Time To Bite The Bullet: Advice please!!

Etaine

Hi all, I've just signed up in the hopes of getting some advice and, all being well, starting the process of repairing my atrocious finances.

This could be lengthy, so apologies in advance - bear with me.

A disaster with my bank in the last few days has caused me to wake up and smell the coffee. My finances are A MESS. Really, truly a mess and I need to do something about it. I'm almost 30, spent my entire 20s making a complete balls up of anything related to finances and now I'm paying the price.

I'm a single mum of three on benefits because my middle child is disabled. I'm hoping to resume my degree studies with Open University as of February and have registered, but now need to open a new bank account to organise my funding. I also need to get every last scrap of my financial life in order, because the way I'm going, I'll end up with nothing.

The Co-operative Bank closed my account a few days ago due to recurring unpaid items. I might add that the cause - recent unpaid items - were down to their own mistake. My card was due to expire, they sent me a new one, accidentally blocked the existing one (even though there was a few weeks' use left on it) and as a result, several card payments were returned. Meanwhile, the new card got lost and I had to wait almost 2 weeks for another. I thought everything had been sorted until boom, I went to pay for fuel in Asda, my card was declined and when I went to withdraw the cash, the machine retained my card. A phonecall to the bank informed me that they had closed my account, there was no going back and I'd simply have to make other arrangements. I now have this in hand - I hope - and should have a new bank account by the end of week. A local bank seemed to accept me online and all I need to do is take some forms and ID into a local branch to complete the process (I just hope it doesn't !!!!!! up).

Meanwhile, I am in debt to the tune of about £4000, maybe £5000. I pay various debts via a company called Lowell Financial - an old student overdraft/credit card and a couple of other things - and I also owe £1000 to Provident (taken out while with my ex and now I'm the one lumbered with the payments, to his father no less). My credit rating is hovering around 549 according to Experian, so it's poor. I'm not on the electoral roll - again, something I plan to sort this week - and my income isn't exactly high due to being on benefits.

I need to stop, take stock and totally restructure my finances in order to get back on track. I know my debt level isn't *crazy* high, but for someone in my position it's bad enough. I already know that borrowing any more to settle debts is a bad idea, plus my credit rating isn't anywhere near what it would need to be in order to acquire a debt consolidation loan. Looks like I'll have to go about things the old fashioned way - hard slog and patiently making payments.

I've never reclaimed PPI as I'm not sure if I'd be entitled to any and don't have any of the paperwork belonging to the companies concerned as I now pay those debts via Lowell. I did ask Lowell for the account information so I could try to chase it up, but they couldn't give it to me. I'm still willing to try anything as if I were entitled to any repayments, it would help with the debt I'm in.

I would be incredibly grateful if anyone could offer some constructive advice on steps I can take to improve my situation. My daughter will soon be going for the first of many major surgeries and really, anything I can do to lessen extra burdens would be fantastic.

Never, ever again will I let my finances slip so far - I'm going to be paying for ten years' worth of mistakes from now until God knows when!

Thanks in advance!

Etaine

Bumping this before it gets buried - and also want to add that I've actually checked my recent credit reports and my score has somehow improved (marginally!) since May, presumably because I didn't take out any new lines of credit and kept up payments as and when I could.

Any advice out there?

splodgethefirst

Complete a statement of affairs - it lists all your income and outgoings, then the (far wiser than I) folks can check it and make suggestions as to how you can cut back and try to get things on point.

Have you asked for a basic bank account? One which cannot have an overdraft etc? I understand barclays do one, but imagine it is similar all over.

I also wouldn't worry about your score - it's just a number. Credit offering agencies all look at you details and decide if you're profitable/a good customer or not.

splodgethefirst

stoozing.com/calculator/soa.php is the link for statement of affairs. Try to use yor bills/bank statements for accuracy

When_the_going_gets_tough

Good advice, also have a browse on the National Debtline site - it covers all the options for debt. I am not sure exactly what your position is but you may be eligible for a Debt Relief Order - have a good read then discuss it with The National Debtline to find the best way forward for you. Good luck.

angelaf_3

I presume lowell are a debt collecting agency and not a company you are paying to deal with your debts? If you are paying for help with the debts then try one of the free debt advice agencies recommended by Martin in the sticky at the top of the page. If you live near a Christians Against Poverty centre https://capuk.org/i-want-help/cap-debt-help they will help with more than just the debt, budgeting courses etc. Christian is why they do it and they help people of all faiths or none. They are also recommended by Martin.

ShanShan_2

Hi there

I don't really have any advice to offer, I just wanted to write to say good luck. You are already getting better by taking the first step of acknowledging the issue and attempting to make a plan to figure it out.

Definitely do an SOA, not only will it be useful for others on the forum to be able to help you out but it will also probably give a nice shock that will help to kick your butt into gear. (At least that's what it did for me).

National_Debtline

angelaf wrote: »

I presume lowell are a debt collecting agency and not a company you are paying to deal with your debts?

Just confirming that Lowell are indeed debt collectors.

Dennis @NDL

sourcrates

Etaine wrote: »

I've never reclaimed PPI as I'm not sure if I'd be entitled to any and don't have any of the paperwork belonging to the companies concerned as I now pay those debts via Lowell. I did ask Lowell for the account information so I could try to chase it up, but they couldn't give it to me.

The possible solution is in the above quote from your original post, Lowell are a low life DCA (debt collection agency) who don't have much time for acquiring the correct paperwork, you say you asked Lowell for proof of the debts and they could not supply it ? then why are you paying them ????? how old are these debts ? if a DCA cant provide proof of a debt that means they cant get a CCJ against you in court, this can make the debt unenforceable, even more so if they originate before 2007 are they all loans ? creditcards ? mixture ? you need to provide us with a little more information on this please, you may be paying this needlessly.

National_Debtline

Hi Etaine

Welcome to the forum. Can only echo much of what other posters have said so far - please put up an SoA if you can. There is oodles of info on PPI reclaiming on the MSE site. Good idea to get on the electoral roll ASAP, especially as it will be nigh on impossible to open an alternative bank account otherwise.

A Debt Relief Order (DRO) may well be a suitable option as has been suggested above, but it's important that you get advice on all the choices available to you first. You may find this summary of various debt options useful:

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

Good luck

Dennis @NDL