About to default and afraid!

Ellen123

Hi. I'd appreciate any advice from anyone who's been there.

1. I haven't been able to work and have been meeting minimum payments only on a lot of credit cards. Benefits or help of that sort is not available (prefer not to discuss this. Thanks!) I read Martin's advice to never use credit to pay credit debts, but felt I had no choice. Yes, a mistake, but I didn't know where to turn, and believed income would come in and I could repay. The amount of total debt is large. I am about to not be able to make the minimum payments for the second month.

2. I called CCC. They were excellent, non-judgemental, kind. I do wish I'd called earlier, but for a person with courage, just wasn't able to until now. I have set an appointment with them to make a payment arrangement.

3. I couldn't get a loan because I don't own property and income comes from contracts. I tried; was told I couldn't qualify, though credit rating was good. Now, with credit report much less good, it doesn't seem a loan is an option.

4. I'm trying to avoid bankruptcy. I have reason to believe I'll be earning enough to pay back even the large amount of money within two years, so am hoping to make a payment plan.

5. I know it sounds silly - but - I actually like being honest, paying bills, being responsible. I'm a person who likes doing the right thing.

With that said - I would appreciate any advice on these things:

1. I am maxed out on credit cards, but have two store cards. One permits cash advances. Since I believe I will lose all the credit cards I have, I am wondering whether to take advice I've been given to max the store cards.

One allows cash advances. This would be added to the debt list. I really do need the cash. But I've never done anything like this, and am concerned about the ethical situation of using the card to the max before making a payment plan.

The second card does not allow advances, but is for a clothing store. I am wondering if I would be permitted to keep this card or not. The card has a zero balance right now. The CCC people told me if you increase debt after making a payment plan, it invalidates the plan.

I'd appreciate any advice you can give me:

Should I use the store card that doesn't allow cash advances to buy clothing, hoping to return it for a credit voucher which I can use when I won't have any credit available later?

Should I use the store card permitting cash advances to its max to get cash on the theory that I will lose both and my previously good credit rating anyway?

I hope you all think I'm not terrible to ask/ consider these questions. Friends have suggested I'll be penalized heavily and should take advantage of these cards.

2. If you have very little income (while working on a project that will pay, but not immediately) - and have made a payment plan, do credit recover agencies hound you? Is there a way to stop this?

Thank you all so much for any help. I'm more than scared.

chevalier

Sorry if this sounds harsh, but I believe that if you maxed out the store cards when you know you can't repay them, then this counts as fraud and is a big no no.

I am unsure as to your finances. You have no money coming in now? So could you not get the relevant benefits? That is what we pay all that tax for after all!

If you are doing a project that is going to get big money but you have none now, are you not able to get a cash advance against the work already done? Whoever you are working for can't expect you to live on nothing until the end of the project.

Ref the cards. CCCS will no doubt advise you to write (and send recorded delivery) to all your creditors enclosing an income and expenditure sheet, plus a £1 token payment. This is just to show willing and that you are not trying to abandon the debt.

If you put up a Statement of Affairs on here (see southerscousers sticky at the top of the forum), then maybe our group knowledge can spot some cut backs for you, which could give you more income to pay the debt?

Also do you have anything you can ebay, or put on amazon, to get you a temporary injection of cash, so you can make minimum payments this month whilst CCCS sort out your finances?

best of luck
chev

Ellen123

Chev,

Thanks for the answer, and the good wishes. You don't sound harsh. I did not intend to "get away with anything" and did believe I would be able to repay everything as required, first with minimum payments, later the full balance.

I started my own company. Working for myself, there's no one to go to at this point. I was not able to get financing because of not owning property, but did try.

I've done other work while in this situation, but contracts expired, and I haven't been able to find others due to recent illness. I'm still trying.

>>Also do you have anything you can ebay, or put on amazon, to get you a temporary injection of cash, so you can make minimum payments this month whilst CCCS sort out your finances?

Thank you for that. I've tried selling whatever I can on ebay. I have a lot of books, in excellent condition, many fairly recent. While costing a lot, as you may know, they sell on ebay for a couple of pounds, very low. Is there a better site you know to sell books? I went to a car boot sale to see if that might work; even new-looking hardcovers were going for 25-50p. While it might add up, I wasn't sure if it would cover the cost of entrance to sell there.

My plan is to sort the debts so I am handling them responsibly. Then to continue the work which I have reason to believe will pay off (I've been advised professionally; had industry advice; and prior experience indicating this will be able to be achieveable). I'm looking for part-time or project work online.

My big fear, though, is being hounded by people who are frightening, while I continue to work and try to clear things up. I guess I'm pretty afraid of that.

>>best of luck

Thank you again. I appreciate your taking the time to write.

yellowmonkey

Well done on posting

As chevalier recommends do an SOA and you will be surprised how much help you will find on here.

Good luck with the CCCS. They are really good. I work full time and I have debts and i am in a DMP with Payplan. Works for me. It is my debt and I will pay it all back.

Good luck and you have made the first and hardest step by posting your first post :T

ym

Horace

It sounds a little crazy but have you thought about approaching the jobcentre? The reason, I say this is that they can help folks set up their own businesses and I feel sure that they give continued help thereafter.

Don't max out on store cards and credit cards though - if you need clothes try charity shops as they often have good quality, hardly worn items.

With regard to working to get some money in the meantime, how about joining a temp agency, this will get you a) working, b) money and c) perhaps contacts for your own business?

Just a thought.

Good Luck

Gillianh2

Also if you are able to do some part time work. The Post Office is looking for christmas Temp staff. My son has done this alongside his regular job for the past three years he opts to do the nightshift as this pays the most. I know that they have started advertising now and you can apply on line.
Might be worth a shot as at least it will give you some cash in the short term.

Ellen123

Yellow Monkey and Horace

Thanks for your suggestions. It was hard to write this, and I am grateful for your messages.

chevalier

No worries
Ref selling books. It depends. Several members of this site do well selling books on Amazon. Plus with this is that they don't take the fees until the book is sold. However you have to watch the weight of the books, as I believe they have a fixed price for postage.

Another site is greenmetroplis.com. Again no fees, but your book can sit in a queue for a while before it is shown to viewers, so this is not a short term thing, unless the books are rare or not in print ( so good for people wanting to make up their collection).

I do not know whether you can sell on abebooks.co.uk as a private seller but that is another site. I only buy off there, but drop them an email or have a look at the site.

chev