What next?

Thelostpenguin

I need to know what my next steps should be, I have around £11,000 in debt on credit cards, overdraughts and an unsecured loan. I had agreements in place after seeing the CAB but some of my creditors ignored CAB letters etc and due to personal circumstances having to look after a family members financial affairs and a spiral of depression I've ended up back at square one, with the CAB file closed.

I've now got letters threatening baliffs, court action and asking for large amounts of money that I just can't afford unless I sort it out in the next few days.

I've been putting things off due to the huge amounts of stress in my life and it's of course allowed things to get to where they are now and me breaking down at work last week.

This morning I've started getting myself into gear, I did the Debt Remedy form on the CCCS website and I've contacted the CAB and I'm waiting for a call back to hopefully get my file reopened and start getting this sorted for good this time. I've also arrange for some counselling to help sort through everything else.

I just need to know what I should do in the mean time to keep the creditors from taking any further action? Please help.

Tixy

Hi penguin and welcome

These letters might help you stall your creditors, whilst you wait to talk to one of the debt charities
http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

http://forums.moneysavingexpert.com/showpost.html?p=21654579&postcount=50

however if you have any CCJs already for any of these debts then you do not have time to wait for advice and need to tackle them straight away. Do you have any CCJs? if someone is threatening baliffs (rather than doorstop collectors) can you find out those letters -as baliffs can only be instructed after a CCJ is granted.

In the meantime you might want to complete and post your statement of affairs so that we can see what advice and money saving tips we can offer - http://www.makesenseofcards.com/soacalc.html

Thelostpenguin

Thank you for the letters, I will get onto that this afternoon. I have no CCJs at the moment but it's another one of the threats from the letters. Here's the SOA

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 950

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 12
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 160
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 21
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 653


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card ...................1161.14...0.........0
credit card....................1391.13...0.........0
overdraught....................366.59....0.........0
overdraught....................1306.42...0.........0
personal loan..................6072.75...0.........0
Total unsecured debts..........10298.03..0.........-


Monthly Budget Summary
Total monthly income.................... 950
Expenses (including HP & secured debts). 653
Available for debt repayments........... 297
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 297

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,298.03
Net Assets.............................. -9,098.03

Tixy

You have £297 available to service £10k of debt - that to me looks like you would be ideal for a debt management plan - is that what the CCCS remedy suggested?

Is you rent an all-in 'board'? do you live with parents?

When you were with the CAB before did you actually set up a DMP with them (whereby you pay 1 monthly figure to them and they split it between your creditors?)

If you got behind on payments to the CAB they may be less likely to agree to restarting the DMP -if that is the case then you may want to try talking to the CCCS. (wait and see what CAB say first of course)

With regards to car parking - is that amount at home or at work - it seems a massive amount (to me) - are you in a city? is there no way you can get cheaper parking? rent a garage or something? park further away and walk a little further?

Are you using one of the overdrafts as your current account? if so then before you send the letters out I would suggest you open a new basic bank account with a bank you do not owe any money to and have your salary moved there. Otherwise when your banks receive the letters they may recall your overdraft and take all your next wages.

Thelostpenguin

I've already set up a basic account for my wages to go into so that's eased the pressure there and it allowed me to clear off one debt already. I do live with my parents but the circumstances aren't conventional and due to various problems I've had to help with their debts which is one of the reasons I'm in this position myself. I didn't have a DMP with the CAB, just agreements to pay some of the creditors individually. A DMP sounds like a better option but it wasn't offered at the time so I just wasn't aware of it.
The car parking is a real issue, I work in the city and park across the road from work at a cost of £8 a day. I'm waiting to get a apace in the work car park which I'll have free for three months. The next nearest place to park is 15 minutes away and a whole lot cheaper and I do go there whenever I can but I have a medical condition which can seriously affect my mobility. The cheaper car park I have to pay for weekly so if I have a bad day and need to park closer I end up paying twice. I'm seeing specialists and on new medication so hopefully when i can start getting my health under control I can start saving some money on parking.

Tixy

Well I would definitely specifically ask about a DMP (and you could also try somewhere else if CAB are not keen - http://forums.moneysavingexpert.com/showthread.html?t=2077631 )

Doesn't sound like there is an easy solution to the car park problem.

I assume it wouldn't be cheaper/practical to get rid of the car and just use public transport? Do a lot of people at work have the same issue? Maybe your work would be willing to set up a scheme whereby they block book some places at the car park opposite for employees and then you all pay monthly out of your salary (if done the right way it can be tax free as well) - my employers recently did something similar for some of the staff at my work as our car park was nowhere near large enough. Alternatively is there anyone you can car share with?

Failing all that (and either way) good luck with getting things sorted with your medication.