Its time to deal with my debts

doh_erty

Hi firstly thanks for taking the time to open the thread, if you want to read on please post some advice whatever it may be.

Suppose I should start at the beginning, but, I'll try not to drag this out.


In 2009 I was foolish and stopped making payments on my Loan, current account (overdraft) and orange phone contract.
The reason for which was because I had lost my job and the companies above weren't very understanding, lloyds added charge after charge on my current account for not keeping up with my overdraft payments, I was always overdrawn and charges racked up formissed direct debit payments for my loan.
Orange were useless. Their coverage was poor to put it kindly.

In the end I got so frustrated I opened a bsic account with barclays and pretended I didn't owe a penny.

Needless to say the letters started flowing through my letterbox, demands, more charges, more demands. Still, I ignored them.


I have recently moved house quie abit but with friends and suchlike, so, I never officially changed my address. Recently I checked mycredit report. It was what I expected, poor.
All 3 items have defaulted and my credit rating is very poor. In total I owe;
£3049 - Unsecured loan
£1042 - Current account
£142- Orange phone contract

Now just to add, since ignoring my debts I have managed to survive just fine without borrowing, so it just goes to show living is ossible without getting yourself in a mess.

I am now in a position both financially and in my job where I am stable.

So, now is the time to get it sorted.

Not sure where to start really.

I have many questions but the main few would be:

If the defaulted amounts have stayed the same on my credit file is that the amount I owe? does that mean that no interest is being added? (the original agreement must be up)

Are the carges on the curent account unfair? and do I stand a chance of getting them taken off the total?

Do I try and negotiate with my creditors for a reduced amount? or enter into a debt mangement plan?




Please help me Im ready to face up to all of this now and eed to know what my first stepping stone looks like.

clearmydebts

Hi,

Sorry, I don't have the answers to your questions but wanted to say best of luck!

gargrave50

doh_erty wrote: »

Hi firstly thanks for taking the time to open the thread, if you want to read on please post some advice whatever it may be.

Suppose I should start at the beginning (best place to start:D), but, I'll try not to drag this out.


In 2009 I was foolish and stopped making payments on my Loan, current account (overdraft) and orange phone contract.
The reason for which was because I had lost my job and the companies above weren't very understanding, lloyds added charge after charge on my current account for not keeping up with my overdraft payments, I was always overdrawn and charges racked up formissed direct debit payments for my loan.
Orange were useless. Their coverage was poor to put it kindly.

In the end I got so frustrated I opened a bsic account with barclays and pretended I didn't owe a penny.

Needless to say the letters started flowing through my letterbox, demands, more charges, more demands. Still, I ignored them.


I have recently moved house quie abit but with friends and suchlike, so, I never officially changed my address. Recently I checked mycredit report. It was what I expected, poor.
All 3 items have defaulted and my credit rating is very poor. In total I owe;
£3049 - Unsecured loan
£1042 - Current account
£142- Orange phone contract

Now just to add, since ignoring my debts I have managed to survive just fine without borrowing, so it just goes to show living is ossible without getting yourself in a mess.

I am now in a position both financially and in my job where I am stable.

So, now is the time to get it sorted.

Not sure where to start really.

I have many questions but the main few would be:

If the defaulted amounts have stayed the same on my credit file is that the amount I owe? does that mean that no interest is being added? (the original agreement must be up)

Start with the letters you have (demands!) and see who the most recent pursuer of each debt is. Write to them individually stating that you wish to arrange repayment of the debt, and wish to come to a mutually agreeable repayment agreement. Take it from there - everything in writing - DO NOT DISCUSS BY TELEPHONE!!!

Are the carges on the curent account unfair? and do I stand a chance of getting them taken off the total? Whilst the charges they will say are "fair" given the T&Cs of your account, you could attempt to reclaim them under the financial hardship clause. This is only successful if you can prove financial hardship e.g. unable to keep up with basic necessary bills council tax, utilities, rent arrears etc.

Do I try and negotiate with my creditors for a reduced amount? or enter into a debt mangement plan?

See where you are with each creditor or debt collector and take it from there......



Please help me Im ready to face up to all of this now and eed to know what my first stepping stone looks like.

Hope this helps, at least you are facing things head on now:o

MissShoes

Echoing what gargrave has said- do everything in writing. The defaults will remain for 6 years but will look better once satisfied and you can add notes of information on them to explain how and why you got them

doh_erty

Thanks for the replies so far.

If I pay the orange phone bill in full will that be better for my credit file as opposed to settling for a reduced amout?

Stewart_78

Probably not as the default will still show. Maybe offer them 50% as a full and final and make sure you get it all in writing and read other threads on here about Full and Final so you know what to look for. At least if you could settle that one, it's one less company chasing you.

doh_erty

Stewart_78 wrote: »

Probably not as the default will still show. Maybe offer them 50% as a full and final and make sure you get it all in writing and read other threads on here about Full and Final so you know what to look for. At least if you could settle that one, it's one less company chasing you.

So I dont really benefit much from "settled in full" to "partially settled"?

i'll do some research onfull and final payments as I guess that's what i'll need to us for the other debts.

as I do owe to more than one creditor its hard to keep track of which company is now handling my debt.

I haven't had a letter from a debt collecting company in reference to my orange debt in atleast a year+

doh_erty

After a little research ,it seems as though full and final payments are only for paying a reduced amount in full. (can really tell a newbie eh!) So this will be fine for my orange debt.

would it be possible then to ask for a reduced amount on the other debts? if so what would be my case for asking for a reduced amount?

payed off quicker? can only afford so much a month?

Stewart_78

Probably best to talk to CCCS or Paypal about your options as it will very much depend on your circumstances. I have a DMP which has meant that I still owe the full amount but pay a much reduced amount every month which is worked out on what I can afford. The creditors have accepted this and stopped all interest and charges on the accounts.

I do have my eye on a full and final at some point which should hopefully mean I can settle for far less than the total. I don't really give a stuff about my credit file to be honest. Never getting into debt again.

GeorgieFTB

The question becomes how quickly could you have the £6-700 that would possibly be the F&F for the current account?

If a couple of months, then you could save that up and offer later on in the year... all depends on the amount you are saving to pay these off...

For the two bigger debts, if you can't pay them off as F&F, then you could run your own DMP, write to whoever has the debts now with your budgets and how much you are going to pay them.

One thing someone else said that needs repeating... Always deal in WRITING!!!!

Good luck
Gx

doh_erty

Could someone explain to me what will happen once I acknowledge this debt? What I mean is lets say I make contact for a repayment plan with my creditors, will the clock reset? so to speak. or is it 6 years after the default was put on my credit file.

thanks for any help im getting on this guys.