Just how serious is mobile phone contract debt?

TomMiezavs

Hi all - First post here although I've I'm a frequent visitor! (I apologise in advance for any typo's, I'm composing this whole thread on my phone)

All I'm after is a more broad understanding of mobile phone contract debt.

Now, this is the sticky situation I've found myself in.

I have recently lost my job & for the record I am moving to Lincoln with my partner. I have a Vodafone bill for £974 (£750 of that is ETF) £222 Lowell debt (O2) & £274 Virgin Mobile.
More-or-less, £1500.

So. As I'm moving, with the chance of not finding a job for however long it may take (StepChange advised that in order to be under the scheme, I need an income)

I've contacted all of the above and advised that I'm at no fixed abode, the mother doesn't need to be receiving reminder letters that her son has been overtly immature with phone contracts.

Now, this debt is standardly having an effect on my mental health. Anxiety is through the roof.

Does anyone have any words of advice, constructive criticism or more simply... a work around to get this sorted slowly but surely? The last thing I need right now is to have this stupid seld-created baggage on my shoulders when I'm starting a new life in a new city (currently reside in Birmingham, West Midlands. Yeah, tell me 'about it!) I am so, so excited about the move, I just can't put this out no more.

Thank you for reading, I am open to anything & everything

Tom,

TomMiezavs

To the point... what's the worst case scenario? I obviously want to pay it off for futures sake but without not a penny saved and no job (as of yet). It's not a government debt so am I right in thinking it can't 'THAT' bad? Debts debt right?

happy_bunny_2

Defaults on credit file, no real credit for 6 years from default date.

If it goes to court, CCJ, means renting a house can be tricky, extra deposit etc.

Best keep them appraised of your situation, but no address won't help.

Will you get benefits? If so, could offer £1 per month until you get work.

matttye

It's as bad as any other unsecured debt.

You can be taken to court if you don't pay and a judge will have the power to grant a CCJ against you. If you fail to pay as outlined in the CCJ, the creditor will have enforcement options such as: -

• Attachment of earnings (you'll need a job for this), which is where a certain amount is taken from your pay packet before you receive it. I don't think they can be granted to be paid out of benefits, but I could be wrong about that.
• Bailiffs. They can attend at your property and take your belongings to sell.
• Charging Order. This is where they put a charge on your home and, if you fail to pay, you could lose your home. Obviously this is only if you own the home you're moving to.
• Third Party Debt Order. This is where they can apply to take the money directly from someone that owes you money. E.g. your bank, employer, etc.

http://www.adviceguide.org.uk/england/debt_e/debt_action_your_creditor_can_take_e.htm

Sazzie23

Good luck with the move to rural life,

Does the partner know...could they offer to pay for you in the short term if you are not entitiled to benefits?

Have you been in touch with creditors to arrange a payment plan.? Depends on how long since you last 'acknowledged debt' but maybe write to them anyway saying you are moving away, and will let them have a forward address. Set up a forwarding for mail so mother is not troubled?

Have you considered a self-managed DMP, you would need to be able to pay something ..look at the DMP support thread if this is an option.

Whether or not you get a job, sort a proper budget so you don't end up down the same path !

Sure someone else here will come up with more suggestions

quantic

My sister in law was in a very similar situation to you 5 years ago, she can't get a mortgage now (or for the next 4 years) as a result of her actions. My advice would be to contact the companies and be very open with them. They may be more flexible with you about it. In my experience, ignoring them ends up making the problem dramatically worse.