I Need Help Please - I don't know where to start

midnitegremlin

jchrispin wrote: »

write to your creditors asking them to freeze interest and charges and offer £1 token payments.

Would they actually accept this? I mean, I just don't know. In my experience they can cut or freeze interest, but you need to be making more than a token payment.

jchrispin

A lot of people have managed to get them to freeze the interest. If you don't have it, then they can't have it. I started my DMP with a fee paying company, but changed this year to step change. I am in the process of challenging the DCA's for a CCA (I have a diary running). I only started last week, but as I have already paid about 40% to each creditor, I am hoping they will take that as F&F payment.

The fee paying DMP got all interest and charges frozen, so I have had no interest put on my accounts since March 2011. Five of my original debts are now with DCA's. If I can get them to accept payments already made, then it will cut about £15k of my £26k debt.

Running_man

Hi
Think people need a little more information
You say you are £26000_in debt
Is this credit cards,store cards,loans
Are you running 2 cars between you
Why can't partner help ?
If you can post a SOA would be a big help

MarneyMB

jchrispin wrote: »

I would redo the step change questionnaire thing excluding your husbands income from it, using just yours. Use the £150 you want to give him and divide it against food etc. It will then probably suggest a DMP. I am in the same situation where my husband covers the bills but i didn't want him to know about my debts (he now knows I owe around £20k as he is retiring soon and wanted to help me get rid of them).

That's what I did, I only used my £300 income, divided £150 around against everyday expenditure, leaving £150 for creditors. So I was surprised about the lump sum IVA result. Seems everyone want to take the house! I came up with the sum of £150 for creditors as I thought that may be an acceptable sum for them, in reality I can't spare anything for them - OH needs all I can give him. Having read posts on here for a few days, it seems to me that it's a good idea to offer the creditors as little as possible, so I least I have some money to live on - would that be right?

jchrispin wrote: »

If you want to take some pressure of, CCA the credit card companies. Also check to see if any of the cards have PPI and start claiming that all back.

Please excuse my ignorance, but what does CCA the companies mean? I've seen it mentioned many times, but not been able to find an explanation. My understanding is that it's checking the validity of the original credit agreement, if that's right how would I do that. I'm sure there will be a guide here somewhere, but I couldn't find anything.

Thank you for your support.

MarneyMB

Running_man wrote: »

Hi
Think people need a little more information
You say you are £26000_in debt
Is this credit cards,store cards,loans
Are you running 2 cars between you
Why can't partner help ?
If you can post a SOA would be a big help

The £26k is made up of a £3k loan, the rest is 3 credit cards.
Only running one car. Partner doesn't know the full extent of debt, only about half of it. We don't have a joint account. He already is helping, he covers all the household bills, which is mortgage, utilities and broadband. We've been struggling financially for a while, so have cut out whatever we can over the last couple of years. There are no luxuries, no sky, no holidays, no new clothes etc, there really are no other areas we can make any cuts.
My own SOA is simple really I have £300 coming in, that needs to cover groceries for the month, plus what I owe creditors.

Candyapple

MarneyMB wrote: »

The £26k is made up of a £3k loan, the rest is 3 credit cards.
Only running one car. Partner doesn't know the full extent of debt, only about half of it. We don't have a joint account. He already is helping, he covers all the household bills, which is mortgage, utilities and broadband. We've been struggling financially for a while, so have cut out whatever we can over the last couple of years. There are no luxuries, no sky, no holidays, no new clothes etc, there really are no other areas we can make any cuts.
My own SOA is simple really I have £300 coming in, that needs to cover groceries for the month, plus what I owe creditors.

Are the 3 cc's and the loan all in your name?

Names of cards, exact balances and credit limits?

Was the £26k built up due to general overspending, or was it used to purchase anything of significant value that you could possible sell now? E.g. a car.

jchrispin

MarneyMB wrote: »

Please excuse my ignorance, but what does CCA the companies mean? I've seen it mentioned many times, but not been able to find an explanation. My understanding is that it's checking the validity of the original credit agreement, if that's right how would I do that. I'm sure there will be a guide here somewhere, but I couldn't find anything.

Thank you for your support.

A CCA is asking for a copy of the original agreement. Anything you took it pre 2007 may not be enforceable which puts you in the driving seat and also assures you that they can't take you to court. I'm sure someone else can help as I'm new to all this so don't want to give you wrong advice.

midnitegremlin

jchrispin wrote: »

A lot of people have managed to get them to freeze the interest. If you don't have it, then they can't have it. I started my DMP with a fee paying company, but changed this year to step change. I am in the process of challenging the DCA's for a CCA (I have a diary running). I only started last week, but as I have already paid about 40% to each creditor, I am hoping they will take that as F&F payment.

The fee paying DMP got all interest and charges frozen, so I have had no interest put on my accounts since March 2011. Five of my original debts are now with DCA's. If I can get them to accept payments already made, then it will cut about £15k of my £26k debt.

Yeah, but I thought usually they offer to freeze interest if you are making a set payment, not just a token one?

fatbelly

MarneyMB wrote: »

That's what I did, I only used my £300 income, divided £150 around against everyday expenditure, leaving £150 for creditors. So I was surprised about the lump sum IVA result. Seems everyone want to take the house! I came up with the sum of £150 for creditors as I thought that may be an acceptable sum for them, in reality I can't spare anything for them - OH needs all I can give him. Having read posts on here for a few days, it seems to me that it's a good idea to offer the creditors as little as possible, so I least I have some money to live on - would that be right?

The Debt Remedy tool doesn't appear to be as good as a live adviser's brain ( a point I made earlier I think). A £150 pcm dmp on 26k does produce a 14.5 year plan which stepchange used to freely do. But the FCA are frowning on long dmps and I agree with them that where possible you should look for a better option. An IVA Protects the house if it's a conventional one.

In the initial stages of dmp planning I would advise giving the creditors little so as to avoid the AP markers and build up an emergency fund.

MarneyMB wrote: »

Please excuse my ignorance, but what does CCA the companies mean? I've seen it mentioned many times, but not been able to find an explanation. My understanding is that it's checking the validity of the original credit agreement, if that's right how would I do that. I'm sure there will be a guide here somewhere, but I couldn't find anything.

Thank you for your support.

Yes it's a request under s 77-79 of the consumer credit act (CCA) for a copy of the original agreement. The debt is unenforceable until they comply. CCA is just a bit of sloppy shorthand for this request. There is a separate argument for permanent unenforceability under s127(3) for pre-2007 debts if there was never a signed agreement, as was often the case with catalogue debts from that period.

The process and sample letter is here

https://www.nationaldebtline.org/EW/factsheets/Pages/gettinginformationfromyourcreditors/creditagreementadvice.aspx

another_casualty

I'll try to offer advice work wise . Have you thought about temping ? Have you signed up with any recruitment agencies ?
I understand your situation ,but if you go temping , you may get something paying more . It may even lead into a full time position.
You may have overlooked this possibility .you may have dismissed this idea as you have some money coming in . Not sure of the area you live in . If you live in London , you may get a good hourly rate .

Hope things improve for you