Just taken the first step!

PhotoDave

I have been flirting about these boards for a few months, I knew the situation was coming where we wouldn't be able to meet the minimum monthly repayments on our credit cards, but kept putting it off, hoping something would happen! The only thing that happened was the inevitable, a ban on overtime at work meant my wages were way down, this month we couldn't afford all the minimum payments on our credit cards and had to pay a token amount.

Within days the phone started ringing and letters have been arriving, I was shocked that after being a customer with a credit card company for over 10 years, less than a week after paying a reduced payment, I had a letter from a debt agency looking for payment.

I emailed the local CAB, looking for an appointment, they couldn't give me one and emailed me a list of websites to visit!

I have literally just come off the phone to CCCS and have a telephone appointment with a counsellor on Friday.

It feels like having taken the first step (at last) that a weight has been lifted. I completed the online form on the cccs website and it came back with bankruptcy or debt management as an option, but there are a lot of variables in my income that didn't really fit into the forms. I have money left over every month, just not enough to pay the minimum, so I'm hopeful that bankruptcy isn't the only way.

A lot of belt tightening will have to go on, Sky Sports will have to go, I'll have to reduce our phone bill, internet and mobile bills. I am confident that we can do this and get our finances back on track!

If it's useful for people in the same boat, I'll update this thread at the various stages we're going to have to go through.

Also a thank you for the folk that have posted on various other threads that I have been reading that got us to this point, this board has been invaluable in knowing we're not the only ones in this situation.

Many Thanks

Dave

Tixy

Hi and well done for posting Dave.

When you speak to the CCCS counsellor they should be able to go through your particular finances in more detail as those online forms are a bit rigid.
Sounds like you are on the right track with starting to look at your finances and see what can be cut back. Have you prepared a statement of affairs for yourself yet? http://www.makesenseofcards.com/soacalc.html If you haven't its well worth doing - if you have and are feeling brave post it up here for suggestions on savings and cutbacks.

A couple of other things whilst you wait for your appointment. Do you have overdrafts? and do you owe money to the same bank in terms of loans/credit cards. If so then would suggest that you both set up new bank accounts with banks you don't owe any money to and arrange for your salaries to be paid into these - this will protect you from your wages being offset against your debts, and will protect your salary should your bank recall your overdrafts.

Did you send a letter at all with your token payments? If not then there is a holding letter you can send to your creditors to say you are seeking advice which should hold them at bay for a month.

PhotoDave

Thanks Tixy

I'll get the statement done and posted at some point, all a bit hectic just now!

I'm going to have to change bank accounts, although I'm not over my overdraft limit yet, so hopefully not attracting attention from them....yet!

One question, my son has a bank account with the same bank, he's 4 and we are the signatories on it, can they touch his money to offset my debt?

Dave

DVardysShadow

PhotoDave wrote: »

Thanks Tixy

I'll get the statement done and posted at some point, all a bit hectic just now!

I'm going to have to change bank accounts, although I'm not over my overdraft limit yet, so hopefully not attracting attention from them....yet!

One question, my son has a bank account with the same bank, he's 4 and we are the signatories on it, can they touch his money to offset my debt?

Dave

They might try, but if the account is in your son's name they won't get away with it

isy1011

good luck. well done for taking first steps.

PhotoDave

Had my phone appointment with the CCCS counsellor today, they have recommended we look at the Trust Deed option, and if that isn't the best option, then to look at the possibility of a DMP or DAS. We have been referred to KPMG and have a phone appointment with them on Monday!

I'm actually quite surprised when doing the budget sheet, the living allowances aren't as bad as I thought, we have been tightening the belts recently and think we can live inside the limits without too much pain.

My only initial concerns regarding the trust deed is the possibility of losing our car, my wife needs it to get to work and take our son to school, so hopefully we can keep it, basically if she has no car, she can't work, meaning less income! Also I run my own business in addition to my fulltime employment, and hopefully I won't have to sell the assets, but as it's a source of income, hopefully I won't!

We just need to get our accounts switched now, and await Mondays phone call! The phone is still going non stop, but just ignoring it until we have more idea of what we are doing!

Just can't wait to get things sorted, it's quite a stressful time!

Dave

ms_london

Hello Dave

As others have mentioned, post your SOA on here for a bit of extra advice. If your car is needed for a source of income it shouldn't be taken away, perhaps you could downgrade your car though?

Well done for making the first step though and as much as CCCS are a great source of advice, I would say that this board is just as good and means you can get immediate advice sometimes xx

PhotoDave

Not had time to post up the SOA yet, just waiting on my phone call from KPMG now! Applied for a new current account this morning, reduced my Sky package by £30 and cancelled an income protection policy for my wife, £50 a month saved, just like that!

Now on to phone Vodafone and BT, get the monthly outgoings down some more hopefully!

Thanks for all the replies.

Dave

dancingfairy

Try the bankruptcy board or IVA board- I think there are a few threads on options in Scotland (I presume you are in Scotland?) like DAS's /trust deeds etc.
df

PhotoDave

Just spoke with KPMG for nearly an hour there and feel so much better, also got an email that our new bank account with the Co op bank has been approved. It looks like we'll be going ahead with the trust deed, certainly looks like the best option for our circumstances.

I am under no illusions regarding the severity of our situation, but it feels so much better now we have addressed it and sought advice.

Dave

PhotoDave

Just waiting on confirmation of the new bank account details then will be proceeding with the trust deed, the phone calls haven't stopped, but they are getting less!

Things should start moving quicker next week!

Dave