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

scared-sick

Rochdale_Guy wrote: »

Thanks FeeFeeDee, looks like its just you and I in here...

I'm worried about my car loan with Northern Rock as I'm scared they'll try and take my car, but its not a HP agreement.
It is a 7 year unsecured loan, with £2,747 still left to repay over the next 26 months at a fixed £106 p.month.

If only all my creditors Direct Debits came out my account on the same day (like on the 16th of the month) this would be so much easier to do. I am now so stressed and time limited.

And, say when the DMP does kick in, how does the £200 overdraft get paid back to the bank as I'll have a new Co-Op account by then? Will CCCS offer token payments to my current bank until the £200 is paid off? Or do I wait until my wage gets pain in on the 15th, then cancel ALL direct debits to creditors as essential ones will be coming out of my new basic Co-Op account?

My head is s-p-i-n-n-i-n-g

First things first RG...take a deep breath and calm down!

Your car will be fine as its not on car finance and the loan you took out to buy it is going in the dmp.

The £200 overdraft will go into the dmp too. So once you move bank accounts and get your wages paid in there, thats when you send the letter to your old bank telling them about the dmp, dont do it before as they might take all of your wages to pay the overdraft off!

You really need to speak to cccs tomorrow as as priority!

Sounds like you really need a dmp and have no other option but that is for you and them to decide.

If a dmp IS what you feel you are going to do, then go online now and cancel the all of the direct debits to your creditors and only leave your priority debts. I dont know if this will stop them from coming out of your bank as they are already showing in your balance, but it should as in real terms, they havent been paid yet!

You will get there and it is scarey and tough, but dont panic as it will just make your head spin!

caeler

Hi RG - I'm afraid I don't have any advice to offer but just wanted you to know your not alone. This site is amazing so keep coming back (good days and bad days!) and get your SOA up so we can help you make your earnings stretch further. Make sure you take care of yourself too, coming out of a relationship is never easy.

Rochdale_Guy

FeeFeeDee wrote: »

My overdrafts were counted in as part of my debt, so we added all debt together and divided by the £250 I can afford to repay per month. My debt advisor will make offers to all my creditors on my behalf. I dont know how they decide who gets what, all I know is when I finally get new bank account open I will be told to set up a dd for £250.
I hope someone else can help u more, as Im more or less at the same stage as yourself, and Im a bit cluelass tbh

I know I keep rabbiting on and still haven't done a new SOA yet, but what if I only have £100 available each month to repay them via CCCS?

Surely if CCCS then say it'll take you 15 years to repay this, I'm screwed.
A 15 year noose around my neck? oh boy - but that will admittedly get looser as each year rolls on.

I'll never have money to do anything I have so messed my life up

Rochdale_Guy

...and my car insurance renewal is due mid-April, I know thats gonna be at least £900 and most places charge you extra for paying back in 12 monthly installments

What if my car needs an urgent repair / part and the garage says it'll be £400? You can't just say "no thanks, I'll leave it" and drive it home and stick an unroadworthy car in your garage. It will NEVER get fixed

I need to go away and breathe, sorry
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Mort

Hi RG. Sorry your weekend is getting worse.

Keep all of your cash in your pocket, ignore paying the overdraft and cards for now. It's better for you to have the money than them. If you use the car to get to work you need to fill up now on plastic, you need to get to work.
Make sure tomorrow that your next pay will go into your new account. Also phone CCCS.

The situation you have described sounds very much like what Martin Lewis describes as a debt crisis. Many of us on this forum have been there. It is scary but it can and will get better.

If the car loan is unsecured the car is safe. The OD just joins your list of debts and creditors.

Standingtall

Arghhh, Rochdale Guy, you have gone away for that deep breath, just as I was about to start this reply to you. Oh well never mind, I expect you will be back to read this later.

Firstly, a little bit of being scared is healthy. It is your wake up call and will hopefully stop you every getting in a similar mess in years to come.

However, it is only money. You have your health, friends, family and a roof over your head. Turn on the TV and take notice of some disaster happening somewhere in the world and this will put your problems into perspective.

CCCS will guide you through everything and due to their reputation it is likely that your creditors will accept whatever they advise. Even if it is 17 years (mine is 17 year minimum and 29 maximum depending on interest and charges), this can decrease in the future as you will have an annual review where your SOA is reassessed. So if you can afford more after year one you can then increase the payments. But start off paying less and live with the longer term payback just in case you struggle and to build up some contingency.

You could also try Payplan as well. Give them both a call if you like and see which each one says.

Now, inhale slowly, exhale slowly...

scared-sick

Rochdale_Guy wrote: »

I know I keep rabbiting on and still haven't done a new SOA yet, but what if I only have £100 available each month to repay them via CCCS?

Surely if CCCS then say it'll take you 15 years to repay this, I'm screwed.
A 15 year noose around my neck? oh boy - but that will admittedly get looser as each year rolls on.

I'll never have money to do anything I have so messed my life up

When I spoke to them and asked if there was anything that wouldnt qualify me for a dmp, they said well if it will take 25-30 years to pay back then we may need to consider another option (this was not the case for me thankfully!) So if it takes you 15 years at £100 then thats how long it will take, at least you will have money to live!

Until you do the full debt remedy thing and put in all your priority needs then you wont know where you stand. I felt better when I did mine as yes it was going to take some time to pay off but it also meant that I could also afford to feed me and my son without having to rely on a second job and copious amounts of overtime that was affecting my family life!

As for the car insurance, this will go onto your priority budget so if it costs a little more to pay monthly, you will have it planned in anyway.

As for the wat ifs with the car repairs....what if it goes wrong now? Can you afford to get it repaired now? Can you afford to put in on your credit card now and know that this will make the minimum payments increase for next month? I suspect not.

If something unexpected like that comes along, then talk to cccs and they may be able to adjust your dmp temporarily to account for this. It is a long haul situation hun and a new way of life. Budgeting at its best. Hard for us all after we have had the credit card safety nets, but look where that got us!

Standingtall

Rochdale_Guy wrote: »

...and my car insurance renewal is due mid-April, I know thats gonna be at least £900 and most places charge you extra for paying back in 12 monthly installments

What if my car needs an urgent repair / part and the garage says it'll be £400? You can't just say "no thanks, I'll leave it" and drive it home and stick an unroadworthy car in your garage. It will NEVER get fixed

I need to go away and breathe, sorry
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If you needed the money for an essential out going such as you describe then CCCS would let you miss a payment. This is why you should just make token payments for a couple of months though and build up your contingency fund.

FabuLass

I was told I could have 'unlimited within reason' payment breaks for 'situations which may arise' as long as I let them know

Rochdale_Guy

Thank you all.

Feel better for having been out for half an hour. Mustn't make the mistake of staying cooped up in my flat forever when I'm not at work

I may have to do a naughty little bit of spending on the £9k (£296 a month) MBNA card like filling up with petrol and doing a last big food shop, but other than that, you all make sense, thanks.

I'm suprised no one has mentioned bankruptcy on here but I don't wanna do that as I'd have to lose the car and to be honest, being able to jump in and drive somewhere local and then go for a nice big long walk is priceless to me. Sounds selfish, but I couldn't do that without a car.

I will go and apply for the Co-Op basic account online now then report back, and also do a newer updated SOA and try and post it here for you all.

So, it appears 100% of you say cancel the direct debits NOW then.
Well, all of them except the MBNA as I need to fill up on petrol and do the big food shop tomorrow morning when they open at 8am before work. It'll be too late to cancel this months £296 payment by then anyway.

Cheers everyone [BIG SIGH]