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BluePumpkin

I’ve spent all of my adult life in debt. About a month ago I realised that I didn’t want to do that anymore, and made some drastic changes to reflect that. I broke up with my partner, as he also had debt problems and we just seemed to egg each other on. I was in rented accommodation, but I gave my notice and moved back in with my parents. The plan was to concentrate on paying off my debt as quickly as possible, and then move on with my life. However, one of my loans has now been passed to a debt collection agency, and I have no idea why. I’m getting really stressed and I have no one to talk to about it- I have no friends, no boyfriend and can’t talk to my parents about money. I really need some help and advice.
I have:
· A £1600 overdraft.
· A £6500 loan- £160 a month.
· A £4900 loan- £215 a month.
And I’ve yet to finalise all the utilities etc from leaving my last place. My original plan was to pay everything off from the old place, then start to pay off the overdraft, then concentrate on the loans. My parents only want contributions towards food and utilities, so pretty much everything I earn was going to go on debt payments.
The problem is that my £4900 loan has now been passed to Albion Debt Collectors. I have no idea why, the letter only says that they have charged me an additional £50 for the privilege. They’ve asked for the full amount now. What do I do? Panicking isn’t helping. I don’t have anywhere near that kind of money.

katsu

Blue pumpkin,

Had you missed payments on the loan? Something like this should have happened for it to go to a debt collector. If not, ring up the person you got the loan from and ask them why it has been passed on.

SuzyWuzy_2

Good luck on your journey Blue Pumpkin. You've made a good start already and seem determed to pay your debts off.

You are bound to feel stressed you have a huge amount going on in your life at the moment and you're tackling it all head on. It will get easier I promise . If you have no one to talk to then people are always on here for you.

Like Katsu says these debts don't get referred to debt collectors for nothing. Make that call so you know where you're up to with it.

Ps you havent got the full amount to give to the debt collectors- they cant take what you haven't got

willbdebtfree

hi there :j

i dont have any advice as such Re: the DCA's but just wanted to say well done for taking such a drastic step as ending your relationship and moving back home. That's alot to take on in one go and shows your determination to get on top of your debts.

There is always someone to talk to on here so never feel alone. I too have lived all of my adult life in debt and am trying to change. It's hard but so so worth it. i wish you the very best of luck :T

Tixy

Hi Blue pumpkin.

Are you working? do you have an income? Whilst you are right that utility bills should be classed as priority debts I think you need a plan of action to tackle all your debts.

Do you have council tax or rent arrears from your previous place? If so these need tackling as a priority.

I would suggest as a first step you need to write up a statement of affairs to see how much money you have left after paying your basic living costs to put towards debt repayments (its like an income & expenditure statement). Depending on how much you have left you may be able to work out an agreement with each lender, or you may benefit from getting advice from one of the debt charities. https://forums.moneysavingexpert.com/discussion/2077631

We can help advise you if we understand more about the position you are in.
This is the statement of affairs calculator, can you fill this in and post it on here? in the debts section include any arrears/debts left over from the previous place you lived. http://www.makesenseofcards.com/soacalc.html

In the meantime you could stall albion by either sending the prove it letter http://forums.moneysavingexpert.com/showpost.php?p=11570893&postcount=2 or a version this letter - http://forums.moneysavingexpert.com/showpost.php?p=21937969&postcount=52

gonzo127

hi and welcome, also well done and standing up and making your start on your debt free journey.

now the first place to start woul dbe the SOA (statement of affairs) http://www.makesenseofcards.com/soacalc.html is the link to use.

i also agree with the above advice contact the original creditor NOT the debt collectors and ask why it has been passed on.

also do not panic, if the debt collectors start getting on your nerves, fire of the only contact me in writing letter (recorded delivery) which has a template on this site, so that they can not phone you and bully you.

and as someone has said, they can not have what you dont have to give. so chill,