Silly silly

Tixy

mr.ton wrote: »

If that life is spent repaying at a rate of £1 per month then its hardly noticed & then the person can quite easily get on with their life quite happily

Although it doesn't really work for someone who wants to get out of debt, clean up their credit file and perhaps get a mortgage in a few years time.

I'm not sure at Kirsty's age that is really great advice.

Kirsty you should offer to pay what you can afford, if that genuinely was only £1 then so be it, but if you can afford £100 after basic living costs then that is what you should pay (and what a court would order you to pay if it came to it), obviously it will be better to try to come to an arrangement without going to court so that you don't end up with CCJs.

hullight

Kirsty you should also be aware that an arrangement to pay reduced figures will trash your credit rating if you have kept up with payments so far, and this will affect you for six years.

Tixy

Kirsty8910 wrote: »

Yes got the idea there.... thank you. this is what i have so far, its very vague....

In goings
Out goings

Monthly earnings after tax.

£850

Rent

£420
Groceries

£50
Transport

£50
Other Current debts

£200
Clothes/TV licence

£80
TOTAL

£800


like i say really am not sure how to go about all this

First send off a letter to get a breakdown - until you get a breakdown of the balance you don't need to pay them anything.

Then you can work out a monthly sum you can afford in total to your unsecured debts. It might help if you look at this calculator to see what else you might need to include the costs for (eg an allowance for presents and non monthly costs) - http://www.makesenseofcards.com/soacalc.html

Then you can write out letters to offer both creditors the pro-rata amounts - have a look at national debtline website which has template letters and info on working out how much you can afford.

mr.ton

Oh please lets not get into this debate about "your credit rating will be trashed" etc.....
Im of the view that credit files/ratings are not actually worth the paper they are printed on anyway.
You can have a squillion CCJ's & whatever else and still be approved for things - it will always be down to the company in question.
Anyway - the same myth convinced everyone for years that DCA's had legal powers to obtain money off individuals - how false that turned out to be.
The myths surrounding the CRA's will head the same in time as well...take my word for that.

hullight

We need to be sure that Kirsty knows what she is dealing with, and the possible repercussions, so that she can make up her own mind about what to do with the situation.

mr.ton

hullight wrote: »

We need to be sure that Kirsty knows what she is dealing with, and the possible repercussions, so that she can make her own mind about what to do with the situation.

I agree - im giving my advice from how i see it.
Others are free to give it from how they see it as well.....;)

Tixy

mr.ton wrote: »

The myths surrounding the CRA's will head the same in time as well...take my word for that.

So you keep saying mr.ton.

But as it stands at the moment if you want a mortgage (or other credit product) at an even half decent rate then you'll need a credit file that shows you can afford to pay your mortgage and are likely to do so, and having defaults, CCJs and ever increasing debts that you only pay £1 on will not help you with this.

The CRAs are not surrounded in myths. You might not like what information they use or the fact that they report it to potential lenders but that is how credit works at the moment in this country. Only a couple of weeks ago you were asking who they were responsible to, so I'm not sure you are particularly an expert on when any law in relation to them might change.

WRINKLES

hullight wrote: »

We need to be sure that Kirsty knows what she is dealing with, and the possible repercussions, so that she can make up her own mind about what to do with the situation.

We also need to be aware that hullite is or was a dca:eek::eek:

Kirsty8910

Thanks for both your advice, will think about it all very carefully before i take any action.

hullight

WRINKLES wrote: »

We also need to be aware that hullite is or was a dca:eek::eek:

I live in Hull, not Salem, Massachusetts.