Debt now spiralling...any advice?

ukjs1976

Hi - I've been able to meet payments on credit card debts
and pay bills etc.

Then today I got a phone call from a credit card co (egg) saying
the interest charge (not my spending) has put me over the limit
and there is a £16 fee on top for going over the limit and they
want an extra £100 pounds paid urgently on top of the £278 direct
debt payment that they will get in a few days time!

This is pushing me into an unmanageable financial situation
and once again stressing me right out.

I am already in contact with the CCCS... any further advice from those
with experience of these things is very much appreciated.

Thank you.

NorthernLas

OP: First thing is that the credit card company cannot take what you do not have. You must ensure that you are up to date with priority bills and then spread what you have left among your creditors. You are in charge of who you can pay NOT them.

If you are already in contact with CCCS, where are you up to ... have you done their on-line debt remedy or are you talking to them about DMP over the phone?
They will be able to advise you, but there is a 'holding letter' you can send to companies to let them know that you ar in difficulty and seeking advice.
If the phone calls stress you out, you can also ask that they contact you by letter or you can simply tell them that you are taking advice from CCCS and are unable to commit to anything until your financial situation is clearer.

Without wanting to trivialise your situation, for the moment, if you can keep repeating, they cannot have what I haven't got AND I am taking steps to sort my finances out, it might help your stress.

bottleofred

Hi ukjs,

As Northernlas has already said, they cannot take what you don't have and you should concentrate on paying priority (rent, electric, water rates, food bills etc) before paying any money to anyone else. If you go onto the cccs website you'll be able to find more information. However, if you decide to do a dmp and egg or any other company hassles you on the phone, tell them you wish all communication to be in writing, hang up and send the letter below.

Dear Sirs,

Account No: XXXXXXXX

I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing. I have verbally requested that these stop, but I am still receiving calls and I now require all further correspondence from your company to be made in writing only. I am of the view that your continued harassment of me by telephone puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997.

If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine. Be advised that any further telephone calls from your company may be recorded and used in evidence and I expect this harassment to cease immediately.

Yours faithfully

barbiedoll

You should also open a new current account if your credit card is linked to the one that you are getting wages or benefits paid into at present. It may not be with the same bank but remember, many of them are linked to one another. There is a list on here:

http://www.moneysavingexpert.com/savings/safe-savings

(The article is about savings but the info is still relevant)

Open a basic account, i.e one without an overdraft or any credit facilities. The co-op basic account is highly recommended by many people on here. Do this as soon as possible as it is likely that they will take money from your account to pay the arrears on your credit card, if they are able to do so, under the "off-setting" rules

Don't panic, I'm with CCCS and so far, they have been extremely helpful. The letters to help cope with the calls as posted in the previous replies are a good way to start and you will get plenty of help and advice on here, should you need it.
Good luck, don't let it get you down, we've all been there!

ukjs1976

Hello again - Thank you to those who have replied.
I really appreciate the support from you on this potential nightmare.

Since the phone call from egg I have calmed down ;-)

The phone call today is in fact the first contact I have had about my debts,
but I realised it was a matter of a short time a couple of weeks ago,
hence I contacted the CCCS. The fact that I got the phone call
has booted me into action.

I have gone through the bits sent to me by the CCCS.

I am writing down my plan of action in case it helps anyone else
and for any advice that you might have:

1. On Monday change my bank account details with my
employer to an alternative current account I have.
I have checked and the alternative current account
has 3 pounds in it and is still active (no links what so ever to institutions
I have debts with) no overdraft facility and won't have one.
This will ensure my salary goes into the new account next pay day.
The cut off date to change bank accounts is the 4th of the month
so still time for next pay day.

2. Change standing orders/direct debits for priority bills to new
current account. Close standing orders/DDs on old current account.

3. Fill in DD form so a single debt repayment to pay off debts goes via CCCS.
Post this with completed 'authorisation and agreement form' to CCCS.

4. Complete letters to the three banks I have debts with stating CCCS
now assisting me with managing debts.
Post by registered post to banks.

5. Cut up my two credit cards and old current account debit card.

6. Probably have a cry, then hopefully feel relieved.

Moving my repayments to a single payment through the CCCS should make
my monthly repayment £203 per month for the next 5 1/2 years to become debt free
(assuming the interest is stopped).

Total debt (all unsecured) is £13,125 (of which £10,800 is owed to one credit card).

If the banks start phoning me I will send the 'stop phoning me' letter and communicate in writing with them.

Thank you.