How much? - Where to start?

HPshel

Hi,

Well today is the first day of my new life which is all about sorting out the financial mess that I'm in....I came across this site last week after I'd stupidly fallen for a scam loan company and I'm hoping that it'll be able to help me get myself on the road to being straight again.

So, I've looked through numerous posts and would like to put together my own SOA, need to do my budget and also would like to be able to complete the debt solution questionaire on the CCCS website, however I've got a problem......my head has been in the sand and letters have been destroyed over the last few years and I haven't got a clue how much I owe and to who. I've always worked on the basis of at least £16K as credit cards and loan values were around this but I don't know for sure. I tend to pay whoever has found me and has been ringing my parents house, which tend to be debts that I'd completely forgotten had existed. So, my question is....how do I find out exact figures of each individual debt? I've applied for my experian report today so will be able to see who I owe, but I presume that it won't state how much I owe.

One other thing, I'm currently living with my parents (have been here for two years) but I'm looking to rent a small flat.....would you recommend doing this before I look at a debt management programme? My logic is that if I can have my rent, bills etc as a regular outgoing before signing up to such a programme, these expenses will have to be taken into account when writing to all of my creditors. Opinions?

Thanks for reading and look forward to your responses
Nick

Smilerwoman

Hi Nick,

I'm not the best person to advise you - I'm sure someone cleverer and more experienced than me will be around in a minute to help you properly.

But I didn't want to read and run and just wanted to say well done for taking this step and to keep your chin up.

Good luck!

Smilerwoman

DarkConvict

If you can stay with your parents i would do that because it will save you on outgoings, there is no point in increasing outgoings so you pay less into the plan, you should aim to put as much in as possible.

If you have to/need move out, then i agree do it before setting up the DMP so payments are steady.

As to finding out what you owe and who to, its not easy if you have no paperwork. Best way is to get the £2 statutory postal reports of your credit file, whilst some amounts are on their if you have run away from it debt collectors will be watching, requesting the file will just trigger and update and they send letters out to the address the report was sent to.

HPshel

Thanks for the good luck wishes!

I could stay with my parents but being honest, I'm 32 years old and it's actually driving me to the point of depression now that I have so little in my life, so that little bit of independence back will do me wonders....infact, it already has because that's what's prompted me to start out on this new path to being debt free!

As for creditors being alerted to my whereabouts, that's fine.....at the end of the day it's all part of the process of getting myself straight and have to do it 100% or not at all. I've got a horrible feeling that it's going to be worse than I've been working on, but in some respects I'm looking forward to finding out once and for all how bad it is and how I'm going to get through it. I know it's going to be years until I'm straight again but it's not going to go away, so may aswell make a start now.....you never know, I could be a home owner by the time I'm 40!!!

NorthernLas

Getting your credit files is the best place to start. See this article as to how to do it http://www.moneysavingexpert.com/loans/credit-rating-credit-score.
You will then know if you have defaults or CCJ.

In the meantime, you could do a statement of affairs so that you know what spare cash you have. This will stand you in good stead when you move out, since you will be able to estimate bills and rent to see what you can afford. https://forums.moneysavingexpert.com/discussion/107280

Ames

Given that you don't know who or what you owe then I'd suggest a slightly different approach. I'd do an SOA and work out how much you have spare, then put that into a separate account. As and when debts catch up with you, check that you do owe it and that it's enforcable, and then offer full and final settlements from the money you've saved. That's the position I'm in and what I'm doing.

HPshel

Thanks for the advice.

I'm pretty intent on my own place, so won't have any 'spare' funds available. I'd love to be debt free quicker by paying off settlements as and when they come up but the thought of living with my parents for at least another 2 years, but with no social life is not a good thought....would honestly crack up a long time before the end! I'd rather just get everything out in the open now and deal with it all head on, at least if I know that I've got x amount to pay off and it's going to take 6 years to pay off, then so be it.....I should hopefully have pay rises within that time which will gradually help me to pay off quicker or create a savings account.

Will work on my SOA this week, I don't have many outgoings currently other than two of the debts I've been paying off - was bullied into paying them within a year, so currently paying about 400-500 a month just on two small loans. Until now most of my outgoings literally end up down a drain most weekends! Will also work on a theoretical SOA for my hopefull move in the near future

NorthernLas

OK, to do a DMP, you do need to have some spare to allocate to your creditors. So your budget has to have some slack in it.
You may end up choosing to be a lodger or house share instead of a little flat of your own. It has to have slack so that you have a life as well as paying your debts!!

It is fine to find out who you owe, but Ames suggestion of letting them find you is worth considering. For example, if you have not paid for a while, your debts will have been sold on and may be reaching a point where they cannot be chased any more.

So before you fess up to your creditors, consider all of the options.

If nothing else, by doing an SOA and making a note of what you spend, in a couple of months you should have a flat deposit saved and know how much you spend on coffees and sandwiches etc. You don't need to stop buying these things, but you could choose to do something different ...

How long is it before the two loans will be paid off? Could you wait until then to move as you would free up £500 a month (enough for rent in many places)

Nitha

Can you lodge rather than rent? That would be a cheaper option and often bills are all inclusive so you know exactly how much you need to pay. Totally agree with previous posts that getting a copy of your credit file is the best way to find out what you owe and where.

Ames

I would say that it might not be a good idea to get your credit report if you're hoping some may become statute barred, as it'll bring them out of the woodwork.

If you move out and have nothing to spare how will you be able to afford a DMP? I think we really need to see your SOAs, and I say plural because I think it'd be useful to do two, one staying at your parents and another if you move out. It'll make things a lot clearer.

HPshel

OK, maybe I do need to have a think about things before I jump in waving my arms shouting 'let me pay you all back'.....

I've thought about house sharing before I even considered that I could afford my own place again but being honest, I enjoy and need my own space so the whole point of moving out again is for me to have my own haven where I know I can come back from work and do as I please. I know this sounds pig headed and a little irrational considering my financial situation but in my head it's what I need to do.

The c£500 a month will be complete around Feb next year and I should also hopefully have a pay rise in Jan which would result in an increase of around £100 after tax. So if I was to move in and scrape it for now, I will have some 'spare' funds available in the new year to start making some payments to creditors. I don't believe that any of the debts will be old enough to have been written off, I stopped paying the bank for credit card and loan about 2 years ago and can only assume that it's been passed on.

I think that maybe it would be a good idea to start opening post to get a good idea of what state I'm in, keep monitoring the situation, reducing outgoings (sandwiches etc) and then when I've got the 'spare' cash, start the process of the DMP?....by then I'll have hopefully been in my place and working to a budget too.