Help needed confused what to do first.

northerner999

debtout wrote: »

Hello yes savings of 15k. The issues that led to the debts have been addressed as it was a time when we still in uni, so it was all youthful school boy and girl errors. However now we are in a good position financially so hence the need to have a clean slate and move forward.

In that case, well done on getting sorted and getting on track.

There has already been a request for an SOA, but if your savings match your debts I suppose the priority is finding out if you need to repay the car loans. Legally you may not have to.

I would stress the important thing is targeting payments to your loan and credit cards. i would use your savings, so long as they are accessible, to pay off anything charging interest as a matter of priority starting with the most expensive. It is a false economy if you are paying interest likely far beyond what you are earning.

debtout

Thanks all you have been very helpful.I now feel I have the energy and some level of confidence to tackle this.Just a few more questions as want to begin the process tomorrow.
- How do I find the contact information of the companies I owe,is it via the credit check files, as I am aware these companies always change and sell debts?
- If I negotiate and make payment to the companies I owe, how long does it take and who is responsible for getting it all cleared from the credit file?
- As I already stated based on the credit checks I have done, the only identified debts are worth 9.000.00 including the ccj. However I am unsure if this is the complete state of our debts.Is it worth it me checking experian and equifax as well?
- Regarding the car debts, these are not showing up, am worried about them showing up later but thanks for your reassurence. The.The strange thing is that even though we still have one of the cars we have not heard from the lending company which I believe was welcome finance since at least 2011!.
-About the ccj, does paying these mean, we can then go into a bank and get a mortgage?, or would you recommend us completing the debts first?

patman99

Remember that even when paid, a CCJ will show on your credit history for 6 years from the date of issue.

There may be some way of finding out via HMCS (Her Majestys Court Services) who obtained the CCJs. This would then assist you in being able to pay them off (either fully or via a F&F).

As for the car, try a full HPI check. If this shows the car as credit-free, then you know that is in the clear. You can pay extra for an HPI check that includes insurance against the car having any unregistered finance secured against it, but not sure if it would pay out as you not only own the car, but are the ones who took out the finance.

Credit cards should be easy. Do you still have statements?. That would give you the details of the last known creditor. If they have sold the debt on, then by writing to them, they will either pass on your letter, or reply to let you know who is now dealing with the debt.

debtout

patman99 wrote: »

Remember that even when paid, a CCJ will show on your credit history for 6 years from the date of issue.

There may be some way of finding out via HMCS (Her Majestys Court Services) who obtained the CCJs. This would then assist you in being able to pay them off (either fully or via a F&F).

As for the car, try a full HPI check. If this shows the car as credit-free, then you know that is in the clear. You can pay extra for an HPI check that includes insurance against the car having any unregistered finance secured against it, but not sure if it would pay out as you not only own the car, but are the ones who took out the finance.

Credit cards should be easy. Do you still have statements?. That would give you the details of the last known creditor. If they have sold the debt on, then by writing to them, they will either pass on your letter, or reply to let you know who is now dealing with the debt.

Thanks very much. Just done a hpi check with the aa. However both cars are showing that they are not under any finance so not sure how much I can trust that. How else can I check this out. Also just checked and the ccj one of them was in 2013 and the other just this year. So does that mean we cannot possibly do anything to get a mortgage?

fatbelly

debtout wrote: »

Thanks very much. Just done a hpi check with the aa. However both cars are showing that they are not under any finance so not sure how much I can trust that. How else can I check this out. Also just checked and the ccj one of them was in 2013 and the other just this year. So does that mean we cannot possibly do anything to get a mortgage?

The cars sound fine, then.

The ccjs will show till 2019 and 2021.

Did you respond to the court paperwork? Or ignore it? Or did it go to a previous address?

debtout

fatbelly wrote: »

The cars sound fine, then.

The ccjs will show till 2019 and 2021.

Did you respond to the court paperwork? Or ignore it? Or did it go to a previous address?

To be honest, the period that both ccj, s were issued I had moved twice in that same period. So it was a very undtaunstable period for me, which is why I never had an opportunity to not this. That's why I feel I might have some grounds. Also where exactly can I find the information on my ccj status. That's because trust online via direct. I gov only shows me 1. I really want this information correct so as to try and prevent any further negative action. Can I ring the courts?

debtout

I have another question. Looking at my credit report some debts show a default date of 29.11.2009. Am I right to assume that these will be statute barred on 27.11.15?. If so how do I ensure that these can become statute barred. Is there a template letter I can write to the company?

FireWyrm

OK, so you have two goals really.

1) Pay off debts
2) Buy a house

You have income of £4000 per month for (two?) people. With planning and financial care, you can get your outgoings down to something more sensible like around the £2K mark (for all your bills). We dont have an SOA, so that is clearly contingent one how much you pay in rent for instance. If you can get your monthly outgoings down to £2K, that means £2K spare a month to do with as you please.

