What's the worse that can happen?

flick24

I've recently lost my job, I've been struggling badly with depression/anxiety.
I've had catalogues accounts with shop direct for 8 years never missed a payment till now, I have emailed their customer service explaining the situation, I owe approx three thousand, I have other debts overall its around five grand the constant phonencalls. letters. etc I'm at the point I won't answer the phone/doorbell. I looked into a debt relief order but I just don't know what to do if they refuse my token payment offer what can they do, I have no assets,savings,property I have nothing,nothing to take.

National_Debtline

Hi Flick

I’m sorry to hear about the difficult time you’re having. Whether your creditors formally agree your token offers or not, just make the payments anyway to show good will. You can only afford what you can afford. Keep communication in writing to ease the pressure.

If they really think you should be paying more they have the option to make a county court claim, but that sounds a lot worse than it really is. The court process is normally done through the post if you’re not disputing the debt. The court will set affordable instalments based on your budget if the creditor doesn’t accept.

A DRO could be a good way to get a fresh start if you meet the criteria. The factsheet I’ve linked below goes into more detail. I think you should contact us or one of the other free debt charities for advice on your options.

www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx

James
@natdebtline

sourcrates

Let me just add, that a CCJ claim, is probably a very long way off.

Shop direct are devils for chasing up bad debts by phone, i recommend you block there number, then they cant hassle you, in addition, write and request contact in writing only as well.

I wouldn't worry too much about them, or the DCA`s, they make a lot of noise, but are full of wind usually.

Normally what happens is your account will proceed along a virtual conveyor belt, from one dept to the next, so from collections, to there in house DCA, if non of there badgering works, your account may then be passed to an external DCA for collection, this may continue for some months, maybe years.

Eventually the account will be sold to a specialist debt buyer such as Lowell, or Cabot, who will then go through a similar routine with you.

If your not working, and the situation is unlikely to change for a while, i would suggest a DRO, once the paperwork is submitted, it can be set up very quickly.

flick24

Thanks its the interest also, late payments fees they will just keep adding on every month so it will constantly be going up.

Are DRO'S worse than having A CCJ on your credit file woiuld they both last 6 years it may seem to drastic for low level debt

sourcrates

flick24 wrote: »

Thanks its the interest also, late payments fees they will just keep adding on every month so it will constantly be going up.

Are DRO'S worse than having A CCJ on your credit file woiuld they both last 6 years it may seem to drastic for low level debt

You won't get a CCJ.

Write and tell your creditors you are out of work, include a statement of affairs, income/expenditure, and that you have no assets.

They can't take what you haven't got can they, they may obtain a CCJ at some point in the future, but with no assets to realise, and you not having a job, there's nothing they can do to you.

If you want to make it go away, get a debt relief order, you should qualify, then all your debts inc charges can be included, and in 12 months will be wiped clean.

That should be your priority rather than the effect on your credit file.

I agree with Dennis below, you should get some advice from stepchange or similar.

National_Debtline

flick24 wrote: »

Are DRO'S worse than having A CCJ on your credit file woiuld they both last 6 years it may seem to drastic for low level debt

A DRO would have a bigger effect on your credit file during that same period, yes. So it's certainly not something we would advise you to do without due consideration. Of course we have no idea whether you'd end up with any CCJ in the meantime - I would agree with sourcrates that it's on the unlikely side at present.


What you're getting here are just some very general pointers, as we don't know all the ins and outs of your situation. It'd be well worth your while contacting one of the free debt advice charities for a chat to explore your options in more detail.


Dennis
@natdebtline


EDIT - cross-posted with sourcrates.

Fireflyaway

I had similar with capital one. Calling lots of times every day.in the end I told them to stop harassing me as calling isn't suddenly going to increase my ability to pay! Try to keep calm and maybe write to them to explain, its less emotional. Explain to them and make an offer but don't ' agree' to an amount you can't afford or they will hassle you even more if you break it. I found step change really helpful . it might feel terrible right now but it will settle down.

fatbelly

flick24 wrote: »

I've recently lost my job, I've been struggling badly with depression/anxiety.
I've had catalogues accounts with shop direct for 8 years never missed a payment till now, I have emailed their customer service explaining the situation, I owe approx three thousand, I have other debts overall its around five grand the constant phonencalls. letters. etc I'm at the point I won't answer the phone/doorbell. I looked into a debt relief order but I just don't know what to do if they refuse my token payment offer what can they do, I have no assets,savings,property I have nothing,nothing to take.

Your debts, at least the ones you mention, are non-priority so whether or not they accept your £1 token offers is no big deal. Pay them that anyway for the moment.

Your bigger issues are your health - are you getting help with the depression/anxiety?

And your employment - are you well enough to be looking for work?

and your income - are you getting the benefits you are entitled to?