Struggling with debt

Nightshark

As my header says i am struggling with about 4,000 worth of debt back in febuary i contacted a debt mangerment company and i gave them all my debt details. I arranged to pay 23 pound a fortnight to clear my debt it came back it would take 7 years to clear my debt completley. They gave me two options i could go down th DRO route or continue paying the fortnightly payment i choose the make a payment route. Then came the bombshell they turned quite nasty and said they couldnt continue to support me as they didnt agree with my decision and it is against there policy becouse people dont stick to a tight budget it would leave me on and usually there aim is to get people debt free in 5 years now they have closed my accout and im left feeling alone and now not sure what to do. I have a ccj from bryan carter and becouse i sent all the documents to this debt managerment company i dont know what to do about it and where to turn too would be grateful for any advice thanks

lynz68

I am assuming this is a debt management company that you pay a fee to out of the payments you make.


Please speak to Stepchange or Payplan who are fee free all your payments go towards your debt.

sourcrates

Nightshark wrote: »

As my header says i am struggling with about 4,000 worth of debt back in febuary i contacted a debt mangerment company and i gave them all my debt details. I arranged to pay 23 pound a fortnight to clear my debt it came back it would take 7 years to clear my debt completley. They gave me two options i could go down th DRO route or continue paying the fortnightly payment i choose the make a payment route. Then came the bombshell they turned quite nasty and said they couldnt continue to support me as they didnt agree with my decision and it is against there policy becouse people dont stick to a tight budget it would leave me on and usually there aim is to get people debt free in 5 years now they have closed my accout and im left feeling alone and now not sure what to do. I have a ccj from bryan carter and becouse i sent all the documents to this debt managerment company i dont know what to do about it and where to turn too would be grateful for any advice thanks

Simply write to them requesting they return all the information you sent them, once you have this back, make your own offers of payment to your creditors, its very simple, theres nothing any company can do that you cant.
There is plenty of free advise out there, never pay a company to do this sort of thing for you.

[Deleted User]

£23 per fortnight, for 7 years, is only £3,576.

What happens to the remaining ~ £400 :huh:

sourcrates

Bedsit_Bob wrote: »

£23 per fortnight, for 7 years, is only £3,576.

What happens to the remaining ~ £400 :huh:

Fees probably, or they cant add up :huh: !!!

FireWyrm

Sounds like you've had an extremely lucky escape. These companies dont do anything for your benefit, it is all for theirs. Like estate agents, you dont need them to do what you could do yourself.

Just out of interest, how are you intending to manage this tight budget for so long? I'm not knocking it, but it sounds as though you need something a little more concrete than a finger in the air plan. If so, and you dont have anything else handy, I can point you in the direction of either my spreadsheets offered for free, or you can download a few from https://www.vertex42.com yourself and play with those. You could buy YNAB (you need a budget which is about £30) but you definitely sound like you need something better than a pencil and paper method.

If you are going down the self managed route (nothing wrong with that), then you'll need to write to each creditor requesting first a statement of account and then, telling them what you will be paying and at what frequency. I strongly suggest though, that you post an SOA here first so we can help and advise a budget that is likely to work long term.

Nightshark

Sorry i should of been more clear they where a debt managerment company/chariety they never took any payment out of the money i paid too them it was to go to each of my creditors.I am more worried about the bryan carter ccj as i have two letters from them one was the claim form from northampton court and then a second letter a few weeks laters saying they had not heard from me and wanted 48 a month by 15th of april which has now passed these letters i passed onto the chariety and im yet to get them back which i have requested im just worried there going to send baliffs to take my possesions thanks for all replies

National_Debtline

Hello there,

If you don't mind me asking, who was it that you were using?

As the others have mentioned, please do consider completing your statement of account and posting it up here: http://www.stoozing.com/calculator/soa.php

We have a financial statement which meets the standard that creditors expect, which you can find here.

Given what you have said, you have three potential options:

1. To self-negotiate with your creditors. We have a selection of sample letters that you can use *here*.

2. To use a Free debt management plan.

3. A Debt Relief Order.

A bailiff can only attend if you have failed to pay a county court judgment. If a third-party is involved without a court order, they are simply a debt collection agency who have no powers to take any of your possessions.

It could be worth going through our online My Money Steps system, as it can show you what the best option might be for you.

Very best wishes,

David @natdebtline

Nightshark

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 452
Other income............................ 0
Total monthly income.................... 452

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 16
Electricity............................. 19
Gas..................................... 18
Oil..................................... 0
Water rates............................. 23.19
Telephone (land line)................... 15.99
Mobile phone............................ 7.5
TV Licence.............................. 12
Satellite/Cable TV...................... 23.52
Internet Services....................... 16
Groceries etc. ......................... 25
Clothing................................ 10
Petrol/diesel........................... 30
Road tax................................ 77
Car Insurance........................... 61
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 7.99
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 4
Entertainment........................... 5.99
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 412.18


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 300
Other assets............................ 0
Total Assets............................ 300

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
capital one....................852.......0.........0
tesco credit card..............1560......0.........0
SRJ............................113.......0.........0
insurance......................73........0.........0
catalog........................459.......0.........0
loan...........................280.......0.........0
Total unsecured debts..........3337......0.........-


Monthly Budget Summary
Total monthly income.................... 452
Expenses (including HP & secured debts). 412.18
Available for debt repayments........... 39.82
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 39.82

Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,337
Net Assets.............................. -3,037

National_Debtline

Hello again,

Thank you for posting up your statement of account. I don't think there is anyone who could live on £25 per month for their groceries. That equates to £5.77 per week. Do consider increasing that figure to something a little more reasonable. As far as the debts are concerned, you really should be looking to either:

1. Offer your creditors a token payment of £1 per month; or
2. Consider a Debt Relief Order

Best wishes,

David.

FireWyrm

Nightshark wrote: »

Total monthly income.................... 452

Monthly Expense Details

Telephone (land line)................... 15.99
Mobile phone............................ 7.5
Get rid of this
TV Licence.............................. 12 Ditch tv and go to catchup and get rid of this
Satellite/Cable TV...................... 23.52 go to catchup and get rid of this
Internet Services....................... 16
Groceries etc. ......................... 25

You are spending £35.50 on 'entertainment' you dont need but only £25 on food. That's madness. Ditch the TV completely, go to catchup and eat better. You are on such a tight budget, you cannot afford to waste a penny anywhere.
...and go to token £1 payments to your creditors. No one is going to make you starve to pay an unsecured debt!