Where do I start?

timbstoke

This isn't an ideal way to deal with it, but in practical terms, if the ones you've defaulted and ignored aren't doing anything about it, there's not much point contacting them yet - they might as well stay at the bottom of the pile until they start to pursue you, and in the meantime you can deal with the ones giving you grief. However, don't forget they're there, and allow for them when negotiating minimum payments. That way, you can overpay the ones you have now, and hopefully get them paid off before the defaulted ones start to chase you.

As far as which ones to prioritise, go with what works psychologically for you. Some people like to attack the biggest debt first, others prefer to pay the small ones first so the number of outstanding accounts goes down more quickly. Others prefer to pay credit cards first so they have a buffer for emergencies, meaning they can then budget all cash for other debts instead of having to keep a reserve 'just in case'. The most financially sound approach is to attack the highest interest first, but go with what works for you.

If you've defaulted and are ignoring creditors, then the time to worry about your credit score has passed - accept that your credit score is broken for a while, and concentrate on paying off your debts first. A bad credit score only becomes an issue when you want credit, and since you already have £21K of credit, you should really have enough to be getting on with!

Buttercups_and_Poison

No one is seriously chasing me for money, the Debt one is the most persistant but I agreed to £95 in August and again in Sept.
Debt two doesn't even appear on my credit report...but its being dealt with by the same company as debt one.
Debt three is a credit card, they have never pestered me or asked for their money back, but they have cancelled the card (how rude! ) it also appears on my CR
Debt four haven't pestered me either it does appear on my CR
Debt five will not budge, I rang them today, they said they no longer own the debt and a debt collection agency will be in touch in the next 18 months and to wait for the letter, if they do not come after me by January 2013 I can get the mark removed from my report!
Debt Six have never chase me either - but they are on my CR
Debt Seven have never contacted me - I rang them today and they said they had no record of my debt!
Debt Eight appears on my report but have never chased me since December 2007
Debt Nine is not in default
Debt Ten is not in default
Debt Eleven is not in default

I should be putting some pennies away for a rainy day for TV, but its only £120 so I figure that I will sort it in May next year when it's due.

One is a CCJ, this is the first one to leave the report Thank goodness!

I realised where the extra money went...I was paying a personal loan off until this month of £350 when I finished paying it, completely forgot about it.

RAS

Buttercups_and_Poison wrote: »

My wifes salary will continue whilst she is at uni. - so she is seconded?

Electricity - it is in arrears - when does this end?

TV - Paid in full - you still need to budget for it - 1/12th of the sum every month

Car maintenance is free, I get a company car and my OH leases hers, so it is all included.

Including tyres?

Groceries - To be honest I was very conservative, it probably more like £500 -

in which case this needs to be looked at seriously. £60 per person is more than doable.

Childcare - To youngest are aged 1 and 5 months hence lots of nappies and formula now, I also buy medicines and vitamins for the month. ( I do shop at sainsburys though...could probably change)

Definately


Medical cover - I have this from work for the whole family

Entertainment - We allow £50 a weekend, but we buy annual passes to places so we can have a tight weekend if we ever need too.

Sorry but you need to really cut this back. It is not neccesary to go out and frankly OH will not have time to do so when she starts studying.

Savings - All taken at source into an ISA from my work

Where is the ISA listed on your SOA? You need to use that money to clear the debts.

Emergency fund is the car leasing for my OH - not practical to put her in an older car as the costs associated and the difference of leasing would not warrant the safety risks.

At the moment the money is being spent on nothing in particular, just disappears!

So it appears - even allowing for the loan now paid off.

Debt one I am planning on paying off £100 in August and £100 September.
Debt Ten finishes in November
Debt Eleven finishes in December.

The other debts I have just defaulted and never contacted again! I was going to start with prioritizing the lowest and get rid of them? Is this not the way to do it?

No, you find the one with the highest APR and pay that off first. It is called snowballing.

And now you have the extra money, you can start to pay off the other debts quickly. Any not yet defaulted? Sort them first.

