Do I continue with payments or declare bancrupcy?

currumbawumba

Hi, I haven't used this site for a year. My debts total £10,000 and I have a part-time job which doesn't leave me much for the re-payments. So, at the moment, realising that even the reduced re-payments were getting me no-where, I am making a token payment to all my creditors. Small amounts, like £5 per month, calculated on a pro-rata basis using the National Debtline budget sheets. They, Alliance & Leicester, Egg, MBNA, have all accepted this for now, but Barclaycard will not. They've started charging me interest again,(£40 per month) and are passing my details onto a local debt collector, who is apperently going to visit me. That was a bit of a shock. I know that how I'm dealing with my debts isn't going to make them go away, but it was quite a thing to go through the process of facing it, writing to them, setting up the payments etc. (All helped by this site, I might add). But maybe someone reading this has some usefull advice? What should I do about Barclaycard? Perhaps I do have to go bancrupt because this is going to happen with all of them again at some point, isn't it. Anyone please?

immoral_angeluk

I strongly advise you to go talk to either citizens advice, the CCCS or Payplan. They'll be able to help you find a way to deal with barclaycard.

rog2

Hi currum - I appreciate that your situation seems pretty bleak, to you, but I am sure that there is an alternative solution to Bankruptcy. Bankruptcy will, of course, get your creditors off of your back, but generally debts of £10k can be solved in easier and less painful ways.
As suggested above - have you taken advice from CCCS or PAYPLAN?
Also, have you posted a SOA (Statement of Affairs) listing your income, outgoings and debts?

currumbawumba

Thanks to the above. Ok, that's next on the list, contacting cccs. I haven't posted my s.o.a. but I do have one to hand, which has been sent to all my creditors, will post if it's helpful but I feel I've kind of done that already with the creditors.

gettingitsorted

currumbawumba wrote: »

Thanks to the above. Ok, that's next on the list, contacting cccs. I haven't posted my s.o.a. but I do have one to hand, which has been sent to all my creditors, will post if it's helpful but I feel I've kind of done that already with the creditors.

Hi currumb,

i would encourage you to post your SOA on here as these guys are fantastic at helping sort through your problems and they can somtimes see areas that you could improve on that you may have missed ,so give it a go after all every little helps

currumbawumba

It has been suggested that I post my s.o.a.
o.k. my s.o.a. as follows:(monthly)

Income 340 wages
540 tax cred
72 child ben (I have a daughter age 14)
total 952

outgoings 32 water
40 electricity
50 coal and wood
200 household expenses (food,toiletries etc)
36 t.v rental
200 car - petrol,tax,ins.repairs,m.o.t.
40 school meals
40 clothing - includes school wear, shoes, sports gear(daughter)
50 phone, internet mobile(self and daughter)
30 pocket money
15 outings,christmas, birthdays etc
total 706

I have 206 to pay:

argos 246
egg 1670
barclaycard 2340
mbna 3490
A&L loan 4350
A&L bank overdraught 780
total 12,876

So I have made my offers to each. They have accepted for now except Barclaycard who are charging me interest again and sending the debt collectors to my door.

rog2

Are you sure that you are in receipt of all benefits to which you may be entitled?
Perhaps you could be entitled to free school meals.
Did you talk to CCCS yet?

beanielou

Unfortunatly no free school meals if in receipt of working tax credit , only if not working & income below a certain fig.