What to pay first?

downnotout

Hello all,
I have a fair bit of debt to pay back an have had most types of action taken against me, opportunistic threatograms, DCA letters, CCJ's so I am used to being in bad credit, however at the moment, I have three that are shouting the loudest.

1)Housing Benefit Overpayment: Now I admit that I was overpayed by one month, the amount is £392.32, I had a letter on the 11th May stating full payment was required within 7 days or they would issue county court proceedings without further reference to myself. I did call them last week to discuss a payment plan, where they said that they would take £12 a week from my future benefit claim. However when I pointed out that I am no longer in receipt of HB and that I would like to pay the bill in 3 monthly instalments they said that they would get back to me, as the lady that is dealing with my case is on holiday. I have head nothing, and this morning I went to make a payment through the automated system my reference number is not valid? I therefore assume that county court proceedings are under way.

2) Is this years council tax, I have missed two payments: £94.33 due Apr 1st and £97.00 due May 1st, in addition I will have another £97.00 due on 1st June.

3) Is a £190 debt to virgin media. Usually I would place this at the bottom of the pile, however they have sold/contracted out the debt to a DCA. A first for me is that this DCA has sent a guy to my house twice, and he has hand delivered a please contact me urgently note. I am not scared of this, however my pregnant wife is. She comes from a family that has never experienced hardship and therefore a threatogram sends her in to an orbit of panic.

In my account I am in the lucky position to have around £700 left to pay off debts thanks largely to an unusually high pay packet. The £700 question is how should I tackle the above?
The head says to sort out the overpayment first, second to pay the council tax to avoid problems, and thirdly to make a realistic arrangement to pay with the virgin DCA? however my wife says to sort the overpayment and the DCA, then face the music with the council tax when it becomes a problem?

Any help will be greatly appreciated.

rainbowfairydust

personally i would be paying the HB over payment & council tax arrears. They are the 2 that you are most likely to get into trouble for.

Contact the DCA & pay off what you can with a view to clearing the remainder next month

paulmapp8306

Council Tax arrears first - always. the HB is being considered - ring them again today. if they want it all and you have enough left after CT, pay it. If they offer a plan then take that and see whats left to offer the DCA (start at less than you have so you can go up a little - they almost always refuse the first offer).

Either way the DCA is the last to pay. the other two WILL go to CCJ if you dont sort them. Best you can do there, if you have nothing left of the £700, is send them an SOA and and offer of monthly payments (what the SOA shows you have available) , and a £5 goodwill payment BY POST (keep copies). Keep sending £5/month until they agree to the offer. IF it goes to court you have showed willing to pay and will almost always go your way - its the DCA who are refusing what you offer.

downnotout

Ok I have paid the council tax arrears, the HB over payment, and 3 months of my over due water bill, I have £100 left for debt payment (council tax arrears were not as high as thought). How would you approach the DCA about the virgin media payment?

paulmapp8306

Phone call if your up to it initially, followed up by letter - or just the letter.

Tell them you have £100 available to settle the account as a F&F if your up to it. Failing that, will you have the other £90 next month? If so offer the £100 now with the remainder paid next month.

Dont pay then anything until you get an agreement in writing from them though (if you do this by phone, come to the agreement and ask them to confirm it in writing before funds are paid). Do not be intimidated to pay over the phone - and DO NOT give bank or card details.

downnotout

Thank you for your help, I will send them a letter this afternoon.

bargainbetty

I would also advise them that you are withdrawing your consent for them to attend your property without an agreed appointment, and that you have no intention of making any such appointment, and will conduct all further communications in writing.

They have as many legal rights as the paper boy until it is a court-appointed baliff, and DCAs play on fear. If anyone turns up, sned them packing. If they won't go, or frighten your wife again, call the police immediately and make a formal complaint of harassment stating that she has been caused alarm and distress. The door-stepping agent is at risk of being warned/prosecuted under the Harassment Act.

Good luck

downnotout

I told the wife that should they call at the door again, to tell them to come back when I am in, so that I can't tell them to go fourth and multiply.