I am a debt clich!

Richard_28

Hi there

My name is Richard and I am in severe debt. (As far as original openings go that one is a bit flat if I am honest.

Anyway, let’s begin shall we. My debt issues began when I was in a student house during 2002 (give or take). It started with a student overdraft that has never really moved far away from it maximum amount between now and then. I was then given a credit card because of my student status. This intern was then maxed out and has steadily grown worse over the years. (I will list the debts in all their gory detail at the end).

Around this time I applied for a got a capital one card, only a £200 limit but seeing as though I am writing on a debt management forum, you can probably guess how that ended as well. Shortly after this time I changed jobs and then became a student, my overdraft limit was subsequently increased and maxed whilst I obtained an Egg card to help pay with some uni fees, which was maxed shortly after that.

Since then I have left uni (with a first I might add) and things have not improved. In fact if I am totally honest, things have got gradually worse and worse since then.

Here is a list of my debts, with a short explanation to each one.

Capital one card - £200 limit – Card has now been defaulted and amount left to pay stands at £183.00, card has been withdrawn and debt given to debt collectors (cougar finanace).

Barclaycard - £500 limit – The current balance stands at just over £1100 (or close too) I am making a payment on this one soon but I don’t think it will be sending it in the other direction anytime soon. I can only assume its ballooned this much due to non payments, charges and interest (I am currently dealing with Mercers debt recover on this one).

Egg card - £590 limit – Account has now been closed and is subsequently being paid back monthly. I think I am only just clearing the interest.

Providence loan - £250 – Having to pay back £25.00 a month, I think I have already fallen behind.

Argos store card - £200 limit – Ballooned to £295 after non payments. Just today sent a form back to them I received from a county court claim with a monthly payment plan I can afford outlined in it (form n9 I think). I am very scared I may be over the date to send this one back, so, fingers crossed here.

Barclays graduate addition overdraft - £3180 – This account has seen some really bad times. The amount is due to drop to £3000 by the beginning of November.

Student loan – 3years £12,000 – I assume they will want that when I earn enough.

Council tax arrears - £450 – They were taking that out of my previous jobs wage packet. I have now left that job, so Christ knows where that one’s going to end.

To deal with some of this I have had dealings with companies search as Mercers debt collectors, Cougar finance and Power 2pay finance services as well. All very unpleasant and soul destroying.

I myself have just started work as a freelance QA technician for a software company. The pay is fair but obviously its freelance and I invoice them so now I have to worry about sorting out my own tax and stuff like that.

The cherry on top of this horrible, horrible sundae is that I suffer quite badly from depression. I have, in the past, tried to take my own life in what I would personally call pathetic cries for help from a person who single handily fails to deal with his own life and the horrible things (I have probably created from my own self centeredness and loathing, call it what you will) in it.

I don’t blame anyone for this being in my life except myself and I don’t expect anything from anything. I am however going to ask for advice or any information on how to deal with any or all of this. I don’t want to live like this anymore. I don’t want to die out of sheer desperation, financial burden or something far worse.

I want this to end and I want to start right NOW.

Thank you for taking the time to read this and please understand that I am not looking for easy way outs or quick answers. I want to deal with this head on and start my life properly, because up to now I have REALLY messed it up.

Again, thank you for taking the time to read this and I hope you have a great day.

Richard

tearose

Hi Richard,

The good news is you will now have some money coming in, and now just need to work out your next steps.
Post a statment of affairs (SOA) which details you incomings/outgoings and enables everyone on here to best advise you: http://www.makesenseofcards.com/soacalc.html.

