Best way forward please?? 23 February at 9:44AM in Debt-Free Wannabe 5 replies 732 views

Alfiecatsmum

Hi,
I’ve been reading for a while but still fairly new to this!!  I have around £55k of credit card debt, I stopped paying last year when the wheels finally came off after kidding myself for a long time and doing balance transfers to make payments etc etc!!
Anyway, I was about to go into an IVA with PayPlan but then found out I’d be getting an inheritance but no idea how much so instead did a DMP through Pay Plan to buy me some time.  I’m currently paying £100 a month so at this rate I’ll be about 103 before I’m debt free!!!! 😂
Some of these have now defaulted and been passed to debt collection agencies but don’t think all have defaulted.
I still don’t know how much inheritance is but have been told will be getting it soon.  I want to try and maximize whatever I do get to reduce debt as much as possible.
so questions:
I’ve just started to read about requesting CCA’s, I think all my cards date to before 2007 with some going back to 1990’s which were originally with now defunct companies such as Egg and Marbles - could this work for me? 

And the inheritance - let say I get enough to pay everything off in full, do I have to tell them how much I’ve got?  I want to try and make settlement offers if I can but I also have an equity loan on my house which should have been paid last year and it’s unlikely I’ll be able to pay everything.  But if I can I would like to try and keep something so can take the kids on holiday!!

Thanks for reading!

-taff

Yes, request the CCAs first.

No, you don't have to tell anyone how much you will have. You can start your negotiations as low as ten percent depending on the age and how much you're paying, how long ago they defaulted, etc. Do the CCAs and see what comes back first, because if they can't provide them, you don't have to pay them. You still owe it, but they can't use the courts to issue any CCJs....

sourcrates

As with most things in life, there is a right way, and a wrong way to do things.

You have a good strategy planned here, of course it does depend on the amount of the inheritance you end up with, but if nothing else, sending CCA`s will sort the wheat from the chaff, and hopefully give you some leverage in the next stage.

I can tell you now with increased confidence, the Egg card will not have compliant paperwork, virtually non of them did, the rules for compliance are slightly different for pre-2007 credit card debts, so you need to be aware of this, also, this will not be a quick fix, obtaining paperwork takes time, regardless of the timescales in the guidance, expect the whole thing to take between 6 months to a year, that`s if they can comply, as no paperwork actually changes hands, it stays with the original creditor, until its requested.

So this part of it is more of a marathon, than a sprint, but it gives you time, that is the important thing, requesting information under sec 77/79 CCA has the effect of putting everything "on hold" so payment should not be chased or made during this time.

Its a case of send the letters, then wait and see what pops up.

vickya

I can't offer any advice on CCA's, but I just wanted to chime in on your use of the inheritance money. 
I really wouldn't recommend using the leftover money to take your children on holiday. It's a lovely gesture, but to prevent you from spiralling back into debt, I think you'd be better placed saving the money to make sure you have an emergency fund and savings to your name. Otherwise, you will have had a lovely holiday but you'll be back in debt the moment an unexpected expense comes your way. Also, holidays have a funny habit of turning out more expensive than you initially budget for, meaning that you may be able to pay for the holiday with the leftover inheritance money, but spending money might end up on a CC and so the cycle begins again.
Holidays are for when you're debt free and have a solid emergency fund. 

Alfiecatsmum

Thanks for all the advice, much appreciated!
Is there any possible negative effect of doing the CCA request?

Galloglass

Alfiecatsmum said:

Thanks for all the advice, much appreciated!
Is there any possible negative effect of doing the CCA request?

No. It is simply your personal information and you are entitled to it. You can ask for everything they know about you too (Subject Access Request). 

I'm often surprised that few people actually check what the other side (think) they know about them. It's like a game of poker where you can ask what cards the other side has. Sort of balances up the odds.