I'm faltering, any advice?

Bakeybadoo

I didn't know whether to put this in the BR forum or here so I plumped for here.

Anyway, I know people advised me against BR, saying that if we knuckled down we could pay our debts off ourselves but it just seems a hill too big to climb. I'm pretty sick of fighting creditors and waiting on negotiations that don't seem to be going anywhere. And yes, I know we could go the DMP route but I don't think they'd acheive more than we have ourselves already. Interest is not a problem since all ours debts are with DC mostly and they aren't adding anything on.

It's all I can do right now not to hold my hands up and say enough is enough, it's BR for us. Then I feel pathetic when we don't have *that* much debt. Around £10,000 without our HPA, £23,000 with - which I know BR wouldn't wipe off but at least if we Voluntarily Surrender our car, we could include the outstanding in any BR proceedings.

I know that there would be restrictions and a certain stigma attatched but really, our credit is rubbish anyway and I don't see that improving within the next 6-8 years anyway. We are not in any profession where BR would affect us greatly.

So, what do you think? Take a breather, rethink and re-focus or roll over and give in to BR?

tight_jock

Hi
I suggest you get in contact with one of the advice agencies and get good advice before you do anything rash. In the scope of things, it would seem initially that the debt is repayable, but obviously only you can make the decision to go BR or not. Sitting down and talking it through with an advisor will help to get it straight in yourhead.
Best of luck
:beer:
TJ

shameless-about-money

She has already been given this information tightjock -


http://forums.moneysavingexpert.com/showthread.html?t=374357

Remember that the car is not worth it's trade-in value - when it has been voluntarily surrendered you will be jolly lucky to get £4K for it. I know, I did this myself in January.

You need to know your TOTAL debt, not on assumptions. You stated before that ,with the car, your debt was nearly £22K. If you take £4K off that you are left with £18K - where did you get the new figure from?

Also you have a high income, albeit on State Benefits, you could easily pay off your debts on a DMP

Bakeybadoo

I was actually just looking for some boosting support. I'm aware of what I've been advised already but it doesn't hurt to get some new advice, opinions and some support.

We need to get rid of the car, we can't stretch to the £281 per month and we certainly can't afford to pay off the 1/4 value to be able to give it back so this is the only way I can see of us hopefully getting out of nearly £13,700 worth of debt.

Our debt actually turned out to be a little less than my OP, since we got all the statements from creditors, I've just sat down and worked it out again.

Just FTR, here is a complete and full list of our current debts, as of today:

*£295.50 - Provident personal loan
*£983.10 - Abbey O/D (will go up £175 on 21st March with MORE charges added)
*£200 - NHS Bursary
*£446.49 - CapitalOne
*£13,619.92 - Welcome Car Finance
*£556.89 - Mint
*£548.36 - DWP
*£208 - Cabot (for Barclaycard)
*£605.75 - Vanquis
*£1,225.92 - Egg
*£28 - Bookclub
*£1355 - CCJ
*£1376 - Catalogue
*£786 - Family debt #1
*£250 - Family debt #2

= £21,129.93 DEBT IN TOTAL (with HPA).

Now, taking off the car as I'm pretty confident (past experience with the same company) that they would only chase us for the few months we've defaulted and nothing else.

= £7,510.01 debt + arrears on car = £9199.25 of remaining total debt.

Although, if we do get saddled with the entire remainder, after selling it for £4k, as you suggested:

= £9619.92 left from HPA + £7,510.01 = £17,129.03 of remaining debt.

shameless-about-money

The basic info remains the same - it is not my opinion!

The fact is your car is NOT worth the trade-in value, so your debts are the higher value. The creditors will take you for every penny they can get.

My monies owing on my car were £10100, they have suddenly become £12600 - literally overnight! My settlement figure was actually £9010 - now what happened to that your guess is as good as mine!

Now I cannot find out how much they have sold my car for - or no proof of it anyway.


I still stand by my original opinion that you would be best served going bankrupt and starting life afresh. Get rid of the whole lot all in one go and be rid of it.

Bakeybadoo

But I can't include the car in the proceedings anyway so I have to do something with it.

I'm obviously confused b/c I was sure you said DMP would be the best option. Then again, I've spoken to a few people so maybe that wasn't you?

shameless-about-money

No, it most certainly wasn't me!!

You give the car back on voluntary surrender - then go bankrupt.

Do you need a template letter?

Bakeybadoo

Ok, well that clears that up! I was scratching my head for a second there.

Yes please, I did have it saved but I have a different PC now.

shameless-about-money

Address

Date

Account Number



Dear Sir/Madam,

I am writing to you to make you aware of my decision to Voluntarily Terminate the Agreement under Section 99 of the Consumer Credit Act 1974.

I understand that I will be liable for all monies outstanding as calculated under Section 100 of the Consumer Credit Act 1974.

I would very much appreciate it if you could contact me so that we can make arrangements for the vehicle to be collected accordingly.

Looking forward to hearing from you at your earliest convenience.

Yours faithfully,

Bakeybadoo

Thanks for that.

With regards to getting another car, if I spend £400 odd on a crappy one from eBay, will that be frowned upon by the OR?

tight_jock

If your car is needed for work or essential travel by , for example a carer , then you should be able to keep it.
Always remember that the OR is not trying to make you any worse off than you already are.