Struggling with debt? Ask a debt advisor a question

mbamber01

Hi Pavan

I just wanted to thank you for your reply to my previous post. I have noted in my conditions that I am entitled to cancel giving 30 days notice after the initial 30 days, however nowhere did it indicate that I have no right to cancel should I go into arrears so I have raised a complaint, firstly explaining that I was of the impression that I would only get the loan on the basis I took out the PPI which is why I went for the lowest available cover, but also that it was never explained that there are additional conditions not provided for cancellations in the future.

Thank you again

Michelle

Mikomi75

Hi,

I currently owe MBNA around £12,500, I have been unable to pay them for about 5 months and am about a month away from going into default which would be on my credit rating for 6 years.

This situation has come about due to my outgoings exceeding my incomings and being out of work for a period.

Having spoken to them today they asked me to consider a full and final payment and said I might be surprised as to what they would accept.

Could someone advise me a starting point to begin negotiaons?

And also how badly will this affect my credit rating?

The adviser said it may be better than going into a 5 year DMP as this would stay on my credit report for 11 years in total.

I should point out that I have been with MBNA since 1999 and have paid a hell of a lot of interest in that period.

Also have about £20k of other non secured debts how would these be affected by this full and final payment (they are up to date at present)?

Any advice greatly appreciated.

pollyanna80

Hi Can anyone help me please. I'm in a bit of a bind with my Capital One card. I lost my job due to severe disability and wrote to them to request a reduced monthly payment and explained why. They then sent the matter to the debt collection agency and I wrote to them and said what had happened and enclosed a copy of my letter to capital one to them. I also advised Capital One that I had written to them and said I was concerned that they hadn't written to me.

Since then, my health has got worse and I've only written 1 letter to each of them, but I keep getting letters FROM the dc. No one is acknowledging that I am writing to them and this is going to get worse and worse. Can anyone tell me how I can stop them doing what theyre doing (they have even sent letters to my PARENTS home addressed to me), save my credit rating AND get them to help me please???

mum2one

Mikomi75 wrote: »

Hi,

I currently owe MBNA around £12,500, I have been unable to pay them for about 5 months and am about a month away from going into default which would be on my credit rating for 6 years.

This situation has come about due to my outgoings exceeding my incomings and being out of work for a period.

Having spoken to them today they asked me to consider a full and final payment and said I might be surprised as to what they would accept.

Could someone advise me a starting point to begin negotiaons?

And also how badly will this affect my credit rating?

The adviser said it may be better than going into a 5 year DMP as this would stay on my credit report for 11 years in total.

I should point out that I have been with MBNA since 1999 and have paid a hell of a lot of interest in that period.

Also have about £20k of other non secured debts how would these be affected by this full and final payment (they are up to date at present)?

Any advice greatly appreciated.

Basically unless your were in a position to do full and final settlement with all the companies I would avoid it for now, I'm guessing that there be someone who will be more knowledgeable, but my quick take is that the advisor is only looking after no 1, and thats making sure his company gets looked after and leaving you to pick up the hassle from the others.
x

Bizibruja

Lost both parents in last 10 months from terrible diseases, my mum killed herself as she had Motor Neurone and 3 days after she died my dad was diagnosed with terminal cancer and died less than 6 months later. This started in August 2010. I lost my job in Jan 2011 due to being off sick with anxiety and bereavment. when my mum was diagnosed she wanted to take us all the america to see the kids have an amazing time before her illness got so bad. Prior to this we were coping. I have never been great with money but we were in the black and going on family holidays to europe and in general everything was fine. I got a credit card from my bank to go as my mum underestimated the cost of everything. From then on it went downhill. £3000 overdrawn £3000 plus on one card more than £1500 on my husbands who was furious. I shopped online like a fool mum and dad gave me carte blanche to use thier money as i think they thought it would help so I bought stuff for the kids the house me and when ever some parel turned up it would give me an escape. Now I have told my husband it is a mess just not how much of a mess. He is great and although mega annoyed agrees at least we can put it right now, the only thing is I really dont have a clue, its easy to say ok, YOU be in charge to him but I dont think thats the whole answer either please can soeome help as we are both 42 have 3 kids under 15 and I cant go on this way. Most days I think about an easy way out and its only cos I love them all I know that would be selfish. I also have to deal with the Motor Neurone being familial and there being a 50/50 chance i will develop it

Pollycat

Wow, Bizibruja - you have had such a lot going on.

