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Dealing with my Debt

My ex and I split up around 3 years ago, after a disastrous relationship where he pretty much packed up his stuff and left me in ALOT of debt. Unknown to me, he'd cancelled the direct debits on his account a year previously for Council Tax, Utilities & Water. All the unsecured debt was in my name as he had bad credit (unsurprising really!) so all in all around £25,000. He always promised he would pay what he owed but I've never seen a penny from him in 3 years! I couldn't afford the rent on our house so had to move in with a friend pretty much straight away.

I've had a bad run of luck with Jobs, being paid off 4 times in the last 3 years (not my fault - companies lost contracts I was working on). To be honest, at times I have been so depressed I've wanted to just disappear and I've felt as though I can't talk to anyone about it. I have been so bitter towards him and so angry towards myself for being so naïve that I haven't been able to deal with the situation.

Amazingly, things have taken a turn for the better at work and I feel as though I have the strength to deal with this and the resources from a higher salary to actually get rid of the problem.

Housing debts: Rent arrears, council tax, utilities etc - all paid off.

Unsecured Debts (most accounts taken out in 2013 & all with debt collections agencies)
Lloyds overdraft £3,303
Lloyds CC £1,534
MBMA £4,315
Littlewoods £796
Next £510
Wonga £123
DFS £1509
Barclays £4,463
Lending Stream 1 £130.87 - Paid 23/02/17
Lending Stream 2 £255.96 - Paid 23/02/17 F&F settlement £144.13
Argos £1,260
Mortimer Clarke (Hitachi) CCJ £2,599
Total £20,798.83 now £20,412

I was in a DMP with Stepchange until I got paid off in September. Since then I haven't made any payments towards the above until yesterday when I cleared both lending stream accounts and most other accounts defaulted about 2 years ago.

My question is, do I go back into a DMP or do I try to pay this off myself. I've cut my budget massively, and stopped buying lunches/ takeways/ coffees etc. If I do this myself, I believe I could probably agree F&F settlements with a lot of my creditors and pay the debt off quicker. I have around £500 left over every month to pay this back and £100 to put into a savings account.

I understand the my credit is ruined due to the CCJ and the defaults but I don't actually care anymore!

Any advise or feedback would be greatly appreciated xx

Comments

  • sourcrates
    sourcrates Posts: 31,956 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Hi,

    Welcome to MSE.

    You seem to of done a great job so far, you may as well continue with it.

    I am a big campaigner for the full and final route, especially when debts are with debt collectors, you can save a fair bit if you are canny.

    Even more so when it seems the majority of the debts are not even your responsibility (technically).

    I would go with what you have suggested.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Hi Sourcrates,

    Thanks for your positive reply!

    I'm just a little concerned that using a snowball method to pay back myself, might mean it's a while before I get to the larger debts with the likes of Barclays and MBMA. Are the likely to pursue a CCJ? I got one about 2 years ago from Hitachi and I'm aware this will stay on my credit report for another 4 years. Should I offer them I token payment to keep them sweet until I can offer them a settlement or tackle these first maybe? Too many options!

    Thanks again
    L x
  • sourcrates
    sourcrates Posts: 31,956 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    I think in order to stave off the chances of legal action you may have to pay them something, but leave enough in the budget for the full and finals.

    Present them with a budget that shows no room for maneuver, if you get my drift.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Sourcrates, roughly how much should I offer them monthly? It used to kill me paying the DMP and only seeing the balances going down by tiny amounts every month. Its soul destroying! I'm due to get a pay increase in 2 months time which will equate to around an extra £400 a month to pay my debts back. I'm planning to use that to speed up my plan. Obviously if I don't mention this to my creditors, I'll have a greater pot to offer as F&F payments.
  • sourcrates
    sourcrates Posts: 31,956 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    As i suggested, show them a budget that gives you enough to pay say £10 to each creditor, just to keep them happy.

    Then attempt to settle each account as and when you can, for as little as possible.

    Always remember to get there agreement in writing that your payment, if accepted, will close the account and you will not be chased for the remainder of the debt.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Thanks again Sourcrates, I'm working through my budget now and will offer them £10 each :)
  • sourcrates
    sourcrates Posts: 31,956 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Newstart3 wrote: »
    Thanks again Sourcrates, I'm working through my budget now and will offer them £10 each :)

    And remember the best settlement deals are done when the debts have been sold on to specialist debt purchasers such as Lowell or Cabot etc

    When a debt is sold, they are sold in bulk, and the new owner only pays pennies in the pound for them, so can afford significant discounts if pushed.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • They have all been sold on so I'm hoping that will work in my favour. I managed to negotiate around £100 off a £400 debt with CRS but I think in hindsight I probably should have went in with a lower first offer at 10% rather than 50%. Lesson learned!

    Thanks for all your advise today, it's refreshing to know I'm going in the right direction

    L
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