A little advice please.

barry.s

Hello all.
I've just registered on here to ask for some advice, so please be gentle.

Basically, about a year ago I gave up my home as a voluntary repossession, as my debts where spiraling out of control. The repossession paid off my Mortgage and about £9000 off a loan secured against the house. I've just received a letter from a debt collection agency called DLC asking me to pay the outstanding balance of £23288.36. I rang them this morning and told them I would be prepared to pay a certain monthly amount. They were fine with that but want £180 a month for 8 months and after that it will be reviewed to see if I can pay any more.

During the phone call I told them of my monthly outgoings (rent, overdraft repayment and credit card) which leaves me with roughly £600 for utilities and petrol to get to and from work. I'm not sure how they got the £180 figure, as I dont understand how I'm expected to pay this amount.

They've told me that if I cant make the payment, they'll go "legal" on me, will I be able to offer them a reduced monthly amount (They want me to phone them this afternoon with my bank details), I was hoping for about half that figure, until I can get to a CAB centre next Friday.

Thanks for reading.

Barry.

NorthernLas

Barry - You need to work out a budget that works for you before commiting to any monthly figure.

Then if you want to be in charge, DO NOT give them your bank details, but ask for their details set up a standing order.

I would suggest that you don't phone them back, and if they phone you you need to tell them you are taking advice from CAB, ask them to hold any action and tell them you will write to them (if you take advice, they have to hold action for 28 days).

barry.s

NorthernLas wrote: »

Barry - You need to work out a budget that works for you before commiting to any monthly figure.

Then if you want to be in charge, DO NOT give them your bank details, but ask for their details set up a standing order.

I would suggest that you don't phone them back, and if they phone you you need to tell them you are taking advice from CAB, ask them to hold any action and tell them you will write to them (if you take advice, they have to hold action for 28 days).

They told me (possible scare tactic?) I had to contact them today to set up a direct debit, would you recommend I ring them to tell them about the CAB or should I wait for them to phone me?

ps. I wont hold you to your advice.:):)

DGJsaver

They will say ANYTHING to get you to pay what they want you to pay , NS`s advise is good and sound , and you should follow it to the letter

barry.s

Thanks guys/n/gals, I'm just a little peev'd as whenever I hope to be making a little headway, something else always seems to pop up.

Grrrr.

DGJsaver

Stick to your guns , only pay what you can afford , only ever deal in writing , ignore ALL phone calls from them , if they pester you too much , there is a stop telephone calls template on here somewhere , think of it this way whoever you spoke to who is threatning this and that , IS ON COMMISION......

NorthernLas

Barry - I would not recommend you ring them at all. Their job is to get you to repay as much of your debt as possible (and make you feel like you should do this above all else).

Your job is to make sure that you pay priority bills and to know what you can afford as regards debt repayment. You are doing this by seeking advice at the CAB. If you want you can make a start, today by looking at http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#3.

DVardysShadow

barry.s wrote: »

They told me (possible scare tactic?) I had to contact them today to set up a direct debit, would you recommend I ring them to tell them about the CAB or should I wait for them to phone me?

ps. I wont hold you to your advice.:):)

Another thing you must not do is set up a Direct Debit. A DD is for an unspecified amount at an unspecified frequency. It is permission for them to dip into your bank account willy nilly.

If you want to pay them a regular amount, use a Standing Order and set it up yourself with your bank. Don't pass the paper work for a standing order through the Debt Collection Agency.