Just need some reassurance

MountainOfDebt_2

I wrote to all of my debtors last week, asking for 90 days to consolidate the 'perfect storm' to our finances. I said in the letters we recorgnised we had let go of our financial situationa nd that in order to get back to where we should be, we had put our house on the market. I didn't give a full SOA, just the botom line (outgoings £4500 - Income £2500) and told them I'd be willing to submit a more formal one or discuss anything with them. I also added I had been with them from 8-13 years and have been the model customer, prior to this one off event.

Now, you can see from below who my debtors are: what success have people had with them?

This is all new to me: do they act differently to each case, is it down to who opens the letter as to how I'll be treated?

I was also of the belief that they'll not really do anythign too drastic for 3 months regardless: is this the case? Has the government come down on them to be a little more sympathetic to the plights of idiots like me?

Tixy

Hi

Did you say you would pay token payments in the meantime for the 3months? Or did you set out repayment plans of what you could afford to pay?

Creditors do judge each case individually on its own merit. A lot of people have found lloyds to be pretty difficult.

Is the £4500 your outgoings before unsecured debt repayments? If so I can imagine they will not do anything until they have a breakdown of that amount because it certainly looks pretty high. If the £4500 includes unsecured debt repayments then they will almost certainly want to know how much your priority outgoings are to know how much you have left on total to service the debts.

Others may write to refer you to one of the debt charities for advice.

Some may not enter defaults on your credit files for 3months, and they shouldn't start court proceedings in that time. But they may bombard you with calls and letters.

90days seems a long time to get a plan together, creditors usually allow 28days, which is what they agreed to with the government, why do you expect it to take so long in your case? Are your finances particularly complex?

Your overdraft is likely to be cancelled immediately. Have you opened a new account elsewhere with no overdraft to have your salaries paid in and your priority DDs paid out?

MountainOfDebt_2

Tixy wrote: »

Hi

Did you say you would pay token payments in the meantime for the 3months? Or did you set out repayment plans of what you could afford to pay?

Creditors do judge each case individually on its own merit. A lot of people have found lloyds to be pretty difficult.

Is the £4500 your outgoings before unsecured debt repayments? If so I can imagine they will not do anything until they have a breakdown of that amount because it certainly looks pretty high. If the £4500 includes unsecured debt repayments then they will almost certainly want to know how much your priority outgoings are to know how much you have left on total to service the debts.

Others may write to refer you to one of the debt charities for advice.

Some may not enter defaults on your credit files for 3months, and they shouldn't start court proceedings in that time. But they may bombard you with calls and letters.

90days seems a long time to get a plan together, creditors usually allow 28days, which is what they agreed to with the government, why do you expect it to take so long in your case? Are your finances particularly complex?

Your overdraft is likely to be cancelled immediately. Have you opened a new account elsewhere with no overdraft to have your salaries paid in and your priority DDs paid out?

OK, I need £4500 each month to live, including interest payments on everything.

I have asked for 90 days, as that's when I will go back to normal working hours and can start repaying again, in full. I just need some time off whilst we go through the perfect storm, as such.

Without going itno extreme details, I was, on thursday, told my hours would be cut to 20 hours until July and when I got home, to find my wife in tears, she'd been made redundant with one weeks notice, with stat Red pay, payable in 3 months. The car was in for a service, needed two new tyres, 2 new disc brakes, new electric unit and brake pads (£1700) and we've been ploughing all our savigns and earnings into our house to renovate it.

Put simply, I don't have the money. We've put the house on the market and will use the equity to pay our debts off and start again.

My wife has opened an account which we're transferring all DD's etc over to. All earnings will go to that account. To be frank, I can't pay so it's going to be 3 months hardship anyway, I was hoping they'd see a bit of sense: I am nto trying not to pay the debt, I just need soem breathing space.

Tixy

How crappy

Good luck for your wife with finding a new job. Is there anything you can do whilst you are on short hours to earn anything extra? a part time job or anything.

I would still make sure you pay token payments to each creditor each month (even just £5 or £1) will reassure them that you are not avoiding your debts.

poorbabe

Hi MoD, I've got nothing helpful to add as my situation is different to yours. I just wanted to give both you and your wife a hug and to assure you that the rest of the wonderful MSE people will give you lots of practial support.

All the best.

WASHER

Tixy is absolutely correct you must pay a token payment to your creditors, otherwise you will get charges etc added to the account. You do realise your credit rating will be affected and therefore you may find it difficult to find a new mortgage once you have sold, you could always rent though whilst you improve your credit rating, a mobile phone contract will do this for you amongst other things, but do not take out any further credit cards or loans.

Is your home currently on the market? Any interest? Is it reasonably priced to sell within the next few months?

MountainOfDebt_2

WASHER wrote: »

Tixy is absolutely correct you must pay a token payment to your creditors, otherwise you will get charges etc added to the account. You do realise your credit rating will be affected and therefore you may find it difficult to find a new mortgage once you have sold, you could always rent though whilst you improve your credit rating, a mobile phone contract will do this for you amongst other things, but do not take out any further credit cards or loans.

Is your home currently on the market? Any interest? Is it reasonably priced to sell within the next few months?

We have 2 houses. We bought a smaller one, to move into to downsize from ours. Our main one is now sold, hoping to exchange soon.

The one we're movign into has cost us thousands, upon thousands and will be the one which will, hopefully, resolve all debts. I am hoping our debtors see that we are taking exceptional measures, to resolve an exceptional issue. I hope they see I am, we are taking this seriously: we simply need breathing space, finish the small house (builder has agreed to waive fee's until sold).

We've dropped gym membership, sky and a few other niceities. I am goign to post a SOA here soon.

Thanks for your help.

Happytogetdebtfree

wow, good luck with this and all the best, hope it works out :-)

MountainOfDebt_2

WASHER wrote: »

Tixy is absolutely correct you must pay a token payment to your creditors, otherwise you will get charges etc added to the account. You do realise your credit rating will be affected and therefore you may find it difficult to find a new mortgage once you have sold, you could always rent though whilst you improve your credit rating, a mobile phone contract will do this for you amongst other things, but do not take out any further credit cards or loans.

Is your home currently on the market? Any interest? Is it reasonably priced to sell within the next few months?

It is on the market, but isn't finished. Should be done in another 6 weeks - In time for the spring bounce - Summer rush lol.

Have to change the way we live whichw e're all happy with.