Please Help, Very selling my debt to Lowell need advice

VioletSkyblue

Hello all and thank you for reading this.
I am really not sure on what to do and I would like to have your advice if possible.
I live in Scotland and I have a Debt with Very which is around £2000 and they expect a £600 min payment within the week. I called them back in December explaining that my situation changed and I needed a break from the debt, just like I did with another credit I had. The difference is that the other creditor was very understand and gave me 6 months no interests, whilst Very told me ok for the minimum payments but I will still get interests applied on items not paid by the end of the 12 months 0 interest deal. I felt that was quite unfair but I had no other choice. Now they sent me a letter stating that if I don't pay this amount they are gonna sell my debt so I called them and explained the situation, asking for a bit more time and they said that as my circumstances haven't improved in the last 6 months they have no other choice than transferring the debt do Lowell. I asked them if there was any other option and they said no, unless I can repay but they did not want to tell me what minimum payment they would accept. I could ask my parents to help me with maybe £10-£20 a month towards the debt but no more than that I'm afraid, as I also have the other creditors to pay off ASAP (2 of them are debts I am managing to keep in time, the other is the one I called back in December too and was very understanding. That's Amazon Credit Card)

What I wanted to ask was your advice on how to deal with this. I spoke with STEP CHANGE in the past but as my benefits barely cover important expenses like food and council tax, there is nothing they can do. What would be the better option for me? To accept that Lowell is gonna take the debt and try to work small payments with them, or try to ask my parents for help? I know with option one I will have a 6 years default in my credit score (that's what the Very woman said on the phone, but I thought in Scotland was 5?) but I do not really know what that would affect. Would I still be able to raise my credit score during the 6 years or would that ruin me? Also I have a house in my name, my parents got that for me as I'm disabled and they wanted to make sure I would always have a roof on my head, can that be taken away from me?

Please help me, I know I am asking a lot of your time but I am heavily anxious, stressed and really confused.
Thank you.

sourcrates

Hi,

Nothing to stress about, you can simply set up a payment arrangement with Lowell, whatever you can afford, will be accepted.

Lowel buy these debts for peanuts, so whatever your offer is, it won`t be rejected, they prefer small regular payments, if thats all you can afford, they are quite easy to deal with, it can all be done online, automatically, and you don`t need to speak to anyone.

Where debt collection is concerned nowadays, affordability is paramount, especially with the covid-19 situation.

Very are notorious for being awkward and always wanting more than people can afford, you can relax with Lowell, I hate to say it, but they are one of the easiest collection companies to deal with since the FCA crackdown, so relax.

Defaults stay on your file 6 years where ever you are in the United Kingdom, you are confusing the limitation period which is 6 years in England and Wales, but 5 years in Scotland.

You may take a hit on your credit file, but time will heal it, your house is quite safe, these type of debts are all unsecured non essential, simple contract debts, as i said, relax, nothing will happen.

Fireflyaway

Sourcrates is completely correct. I've been in this situation. At first the instinct is to try and avoid what seems like severe consequences. Some companies will pressure you in this way. It's far better in my experience to allow the debt to be sold and then negotiate repayments that you can afford. So what if your credit score goes down! You can manage without one. It's going to take a lot of stress off you. Importantly identity how you got in this situation and do a budget so you don't get back in debt. A good way forward is to start by not borrowing again. If you don't have the cash don't buy it. Once your new payment arrangement is sorted you will feel so much better. 

fatbelly

As sourcrates said, you have nothing to worry about.
You own your own home and are not looking to move or remortgage so one default on your file is not going to hurt. (stays 6 years, not 5)
Lowell are a far better company to deal with than Very so let it take its course and try to save some money while the transfer takes place.

Lowell are always open to a deal. One poster last week settled for 12.5% but that was exceptional.

VioletSkyblue

Sourcrates, Fireflyaway and Fatbelly,

Thank you so much for reassuring me. I feel a lot better now, in my head I had the worst scenarios flashing before my eyes but now I understand things are gonna be manageable when Lowell take the debt. I will let things take their course and then arrange things with them for repayments  

liggerz87

Lowell are good they had like 8k worth of my debts I was doing a debt relief order was just over the 20k threshold by like 3k called lowel and was honest with them they wiped everything I owed them but would still report on file as default and was able to do the debt relief order 

monetxchange

Haven't dealt with Lowell, but when I was in a lot of HMRC debt I found the debt collection agencies MUCH nicer to deal with. Much more realistic, understanding, will explain things to you and always double check what payment plan you're entering into is affordable (as opposed to HMRC directly who refused anything less than £1200 a month from a £1600 wage). You'll be fine. Just get this set up and get it cleared so it's off your shoulders for good.