Suggestions/Advice

tigzem

Morning fellow DFW's,

I've recently got a job after having my baby and being on Income Support. As part of the incentive of returning to work the job centre pay an "In work credit" of £40pw for a year = £2080!!

This is obviously going towards my debt. But I'm not sure what's the best way to do it. Do I pay it off each week/month or do I save it and pay it off next year as one lump sum? ie, offer a F&F on my biggest HSBC debt? Which is just £4162. I'm hoping to pay £100pm towards it starting next month, once I know what I have coming in etc. Also on this account I have written to HSBC to request my charges back of £746, so in theory I owe £3416. If I can pay £1200 over the next year would leave = £2216. So could I make an offer of say £1500 and use my in work credit to reduce the amount I owe?

Also, I owe Natwest £802, I contacted them in March and they had no trace of me, I don't have my old account number anymore, I gave my old addresses but they couldn't find me. Do I pursue it or do I wait til they find me?

Thanks in advance for any help,

Tigz

GirlRacer_2

Hi Tigz, with regards to the in work credit, personally I'd pay it off every week, but it's only because I've not got much willpower and if I saved the money I may be tempted to spend it on 'emergency clothes'. If you've got willpower to save it then go with that and offer the F&F payment.

With regards to the Natwest account, well, you have tried to chase it up and they can't find any record of it. I'd leave it lie for now and see if they chase you.

immoral_angeluk

I agree with girlracer, it all depends on your willpower. Also are you paying interest? If the APR is high it's probably a good idea to pay it off weekly/monthly as you'll pay less but I can't talk as we save it all up til we have the full amount and then pay it off. It motivates us to see it building up and then the big finale of finally paying it off in one go.

raq

we are in a similar situation. We are fortunate that we can now pay alittle extra each week against our debt. We have started with the higest one ( 800.00 on card ) and then aiming for the biggest amount ( 3650.00 ). One good thing is I pay £100.00 every friday morning on line , I know then that I have done it. If it was in my hand who knows where it would all go.

Good luck with thejob

sammy115

Morning Tigz, Can you not use the £40 per week to bring the balance on your HSBC credit card down. Is the loan for a fixed amount/period and therefore fixed interest. Is the interest loaded up front?

Have you checked your credit file to see if the Natwest debt is on there. If it is and they couldn't trace your account no maybe it is worth them getting the details removed.

Also I think that offering full and final settlements affect your credit rating.

PS Got some work done this morning. At 1.30!!!!am

tigzem

Thanks all.........

As far as I am aware there is no interest on the debts as they are both (HSBC ones) CCJ's. So I assume I just owe the o/s amount, both being paid to a DCA. Result of burrowing one's head in the sand!

Crown

Hi Tigzem,

If you are not accruing any interest on the account and its sitting with a DCA then I can see where your coming from with the !!!!!! idea.

If you do have the will power then why dont you open a new savings account and have the money paid directly into there. Tis would mean that it wasnt going into your main bank account were it could easily be spent and also you would recieve a good 5% interest on the balance over the time.

I am currently doing this with one of my accounts and have found that as I know the money is for the debt I do not see it as my money to spend.

Dont know if im mad but thought id share it wit hyou anyhow

RAS

if you put it in a savings account, go for an ISA, preferably one that requires a notice period or penalises you for making more than one withdrawal. Check out martin's most recent good buys

sammy115

In that case I would put the money in the highest interest paying savings account (open through Quidco perhaps for cashback) and then save the money. Make it an ISA perhaps with a notice period as RAS says.

Then ask them both for full and final settlements. Are you making monthly payments to them at the moment!

tigzem

sammy115 wrote: »

In that case I would put the money in the highest interest paying savings account (open through Quidco perhaps for cashback) and then save the money. Make it an ISA perhaps with a notice period as RAS says.

Then ask them both for full and final settlements. Are you making monthly payments to them at the moment!

Yes I am paying £10 pm to the £4162 one and £10 every 2 weeks to the smaller one. I'll continue doing this until I have an idea of what's coming in. Do I need a minimum amount to open an ISA?

postingalwaysposting

tig i agree with the others if you have the will power stick it into an isa then you could approch the companys and do a f&f :T oh and btw when i opend my isa 2 years ago i only needed £1 to open it