In desperate need of some debt advice please!

carlreed86

Hi, My name is Carl and Im a student, im 20 and im in my first year at college studying electrical and electronic installation.



I know this thread maybe a little long but please read it because I really need some advice.



Over the past 3 years I have generated a couple of hundered pounds worth of debt through catalogues, mobile phones etc. I have been in and out of work since 2003. Not that I am to lazy to work but all the work I keep getting is temporary, this has been a huge pain in my posteria so thats why im back in college!



Heres an example of two of my debts:



1. I bought a mobile phone on contract of the internet from a not well known retailer. The offer was £15 line rental a month for 18 months and lots of inclusive minutes and texts on the '3' network. WELL, the inclusive minutes and texts I got every month and was happy about that, but they started charging me £40 line rental every month, so i phoned up to sort it out and they told me that I had to pay the £40 line rental and on the 6th, 12th and 18th months I could send off some vouchers to reclaim my money. I was discusted with this and wanted to end my contract but they said it would cost me £240 to end it. I didnt have that kind of money and I didnt know what to do so I ended up turning to phone off, leaving it in the drawer and ignoring all of the letters. I have been passed on to a debt collection agency who keep giving me nasty phone calls and adding charges by the day.





2. When i left High School I phoned up Littlewoods Catalogue to open an account, they let me open one and gave me a £400 spending limit. Being a 16 year old I quickly used all of my credit and was paying the monthly bills alright. After 4 or so months my credit limit was increased to £600, and coming upto christmas I put the money to good use and bought all of my present from the catalogue. When somebody offers you a credit limit it feels like free money when your 16, then I lost my job and found myself in financial difficulties, I was working on and off for years, working as a labourer on building sites cleaning up after people with real jobs! I couldnt pay the bills, plus I moved into a new apartment with a friend so i had more bills to pay. Littlewoods kept charging me £5 for every letter they sent out and £30 for late payments. Soon enough I found that i could hardly pay the charges so I contacted them over the issue but that didnt stop them charging me. I have now been passed onto a debt collection agency. Who again keep adding more and more charges.



I have also had a lot of unfair charges from Natwest, but im going to try and sort them out through this site. Theres also electricity bills and rates bills that need to be paid but I simply can't afford it.





Im now working part time at the Carphone Warehouse earning around £90 a week. I cant claim any benefits to help me pay my debts because apparently you cant claim benefits if you are a student but you can claim dole if you cant be arsed working! I have asked college for advice but they are no help, and I cant get student loans bacause I am studying a trade! I dont know what to do, I cant afford to pay my bills and it seems that nobody out there can help me. My credit rating is really poor now so I cant get credit anywhere, but that really doesnt bother me at the moment because if i could i'd only end up getting myself into more debt.



I just need some advice on how to deal with this debt before it gets really out of control.



Thanks for reading.

Kevicho

The first thing id say is do your parents know the situation?
There the first port of call to help you out in this situation.

Whats the amount you owe to the phone company?, I hate to say this but theres not much you can do here, what made you not send the forms back to reclaim the money?

I have to say this one needs to be put down to "read the small print"

Ok, some hints, re the DCAs, tell them you want all communications in writing from now on, it is classed as harrasment, and is illegal, at least while this wont make the debt go away, it will make you less stressed!

You also need to get together a full list of charges, for both littlewoods and the bank, when the DCA call about the littlewoods debt, you need to tell them that you are disputing the amount, as it is made up of punitive charges, which you intend to recover.

This will put this debt on hold while that process is sorted.

Again with the bank, there are many threads on here, for letters etc check out https://www.consumeractiongroup.com, this will help you immensely

Good luck, and try not to let it effect your studies

Kev

Kevicho

Oh, and post an SOA, so we can see if we can stretch your budget

Eager_Elephant

Firstly I suggest you draw up a SOA (statement of affairs) so you can work out how much spare money you have to pay your debts.

Then you will be able to contact all your creditors and explain your circumstances and make them a reasonable offer of payment.

Alternatively if you feel unable to do the above then try contacting your local CAB or other money advice charity who will be able to write on your behalf.

EE

carlreed86

Ok thanks Kev

iceicebaby

Hiya Carl

I would also question with Littlewoods why they offered credit to a 16 year old. Im not sure of the legalities here, maybe someone with some more knowledge would be able to advise but Im sure they shouldnt be giving credit to an under 18.

LolStevo

Omg i am a female version of you! I have the same debts with a mobile phone company and with littlewoods who keep charging me! I am 20 and hav returned to college so i can get a proper job!Lol

Well i have claimed back my charges from natwest so do that! I am just going 2 pay as much as possible to the nasty dcas but remember they cant force you to pay an amount you cant afford! I have only just realised this!!! Chin up mate! x

oscar52

Agree with last post about littlewoods - credit to a 16 y.o. - big no no - and ahve you thought about reclaiming your charges from them? - you do that as easily as banks and credit cards i believe

poorbutrich

Just wanted to say well done for trying to sort this out while the debts are manageable - I wish I had been as sensible as you when I was 20! best of luck.