£7200 in debt and on Job Seekers Allowance

bubblebath_2

Thanks harrys dad.

One of the interest rates is ridiculous, it adds an extra grand on top.
I have asked but they have not agreed to anything really so if I keep getting demands I will go to the charities.

One thing I have learnt is that writing to them is best, when you speak to them, they are really aggressive and bullying and don't actually have a human heart at all.
By writing a letter at least I have proof as to what I've said and their response.

Prof_Ligate

Don't ignore the possibility of a Debt Relief Order as recommended above.

Its a good solution for someone in your current position (debts less than £15k, on JSA, no assets). For £90 the debts would be written off under this 'mini bankruptcy' option and you'd get a fresh start without the worry of the creditors chasing you.

RAS

Did you have payment protection on any of the cards??

bubblebath_2

Prof - Ligate.

I have always have that option.. Just pathetic how i don't even have £90.00 - I am well and truly skint.

RAS - No I did not take ppi on any of the cards.

Just need to see what happens now.

Prof_Ligate

bubblebath wrote: »

Prof - Ligate.

I have always have that option.. Just pathetic how i don't even have £90.00 - I am well and truly skint.

RAS - No I did not take ppi on any of the cards.

Just need to see what happens now.

You can pay the £90 in installments if it helps or maybe you can get a grant by checking the Turn To Us website or maybe get a Social Fund loan (which would be an excluded debt so would need to be paid back from your JSA).

Good luck with it all.

fatbelly

bubblebath wrote: »

This sounds so silly but after close inspection I could not afford that as I did not even have £90 so I sent each creditor letter saying I can pay £5.00 per month each month and explained my situation.

As above, it's OK to pay for a debt relief order in instalments.

If you're doing a debt relief order you should, strictly speaking, complete your payments over a six-month period. But this isn't enforced by the DRO Unit so if it takes a little longer, so be it.

Is there something that you could stop paying because it's going to go in a Debt Relief Order anyway, like utility or telecom arrears. Or could your parents help in some way?

bubblebath_2

Prof Ligate and fatbelly

I never knew you could pay the DRO in installments.

I would pay £5 each month to 6 creditors so that is £30 a month, so in 3 months I can pay for the DRO so that is something really worth looking into and then my debt would be cleared after the year.

A part of me feels that there is a moral dilemma where I should honour the debts and pay back £5 per month as I did borrow the money in the first place but a lot of it is interest.

I want to pay back what I can but it will take such a long time to clear it.

In retrospect I think the right thing to do would be to get the DRO, it will alleviate a lot of the anxiety I am getting and it would be a huge lesson learnt.
I will never be allowed to get credit again for 6 years so I will be more responsible.

If only I could see in time that I would have lost my job I would have paid off everything when I could have.

Thank you for your advice.

Willing2Learn

Hi again bubblebath!!

Good to read that you are feeling a little more positive tonight (or should I say this morning). Hopefully you will be able to sleep a bit better.

With the DRO thing, just so you know, even though the debts will be written off, the individual financial groups who comprise your creditors may still hold internal records of the debts even though they have been written off. Doesn't mean you owe them anything as you won't (yay ) But it does possibly mean that none of them will accept any future applications for credit, even when your circumstance improve (boo ) And your circumstances will improve...
So if, in the future, you are looking for credit, apply to different financial groups to avoid disappointment. (I know I'm looking waaay ahead, but wanted you to be aware so that you all relevant information)

But good luck with everything. Looks like it will all turn out rosy for you. The DRO appears to be a perfect fit.

bubblebath_2

Hi willing2learn

I am more positive this morning as posting my situation and getting feedback from you guys has helped me a lot so I thank you.

Yes, I was aware that even with a DRO in place you can still get chasing letters so I knew that they would continue to have my information in many years to come.

After this experience, I really never want to get credit again
Once I'm up and running and back in the workforce again, If I want something I will save for it (here's hoping)

At the end of the day like I said in post 1.
I have barely any assets at all and my income is only £280 so the DRO does seem like the right way to go.

Thanks again for your help and for not judging me in a bad light.

bubblebath_2

Hi everyone

I just wanted to update you on my progress with this.
I called National Debt Line and they said that I meet all the criteria for a debt relief order so they are sending the paper work through but this can take up to 8 weeks.

In the meantime Allied International Care have accepted £5 per month from me

Barclaycard though have passed my account to RMA and RMA state that "if you do not make a payment of £1829.46 within 7 days, we may instruct a licensed door step recovery firm Scotcall to visit your address'

Yes-Secure wrote to me who have passed on the debt to TNC they have said 'if your debt exceeds £750 we can issue a statutory demand for your bankruptcy'

So, for now, it's all very ominous.

I have wrote letters to the new debt collectors explaining my situation and letting them know I am going ahead with a DRO, so I await their next letters.

I just thought I would keep you posted and to say thanks again for the advice.