debt collectors for C.C. debt. Help needed

jim-jim

Hi this is my first post, not sure if I'm in the right place.

To cut a long story short : had a credit card with Tesco Bank was paying, until I lost my job last year. Now I've got a new one but not as much money. I stopped paying, and didn't contact them at all (stupid thing to do).

Kept ignoring all the letters, now it has been passed on to Debt collectors, Ignored them as well, hoping they might go away!! They are now saying if no payment is made within 7 days they may start court proceedings.
I know I can't keep ignoring the letter, texts phone calls. But now I don't no what to do. The debt is £4000, I own my own home (mortgage). But can't remortgage.

Any advice on what I should do??
Many thanks

sickasachip13

Hi Jim-jim

First thing is - they're not going away I'm afraid and you've made a really good first step by acknowledging the debt and seeking help.

If I were you I'd contact the debt collectors and make efforts to get them to accept a payment plan. They will prefer to try and get this in place than trying to take it to court but they will play hard-ball with you.

Also, it would be very wise to get some free impartial advice from a charity such as CAB or CCCS (who have a website with a debt remedy tool on it).

Best of luck

SAAC

jim-jim

Hi thanks for the help,

I've heard/read that your not meant to sign anything.
Are there any letter templates, I could use? I've had a look around on here but I don't understand them fully (not in plain English).

Thanks again

sickasachip13

Yeah, it is said to be unwise to sign the letter. Just type it on a computer and type your name in. I'll see if I can see a template.

Gothicbetty

Hiya Jim, I'll tell you what CCCS told us, write to them outlining your circumstances and request that they only contact you in writing (releieves stress) and then contact CCCS and get a DMP running really helpful eases pressure even more! They always threaten court action and usually it's done automatically by a computer. But write to them (templates on the National Debtline Website) keep them informed and you won't go wrong! £4k is not much!

Good luck
Tania

sickasachip13

The National Debtline letters are usually recommended on here, there is a sample letter in the drop down menu on Section 5 that might be good:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

Mind you, they will push and push for more first of all. You need to really work out what you can afford to offer, be able to provide a statement of affairs to them if required and then you stick to this figure. If the debt has been sold to the debt collectors then they will have bought it for a lot less than what was owed. If you could raise the cash then they might be willing to discuss full and final settlement (although this comes will all sorts of warnings as to what to accept from them and never do it without official letters confirming etc).

I would urge you to do the debt remedy tool on CCCS website - this will advise you on your circumstances and whether a DMP or similar is worth considering.

jim-jim

hi, thanks for all your help x