Where to start?

Littlebear167

Hi,
I'm just looking for a bit of advice.

Back in 2010 I ran up some credit card debt as I was self employed and struggling to make ends meet. By 2012 my credit was completely shot and I closed my business for good.

I have 5 credit cards:
£384 capital one (now cap quest)
£1233 mbna (now collected by various agents that switch every few months but owned on credit file by arrow global)
£2181 mbna now arrow
£1100 mbna now arrow
£1500 mbna now arrow

I have a personal loan shared with my partner on which the balance is approx £4900

And I had 2 overdrafts with nat west that they seem to have consolidated for £2000 each approx.

I have been paying token amounts to the credit cards (£1-5) every month since. £40 per month to aic for the loan and £5 per account to the over drafts. I have only ever paid the original creditor (by bacs as I got the numbers some years ago) with the exception of the loan who I pay aic direct. I originally had 4cards with mbna but I have no idea which account is which as the references on the letters arrow send bear no resemblance to the card numbers or account numbers from before. 2 of them, I haven't paid for about 12 months, I still occasionally get letters for all 4 but I have no idea which one is which.

The overdraft seems to have been consolidated into one account as I suddenly started getting letters with a balance of £4000, when the two were £2000 each.

Anyway, my circumstances have recently improved (partner got a new job) and my mum said she would give me £2500 from an inheritance she received. I obviously don't have enough to settle everything, but I was wondering how other people would go about sorting everything out?

I've read about sending letter templates etc, but I'm not sure where to start or how to approach clearing everything. What should I tackle first and how best to spend the money to see the biggest impact. My credit is shot so f and f settlements would be fine.

Just need some help?

fatbelly

I'd look at a Debt Relief Order to clear your debts without spending other people's money.

Your partner and your mum can help you with the £90 fee,

Littlebear167

I don't think I can as i am a homeowner ��

sourcrates

In that case what I would do is this.

As and when you are contacted about each account, by contacted I mean written too, make an offer to settle each account using the National Debtline template letter, available from there website.

Start low, you can always increase your offer, it's all a matter of negoatiating the best deal, make sure you get any settlement agreed in writing before parting with any money.

The older a debt is, and the longer it has been passed around DCA's, the better deal you should be able to get.

I'd recommend starting at around 40% of what's owed, see how you get on.

National_Debtline

Littlebear167 wrote: »

I don't think I can as i am a homeowner ��

Hi

This is correct.

As sourcrates suggests, you can find information and a template letter for full and final settlements here:

www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

Before making settlement offers you could request a copy of the CCA agreement for credit cards and loans. The debts would be unenforceable until a copy of the agreement is supplied, so it could give you a stronger negotiating position if the lenders or debt collectors no longer have a copy. There is a factsheet and template letter for making the CCA request here:

www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx

James
@natdebtline

fatbelly

Sorry, missed that on your original post.

I agree with James and Sourcrates.

Littlebear167

Thank you so much guys. I just want to sort what I can as soon as I can.