My Situation

daverave

Hi everyone I have been a member of the forum for a while and have never really had a problem with my debts until recently. Sorry if I ramble on a bit here but I feel I have to let it out.

Between November 2003 and August last year I worked for a fellow student I was at college with who had setup her own business in the construction industry recruiting labour to construction sites. She also employed another friend of mine who had also been a student. Everything was fine, my debts were under control and I was able to make minimum monthly payments and had money to spend on myself until August last year when an incident (I wont go into detail but the police and a court case were involved) occurred which forced myself and my friend to leave the business. I approached the main contractor and decided to setup business for myself recruiting labour. Everything was going fine again, I still had my debts under control and money to spend until March this year when the main contractor decided to pull out and left me high and dry.

I was stupid not to save money when I had it but at 24 I felt like it wouldn't matter and things would carry on being fine I wasn't really worried about the future - how wrong I was.

From March I have been back on the dole but because I had been self-employed and numerous other delays it took 10 weeks to sort out my claim for Job-Seekers Allowance. During this time I was transferring money from my credit cards to try and pay direct debits etc but I maxed my credit cards and so charges at my bank started to snowball. I also went to a local cheque cashing firm and cashed personal cheques of £400 which bounced causing more charges at the bank.

Anyway I buried my head in the sand and let things get on top of me so I ended up defaulting on my bank overdraft, 2 credit cards and personal loan and other debts were passed onto debt collection agencies. About a month or so ago I decided I had to try and sort things out so contacted the CCCS who sent me out a pack and I have come to some arrangements with creditors but I don't have enough income to satisfy them all and some of them are demanding higher payments than I can afford and I don't know what to do. I am currently seeking work and have a few interviews this month.

My rough SOA is below. I currently still live with my parents so I don't have any rent/mortgage payments, council tax payments, gas, electricity and food payments to make as while I am unemployed my parents aren't taking any money off me.

Income:

JSA - £182 a month

Total Income:£182 a month.


Debts:

Halifax Bank Account (defaulted) (In hands of Wescot Credit Services) - balance - £1518.70 (0%) - £20 per month.

Halifax Credit Card - £6000 limit - balance £6,230.24 (0% until January) - £52 per month.

Egg Card (defaulted) - £4000 limit - balance £4,112.64 (0%) - £34 per month

Egg Loan (defaulted) - balance - £4,404.83 - £37 per month

Vodafone (In hands of Wescot Credit Services) - balance - £330 - £4 per month.

HFC Bank (HP) - balance - £292.16 - £36.52 per month

R.B.S. Business Overdraft - £6000 - still to arrange repayments

Cash Generator (In hands of Debt collector) - £435 - still to arrange payments.

Three Mobile (In hands of debt collector) - £170 - still to arrange payments.

Total Debts: £23,493.57, Total Repayments: £183.52

As you can see I am currently £1.52 over my monthly income with repayments still to be arranged with some creditors. I cancelled Sky and my parents have taken over payments for the internet which i moved to a different ISP saving £6 per month. The only thing I purchase for myself is cigarettes which I have cut down to 10 a day when I used to smoke between 20-30 a day - I am trying to stop but the stress I have just now I am finding it hard!

I sent a letter to the Halifax last week to reclaim £1600 in bank charges so if I take it all the way that should hopefully clear off what I owe to them.

The other problem I have is trying to get another basic bank account. I have a Post Office Card Account that my benefits are paid into but I really need an account to be able to have wages paid into when I get a job and I also have cheques to the value of £34 which I can't cash as the card account only allows the government to pay into the account. I tried for a Nationwide Flex account and was declined, I tried the Natwest Step account and was also declined. Last week after reading various forums I applied for a Co-Operative Bank Cashminder account which a lot of people seemed to get quite easy even those discharged bankrupt - but tonight I phoned them up and was told my application had been declined which has put me in a downer - I don't know who else to try.

Sorry for going on but It's hard talking to people I know about these things I felt I had to let it out somewhere.

David.

P.S. Wescot Credit Services have to be the worst Debt collection Agency to deal with their staff are so nasty on the phone and really are not willing to help you out!

CFC

Take a look at this site.

