My creditors will not accept my payment plan

lollipop22

Dear all, Im new to this, so apologies now if I miss something out that you need to assist.

I have run into debt problems only in the last 5 months, when I started my new business, I don’t foresee the problem as an ongoing one but need a breather from my 2 main creditors.

Halifax credit card £12,000 18%apr and Cahoot fixed term loan £16,000.

I have written to them both several times, and have been making token payments of £1, and asking for interest to be frozen, this has been rejected by both several times. I also sent them budget sheets. I used all the set letters from this web site, and from national debt help lines site.

In April Cahoot issued a notice of a notice of a default, managed to repay the money owing, money was given to me by my sister. I really do not want to have a default notice, as from what I believe, it will effect my credit, and im thinking in the future, if I need to sell my property and downsize that this will not be an option.

2 weeks ago, I sent another updated budget sheet, as I know have approx £100 a month spare, and made offers to both, about £40/£60 split.

Cahoot has rejected this offer and have issued another notice that I will be getting a default notice and that my account will be transferred to a different agency for collection.

During this I have spoken to national debt line, who then passed me to onto Business debt line, who im afraid to say, apart from sending me out booklets, have not really been able to help me.

CAB will not help as I am self employed.

My request for help and advice is, where do I go now.

Shall I write again? Asking my creditors to reconsider, I think I will do this anyway, but I am not confident that they will accept my proposal, and am not sure why.

How do I avoid the Default notice? I think I will call Cahoot tomorrow and see what they say. I have spoken to them before and they seem nice enough, unlike Halifax who are complete imbeciles. I don’t understand how they can issue a default, when I am now only one month in arrears..

They told me last time the only way to do it was enter into an agreement with them, but I would still get a notice of default sent to the credit ref agencies, and this is what I would like to avoid.

This is really getting me down, and now do not know where to turn, thank you for your time in advance.

Gemmzie

As your self employed you are probably better off doing it yourself, I am for my father.

If you want to pop up an SOA / your budget then we can have a look through and see how much you have to pay off the debts.

Halifax are one of our creditors and they will freeze interest eventually but they like to see a copy of your budget and pull it to pieces first

Gemmzie

Oh and continue to make a payment, no matter what the amount is. Not paying anything causes more defaults, so pay something in the interim whilst you get sorted

Broken_hearted

Halifax would most likely accept an offer of around £5 if not their inhouse debt collectors blair oliver scott should.

lollipop22

Please find below my budget sheet that I sent to my creditors. This was for April.

As of today, I havent heard back from Halifax with their decision of my latest offer, fingers crossed.

Cahoot have not accepted this offer.

Outgoings Incomings

Mortgage 1170 Income for April 3355
Secured Loan 1024
Council Tax 70
Business Rates 55
Stock 300
Water Rates (Meter Variable Costs) 50
Building & Contents Insurance & PL 33
Car/Petrol/Insurance/tax 60
Accountant 25
Property Maintenance 40
Stationery 8
Postage 3
Gas 50
Electricity 50
Housekeeping 50
TV License 11
Laundry 25
Phone & Mobile Phone/Internet 70
Living Expenses 150



Total Outgoings 3244 Total Income 3355

Available for Creditors 111

Offer of Payments to
Halifax £12,030.73 47.97
Cahoot £15,807.25 63.03


Many thanks to Broken Hearted & Gemmzie for you help so far...

Gemmzie

lollipop22 wrote: »

Incomings
Income for April 3355 This figure should be your profit when you are self employed, after business costs - which should be separate to your outgoings

Outgoings
Mortgage 1170
Secured Loan 1024
Council Tax 70
Business Rates 55
Stock 300 is this every month?
Water Rates (Meter Variable Costs) 50
Building & Contents Insurance & PL 33
Car/Petrol/Insurance/tax 60
Accountant 25
Property Maintenance 40 what does this cover?
Stationery 8
Postage 3
Gas 50 Have you looked at switching? Try uSwitch.com then see if you can sign up via Quidco and get cashback
Electricity 50 Same as gas
Housekeeping 50
TV License 11
Laundry 25 This is high
Phone & Mobile Phone/Internet 70 As is this, are these business costs?
Living Expenses 150 What does this cover?

Available for Creditors 111

Offer of Payments to
Halifax £12,030.73 47.97
Cahoot £15,807.25 63.03

Have added some comments above

lollipop22

Hi, many thanks for your reply.

I run a b&b so costs vary depending on business.

Laundry, £25 This is likely to increase
Stock £300 This is likely to increase e.g. food bills, toilet rolls, etc
Property Maintenace £40 This is a guestimate for the unseeable maintenace of running a b&b.
Phone & Mobile Phone/Internet 70 As is this, are these business costs? Yes mostly my business is run over the internet, have only signed the bt contract in september last year, so there is still time to run on it, so dont believe I can change supplyer yet, not sure if that is true.

I have just got my quarterly Electicity bill, Im with Powergen, duel Fuel, I used uswitch before to change to them recently, before xmas. The is bill is £500.....so ive way underestimated my monthly outgoings for that.

Living Expenses 150 What does this cover? This covers my expenses, food, toiletries, necessities.

Note: Forgot it was a Bank Holiday so cannot call the creditors today...Another day of worrying ahead.

I dont understand why they will not freeze the interest or except my offer of repayment. Im gobsmaked.

delboypass

lollipop22 wrote: »

Hi, many thanks for your reply.

I run a b&b so costs vary depending on business.

Laundry, £25 This is likely to increase
Stock £300 This is likely to increase e.g. food bills, toilet rolls, etc
Property Maintenace £40 This is a guestimate for the unseeable maintenace of running a b&b.
Phone & Mobile Phone/Internet 70 As is this, are these business costs? Yes mostly my business is run over the internet, have only signed the bt contract in september last year, so there is still time to run on it, so dont believe I can change supplyer yet, not sure if that is true.

I have just got my quarterly Electicity bill, Im with Powergen, duel Fuel, I used uswitch before to change to them recently, before xmas. The is bill is £500.....so ive way underestimated my monthly outgoings for that.

Living Expenses 150 What does this cover? This covers my expenses, food, toiletries, necessities.

Note: Forgot it was a Bank Holiday so cannot call the creditors today...Another day of worrying ahead.

I dont understand why they will not freeze the interest or except my offer of repayment. Im gobsmaked.

Because you can easily sell the house to repay them if needed and you repayments are too low.
It would take 15 years for you to pay off the debts at these levels with interest frozen.
The problem thesedays is everybody is trying to get their interest frozen and lowering the repayments.
Banks would go bankrupt overnight if they let everyone.

Why dont you remorgage and pay off the loans and then tie up the debt over 25 years?

Storm

Sorry Delboypass, don't agree with you at all.

Lollipop - if you bring these into your mortgage you're turning unsecured in secured debt, plus the longer term would mean you're paying back far more in all, even with a lower apr.

Have you tried speaking to CCCS or PayPlan about your situation? I know they've helped a lot of people on these forums.

bonnie_2

Have you allowed for Tax, national insurance and vat. I think the problem is in not paying yourself a wage, it is all getting lumped in together. You need to seperate yours and the buisness soa's.

my_two_cents

Send them an income/expenditure plan via recorded delivery or with proof of postage and inform them that £10 per calender month (or whatever you have) is all you can afford to spare, enclose a cheque or set up a standing order for whatever amount it is you can spare monthly and make sure you stick to these like glue.

They don't like going to court as it is too expensive and would not have a leg to stand on as long as you have the proof to show that you have been making regular repayment regardless of what the repayment amount is.