Hope that helps

Poo