Buttercups_and_Poison

The interest is frozen on the defaults, so it makes sense to pay off nine, ten and eleven as they are not defaulted.
Definitely getting rid of debt one first as they are chasing me a little, and I will just keep up the payments on debts 9, 10, 11 as there are no defaults on these.

Could I normally get away with asking for a reduced debt rate even if I still spread the payments out?

Tixy

Buttercups_and_Poison wrote: »

Debt Nine is not in default
Debt Ten is not in default
Debt Eleven is not in default

So pay off nine this month and keep paying off ten and eleven (at the rate you need not to get defaulted) and you are already going to pay off one. Presumably you are being charged interest on these if they are not defaulted?

Then you need to start tackling the others, you say eight has never chased you but also that they will only accept the full amount. Do you mean you tried to offer a reduced full & final settlement? if they won't accept it then just set up to pay a small token payment to them instead.

Tixy

Sorry last post of mine was cross-posted, I hadn't seen your reply.

Usually they will only accept reduced full & final settlements if you can pay in one lump sum. Occasionally people have managed to get reduced settlements paid over 3months or so but these are rare.

If you are doing F&F offers make sure its done in writing and you have written confirmation from them that the payment is accepted in F&F settlement of the debt and neither they nor anyone else will chase you further for the debt, don't pay until you have this confirmed in writing (and make sure you keep hold of all this written evidence in case anyone tries to chase you a few years down the line).

Buttercups_and_Poison

Tixy wrote: »

So pay off nine this month and keep paying off ten and eleven (at the rate you need not to get defaulted) and you are already going to pay off one. Presumably you are being charged interest on these if they are not defaulted?

Then you need to start tackling the others, you say eight has never chased you but also that they will only accept the full amount. Do you mean you tried to offer a reduced full & final settlement? if they won't accept it then just set up to pay a small token payment to them instead.

Yes they were very nice to begin with, I explained the situation and they said they sold the debt in 2009 (but they still own it according to my CR) I asked if I could look at a payment plan and neg and get it cleared. They said no they couldnt as the account was closed, they couldn't take any payment. So I was very cheeky and asked if they could change the status to account as settled, the guy was very nice and said I think so yes. He put me on hold and came back and said...my supervisor has said that he wont do it, and because its been passed on the LN Direct (yet I can't find that company anywhere!) the only way to settle the account is to go into a branch and pay the full amount! Or wait for LN Direct to chase me then I might be able to work out a cheaper option! The guy on the phone apologised for his supervisor attitude and said there as nothing he could do!

So I can't actually pay this unless I pay it all! Not even token payments! Stupid huh!

anh1904

pay off 9 10 and 11 inside the next fewmonths by being sensible and stopping any frivolous spending, then order the debts in APR order, and start paying as much as you can pay off the most expensive (and not defaulted) debts.
Save everything once they are clear to make a full and final offer as and when you are contacted by the agencies.
I would imagine you contacting them might weaken your bargaining position, but I have no experience in such matters, so hopefully someone else will have.

In the meantime, given your income, you need to lok at some of the life choices that got you into the situation and decide if they have changed ot the point that you wont go back there again in the near future.

Good luck.

elsiepac

Tixy wrote: »

Your house sounds nice (if costly to heat). No cost for sewerage either? I guess you perhaps have a septic tank.

OP's house does sound lovely!!

However, if they do indeed have a septic tank, which looks likely, then surely they need to budget for it being emptied once or maybe even twice a year with 6 people contributing, and the cost per emptying can vary from £40 to £100 plus depending on area of the country, capacity, etc.

So I would still think a line would need to be included on the SOA for this? OR mains sewerage if not...

LC

Buttercups_and_Poison

elsiepac wrote: »

OP's house does sound lovely!!

However, if they do indeed have a septic tank, which looks likely, then surely they need to budget for it being emptied once or maybe even twice a year with 6 people contributing, and the cost per emptying can vary from £40 to £100 plus depending on area of the country, capacity, etc.

So I would still think a line would need to be included on the SOA for this? OR mains sewerage if not...

LC

The septic tank is emptied regular...the local farmer does it! (Disgusting I know, but he uses it for his fields!) He doesn't charge either. But still......ewwww!