Nationwide and co-op offer a form of electronic payments. The most basic bank accounts do not. Therefore they are more suitable for those that a bank will see as a bad risk or profit free customer, such as yourself. The most basic bank accounts are not capable of being upgraded by good management, and those should be much easier to open, just needing proof of id.
http://www.moneyfacts.co.uk/banking/bestbuys/banking_basic_bank_accounts.aspx

If you haven't spoken to CCCS (https://www.cccs.co.uk), it might be an idea to give them a call and talk through your debt with them.

Good luck :-)

Payingitallback

Hello David

I cant really offer up much help but i didnt want to read and run.

Am sure someone will be along soon who can have a good read over this and offer up some fab advice for you.

I do have to agree about Wescot! when some of our debts were passed to them i think they just used to phone up to make me cry! :mad: they are a vile company.

Piab. x

Bambywamby

You will have to find a job if it kills you!

Even cleaning toilets would pay more than £182 a month - if that is what it takes until you can find something more to your requirements - it's what you will have to do.

Good luck

CLAPTON

did you ask the banks why the rejected you....it may simply be because you are not on the electoral roll at your parent house.
i would try nationwide again.

as far as paying something towards your debts, you should not negotiate with your creditors but tell them what you can afford.

either

a. work the total you can afford, then prorata by the level of debt , write it all down and show you are being completely fair and simply dont move from the position.
or
b simply pay each one pound explaining of course that once you are back in work you will pay more and again do not move from the position

...what will they do...default your account (they have done that already), take you to court..no court can reasonable ask you for more at the moment

Smashing

Bambywamby wrote:

You will have to find a job if it kills you!

Even cleaning toilets would pay more than £182 a month - if that is what it takes until you can find something more to your requirements - it's what you will have to do.

Totally agreed - there are jobs out there and right now, you really can't afford to pick and choose.

You also need to find out why you have been rejected by the banks otherwise you could be wasting your time applying elsewhere.

pembsbexy

hi
i used to work for a council and I'm a qualified benefits assessor and council tax legislation is also part pof my qualification (eg I know what I'm talking about!!)
firstly:
council tax - do you pay for council tax where you live - if yes, read on, if not, sorry this reply is pointless!!
if you're living in your property on your own you should get single person discount (C/tax charged assuming two people occupy a property, if not 25% discount applies)
being on JSA means you should get all your c/tax paid via CTax benefit. Prior to claiming this, were you claiming SPDiscount? If not, you can backdate this discount from the time you took up occupation of the property. a simple letter to the local authority would sort this out. this could also mean a very nice refund if you've been up to date with payments. :rotfl:
being on jsa - you could get a start up grant for starting up your own business - about £500 I think. have a word with the DWP office about it.

hope this helps!!!
ps - try rolling your own fags as well - I used to smoke 20-40 fags per day back in the day but in my last year at Uni I was broke. I went from spending £30 a week on cigs (Malboro reds were my sin - and fags were much cheaper back then as well!) to about a fiver. They were also MUCH nicer and healthier!! well not so many nasty chemicals in the tobacco, also you can get really nice baccy to go in them! Failing that ... give up but with spiralling debts.. a fag can be your best mate in a time of crisis .... mmmmm thinking about it .. I might start smoking again!!

becks.:D

david_hellier

If you have no assets and dependents and given your age, I suggest you go bankrupt.

Goodluck

daverave

Hi guys thanks for all the replies I thought I would give you an update on my situation.

I had a meeting with an advisor at the Job Centre today and I have applied for 15 jobs, so its been a long day of filling out application forms! I also visited the supermarkets and other shops in my area to obtain application forms for temporary posts over Christmas to try and make some extra money.

On Thursday I went into my local LLoyds TSB branch to open a basic bank account with them. I am pleased to say I was accepted straight away for their Cash Account without any problems and I received my card just 2 days later on Saturday - very quick service from the LLoyds! The card doesn't have a debit card facility or cheque book and you can only use it at Lloyds TSB ATMs but I don't mind that - at least I now have an account to pay wages and cheques into. I deposited the cheques I had lying in my drawer and when they clear I will use the money to pay off some of my Halifax Visa Card.

I received a letter from the Halifax on Saturday regarding my bank charges. They are sorry to here that I was unhappy with there service and will write to me again shortly. With the help of the CAG I intend to take this the whole way and reclaim the full £1600 from them!

Smashing

Good for you! :beer:

Best of luck with those job applications - hope you hear back soon.

the_taws_family_of_7

no westcott arent the worst nco are they keep transferring you talk to u like crap and say theyre coming to your home to take your goods try barclays theyve given us an account and were blacked!