Admitting there's a problem is the hard part. Right?

ladycorsair

Hi there everyone,

My name is Arielle, and I'm a long time viewer of MSE, first time poster. I'm in quite a lot of debt, and up until now, I've been burying my head in the sand but I really want to get it sorted.

I work as a freelance copywriter, and make about £1k per month. I'm in debt as follows:

£5550 - Nationwide overdraft
£10k (£235 per month) - Nationwide loan
£6000 (min payment approx £250 per month) - Nationwide credit card
£1500 (passed on to debt collector so £100 agreed repayment per month) - Barclaycard credit card

I know I've been stupid, but I really want to sort it out. I took out the £10k loan to clear an old loan and repay my credit card, but then I went and spent it all again. I suffer from severe anxiety and depression, and frankly, I'm not surprised. I'm not expecting sympathy, I got myself into this mess after all, but I would like some advice. I'm really struggling to make ends meet and I'm always living in my overdraft, which is maxed out. My idea was the following:

Open a current account with a different bank, in case Nationwide remove or lower my overdraft again, taking any money that gets paid in. Then pay back what I can afford to my various debts. I applied for a current account on-line yesterday with a major bank, but was denied, and it suggested I apply for their basic bank account, and I'm waiting to hear a decision. If I don't get that, it looks like I will have to pay for a basic bank account with another bank, which kind of defeats my purpose.

My main question is regarding paying what I can afford. What template letters do I send to offer a lower repayment, and what happens if they pass it to a debt collector? Do I offer a review period in 6 months? I'm working at getting more work, or getting an additional job to help out with my bills. I live alone, having just moved into this flat with my partner, who then left me shortly afterwards I've no space for a room mate. I'll sort out an SOA, but just wanting some token payment advice in the meantime, oh and also a letter to send to stop creditors hassling me. They're not at the moment, but it's only a matter of time, as I keep missing payments.

Thank you x

RAS

Hi

There are not exactly hundreds of basic bank accounts, but nearly a hundred. So you can get a basic account with no problem. Make sure it is a bank that does not have any relationship to either of your current creditors.

And please start by speaking to one of the debt charities; if you suffer from anxiety it makes good sense to get someone else to take the strain.

ladycorsair

RAS wrote: »

Hi

There are not exactly hundreds of basic bank accounts, but nearly a hundred. So you can get a basic account with no problem. Make sure it is a bank that does not have any relationship to either of your current creditors.

And please start by speaking to one of the debt charities; if you suffer from anxiety it makes good sense to get someone else to take the strain.

Thank you for your reply! Do the debt charities take over correspondence? I'm so badly depressed that even typing out my question made me feel sick. I'm ok with letters, but phone calls fill me with dread.

Thanks again,

Arielle

RAS

Contact one of these folk https://forums.moneysavingexpert.com/discussion/2077631 CAP do home visits if the phone causes you problems.

There are letters requiring your creditors to remove all telephone numbers from their records and communicate only in writing. They are required to deal with your nominated representative if you supply the details.

browneyedbazzi

You've said that debt collectors aren't hassling you at the moment, but if they start and continue after you've explained your circumstances etc then they may be engaging in what's called an 'aggressive commercial practice' which is a banned practice....if you have that sort of experience then your local trading standards should be able to help you to stop them calling and harassing you. It doesn't make the debt go away but it could take away the stress involved in the calls etc.

Not all trading standards teams operate in the same way, so not all will take on this sort of thing, but some will and it is worth a try if the calls are causing you undue stress and worry.

I hope it all works out for you x

jules1973

Nationwide have been a nightmare with me. They were fine on overdraft but will not budge on the credit card payment I offered. They are threatening court and CCJ's already. Most of other creditors have been fab.

Good luck with it

ladycorsair

Jules that doesn't sound good! Whats the worst that can happen here? I thought they couldn't reject a payment as it shows you're trying to pay? I intend to offer them about half my current minimum payment to keep paying my loan repayment monthly and for the agreed amount. What letters do I send? Thanks

ladycorsair

Ok so I just Googled "Nationwide problems paying" and they have a whole section on their website promising to be helpful, even with a link on how to deal with creditors.

As I have a loan, credit card and overdraft with them, do I write with the total amount I can afford to pay each month? Or do I ask to work at clearing them separately? Is it necessary to include an SOA in my letter, and do I offer less than I can afford at first so that there is room for negotiation? Also, I REALLY can't talk on the phone. For one, I'm hard of hearing and secondly, due to my depression I tend to fold easily under pressure or say something stupid. Also, what happens if they refuse my offer? Any advice would be great, thank you. I'm so worried... I'm currently a few pounds (literally a few) over my credit card limit and my min payment is late, I can't afford to make it, but I haven't said anything to Nationwide yet. What steps do I take?

binnie

Hi, Can you go to the Citizens advice bureau. They will talk to you face to face and deal with the creditors on your behalf.
I'm in a very similar position. I left my job in January and have only had about 7 days work since then. I do Ebay and have a business on there but it isn't bringing me enough money to pay all my bills.
My husband works, but he doesn't earn enough to cover all the bills we have run up.
We missed Aprils payment for two loans and a credit card, and today have paid them. We were only 3 days late before the phone calls started. At one point I was getting 5-6 phone calls a day everyday.
I ended up writing to them to say I can only pay when I have some money. Today I received a letter asking for my incomings and outgoings, but I have already been through this with them before and at the end of the month, I don't bring enough money in to pay them all. We just live day by day.
I told them I was actively looking for a job and they wanted to know when I would get a job. Well how long is a piece of string. What a silly question it was. If I knew, I would make a large amount of money being a fortune teller.
I have suffered from anxiety and depression for years too and know what it's like. I'm not running away from the debt and told them so. I'm not declaring myself bankrupt or anything. We want to pay the money we owe, but at the moment life is hard.
So today we are up to date, but no doubt the phone calls will start again in May when we will struggle again to pay the loans.
I will see if I can find a link for what to write in a letter. Send it recorded delivery and keep a copy. I just typed one out on my computer, saved a copy, printed a copy and posted it off. They wrote back after a week or so.
I hope you feel a little bit better about it all. There are thousands of people in similar positions, life is hard at the moment for lots of us. But this is a good forum to be on and you will get support and help from lots of people.

By the way, do you have anything to sell on Ebay, it's a good way of decluttering and getting a few pounds for your old stuff. People buy anything on there

xxxx

binnie

Arielle,
Here is a link to a site which has letters you can download and send to your creditors.
http://www.uswitch.com/debt-help/sample-letters-to-creditors/

ladycorsair

Oh hunny, thank you so much for that! It would be so nice to have someone do the negotiating for me, so I will definitely look into that and get those template letters filled in and sent out. Although I'm sorry that you're in a similar situation, it's so good to know others know how I feel, especially depression-wise.

Arielle xx