My situation-Advice wanted

Skint_Entrepreneur

Hi, I have read this forum recently. I faced up to my growing debt two months a go. The story goes back 10 years. In 1995 after 2-years marriage my wife had our first child. Our daughter had some bad leaning and motivational skills problems and with no family to support us within 100 miles my wife gave up work. We lost £900 pcm. I was on just over a thousand per month take home. In 1997 we moved house as our first house had no garden at all and we wanted another child, her age was starting to go against her too. in 1998 we had our second daughter. In this time I was on shiftwork earning around £1400 take home. I was also sinking into more debt. I took on part-time work and set up a part-time business and did actually make £20K gross profit on top of my salary which was of course declared. In 2001 I was badly injured in a fire at home but survived. It sent me off the rails a bit but I pulled it together and got back to work. In 2002 my dad died and we decided in 2004 to move home as I had to move nearer my elderly mum, if we didn't move we would not have been able to for another decade because it would affect my daughters' education. We desperately needed a larger house and the one I bought can be adapted later if either my wife's mum or mine need looking after, again long term considerations. The new house was £10K more than the one I sold but in a poorer area, East Kent as opposed to Surrey. In 2005 I was promoted but had to take a wage cut as I was now off shift. I lost £10,000 p.a. but looked at the long term benefit. I am now applying for a new post at my new grade on shift which will claw back £10K p.a. on my now higher basic. Without tempting fate I am more than qualified for it and there are plenty of posts available so fingers crossed for me eh? I will also save £2000 p.a. travel as it is local to where I live. I pay £3000 p.a. train fare. I leave home at 7:00 am and get home at 8:30 pm and set to work on my business.
I recently took advice of the CCCS. I spoke to LloydsTSB (my bank) credit card people and they were very helpful. Thank you LloydsTSB. I have been with LloydsTSB for 20 years, maybe that helped? Alliance & Leicester were quite unhelpful and said because I had used my card to withdraw money a month before they were unable to help. I had a bill to pay and didn't know what to do. They told me to pay what was owed. They said if I had not done this they might have been able to assist. The guy I spoke to was aggresive, spoke over me raising his voice and called me 'immoral.' I wondered whether vulnerable people might have taken a rope to themselves after that 20 minute episode. I don't wholly blame A&L though feel they have been like a kid who has had his toy taken off him, I do think their customer receptionist needs a talking to by his line manager though. That said to date they will not help me so I am paying them £5 pcm until I can get payments back to where they should be i.e. £105 pcm. I have written twice to Marbles too and they haven't even responded! Lloyds, A&L and Marbles are getting £5 pcm until I work out how to pay them in full each month. This is all I can afford. I owe inclusive of overdrafts on two accounts £30,000. CCCS told me to get my salary paid into a new bank account but I have been with Lloyds for 20 years and I think they appreciate this and I prefer not to do that to them. I am still running my part-time business but have no real funds to invest in it so am getting a residual income. What happens now? A&L will not accept me on a payment plan, they are helping me go further into debt, I am paying something (not much) to my creditors. Lloyds I owe £14K, A&L 5K, Marbles £3K the rest is a couple of thousand on my wife's Barclaycard and Overdraft. All credit cards have been destroyed and sent back to the companies. I managed at least to pay off a car loan as we need a car at the moment. I need to clear these debts, I want to get my p/t business motivated as I know it will pay well and is a real niche and I want to eventually offer employment to others. I hopefully will secure an extra £10K p.a. (gross) with this new job. I am even thinking about joining the reserve forces (I am still eligible) to learn something that will help my business and provide more income. (My wife said to me as long as she gets a war pension to go for it....thanks wifey).
I have a big mortgage (£900 pcm), £5K in shares in an American company currently worth not a lot and I have spent £10K in the last year out of savings to pay household bills and some other debt (car loan). Fortunately my wife secured a job 4 months a go, abeit part-time which brings in £550 pcm. I need to earn another £800 net pcm part of which will be sorted with this new position if it comes to me and the rest will be satisfied if my wife goes full-time, but my daughters are still young (8 & 11).

Mrs_Arkwright

First things first - have a read of the first time posters thread at the top of the board, and post your statement of affairs, that is, a list of all your incomings and outgoings, every penny, plus a list of all your debts, loans, credit cards and APRs that go with them. People will then be able to see where you could be saving some money.:)

jessicamb

And dont panic - welcome aboard.

Lets have a look at that SOA and see what we can do to help.

calleyw

Hello and welcome,

Well done for posting as it is never easy.

Before any one can really help you. You need do a statement of affairs (SOE) which lists all you income and outgoings and debts including interest rates. I believe that there is a sitcky near the top.

You owe 30K and I agree with CCCS move your bank account as they will just take what you owe from that account and leave with you nothing to live on. Just ask other MSE's they have suffered like this.

"I think they appreciate this and I prefer not to do that to them." sorry but that is a naive to even think like this, they are business not a charity. They don't appreciate or even care where you have your wages paid in to. But if you have it paid to them they can then swallow it up in fees. CCCS know what they are talking about they have helped thousands of people in the same situation as you.

Once your SOA is posted we will all be able to come up with ideas to help you cut from your budget.


All the best.

Yours


Calley

Skint_Entrepreneur

Yes, I know it sounds niave, so much for old fashioned loyalty to the client by the business and by the client to the business.

calleyw

Skint_Entrepreneur wrote:

Yes, I know it sounds niave, so much for old fashioned loyalty to the client by the business and by the client to the business.

No such thing any more sorry to say. Most companies don't give a toss about old customers just look at how all the best offers are for "New customers only".

At the moment you need to think about what is best for you and your money. Not if you should be loyal to one company.

That is what this whole site is about money saving and if means rate tarting on credit cards/ savings accounts/ mortgage to get the best deals people will do it.

I do wish you all the best and await your SOA so that we can help you.


Yours

Calley

Neeky

Skint_Entrepreneur wrote:

CCCS told me to get my salary paid into a new bank account but I have been with Lloyds for 20 years and I think they appreciate this

sorry but banks don't want people with money!!

A banks' dream customer is not someone who walks in with a million pounds wanting to open a bank account, but someone who walks in wanting to borrow a million pounds.

They make their money from borrowers not savers!

As long as you keep some debt with Lloyds, they will see you as a valuable customer even if your salary isn't going in to it directly.

blownalot

I know you feel some loyalty towards Lloyds TSB but you really must make sure you protect yourself and get a new account opened for yourself with someone that you don't owe anything to. Then get your salary paid in here. You can always transfer some of it to Lloyds if you want but if they decide to take the lot what have you got left for the rest of the month?

Good Luck
blownalot

sjcjd

Hi,

My alliance was with the Royal Bank of Scotland a way back and they made me sell my free shares in the Abbey to pay them back!

I didnt owe them more than £100 at the time - which lets face it is an overdraft (i had £1500 at the time limit). They made me pay it back - just like that=so no alliance to any bank is needed. They dont trust you once you say "Oh hello im having a bit of trouble".

Sorry. I can only say you need to find a new bank-so dont let yours take out what they like from you.

Sarah

beverleyhills

Welcome to MSE.

C.C.C.C. do know what they are talking about. Banking has changed; loyalty to the customer no longer exists.