Desparate Advice Needed - Calling Me Tomorrow

stroppy-mare

Hi all, i'm a serial lurker on this site having to much debt to mention but one in particular is an Egg Loan who have sold me out to DLC Collections, they called me last week and basically bullied me into paying £1000 by debit card (overall debt £3,600) telling me that if I didn't they would be applying for a CCJ, so scared I was that I gave them the £1000 payment (i'd just been paid that day) I did tell the guy on the phone that if I pay that amount I would be absolutely broke until next month and that I have 2 dependants etc, he wasn't really bothered just told me if I didn't pay it would be off to Court for me, so I paid, he has phoned me back today, to ask me if I could now pay off the final amount as otherwise they would have to take me to Court, I said I couldn't pay anymore in bulk, he said they would enter in to a payment plan for me but after giving him all my monthly income/outgoings, which when set out on paper I actually pay out more than I bring in, he tells me I have to pay £196 per month, I ended up in tears, told him I just couldn't afford that amoutn, his response was once again well then we'll have to take you off to Court, he is ringing me back in the morning for my bank details as if I don't set up the direct debit they are going to apply for a CCJ. Any advice ? or is it just tough luck and I have to pay it. Thankyou.

Jinx

Okay, stop and breathe, deeply - for a few minutes.

Do not give him your details for a Direct Debit - you cannot control how much they then take which could be disastrous for your finances.

What you need to do is work out your statement of affairs, income versus outgoings. You can post it up here and the DFWers will give their advice on cutting back where needed. You can use this to decide how much you can afford to pay to the loan. (Also payplan and CCCS charities are reputed to be fab fee free debt help)

Then send your offer in writing (ask for interest and charges to be frozen) and start paying the amount youve said by recurring online payment - it lets you set the amount and you cant forget. Or if you use one of the charities write and give them your reference number.

Dont communicate with the debt collection agency on the phone, only in writing and by recorded delivery. Either dont answer the phone or tell them you prefer to keep it in writing, or dont answer the security questions.

Then keep paying the amount you said - if it does go to court you have a papertrail showing your efforts and good intentions plus evidence of regular payments.

Post here for continued support Be warned - its addictive!!!

sickasachip13

I haven't any expertise in this Stroppy-mare but I'd just say that you urgently need specialist advice and support. There's no way you should be handing over huge sums of money for this level of debt. If you have a lot of debt it might be best to go down the DMP route or similar - please speak to CCCS about this, we were in a terrible mess and desperate and getting in touch with CCCS and going on a DMP has been the best thing we've done to deal with our debt.

Hang in there, there are better ways of dealing with this, you're not alone and it needn't be as hideous as this.

stroppy-mare

Thanks for the replies so far : my SOA :-

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 733
Partners monthly income after tax....... 0
Benefits................................ 488
Other income............................ 0
Total monthly income.................... 1221
Monthly Expense Details
Mortgage................................ 380
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 18
Satellite/Cable TV...................... 41
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 33
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 40
Contents insurance...................... 30
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1175

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 150800

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 18000....(380)......2.5
Total secured & HP debts...... 18000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................9000......50........0
HSBC...........................3600......30........6
Nationwide.....................4000......98........5
Citi Bank......................900.......30........0
Egg Card.......................300.......10........3
Egg Loan.......................3700......196.......0
Total unsecured debts..........21500.....414.......-

Monthly Budget Summary
Total monthly income.................... 1,221
Expenses (including HP & secured debts). 1,175
Available for debt repayments........... 46
Monthly UNsecured debt repayments....... 414
Amount short for making debt repayments. -368
Personal Balance Sheet Summary
Total assets (things you own)........... 150,800
Total HP & Secured debt................. -18,000
Total Unsecured debt.................... -21,500
Net Assets.............................. 111,300

fatbelly

Should that be £180,000 for the mortgage - on a £150,000 house? Is the 2.5% rate a fixed deal, and if so, when does it end?

stroppy-mare

Hi, no it is £18,000 - i've lived in the same house for 21 years and am in the last 4 years of my mortgage so I now luckily only owe £18,000 on it and am due to finish paying in September 2015.

DVardysShadow

You are in a good position with the equity in your property, but the rate at which your debt is increasing means that you are in a precarious position - as it seems you are not able to support any credit. Is your partner able to bring in any income?

Other than that, I would suggest a Debt Management Plan - where you keep the mortgage up and default on the rest, repaying token amounts until your mortgage finishes.

