Debt Debt And More Bad Debt (help!!!)

leo110303

Hello all,

first timer on here so unsure what to do so please bare with me.
Im a 24 yr old male, in approx £20k debt with serious headaches over it just wondering where or what I should do next.

off the top of my head i've listed a few down but im awaiting my credit file from experian so once i receive that then il put it on here.

1 - Online Finance (debt collecting agency) £12,500- This is a tough one for me to come to grips with, basically I got a car on HP (Vauxhall Vectra SXI) I was 19/20 at the time, naive and was tricked/convinced into signing up an agreement, saying it was a great deal etc etc. The repayments were £250 per month(the chap who sold me the deal explained that if this was too difficukt to pay then I can lower the payments) in which for the 1st few months i'd managed to pay but realised this was difficult for me so I made an approach to the finance firm and asked them if I could lower the payments to help ease costs, the response to that was a straight NO!! i practically begged them and wrote explaining the difficulty in paying that amount but they simply were having none of it, so quite silly of me i stopped the payments full stop, I thought if they cant help me like I was told then I wont pay. after a few months the car was taken from me but im still expected to pay the full payment. Now Im stuck, why should I pay for a £12,500 for a car I had for no more than a year? I was going to pay what was needed, i intended to continue paying them but they did not want to co-operate in the slightest, what do you suggest i do???

2- EGG Loan (debt collecting) £1100
3 - Barclay bank - (debt collecting) £650
4 - Vodafone - £300
5 - citi financial 450 (still paying £124 every month on a £1000 loan)
Various Credit Cards mounting to £1500.

Obviously understand if i borrow i must pay back but i really need help in what ways to turn,

please help.

Regards

L.

emzig123

Hiya, if you post a SOA (see southernScouser's sticky at the top of the forum) then we can help you to pay off the debts. Well done for joining!

Snaggles

Hi Leo, welcome to Debt Free Wannabe!

Why don't you pop your SOA on here so we can have a look at your income/outgoings to see if there's any help we can give? There's a template here.

Do you know the APRs of your various debts? It might be worth a check through any paperwork you've got to find out, as this might help you to work out which one to tackle first.

Welshlassie

Hi leo
Sorry to hear of your problems. Your best bet is to do a full SOA (statement of Affairs) see the First Time Posters thread for an explanation about how to do this. It lists your income, outgoings and debts, we can then anaylsis is and point out areas you can cut back to find extra money to throw at your debts.

We regard your car finance. Unually when a vehicle is repossessed (as appears to be the case with you), it is sold on with the sale value (minus any fee incurred) knocked off the amount owed with you only being liable for the remainder. Do you know if this actually happened? If not ask them why not?

Do you have any savings?? If so pay these of the debt with the biggest APR.

Also consider contacting Paypal or CCCS (contact details listed on the First Time Posters thread) they are charities who will help you plan what you can afford to pay and contact your debtors to arrange payment plans.

You need to know why you have these debts, eg are you putting things on credit cards all the time because you are living beyond your means every month or do you not earn enough??

Have a look for things you can sell this will help generate some extra income that you can throw at your debts.

Lastly, well done on facing up to your debts, if hard to do, but worth it long run. good luck.

bclark

They can't just take the Car back and make you pay the full amount as well. As said Welshlassie they should have sold the Car on and knocked off what they got for it, possibly with a few extra charges for their trouble. I would chase that if I were you.

leo110303

Thank you all for your responses, I will fill in the SOA and post it. As for the car, who would I contact?? Would it be the firm who re-possessed it, the finance company who wanted my money each month (On-Line Finance) or the company who sold me the car (Car Land)

regards
Leon

leo110303

Just found out the car was sold for £1700 in an auction january last year (2006). So they dont mind selling for far less but still persue me for £12000. What shall i do next???

leo110303

Welshlassie wrote: »

Hi leo
Sorry to hear of your problems. Your best bet is to do a full SOA (statement of Affairs) see the First Time Posters thread for an explanation about how to do this. It lists your income, outgoings and debts, we can then anaylsis is and point out areas you can cut back to find extra money to throw at your debts.

We regard your car finance. Unually when a vehicle is repossessed (as appears to be the case with you), it is sold on with the sale value (minus any fee incurred) knocked off the amount owed with you only being liable for the remainder. Do you know if this actually happened? If not ask them why not?

Do you have any savings?? If so pay these of the debt with the biggest APR.

Also consider contacting Paypal or CCCS (contact details listed on the First Time Posters thread) they are charities who will help you plan what you can afford to pay and contact your debtors to arrange payment plans.

You need to know why you have these debts, eg are you putting things on credit cards all the time because you are living beyond your means every month or do you not earn enough??

Have a look for things you can sell this will help generate some extra income that you can throw at your debts.

Lastly, well done on facing up to your debts, if hard to do, but worth it long run. good luck.

Just found out the car was sold for £1700 in an auction january last year (2006). So they dont mind selling for far less but still persue me for £12000. What shall i do next???

scotsgirl_3

it will be the finance company who sold the car at auction - check your agreement, but generally its written into the t&cs that if you default they can recover and dispose of the vehicle and you will be responsible for the balance. I don't mean to sound like a wet blanket, but you are unlikely to find them willing to reduce the balance unless you were offering a full and final settlement. Your best bet is probably to just get in touch with the finance company and come to an agreement of instalment to clear the balance.