Catalogue debts

VLF

Hi MSE Forums,

So before I actually miss any payments I would like some advise on how to contact Very and Littlewoods, stating my financial hardship, payments holiday, freezing interest and payment offers, trying to avoid the debt moving to a collector or defaulting and been registered on my credit file.

Just to give you an idea of my current budget, bearing in mind I have had to order from the catalogue items to sell to pay rent and bills, I am guessing this months payment will be around £1000 and my budget amounts to no more than £100 available to be split between both catalogues.

Any advice, links to letter templates, anything?

Thank you anybody in advance for any help.

~Beanie~

VLF wrote: »

So before I actually miss any payments I would like some advise on how to contact Very and Littlewoods, stating my financial hardship, payments holiday, freezing interest and payment offers, trying to avoid the debt moving to a collector or defaulting and been registered on my credit file.

Just to give you an idea of my current budget, bearing in mind I have had to order from the catalogue items to sell to pay rent and bills, I am guessing this months payment will be around £1000 and my budget amounts to no more than £100 available to be split between both catalogues.

Sorry, I can't help with the template letters, hopfully someone will be along shortly who can.

I would just point out though that if you intend to pay less than the contracted minimum payment (whether with their agreement or not) then technically you will be defaulting on the agreement and it will affect yur credit file.

Maybe worth you speaking to one of the debt charities to see if they can offer any advice.

Good luck with sorting it out x

happy_bunny_2

From what I read on here not easy to deal with and pretty much no point before you miss a payment. With my experience also.

Do everything in writing, no matter what they say and keep a copy.

Read this, as this is how they should behave.
http://www.oft.gov.uk/shared_oft/consultations/OFT664Rev_Debt_collection_g1.pdf

Consider updating your phone numbers online to stop frequent calls. Writing only.

Maybe talk to stepchange to see what they recommend.

Remember, if you get a default, gone in 6 years. If you do arrangements etc, can trash your credit file for a lot longer.

VLF

~Beanie~ wrote: »

Sorry, I can't help with the template letters, hopfully someone will be along shortly who can.

I would just point out though that if you intend to pay less than the contracted minimum payment (whether with their agreement or not) then technically you will be defaulting on the agreement and it will affect yur credit file.

Maybe worth you speaking to one of the debt charities to see if they can offer any advice.

Good luck with sorting it out x

Okay it looks like I am going to be defaulting then.

I will contact the debt charities as avised.

Thanks

VLF

happy_bunny wrote: »

From what I read on here not easy to deal with and pretty much no point before you miss a payment. With my experience also.

So it's best to wait till they actually start chasing the debt?

happy_bunny wrote: »

Do everything in writing, no matter what they say and keep a copy.

Good advice, not that I answer my phone anyway but everything will be done in writing.

happy_bunny wrote: »

Maybe talk to stepchange to see what they recommend.

Will give them a search.

happy_bunny wrote: »

Remember, if you get a default, gone in 6 years. If you do arrangements etc, can trash your credit file for a lot longer.

So basically once I've defaulted it's probably best just to completely ignore the debt and pay nothing, as paying by arrangement might have a even more negative effect on my credit file and last longer than 6 years? Is that what you're saying?

Thanks for your advice

happy_bunny_2

Best ask step change what they think.

If you enter a DMP, then you see lots of stories on here about late defaults.

Personally, especially with catalogues, I would ignore the account til it defaults. Chances are a DMP run by step change wouldn't allow this as they try to be fair to all creditors.

BLINGBLINGBLINGBLING

https://www.stepchange.org

Give them a call and they will help you out.

Trajal

Contrary to what some of the above are saying, I would actually suggest that defaulting could be a good thing.

Firstly it would remove the temptation for you to use the catalogues again, but most importantly it would be a clear 'six years from now' date. Compare that to the standard modus operandi of Very etc and you will find that they put 'arrangement to pay' markers (referred to as APs) on your credit file. Those markers can stay there for many years longer than the defaults six years as they are recorded until the debt has been settled in its entirety and have quite a nasty effect on your credit rating.

So to summarise - Obviously you want to do the right thing, but it isn't the end of the world of you end up in a default position with Shop Direct Group companies as it will probably not last as long as the Arrangement to Pay that they will mark your credit file with.

Good luck.

fatbelly

It's not standard debt advice to advise non-payment when you have surplus income (you say £100 per month) that could be used to repay.

However...

Both debts are Shop Direct Group and they are notorious for refusing to freeze interest on debt management plans. There is no point paying £100 when applied interest is more than that.

So I would agree that it makes sense to put £100 a month on one side but not to make payment until the balance is frozen.

On the other issue, 9 months to do a housing benefit calculation is ridiculous. Have you considered involving your local councillor if you think the council are being negligent, incompetent or obstructive?

VLF

Thank you all very much for your advice.