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£44,253, no payments made in 2 years. Where do i start?!

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£44,253, no payments made in 2 years. Where do i start?!

34 replies 7.9K views
Hi all. New to MSE, finally signed up after lurking about for the past week after watching Martin Lewis Moneyshow. What a brilliant forum.

Its time for me to get my head out my a*** and deal with my debts. As the title says, £44,253 to get through. Taken from CreditKarma tonight as I have zero paperwork for any of these accounts. I haven't made payment to any accounts for 18 months now so it looks like all interest has been stopped on them. 

The £44,253 is made up of the following

American Express £4,126 - Defaulted Feb 18
RBS CC - £3,177 - Defaulted Jan 18

Unsecured loans
RBS 
£12,416 - Defaulted April 18   
£3,826 - Defaulted April 18
£3,926 - Defaulted April 18
Wonga
£451 - Defaulted July 17
Santander
£3,006 - Defaulted Dec 16
£8,200 - Defaulted Dec 16
£4,078 - Defaulted Jan 17

Retail finance -
Lowell ( unsure what this is)
£532 - Defaulted March 18

Quick Quid 
£479 - Defaulted Feb 19


As I said above I have no paperwork for any of these. All cards/accounts with them banks are all closed. 
Where do I start? I'm in Scotland if it makes a difference. I want to get these cleared while building my credit rating to purchase a property with my other half in 6/7 years time.

Im self employed. Income can vary as work is seasonal. Take home income tends to be above £2,000 per calendar month but can vary from there up to £7,000(best month iv had when jobs land well and weather allows it) As im taxed at source i can be getting a few k lump sum April each year from a tax rebate.


Outgoings are now fixed(and have been for last few months allowing me to finally get ahead until corona knocked me back a step!)
£800 - my share of bills(halfs with other half, 1 dependent, covers council tax etc)
£300 - food bill, utilities etc. I cover all of it (slow cooker been dusted down and google search for recipes coming right up)
£120 - phone bill(i know, ridiculous! Tied in. Will be cut in half to £60 in August then go sim only April 2021 at £12 or so PCM)
£240 - fuel 
£18 - insurance
£20 - work clothes for me
£20 - car maintenance 
£50 - entertainment
£100 - dependent, various things 
£218 - Loan payment to family member, for another 24 months. This got me on my feet and started up self employed. 

Total outgoings of £1,886

Now as you'll see that gives a surplus of £114 for the month if nothing breaks/goes wrong. More if earnings are above £2,000 which they usually are. 

So, where do i start? Contact the companies i owe money to? Save up and offer a % of monies owed to settle accounts? 


I was going great guns and upto an emergency fund of 3 months, now down to 1 months with the effect of Covid-19. Not had any success with financial help. 
Trying not to dwell on it as should be back working in June. 


Thanks ever so much for anyone still reading and any advice at all, good or bad is appreciated. 20/05/2020 is day one, my fight starts now.





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Replies

  • sourcratessourcrates Forumite, Board Guide
    22K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Are you been chased for any of these debts ?
    Remember, some of them become expunged in a year or so’s time, as your in Scotland, the limitation period is 5 years, after which they are gone for good.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • BossofmoneyBossofmoney Forumite
    44 posts
    10 Posts
    Not near as much as i expected to be. Get the odd call from Lowell/Wonga which I hang up on and block the number,as I said, burying my head. Had a couple letters from Moorcroft about the RBS loans. Never had any communication with them just a couple of letters received asking me to get in touch. 

    Not sure what my next move should be. Save money and let them drop off? How do I improve my credit rating in the meantime while I cant get credit?
  • BossofmoneyBossofmoney Forumite
    44 posts
    10 Posts
    Bumping this upto the top in the hope of some more advice as iv no idea what my best option is or how to start rebuilding my credit rating while I cant even get a credit card etc to do so.
  • GalloglassGalloglass Forumite
    1.1K posts
    1,000 Posts Name Dropper Photogenic
    ✭✭✭
    If you have no paperwork, the first step is to get the paperwork.
    How you start building your credit rating is to repay the debts that need repaying but you won't know which these are till you get the paperwork. A few stamps, calls or emails can start the process

    Climbed the ladder to success in life? Take that ladder and lend it to someone less fortunate.

  • BossofmoneyBossofmoney Forumite
    44 posts
    10 Posts
    What should I offer them? The amount the monthly payment is supposed to be/£1 a month token payment and pay as much as possible off one debt at a time or offer full and final % of balance to get the accounts closed? 

