Hiding your debts? Think you can cope on your own?

Rochdale_Guy

PREFACE: Hiding your debts? Think you can cope on your own?
Well I did just that, and am now a broken man living on my own after having split from a 19 year relationship, and am now alone with all my debts for NOT doing the right thing and telling my partner.

Please face up to your debts and don't hide them like I did.
Nothing good will come of keeping things bottled up.....


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This is now my financial nightmare.

Just added up what I owe and need to ask for opinion please:

Card 1: £9,000 owed: £296 minimum monthly repayment with £208 of that in interest
Card 2: £5,940 owed: £133 minimum monthly repayment with £116 of that in interest
Card 3: £3,284 owed: £99 minimum monthly repayment with £62 of that in interest
Card 4: £3,526 owed: £81 minimum monthly repayment with £52 of that in interest
Card 5: £1,675 owed: £39 minimum monthly repayment with £24 of that in interest

TOTAL OWED = £23,425

Total monthly repayments = £648 with £462 in interest charges, meaning only £186 actually reduces this mountain of debt each month

I also have £2,747 owing remaining on a car loan fixed at £106 a month at something like 7.1% until paid off.

I have a fee free £100 overdraft limit with my bank, and am always nearly £200 overdrawn the day before I get paid EVERY month. I get charged about 96p a month by the bank for being in the £100.01-£200 overdraft range.

I have done a previous CCCS Debt Remedy and didn't go through with it due to being:
a) totally scared
b) have not been well since Xmas and
c) having personal problems including stupidly hiding this from my partner who has now freaked out when I confessed, by my secretiveness and stupidity and lack of honesty.

The Debt Remedy suggested a DMP but that would take over 12 years to pay and posts on here, that is DOUBLE what other people seem to have as a solution (and that is if CCCS can get my creditors to freeze interest charges etc). 12 years? I know I can't pay much each month with what I have left, but that will take forever

My bank offered me a £20,000 loan a year ago - which it probably won't now, which came to £383 a month over 72 months (5 years) which includes £7,630 extra in interest = £27,630 TOTAL LOAN REPAYABLE.
That works out at just £105 in interest a month, as opposed to the crippling £462 I am currently paying (or about to stop).

Even though the bank loan would add an extra £7,630 on top of the £20,000, it seems more manageable to me if they offered it me again?

That would be cleared and paid off IN FULL in 6 years, ALL £27k.

The DMP (if cards 1-5 accepted my offer via CCCS) would take twice that long

I shouldn't ask but is the consolidation loan from my bank a viable option to clear it all?

The other thing is, if I went the CCCS Debt Remedy route, I would need a new basic bank account, as Card 4 above is with my current bank.

I still don't get the direct debit situation, as obviously the new bank I'm considering say they handle all the D/Ds and switching from my current bank, but I would have to cancel the monthly D/Ds to my credit cards as soon as CCCS say I have been accepted for the DMP!

I get paid on the 15th of each month, and all my utility bills come out on or around the 16th, which is great. Four of the five credit card monthly D/Ds come out my account at the end of each month. I don't get when I am meant to cancel the c/card D/Ds and send them a postal order as a token amount with the pre-printed CCCS letter?

All I know is I am so stressed and something will go badly wrong?

Should I forget the bank loan dream and just apply online NOW to open the basic new bank account as that will probably take 4 weeks to set up

PLEASE HELP ME, TIME IS RUNNING OUT.
The 4 credit card payments coming out of my bank account in the next 2-3 days WILL be the last full amounts I can make. I am that skint I am having to pay my rent on a credit card I have never missed a payment or been late, but can't go on paying £642 a month in minimum repayments.

I am so unhappy and want to get started ASAP.

Thank you for reading, I await any replies.

Yours ashamed,
RG

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scared-sick

I am sorry about your situation and I am unfortunately not in a position to give any advice at present.

I am currently just in the very early stages of starting a dmp myself after finally admitting defeat!! I am petrified of what the coming months have to bring, but I feel I ran out of options.

I am sure someone will be along soon to better advise you but in the meantime, I just wanted to let you know that you are not alone and to try and stay positive!

Rochdale_Guy

Thank you scared-sick,

Are you with CCCS or Payplan. I'm sure they are both wonderful but I'm going with CCCS, if people shout "don't even consider the bank consolidation loan" route - (if they would help me).

:A

downnotout

Do you only pay the minimum payments?

FabuLass

Im in a similar situation, I did the cccs online soa and realised I was still on my own and didn.t know what to do first. Because I saw the exact amount of my debt in black and white I was brave enough to go to my local council run debt advisory service knowing what my incomings and outgoings were. The lady who saw me was lovely, and teiterated that I didnt need to justify myself to her....all she wanted was to help me find a solution.
I have decided to enter into a DAS amd it is her that sends out all letters to make arrangements to pay, not me.
She did say first thing to do was open a new bank account which I did online with RBS, tho I dont have paperwork yet. Second thing was to cancel all direct debits online.
Maybe if you are scared like me this type of service would be good for you, because you are guided through. My debt advisor even called me at home a few days later to see if I was ok, starting to feel more positive etc. and do u know....i actually am feeling a wee bit better.
Good luck to you, I know there will be others along that can give more positive help and advice to you....but I think we all know the first step you have just taken was the hardest one...so well done!

