Problem Faced - Clear £30k Debt - Time for Action

TheLostSheep

A little update.

That's me under £25000 now which I guess is good. Still a long way to go though as when interest is applied I have only paid just under £5000 towards it. As I keep saying, it'll be good when that small loan is paid off (£262). Got another 3 months of that but might ask for an early settlement after next month.

Full and Finals is something I am toying with.... will update this if/when I go down that route.

TheLostSheep

That's me cleared off my smallest loan. They settled on a small early settlement amount of £265 which is good. at last I have a debt that has been cleared. should never have taken it out in the first place but it means I don't pay £90 odd a month anymore!

Will update my signiture to account for this.

Also worth saying that I sent off full and final settlements to Lloyds TSB and Barclaycard. I'm not overly hopeful of these but hoping that they may see it as a chance to clear off these debts. I've gone in at 30% offering £7500 pro rata in total.

TheLostSheep

APRIL 2011 Update...

APR 2011: £23,995 (£29,578 JUL 10)
Lloyds TSB Loan 1 £5943 (£7,721) 12.7%
Lloyds TSB Loan 2 £0 (£917 ) 21%
Barclaycard £2470 (£2,862) 14.9%
Lloyds TSB Credit Card £13,232 (£15,478) 9%
Lloyds TSB Bank Account £2350 (£2,600) 18%

That's me below £24k in total debt, which is another minor milestone. First loan under £6k too.

Barclaycard and Current account not going anywhere as just servicing interest basically. Quite frustrating these as either of the two would be the obvious ones to target next as they have quite a small balance.

Come July 2011, I will have paid £6000 after interest to the debt quite comfortably. Thats a scary amount but at least it's going in the right direction.

I've written to Lloyds with F&F offers but they've not responded. Might do a follow up.....

TheLostSheep

A thread to keep account of my Full and Final offers.

https://forums.moneysavingexpert.com/discussion/3180480

TheLostSheep

Really frustrated that Lloyds really dont want to play ball!! :mad:

Was in a temporary repayment plan that had lower interest and apr for 6 months. There were endless issues setting it up. They've just stopped it without telling me. My minimum payment has shot up to £260 and interest for last month £150. The plan never even lasted for 6 months due to all the mistakes they made. Collections really are useless!

I had long phone conversation on the matter today after phoning about 5 different numbers, I eventually got to speak to someone in Customer Relations.

Basically I have an amount to make full and final settlement on ALL Lloyds TSB accounts. There's a couple of late payments and the Credit Card (the £13k) debt is marked as 'AP' on credit file. Basically Lloyds collections are telling me I am best to default on the account. Cue loads of letters re arrears and from solicitors no doubt. Interest will get frozen so the guy says.

I am out of work now and on job seekers allowance. I do however have some redundancy money and a fixed amount from relative to pay the debt. I thought it would be in everyones interests to try and sort this. LLoyds Financial Management Department apparently deal with this. I've written two letters recorded delivery and had no reply.

I'm planning do send a SAR request tomorrow to them with £10 cheque for all my personal data.

TheLostSheep

I've forgotten to do a May update and it's nearly June! There's not going to be a huge amount to comment on.

My ongoing debate with Lloyds TSb centres around me constantly phoning and writing and fobbed off from department to department. I find their Customer relations staff really helpful on the phone but feel as an organisation they are let down by poor systems and processes. Departments don't seem to communicate to each other.

My first full and final offers would seem to have been rejected. They were low though at only 30%. I've gone back in at 45%. I know that they only settle at near 85% but I am hoping that they take each case on its merits. I've been advised on the phone that they do.

I am tempted to use some of the money just to clear the Barclaycard as they are not playing ball either. I'll hold firm for now as I sent them another letter off too.

TheLostSheep

May Update
MAY 2011: £23,732 (£29,578 JUL 10)
Lloyds TSB Loan 1 £5773 (£7,721) 12.7%
Lloyds TSB Loan 2 £0 (£917 ) 21%
Barclaycard £2430 (£2,862) 14.9%
Lloyds TSB Credit Card £13,179 (£15,478) 9%
Lloyds TSB Bank Account £2350 (£2,600) 18%

Total Paid to debt (after Interest) = £5846 (19.7%)

TheLostSheep

May Update - Comments

Positives:
-20% or 1/5th of my original debt is about paid off now and we are not even a year in. I need to really create a debt free debt but things are too cloudy at the moment with a lot of forces at work.
-Have agreed a reduced payment plan of £60 a month for the Lloyds TSB Credit Card. This will effectively service interest but buys me a little time whilst I negotiate settlements. The merchant APR on the account is apparently 21%!!!!
-Have made CCA requests and need responses by 20th May from Lloyds and Barclaycard.
- Have made further full and final offers.

Negatives:- Credit card interst is crippling me. The Loan I have will be paid in 22 months. I will still pay £700+ in interest but at least it's not as high as the APR I have on the Credit cards. I've no way of getting these reduced other than the temporary solution from Lloyds.

TheLostSheep

The WHERE NEXT thread....

https://forums.moneysavingexpert.com/discussion/3268088