Where to start with Problem Debts Discussion Area

tilly_j

Hi everyone

I've been in contact with a debt help company who want £250 to sort my finances out with an IVA - i declined.
My debts that are about £30,000 inc interest after 5 years of not paying a penny towards them.

I have just received my credit record from experian & the bulk of my debts - 80% was due to a default on an unsecured loan with EGG - £13,500. Since i took out the loan i have only paid a few instalments, long story why i hav'nt paid it for so long, on my credit report it shows how much i owe & to whom.

When i get to the section detailing the EGG loan it states that i only owe £79 - i only paid about £1200 off the £13,500. Firstly why is this?

Secondly - do negative strikes on your credit file get removed after 6 years?

Been advised sometime ago by someone not to pay any of the loans off as they will be deleted after 6 years regardless if the loan is repayed. Is this true?

So that means after the 6 years & i will have a clear credit file once i apply for them to be removed, get a few credit cards that require you to pay a holding deposit equal to the credit limit. Bobs your uncle problem solved! Right?

Correct me if i'm wrong on any of this but its just that i've tried to contact EGG & other creditors & they don't wanna know about a repaying the debt as it was so long ago.

I was never a borrower but got mixed up with a partner who was & had a bad credit record. After 5 years together decided to consolidate one of my credit cards and all her debts to help her out - £13,500 loan in my name to pay off her debts. Hence the relationship took a nosedive & ended 3 months later & she probably did it to someone else somewhere down the line.

I took her to court, we both represented ourselves & i lost because i had a good job at the time that paid about £800p/w so the judge decided to let her get away with paying it.

Can you help with any of the things i have listed

Any advise is welcome!!

Martinslovechild

Tilly,

This thread isn't the place to post as nobody is likely to answer your queries in here - this is simply the Where to Start thread.

Therefore, I suggest that you begin a new thread.  That way, people will see the threads and respond accordingly.

I am happy to help you also, and will do so if you post a new thread so that others also have a chance to help out.

MLC.

malcolmord

Hetting divorced may cut your out goings by nearly 50% - unless ou have children though!

Paced_Out

I added up my debt and it is as follows:-

I have the following credit cards balances:-

Capital One at 3% = £700
Barclaycard at 0% = £800
Smile CC at 9.9% = £1000
and an overdraft at 9.9% = £1400
Total of £3900

I have a car loan for my wife of about £5k over 5 years but she pays that each month out of her salary.

I also have a pcp agreement on a car at £240ish a month but thats covered by a car allowance in my salary.

Over than that I seem to live comfortably, but am now concerned that maybe this near £4k of debt is a problem.

I have a with profits endowment savings plan that is estoimated to be worth about £3400 when is matures in 3years time. Current cash in value I think is £2900. Should I cash it in and pay the debt, then make a promise to myself not to get in debt again and work at turning over a new leaf. Or should I leave this savings plan to mature?

Am I worrying too much, I have suddenly started getting Asthma problems and not sleeping and although I have other problems that are causing a little worry I think this may also be adding to them.

Is this a lot of debt or is it manageable. I do earn a good salary, but I got scared when I thought about paying £100 a month and realised it would take 3.5 years to pay back.

Any suggestions would be greatly appreciated.

Paced_Out

Mightmo,

Thanks for the reply, Wow! how did you manage to get rid of £25k of debt in 2years. Thats impressive. I'm not sure if I should add the debt on the mortgage or cash in the savings plan and pay it off or keep it on credit cards and pay it off as quickly as possible and live with it until its gone. Any thoughts?

Jack_Brown

Hi Martin and everyone,

Here's my situation: I earn £23,400 per year. I have accumlated credit card debt of £72,000. I have very few assets. I am 36 years old. I'm now wondering if personal bankruptcy might be my best option.

I was wondering what Martin's intitial reaction might be?

cheers, Jack

Dee5412

I have a huge credit card debt and a credit rating that is very high on Experian - but I can't transfer balances by getting a new card - I get refused and am not sure how to go about this

Malestrom

MSE_Andrea wrote:

The following is the area to discuss or ask questions about the site guide "Where to start with problem debts?" which you can click here to read.

This thread is not for discussing debt problems. Please post any debt problems into new threads so they can be answered properly. We cannot deal with so many different debt help posts all in one thread. Thanks!

stevie_m_3

Hello

Apologies if this is the wrong forum. This is my 1st time here.

Apologies also if details are scant but I am seeking advice for
someone else who has told me bits piecemeal but I can't imagine their
situation is unique. This is NOT me by the way hence why the story
may be a bit garbled.

Long story cut short : colleague has split with married partner. There is
joint debt, joint mortgage, joint bank account and I suspect loan guaranteed agains the property.
They were paying their half, other half didn't with
subsquent court orders. Perversely (and I don't understand the full details)
they are now paying less via court order than the original monthly payments.
Bank has now lifted prohibition order on house being sold (I don't think bank
held mortgage but again I'm not clear here). My question here is about a new
bank account and how to get one and from who. As you can imagine,
colleague can't "pay in" to join account as estranged partner
could empty it. They have tried (including via a solicitor) to get
a new bank account in their own name and failed. Again I'm not clear why,
perhaps there is some relevant detail I am not dialled-in to. They are in the
ridiculous situation of getting their monthly salary from the company by
cheque then cashing it (free-of-charge) in a company subsidiary
and thus paying everything (including rent on new accomadation) in cash.
They have a PAYG mobile phone because they can't get a land-line
and of course they can't even install the most basic of cable packages
for instance because again of inability to set up direct debits. They can
not be the only one in this ridiculous situation. Is there no one who will
give them a bank account with a direct-debit facility and cash withdrawl
card, even if it doesn't have Switch (or is it Maestro now) facility.
They are in Scotland if it matters.
Thanks in advance for any advice.

System

Hi stevie_m - you're in the right forum, but you'd probably be best to re-post your question in a new thread of its own, as it'll get "lost" here.

Can't give any specific help except try CCCS or National Debtline for advice.