25k CC debt, can't afford repayments !

qwertyazerty

I've managed to dig myself into a hole with 25k of credit card debts after my business partner ran off with all our money.... (I'm earning £100 a week right now and living with my parents!)

I thought I'd be back on top by now and be able top pay back what I borrowed, but I'm not, I haven't missed any payments, but I'm swapping around on cards / new cards to afford them, and I'm struggling to get any new cards now (now they're realising there not getting any profit out of me)... and even worse, I'm paying interest on about 14k

I'm hoping I can write to the CC companies explaining whats going on, in the hope that they'll freeze interest, and drop the min. payments ?.. (if I say that if they don't I'll end up going bankrupt and that doesn't help anyone)

and... I was told that if I ask nicely they won't put anything on my credit report ? (this is important to me)

because if they do, i might as well file for an IVA / bankruptcy.


does anyone have any hints/tips for me ?

or anywhere I can find a draft letter to use ?
(I'm dyslexic and a bit worried about that bit)

thanks for any help you can give !

qwertyazerty

Tirian

Call a debt advice charity as soon as possible. I would recommend the Consumer Credit Counselling Serivce (https://www.cccs.co.uk/DebtRemedy or 0800 138 1111 Mon-Fri 8am-8pm) - or else National Debtline.

Beware of profit-making companies masquerading as "free, independent debt advice" .. there's a lot of cowboy outfits out there.

If you're using one card to pay off another, or using new cards to keep up minimum repayments then you're going nowhere fast and you'll be much better off getting some proper advice from a trained counsellor. They'll need to know all the details of your situation to give you the advice you need, so make sure you get all your most recent CC statements and any loan and overdraft details to hand.

If you miss a payment, or start making reduced payments then the chances of it not going onto your credit record are practically zero. Trying to blackmail them with the prospect of bankruptcy won't help in the slightest, and whoever suggested that is way off track ... if you want to sort things out you really want to stay on the good side of your creditors. You're not in a position to start making threats - bankruptcy will hurt you far more than them, and they are well aware of that!

GirlRacer_2

Good afternoot qwertyazerty and welcome to debt free wannabees.

You can certainly write to your cc companies and ask or you could even contact Payplan or CCCS. They are free organisations that will arrange a debt management plan for you (should you qualify for one). They will contact the cc and loan companies on your behalf and negotiate a repayment plan.

BAILIFFCHASER

Your reference :
Client reference :

Dear sir/madam

With reference to the above account, I am writing to confirm I am not acknowledging this debt.would you please send me a true copy of this credit agreement. I understand that under the Consumer Credit Act 1974 (Sections 77−79), I am entitled to receive a copy of my credit agreement on request and this should be supplied within 12 working days. I enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.
Please note that under Section 189 you are obliged to supply these documents whether you are the original creditor or not. I await your reply.



Enc cheque number

send a copy of this letter to every credit card you owe money to. If they cannot produce a credit agreement that has been signed they cannot prsue the debt. Straight as that !!! Then worry about whoever has produced a credit agreement later.

lynzpower

are th epolice involved if your business partner has defrauded you?

Clearly this will add extra weight to any negotiations you might need to do with your creditors

art_student

Hi, sorry I can't answer any of your questions about negotiating payment plans but I was going to suggest posting a full SOA (if you read the sticky posted by Southernscouser at the top of the DFW board it will tell you what to do). This might help people to give you some more detailed advice on your situation.
Otherwise I would just say keep talking to the credit card company. If there is some dialogue I would imagine they would be more prepared to negotiate with you.
Good luck!

plumduff-2

£25k of debt and no assets... seriously consider bankruptcy.. debt free in potetially 12 months... why prolong the agony for yourself...?

qwertyazerty

thanks guys, I'll read through some more of the site, have a think about what you said and post back!


I don't want to file for bankruptcy because it'll screw up any chance of me getting a mortgage etc.. for the next 7 years... right ?


the thing is.... I think I should be all paid of within 2 years, if I can just stop the inrest piling on !

(paid of because busines is going well and I'l be back on much better wages inside a year... on £100 a week now to help the busines out)

Tirian

A bankruptcy will remain on your credit record for 7 years after you are discharged. However this doesn't mean you won't be able to get a mortgage - just that you will probably have to at least start off with a fairly poor rate. However if you start racking up missed payments, or go into an IVA this will have a similar effect (an IVA will stay on your credit record for as long as a bankruptcy, and usually takes 5 or more years to complete.) In your position it doesn't sound like an IVA would be the best option, personally - but given the complexity of your situation, with regard to the business, living arrangements etc. then you should certainly seek some professional advice, I would say.