    Unsure how best to proceed, I will go and fire out emails to get the account details of them all now. 
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • edited 22 May at 3:05PM
    GalloglassGalloglass Forumite
    1.1K posts
    1,000 Posts Name Dropper Photogenic
    ✭✭✭
    edited 22 May at 3:05PM
    Remember, some of them become expunged in a year or so’s time, as your in Scotland, the limitation period is 5 years, after which they are gone for good.
    As SC has pointed out above, some are nearing the end of being on your credit record. Best to understand if any are collectible.

    Have you any court action in progress?

    Climbed the ladder to success in life? Take that ladder and lend it to someone less fortunate.

  • edited 22 May at 3:48PM
    louisa29louisa29 Forumite
    41 posts
    Part of the Furniture 10 Posts Combo Breaker
    edited 22 May at 3:48PM
    Hi

    First of all well done for reaching out and ready to face it...

    Write each debt down smallest to highest.
    search each company on google and get their number give them a call and ask for a reference number and total outstanding on their system. 
    Ask the minimum monthly payment they'll take (although they cant refuse £1 per month for now if you want to offer that, slight high ones I offer £5). Set up a direct debit/card payment. Lowell have a way of setting up your account on their website so you can keep an eye on it and manage your account online. 

    On my spread sheet I put all debts under £500 in green, £500-1k in orange and anything over 1k are in red. I attempt to pay off my greens and when the £500-1k go under £500 they get changed to green. I've now gone down from 12 to 5 creditors this way with 3 of them being green. If any of your debts are a certain amount of years as above they'll drop off your report anyway.
    This is just my personal way of dealing with mine, also seek professional advice, once you've written up your spread sheet (include columns for reference number and telephone number for easy viewing) you could always call a debt free management company who will go through your expenditure and arrange a 5yr payment plan.

    All the best 
  • BossofmoneyBossofmoney Forumite
    44 posts
    10 Posts
    Remember, some of them become expunged in a year or so’s time, as your in Scotland, the limitation period is 5 years, after which they are gone for good.
    As SC has pointed out above, some are nearing the end of being on your credit record. Best to understand if any are collectible.

    Have you any court action in progress?


    No court action at all. Had a few default letters but nothing for a while now. 
    When do they drop off? I always thought it was 6 years after no payment or contact? 
    I don't intend on getting away without paying them/only paying a % of them to settle them but if I can then I will. 

    I assume the D on credit report means its defaulted every month zero payment is made? So really my credit rating wont improve until I at least start to make token payments/get them settled?
  • BossofmoneyBossofmoney Forumite
    44 posts
    10 Posts
    louisa29 said:
    Hi

    First of all well done for reaching out and ready to face it...

    Write each debt down smallest to highest.
    search each company on google and get their number give them a call and ask for a reference number and total outstanding on their system. 
    Ask the minimum monthly payment they'll take (although they cant refuse £1 per month for now if you want to offer that, slight high ones I offer £5). Set up a direct debit/card payment. Lowell have a way of setting up your account on their website so you can keep an eye on it and manage your account online. 

    On my spread sheet I put all debts under £500 in green, £500-1k in orange and anything over 1k are in red. I attempt to pay off my greens and when the £500-1k go under £500 they get changed to green. I've now gone down from 12 to 5 creditors this way with 3 of them being green. If any of your debts are a certain amount of years as above they'll drop off your report anyway.
    This is just my personal way of dealing with mine, also seek professional advice, once you've written up your spread sheet (include columns for reference number and telephone number for easy viewing) you could always call a debt free management company who will go through your expenditure and arrange a 5yr payment plan.

    All the best 
    Thanks for the reply. Brilliant idea and a spreadsheet will keep me motivated when progress seems slow. 
    I already have a spreadsheet for budgeting and forecast cashflow since im self employed and I love playing about with the numbers now to see where I can improve things.

    At what stage do they drop off? Does that mean no payment required or they stop registering a default on that account? Sorry for so many questions, its all new to me. Trying to find as much information as I can online before I start tackling this head on. Replies everywhere seems slow with the COVID-19 delays but im hoping from end of June I can start making progress and never default again. My credit rating must be shockingly bad, my own fault,i know. Cant change it now but I can improve it! So I want my credit rating the best I can get it, so any tips on that will be much appreciated too. Iv got a contract phone which I pay every month on time. 

    Thanks for your help so far! 
  • MandaloiianMandaloiian Forumite
    34 posts
    10 Posts Name Dropper
    Bumping this upto the top in the hope of some more advice as iv no idea what my best option is or how to start rebuilding my credit rating while I cant even get a credit card etc to do so.
    I believe there are credit building cards that may help and if I remember correctly there is a pre paid card with a tiny limit but it reports back regular to the credit agencies so it’s good.
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