Getting professional help to beat debt. Diary

Getmeoutofdebt

10th August

Things are going from bad to worse. Only five months in to my debt plan. Yorkshire bank still haven't replied so I still dont know where I stand and my Husband has had a bad car crash and is in hospital and possibly off work for six months! Now we are skint beyond belief! His work are saying they refuse to pay statutory sick pay (which I don't see how they can refuse as the money is paid by the government, thats what you pay national insurance for isn't it?) and his insurance says hes not covered for personal injury. I don't know how we are going to survive! Part of me is thinking why don't I just apply to go bankrupt? But the stress from his accident is wearing me down right now and I'm not sure I could take having to go bankrupt on top of that.
Oh what to do? God knows!

Getmeoutofdebt

26th Aug 2012

I feel a bit stuck in a rut this month. We totally ran out of money leading up to payday yesterday. It has been a huge struggle to get through the month without hubby's wage, although he is getting some ssp now but its only going to amount to a couple of hundred a month. I have managed to make my minimum payments due to a good bonus from work but have been unable to pay off any extra and have very little left for the month due to car tax being due as well as my insurance renewal. I am trying to shop around for the first time in years instead of letting my brokers renew for me. The problem is my brokers are reluctant to send me any proof of no claims which the new insurers need to see in order for me to get a good deal! Grr! Why do people have to be so hard work?

I still haven't heard from Yorkshire bank despite it being the 26th aug and I contacted them on 17th july. Saying that though, my statement came and they had not charged me interest so maybe they are agreeing to freezing the interest but just haven't bothered telling me? I hope so!

One thing that has made me feel a bit more positive is a chat I had with a friend who has become a debt collector. He came to see me after finding out about my husbands accident to advise me on what may happen if I get into arrears with any credit cards etc (he doesn't know I'm already in arrears and on a debt plan) He showed me a folder of all his clients (keeping their details hidden from me) and said that it was his job to arrange meetings with each of them at their homes. He told me he cannot enter their homes without permission and he has to have an appointment. He told me he collects for most of the main credit cards and loan providers. He has to go in and discuss the reasons for getting behind and to work out how much each person can afford to pay. He has to try and get a payment there and then, even if it is only ten pounds. He gets 20% of that payment and his boss gets 10% and this does not come out of the debtor's payment, they have still payed the £10 for example, but the bank reduce what the debtor owes in order to pay the debt collector. So if you think about it.... the bank is willing to write quite a bit off to pay the debt collector to just get a small amount back from the debtor! I mentioned this to my friend and he said that on nearly every case he has in his folder, it says at the bottom that a settlement figure is available. If the person can somehow get some cash together, they can settle for a reduced figure. He said generally you can get about a third of the debt wiped off if you settle. This to me was really worth knowing. Even though I have no cash to settle anything now, it could be good to know further down the line. I asked him about what he was able to accept in relation to how much the creditors wanted. He gave me an example which cheered me up no end! One person owed 23k on a loan. His creditor wanted £100 a week so £400 a month. The debtor had lost his job and couldn't afford it at all. My friend the debt collector asked if he could make it £100 a month instead. Just a quarter of what was being asked for. The guy said no but he could afford £50. They settled at £50. I asked my friend if this caused problems for the debtor and he said no, even though it was far less than what was required as a payment, the creditors were happy they were getting some money back. I felt so relived to know this. It made me feel like I can carry on with my plan and feel ok about it and even if the debt collectors do get involved it may not be a bad thing at all. Then again I guess it all depends on who is doing the collecting and how sympathetic / reasonable they are.

So... back to my plan, I have paid very little off in the last month so I need to crack on with some more e-baying. I haven't done any since my hubby's accident. Life had been pretty hard work juggling my job, home and looking after him but hey ho, onwards an upwards! Wish me luck xx

artyfartyem

Hi Gmood,

Only just had chance to read your diary since coming back from hol. I'm so sorry to hear about your hubby and the situation with yorkshire bank. How is he feeling? Any news from YSB yet?

Em xxx

Getmeoutofdebt

Hi Arty!