Lea74

Hi, I totally understand where you are coming from. The best thing I ever did was go to the CAB and draw up an official financial statement with them. I then used this to send to my creditors with a letter stating how much I could pay each creditor. The amount that I could pay each creditor was worked out by the CAB taking into account weekly living expenses.

Hang in there!!

[Deleted User]

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 733 (Anyway to increase this?)
Partners monthly income after tax....... 0 (Could your partner get a job, even part-time?)
Benefits................................ 488 (Are you getting all that you are entitled to?)
Total monthly income.................... 1221

Monthly Expense Details
Mortgage................................ 380
Council tax............................. 98 (Is this paid over 10 months - can you spread it over 12? - If not put this towards debt costing you the most during your CTax free months)
Electricity............................. 60 (These seem quite high - check with comparison sites to ensure you are on the cheapest tariff, often duel fuel and online is cheapest)
Gas..................................... 60 (as above)
Water rates............................. 40
Mobile phone............................ 15
TV Licence.............................. 18 (Should this not be 12.37)
Satellite/Cable TV...................... 41 (Cancel, if stuck in contract drop to the lowest package)
Internet Services....................... 0 (don't you need something here?)
Groceries etc. ......................... 100
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 33
Car maintenance (including MOT)......... 10
Other child related expenses............ 100(What's this? Anything that can be cut back? Got cheaper elsewhere?)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 40 (This and below seem quite high - check comparison sites, again combined is often cheaper)
Contents insurance...................... 30 (as above)
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0 (never?)
Entertainment........................... 0 (nothing?)
Holiday................................. 0
Emergency fund.......................... 20 (Do you actually save this?)
Total monthly expenses.................. 1175

Assets
Cash.................................... 0 (Where's your emergency fund?)
House value (Gross)..................... 150000
Car(s).................................. 800
Total Assets............................ 150800

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 18000....(380)......2.5 (Would it be possible to extend your mortgage by a few years and reduce the monthly payment - not ideal but it could help you out for now, when your debts have been repaid you could always overpay - someone else might have more experience with this to advise on whether this is a good/bad idea)
Total secured & HP debts...... 18000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................9000......50........0
HSBC...........................3600......30........6
Nationwide.....................4000......98........5
Citi Bank......................900.......30........0
Egg Card.......................300.......10........3
Egg Loan.......................3700......196.......0
Total unsecured debts..........21500.....414.......-

Monthly Budget Summary
Total monthly income.................... 1,221
Expenses (including HP & secured debts). 1,175
Available for debt repayments........... 46
Monthly UNsecured debt repayments....... 414
Amount short for making debt repayments. -368

Personal Balance Sheet Summary
Total assets (things you own)........... 150,800
Total HP & Secured debt................. -18,000
Total Unsecured debt.................... -21,500
Net Assets.............................. 111,300

Hi, I have made some comments above on possible places to cut back. However it seems that even with very strict cutbacks you would find it difficult to pay towards all your debt commitments, unless you or your partner are able to increase your income.

Definately speak to one of the debt charities for more specific advice: CCCS, CAB, National Debtline etc

HTH

D9

saltnvinegar

Hiya

Whatever happens today DO NOT SPEAK TO THESE PEOPLE ON THE PHONE.

As you have already discovered they use threats and intimidation to get what they want. Unfortunately because you made such a large bulk payment they will see you as easy prey so will try it on again.

As already advised - do not give them your bank details to allow them to set up a direct debt. This gives them control of the amount they can take. If you feel confident enough to talk to them then INSIST on THEM giving you THEIR bank details so you can set up a standing order.

You then need to inform them that you are seeking professional advise on your debts and will set up a payment arrangement that you can afford not what they can dictate.

However if you do not want to talk to them, simply inform them you are seeking professional advice from the CCCS and that you will not discuss this matter any more on the phone and that all further communication should be in writing. Then simply hang up the phone as you do not have to talk to them!

Best

SnV

Then you need to speak to one of the impartial and FREE debt companies (e.g. CCCS) who can give you guidance on what to do next.

jonjamie1970

Whatever you do whilst sorting this out, continue to keep up payments on your motgage and council tax. The mortgage is a huge asset to you and your in a fantastic position, in 4 years time you will own your own home outright and with some adjustment and a payment plan, hopefully near to clearing your debt also. Im envious !!