I think your priorities are the Council Tax arrears, followed by the £180 off your overdraft. Put the student loan completely out of your mind for the time being - as you say this will be paid off when you start earning enough and I don't think it helps you to include this at this stage.

pauletruth

yes i would sort the council out first. they normally will agree a very sensible repayment scheame with you if it has not gone to court.

i would write to each of the firms that are chasing you and explain your situation. they should ask for a budget of what you owe compared to what you have to pay out.

try getting the intrest stopped some will some won't.
then knock of the higest intrest paying ones.

if you could find a money source you could make offers of full and final payments of around 40-50%. but don't get any other debt to cover it.

downsizer3

There seems a huge link between depression and debt IMO. My ex suffered and ammassed bonkers debts ( circ £40k) having 'invested' more than £150 over his working life in nonsense things that all lost the lot. So don't feel alone. The worse it got, the worse he felt and the more he lost.
When I finally found out about his debt crisis ( and it was by then a significant crisis) I went with him to Citizens Advice and they were great. They contacted the various people he owed and stopped interest and arranged a manageable repayment programme. Most importantly they are perfectly above board and don't cost you anything - most companies charge a fortune and are rubbish anyway.
Nor do CAB judge you, so don't worry about that. It is manageable and when you get a repayment programme going its such a huge weight of your mind - it can only help - certainly worked for my ex.
Good luck and give them a call!

Richard_28

Hope I have this right

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 880
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 880

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 275
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 45
Clothing................................ 15
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 653


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................183.......183.......0
Egg card.......................590.......35........0
Barclaycard....................1100......40........0
Council Tax....................450.......0.........0
Providence Loans...............250.......25........0
Total unsecured debts..........2573......283.......-


Monthly Budget Summary
Total monthly income.................... 880
Expenses (including HP & secured debts). 653
Available for debt repayments........... 227
Monthly UNsecured debt repayments....... 283
Amount short for making debt repayments. -56

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,573
Net Assets.............................. -2,573

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

downsizer3

£45 pm for food isn't really do-able. If the interest was stopped - what would your monthly debt repayments be?
The repayments have to be achievable otherwise you'll just fall behind. Its critical that you speak to CAB or similar to get a workable repayment programme going - Once its all agreed it could be more affordable - and therefore more likely to be met. Thats how they view it once you're open about it. It may save your credit rating another knock too as you'll be seen to be tackling it and making regular payments etc.

Tixy

Hi and welcome

Regarding your debts
Capital 1/cougar - you don't need to pay them the whole balance in one go - are they hassling you by letter or on the phone? I would write to them and offer to pay over a few months - maybe offer £25 a month? Have you asked them to freeze interest?
Barclays Mercers - have you tried writing to ask them to freeze interest? (they don't have to but they might well if you are paying all you can afford).
Council tax - you need to sort this as a big priority (you don't want bailiffs turning up). How much was being taken from your salary before? I would contact them and try to arrange a repayment plan (maybe offer to repay over 6months)
You haven't included the argos debt in your list? - how much have you offered on the form?

Regarding your salary - is the £880 after tax & NI etc, are you putting money to one side for your tax bill? is this a fixed amount each month? any chance of working more hours for them and invoicing them more? any time to try to fit in other clients around the main work for this software company?

Richard_28

how much have you offered on the form?

I have offered them £60 a month as I am a bit frightened that it is a court order and all. My last day to send the form is today so I dont want to risk making it worse.

Cougar have hassled me with letters, the chap on the phone laughed at my first payment offer. I am now giving them £50.00 this week and then £130 at the start of October.

I feel like I am trying to put water in a bucket with holes in it.

Debtfreemum

Hi , i cant offer any advice as new to this too but welcome and your doing the right thing dealing with it instead of ignoring it.

Tixy

I would stop speaking to places like cougar on the phone and do everything in writing, places like this will always bully and harrass you to pay more on the phone. If they are calling you then just ask them to put everything in writing and hang up. If they keep calling then there is a template letter you can send to stop future calls and to require all communication is in writing.
I also wouldn't agree to pay them that £130 at all - you can't afford it and its not a priority debt. I would write to them and set out what you can afford. And then make the payment to them in line with your letter. How have you agreed to pay them? standing order?

Look on the national debtline website for examples of template letters you can use to set out what you can afford to pay - http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

Debt collection agencies cannot just do as they like and you cannot pay them more money than you have - I'd have a quick read of this thread to give you some ideas of what they can and cannot do OFT Debt Collection & letter Guidance - READ IF YOU ARE BEING HASSLED UNFAIRLY

Richard_28

I have only offered to pay them via my debit card. I havent set up a standing order or anything similar.