Your debts are what? £30k you think? 15 months of payments will clear those off. Since you have £2K spare a month, that is entirely feasible.

Since you have a CCJ (or two), it is pointless trying for a mortgage, you wont get one. You would have to sit tight until they fall off your record anyway.

I suggest the following....

1) Bank your £15K in a high interest (hard to get to) account and DO NOT TOUCH IT
2) Pay off your debts at the rate of £2K per month for 15 months
3) After 15 months, throw that extra £2K per month at the account holding your £15K. This will become your 'house deposit'. Work at it diligently until 2021 and THEN buy a house.

You will have

1) no debt
2) a sizeable deposit in cash
3) a clean credit record showing solid savings for X years previously which the MMR people really love.

Draw a line under your debt, put as much as you can onto zero-rated cards and just keep plugging away. From this day forward (3rd Nov), you are no longer living in debt. You are addressing your problems. This month, you are going to live within your budget, no matter what it costs in comfort or luxuries. This is your austerity.

Get yourself some proper financial software or at least a spreadsheet, sit down and figure out a budget (one you can stick to). YNAB or https://www.vertex42.com. You need to account for every outgoing, everything, no matter how small. If you buy coffee's on the way to work, account for them, dont pretend it isnt happening. Figure out your bills, your fixed outgoings and your descretionary outgoings and separate the two. Get yourself an account with no overdraft which you receive salary into and you never spend from. That is your bills account. You can then 'pay' other accounts as necessary and as suits you so that you can spend from those, but once that money is gone, it's gone. In my opinion, you should have separate accounts for food and fuel at least. Ratify your bills so that they come out at the beginning of the month, so you are not wondering how much money you have in that account all the time.

These are just a few of the things you can do to get yourself going in the right direction.

debtout

FireWyrm wrote: »

OK, so you have two goals really.

1) Pay off debts
2) Buy a house

You have income of £4000 per month for (two?) people. With planning and financial care, you can get your outgoings down to something more sensible like around the £2K mark (for all your bills). We dont have an SOA, so that is clearly contingent one how much you pay in rent for instance. If you can get your monthly outgoings down to £2K, that means £2K spare a month to do with as you please.

Your debts are what? £30k you think? 15 months of payments will clear those off. Since you have £2K spare a month, that is entirely feasible.

Since you have a CCJ (or two), it is pointless trying for a mortgage, you wont get one. You would have to sit tight until they fall off your record anyway.

I suggest the following....

1) Bank your £15K in a high interest (hard to get to) account and DO NOT TOUCH IT
2) Pay off your debts at the rate of £2K per month for 15 months
3) After 15 months, throw that extra £2K per month at the account holding your £15K. This will become your 'house deposit'. Work at it diligently until 2021 and THEN buy a house.

You will have

1) no debt
2) a sizeable deposit in cash
3) a clean credit record showing solid savings for X years previously which the MMR people really love.

Draw a line under your debt, put as much as you can onto zero-rated cards and just keep plugging away. From this day forward (3rd Nov), you are no longer living in debt. You are addressing your problems. This month, you are going to live within your budget, no matter what it costs in comfort or luxuries. This is your austerity.

Get yourself some proper financial software or at least a spreadsheet, sit down and figure out a budget (one you can stick to). YNAB or https://www.vertex42.com. You need to account for every outgoing, everything, no matter how small. If you buy coffee's on the way to work, account for them, dont pretend it isnt happening. Figure out your bills, your fixed outgoings and your descretionary outgoings and separate the two. Get yourself an account with no overdraft which you receive salary into and you never spend from. That is your bills account. You can then 'pay' other accounts as necessary and as suits you so that you can spend from those, but once that money is gone, it's gone. In my opinion, you should have separate accounts for food and fuel at least. Ratify your bills so that they come out at the beginning of the month, so you are not wondering how much money you have in that account all the time.

These are just a few of the things you can do to get yourself going in the right direction.

Thanks for your contact.With regards to the ccj,s. Have i got any grounds to querry these as all, due to the fact that in the time they were issued.We had moved at least 3 times, so that is the reason we never recieved the letters. Also the debt are actually at least 9k only as the car finance are not showing on the credit reports.

FireWyrm

debtout wrote: »

Thanks for your contact.With regards to the ccj,s. Have i got any grounds to querry these as all, due to the fact that in the time they were issued.We had moved at least 3 times, so that is the reason we never recieved the letters. Also the debt are actually at least 9k only as the car finance are not showing on the credit reports.

Sadly, probably not. It is up to you to pay attention to the court papers and fight it during the process if applicable. You're stuck with them for the next 6 years until they disappear off the credit file.

Dont you want to get rid of the car finance either?

If the real debt figure is just shy of £9K and you do have £2K spare a month, it will take you until March 1st to pay it off. That should be no sweat at all.