I Think I'm Nearly There? Maybe

Penny_Racer

Dear All,

May I start by just saying how wonderful it is that there is so much support out there. :T

I have just read Panda Paws' diary which has made me feel just about brave enough to start my own diary. I have tried a couple of times but chickened out and deleted it!

My debt story starts in 2001. I had just finished my firefighters training course and had saved a small deposit to put towards a little flat close to the station. I was so proud of myself, not only had I become a firefighter (a career I had spent so long working towards) but I was now the proud owner of my own place!

A couple of months went by and I was enjoying the single life. There are many advantages of having a place all to yourself, mainly having permanent ownership of the remote control!
However, there are also some disadvantages. The main one for me was that you have to pay every bill yourself, there are no flat mates or partners to split the costs with!

So with all the various bills going out, mortgage, tv license, water, gas, council tax etc and a relatively small wage coming in (for the first 18 months that I was in the service I was taking home approx £800 a month) money was running out...fast.

I immediately cut down on my outgoings that were not essential, like nights out on the town, that magazine I would throw into the shopping trolley. I walked places to cut down my petrol bills and did the usual cost cutting things.

Then one day a friend (although I'd like to kill him now! only joking) introduced me to his plastic friend....Mr Credit Card................................

I immediately signed up for one...

I paid for most of my household bills with my card, which took so much pressure off as it freed up my wages to spend on groceries, petrol,... nights out,.... gadgets for the kitchen, ...holidays........... turned out that apparently I was not to be trusted with a credit card.

I had kind of a light bulb moment at this stage and decided enough was enough. As the introductory interest free offer was soon to expire I transfered the balance onto another card. that was supposed to be the end of it. I would pay off that card and my debts would be gone.....

This card however offered me even more money so I ended up dipping into that. And before long I transfered this even bigger balance to another card and the same happened again.......
In 2003 I took on a loan to consolidate the cards and ended up dipping into it, using most of it for a deposit to buy a house with my partner...and so it carried on.

:eek: At this point I was over £53,000 in debt. :eek:


My partner was wonderful and very supportive and with his help I was still managing to make all of the monthly repayments in full.

We got married in 2005 and shortly after, due to the nature of his work we had to re-locate abroad for 6 months. I was devastated as I had to leave the Fire Service because they would not let me take a career break. This also meant that I had no income for 6 months.

This REALLY was my light bulb moment. I was in another country with no work and no income.

I contacted CCCS and began a self debt management plan. I contacted all of my debtors to let them no I had no income and offered them a reduced amount per month.
It took over a year but I finally negotiated a reduced monthly payment with all 11 debtors. This totaled £250. Which was excellent considering I was paying over £1,500 per month. They had also agreed to freeze the interest.
These months were not easy though. The constant phone calls and threats were taking its toll. At this point I didn't really know my rights and it was very frightening. I was constantly on the phone in tears to CCCS, but they always put my mind at rest). (Thank you CCCS) :A

As my knowledge of the system improved I found that I had more confidence dealing with my debtors. I stuck to my guns and continued making the monthly payments, despite the odd phone call asking me to increase the payments.

What I found that worked in my favour (once they had agreed to the reduced settlement figures) was that when they contacted me I would very politely (sometimes over politely) tell them that "I would not be increasing my payments but please feel free to contact me again if you need discuss anything with me". This totally threw them as normally people would beg them stop calling!
Another thing, the debt collection agencies are so much easier to deal with than the actual credit card or loan companies. If you need to call them you get straight through and in my experience even if you are making very small payments towards your debt they are so much friendlier. In fact I know its not good that my debts have reached this stage but I'd rather be dealing with DCA than the actual Credit Card or loads companies.

We moved back to the Uk but have since moved around the country a further 4 times. This is the bit I'm needing some advice on (if you're still awake sorry!) Beacause of the constant moving I find it difficult to secure work. I now do agency work, reception work mainly (god I miss the fire service!) but it is not very consistent. There are long periods when i am not working. Because of this I do not let my debtors know about my changes of circumstances. I know that i should but it changes every couple of months. So they all think that I am not working. In effect I am lying to them. Could I get into trouble for this?