Hubby is still laid up and will be for some time. At least a couple more months! Groan! I had no news at all off Yorkshire bank but my statement came on friday and there is no interest charged and they will still accept my lower payment etc so thats good, maybe they just don't bother replying and carry on your plan. I got a notice with it about defaults though but they haven't actually said they are going to default me so i am just plodding on and paying them.
Car insurance is due next week and for the first time I have shopped around rather than just continuing my direct debit with current insurer. Got a quote £200 less than my current insurer so I rang my insurer and told them to cancel as they had quoted me £33 more this time than last year. They then suddenly shaved £233 off my quote to match the other one i got! Just like that! Shows you how much they rip you off if they can do that! But I'm happy! Just proves that if you don't ask you don't get!
I just read your diary. Good luck with your new plan to pay off sooner. I don't think it hurts to aim for a sooner date even if you don't know how you will do it. That way you will try harder and will probably make more of a difference even if you don't hit your target date. I found in the past that If I aim for a realistic or easy target date I don't try as hard to reach it! Go for it! Aim high! You can do it!
Gmood xx

rita-rabbit

I love this site - finally got the courage to get out & document all outstanding debts whilst BF is on holiday - they are all debts I had before him - I will not saddle him with them. Looked around the site & typed it all in & then went through all paperwork again shredding the old stuff.
Keep going & have you tried
http://www.cccs.co.uk/?

Prior to buying my flat I contacted creditors myself offering one-off payments as settlement. This time around the debts are actually higher than then about £9,000 but I don't have any privacy at work PLUS experience has taught me that having an intermediary can make it less painful than approaching organisations directly myself. Going to open a basic account first thing tomorrow.

Please keep posting - it's so inspiring to read.

Getmeoutofdebt

Hi Rita,
Thanks for your message! I haven't tried cccs though I heard of it. I tarted my debt plan with the help of National Debtline and "Cashflow" and although I am self managed I am not finding it too bad dealing with my creditors just yet. I have been advised to do everything in writing which is good as I find that easier than on the phone and you have more time to think about what you are saying and also proof of what you have written. Ideal for people like me who get talked into things I don't want to do on the phone / mind goes blank / foret what I've said or been told etc.
But I will keep it in mind in case things get difficult and I need some help.
Good luck with your basic account. Be careful as I chose Co-op bank as they had no links to any of my creditors but then I find that Co-op are buying some branches of Lloyds and I have debts with Lloyds. Luckily I don't think my branch is going to be one of the ones they are buying but I was a bit worried for a while!
Good luck with your plan!

artyfartyem

Hi gmood,

Hope all I'd we'll and your hubby is getting better. How's the debt busting going?

Arty x

Getmeoutofdebt

Hi Arty,
Yeah he's improving but very slowly. It's hard work! I'm plodding on. Not doing as well as I could be, I've lost a bit of focus I think with looking after him etc instead. I have sent you a message on your diary. Hope you are doing well
Gmood
x

Getmeoutofdebt

23rd Sept 2012

6 months in and I have paid 4K off my debt so far! I should be pleased with myself, but when I look at the amount left to go I feel disappointed. I just wish I could do it more quickly but I know it is impossible and it is going to be a long haul!
I am doing very well at not spending anything other than what I have to and can make a little money go a long way.... I am not tempted to blow a load of cash on treats etc as the biggest treat I could want in life right now is to get out of debt. My main problems I have right now is knowing what to do with any extra cash I have (do I pay it off a debt, put it in a pot, leave it in the bank etc) and I find I am over thinking everything. For example this week it occurred to me that at some point in my debt plan, the agreed payments to my credit cards are going to become higher than the minimum payment. Say I owe 5k on a card and they want 100 a month but i can only pay 72. At the min I am paying less than minimum and accumulating arrears. But at some point in the future as my balance decreases I will still be paying my agreed 72 but the minimum payment may only be 50 due to the balance being less. So now I am wondering, once I have caught up on the arrears by over paying, will they put my interest back up again? Maybe I should stop thinking about things and just let it happen as I am just confusing myself, but I like to plan ahead and be aware of what may happen.
I wish I knew someone who had already done all this who could tell me what to expect. I guess that is the reason I am writing this diary though, so that others can get an idea of what to expect by reading this.
My next aim is to get overdraft no 2 paid by xmas. It was at 2k when I started my plan. Its now at 1100.
More e-bay planned and more scrimping and saving!

Heffi1

Hi Get Me Out Of Debt,

You are doing really well, I have just read right through and what a difference to your mood as the days have passed by, I suggest you go and re read some of your earlier posts, you were so despondent then and could see no way out of the debt, but here you are 6 months later having spoken and written to each of your creditors and negotiated a smaller monthly payment, you should congratulate yourself on such an achievement.

You will always have days where it seems bleak, but you are moving in the right direction, I was depressed when I sorted my mess out, but I feel empowered now with help from CCCS who I have to say have been marvellous with me, I am paying it back at an affordable rate and one day they will get every penny back from me that I borrowed, the only difference is that it is to my time scale and not theirs.

At least hold your head up high and smile knowing that you are taking responsibility for the debt you have and one day it will be gone. Along the way you will have learned how to budget properly, save for the things you really want and not give in to temptation like before.

Well done.