I've seen your other post:
https://forums.moneysavingexpert.com/discussion/3246452

I think the best thing for you to do is post up your SOA (Statement of Affairs) using this link to the template:
http://www.makesenseofcards.com/soacalc.html

Lots of lovely people will give you good advice, nobody will be judgemental.

You've done the hard bit by 'fessing up to your OH (well done him for being sort-of OK about it).

I think you need to separate your issues -
your debt and
your grief at losing your parents

Have you had bereavement counselling?
This website may help:
http://www.crusebereavementcare.org.uk/

Re your (very understandable) concerns about inheriting MN disease - is this something that you can discuss with your doctor?

craigeh123

im in a bit of a predicament and dont quite know how to sort it . When myself and my wife were both working we had loans and credit cards and overdrafts all of which we could comfortably pay . My wife was made redundant while pregnant (2.5 years ago now) and was paid her maternity leave and then jobseekers for 6 months before they stopped it . We were managing while she still recieved the job seekers but once that stopped things became a struggle. I went out and took a second job delivering pizzas two nights a week which i do after spending the rest of the day at my main job as a mechanic .

Things havent got any better despite me working all the hours i physically can and im earning more than when we had our son , and now my wife is expecting our second child rather than being excited im worried how the hell i can get more money into the house hold .

My biggest concern is trying to do anything to make things easier because of our mortgage i dont want to rock the boat with my mortgage company . We owe around 20 thousand in unsecured debt , the biggest issue is my lloyds overdraft of 2500 on which im paying nearly £50 in account charges and interest per month , i have had the interest stopped on my tesco credit card who were great and really helpfull reducing my 100+ a month payment to 56 on a balance that is now down from 4500 to 4000 . If i could stop the interest on my lloyds account it would nearly pay the tesco card . I owe lloyds 9000 on a loan , and we have an overdraft with the same bank our mortgage is Supllied by . My wife also has a credit card which i believe has 3000 odd on .

I have no issue paying the companys i owe i borrowed the money i expect to pay it back its just such a struggle im struggling to put the diesel in my car to get to work which is ridiculous . I earn ok around 1500 a month take home + a bonus which is ussually at least £100 but sometimes this doesnt happen . I also earn around £150 from my second job but but id like to stop it as i have to use my car for it and its really bumping my mileage ,up its also meaning im leaving home at 7 in the morning for my first job and not getting home until 10.30 at night twice a week and regularly not eating etc because of it .
Im also awaiting a heart op next month meaning ill lose my bonus fro anytime im off so i want to get this sorted as i cant carry on like this . All i seem to do is work and apart from my house im not really seeing the bennefits .

Ive sold all the stuff i no longer need or use . Im sure if my debts were restructured i could cope better . I also read i may be able to claim tax back on my second job because i use my own car but i dont know how to do it . Ive been doing the second job for around 2 years and have clocked up at least 15 thousand miles in mileage from delivering pizzas so is it true i can claim back 40p per mile ???

sorry for the long post i just want money to be less of a worry so i can start enjoying life again .

Vicky496

Hi,

I have two credit cards one with £5494.95 (out of £5500) and one with £1490.78 (out of £2700). I have tried previously to get a new card or a personal loan to pay these off and get a better rate (the first is 22.9%APR and the second one is 32.55% - I'm sure they were much nicer to start with ).

I was turned down so I used the free trial on credit expert and it showed that the only reason was that I was using all my available credit (at the time I was maxed on the second card as well).

I figured I should just carry on trying to pay off the one with the worst rate first, but I'm not sure at what point it's worth trying again to consolidate and get a better rate?

Do I have to halve my debt before I can get a new card? Or is there an alternative I haven't tried?

ESHam

Between my wife and I we owe £30k in credit cards,
£12k @ £298 a month in a personal loan with 3.5 years to go
£3.5k @ £167 a month in a car loan with 1.5 years to go
We were going to cash in endowment worth about £17.5k and pay off most of credit cards tho this would save us £400 per month. But to get monthly outgoing down the most I thought paying off the 2 loans would be more. Mortgage is due for renewal and we owe £117k against value of £155k. Problem with that is my salary is a basic and commission structure so limited for what to do there. Any thoughts on what to do would be appreciated. Thanks E

sth.coast

Hi,

I have a question regarding Northern Rock and DMP.

I have a NR mortgage with about £67,000 outstanding and about £9000 of an unsecured loan as part of the Together package. I am considering entering into a Debt Management Plan and was wondering how NR will treat the unsecured loan.

Will they continue to want full payment or be fine about including it in the DMP?

Thanks