Rochdale_Guy

downnotout wrote: »

Do you only pay the minimum payments?

Yes I do only pay the minimum monthly repayment by Direct Debit. I can't afford to pay any extra, and now, I can't afford to let them take the minimum monthly direct debits after the last 4 payments have been collected in the next 2-3 days. Well, I can't afford that but this has to stop right now

Card 1: £9,000 owed: £296 minimum monthly repayment with £208 of that in interest
Card 2: £5,940 owed: £133 minimum monthly repayment with £116 of that in interest
Card 3: £3,284 owed: £99 minimum monthly repayment with £62 of that in interest
Card 4: £3,526 owed: £81 minimum monthly repayment with £52 of that in interest
Card 5: £1,675 owed: £39 minimum monthly repayment with £24 of that in interest


By the time those Direct Debits have come out, I will nearly be at the £200 overdraft limit. That leaves me with NO money to draw out to spend on food etc until the 15th February when I get paid, and YES, that means the next 2 weeks rent has to go on a credit card.

EDIT: Had a letter today saying the interest on Card 4 is being put up by another 4% come 1st March.... If I want to reject this, I can pay it all off now at the current rate and the account will be closed. I don't have money to do that! :mad:

Yet another kick in the teeth when I'm down and already can't afford the repayments (as of 1st February) :mad:
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Rochdale_Guy

Thank you too FeeFeeDee

Ramekin1975

I wonder if anyone could help me, apparently in 2009 i took out an online mobile broadband package through 02 via DD and was disconnected Oct 2009. Then apparently i took out A nokia 7610 with 02 also online on 12th Dec 2008 and that was disconnected on 01st Aug 2009 then i took out a Samsung Soul Mobile phone also online and that was disconnected. The amounts owed were £289.74, £459.92, and £372.65 i was at the time going through a Bipolar Stage where a Manic phase can impose excessive spending without due course or attention and is a severe mental illness. My GP has filled out a mental health and debt form but i want clarification on how that debt accrued but 02 sold the debt to a debt collection agency so i decided to apply for access to something called a Request for a copy of the original credit agreement under the credit consumer act 1974 at the cost of £1.00. The Debt Collection Agency replied that it was a Service Agreement and not a credit agreement so it would not help. I was advised to then apply for a Section 7 Data Protection Act - Subject Access Request at a cost of £10 but now im confused. Can anyone help at all?

Angry_Bear

Rochdale_Guy wrote: »

EDIT: Had a letter today saying the interest on Card 4 is being put up by another 4% come 1st March.... If I want to reject this, I can pay it all off now at the current rate and the account will be closed. I don't have money to do that! :mad:.
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You'd have to check to make sure, but I don't think they're allowed to do that. I think you legally have the option to refuse the rate rise and the account will be closed - you will carry on paying it off as you were but will be unable to use the card.

@Remaking1975: You will get more advice if you start your own thread . Mobile phones don;t have a Credit Agreement so you can't ask for a CCA, but a SAR will force them to give you all information they hold on you.

Superbiatch

Rochdale_Guy wrote: »

Yes I do only pay the minimum monthly repayment by Direct Debit. I can't afford to pay any extra, and now, I can't afford to let them take the minimum monthly direct debits after the last 4 payments have been collected in the next 2-3 days. Well, I can't afford that but this has to stop right now

Card 1: £9,000 owed: £296 minimum monthly repayment with £208 of that in interest
Card 2: £5,940 owed: £133 minimum monthly repayment with £116 of that in interest
Card 3: £3,284 owed: £99 minimum monthly repayment with £62 of that in interest
Card 4: £3,526 owed: £81 minimum monthly repayment with £52 of that in interest
Card 5: £1,675 owed: £39 minimum monthly repayment with £24 of that in interest


By the time those Direct Debits have come out, I will nearly be at the £200 overdraft limit. That leaves me with NO money to draw out to spend on food etc until the 15th February when I get paid, and YES, that means the next 2 weeks rent has to go on a credit card.

EDIT: Had a letter today saying the interest on Card 4 is being put up by another 4% come 1st March.... If I want to reject this, I can pay it all off now at the current rate and the account will be closed. I don't have money to do that! :mad:

Yet another kick in the teeth when I'm down and already can't afford the repayments (as of 1st February) :mad:
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Contact CCCS with a brew in your hand and discuss setting up a DMP. They will help you with it all. You should also start looking for a non-linked bank to set up an account. It might feel it at the moment, but its not the end of the world (believe me, i've been there!).

I had to cancel all my direct debits and take all my money out of the account I needed until payday, but you need to complete a statement of affairs to see if there are any areas where you can make savings to enable you to meet minimum payments. There is a sticky for this at the top of the DFW board.

I'm just on my way out, but didn't want to read and run. There are fab forum members who will be on the way shortly, so in the meantime get looking for that new account and SOA link

poodlegal

Hey Rochdale Guy, dont feel ashamed, take the advice of the people on here and you will find a solution. Theres no point being annoyed at yourself now, its done and this is where you stand. You have faced up to find a solution and once you begin to turn it arround at least you will have learned from your mistakes. Use all your energy in getting sorted now, seeking proper advice and remaining positive instead of beating yourself up, you will get sorted one way or another, you might have a few rough days in the process but sounds like you have faced up to the problem which surely must be a weight off your shoulders. Deep breaths and baby steps in the right direction.