Last month I sold my flat and made £20,000. I would like to offer the majority of this as full and final settlements. I have already sent each debtor a letter. I have a feeling though that because I have been making steady payments for the past 3 years that they will refuse these offers point blank. I mean if they are being paid why except a f&f? Should reduce my monthly payments even more in the hope that they would accept a f&f in a few months?
Would the fact that I am working get me into trouble?
Any help here would be appreciated.

I'm sorry if I waffled, I guess thats what happens when you've held it in for so many years!

xxxxxxxx

mookybargirl

Hi Penny Racer. I can't really answer but I'm sure someone will come along soon to help. Well done on your post and I hope it makes you feel better seeing it all on 'paper'. You're in good hand with the guys here.

PS - I didn't get bored half way through

In_Search_Of_Me

H there & well done for setting up a diary! I dont know much about DMP'sbut I suspect that you have agreed certain things with tham & that they would be less than happy if they found out you had not been truthful but sure someone else will be able to advise you. If you've offered full & final just see what they say and go from there but be REALLY careful not to think ooo I have money...try & learn from the mistakes of the past!
Re work are you lkely to settle anywhere as it will make it harder. Can understand why you miss a job you loved & sounds like you have a loving oh! Hang in there & keep us posted!

Penny_Racer

Thanks Mooky. I'm actually sat here in tears as I feel so relieved. (what a baby!!)

Penny_Racer

Thanks Fish Face. Very good point about learning from my mistakes. I'm going to put the money in a savings account where I can't get my grubby little spending mitts on it!!
xx

WCL

Hi Penny Racer,
Congrats on the sale of your property, one thing thats worth a go - i havent tried this myself so im not too sure of how well it will work. Try and contact your preditors.................oh sorry i mean creditors! and explain that your financial situation maybe changing shortly (ie. being made redundant, higher outgoings etc) and that although you have been making constant payments up to now they can expect to see these payments reducing. This may lead them to believe that you are a higher risk thus encouraging them to offer a reduced settlement figure to get you off their books - afterall some money is better than no money to them. Now dont get me wrong i wouldnt usually condone lying about your situation but if it gets the desired response.
Hope this helps

In_Search_Of_Me

WCL wrote: »

Hi Penny Racer,
Now dont get me wrong i wouldnt usually condone lying about your situation but if it gets the desired response.
Hope this helps

Have you considered that in giving this advice that the OP would be effectively acting fraudulently and that could not only lead to the DMP being cancelled but also to a criminal conviction...really NOT a good idea. Nough said.

WCL

Apologies fish-face & Penny Racer, still relatively new to all this, this was actually advice given to me by a DMC.

Penny_Racer

Oh my goodness. Does this mean that I am breaking the law by lying to the DCAs? :eek:

I do my own DMP. Does this make a difference?

Penny_Racer

Thanks Fish Face. In actual fact I was going to do exactly what you suggested. However, it was going to be the truth (for once).

My husband and I are about to start a family. We've put it off for so long now because of the debts, but after careful consideration we have decided to go ahead. (If I wait until I'm debt free I'll be buying nappies with my pension book!)
So my financial situation will be changing.
xx

WCL

Honestly Penny Racer i think that Fishface is over doing things slightly! First of all telling you to "learn from your mistakes" (like you wouldnt any way!) and then scaring the living daylights out of you by proclaiming that your almost certainly due to go to prison is you are flexible with the truth about your outgoings is crazy. If you are honestly going to experience difficulties with your income/expenses in the near future - let the DMC's know and they may accept a reduced final payment - worth a go hey......

I get very frustrated with the Holier-than-thou debt free wannabies on this site - constructive help from now on please.

Good luck Penny Racer