We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Cleaning things up

Options

Hi all. With a new baby on the way - three weeks to go - I'm taking this opportunity to put my finances in order and address the lingering debts I have from years gone by. I am quite embarrassed that I have allowed these debts to accrue, and sharing this has been difficult but if anyone can offer any advice I think it is worth it.

2020 is the first time in 5/6 years that I have had a secure, decent income and so over the past few months I've been getting in contact with some creditors to put some things in place. Before this, in all honesty I have been avoiding contact with my creditors whether it be through not answering the phone or correspondence I am sent. After ongoing bills, I have around £300 per month of disposable income. I have contacted all of the creditors above to clarify the amount owed, in some cases what the debt was for and try to establish repayment terms. However, only a few have got back to me:

My current debts and repayments are below:

CCJ - Mobile Money - £3,110 - want payment in full, have asked for details of my employer

Halifax - £494 - default on 17 Nov 2017

Barclays - £100 - default on 23 Jul 2015
Ulster - £193 - default on 31 Dec 2018
Lloyds  - £299 - default on 15 Sep 2017
Loans 2 Go -  £1106 - default on 20 Feb 2018
Varooma -  £3296 - default on 10 Apr 2018 - agreed to remove all additional charges and return to original debt of £900, agreed repayments of £90 per month.
Active Securities -  £131 - default on 09 Oct 2015

Clydesdale Bank - £239 - default on 11 May 2018 - agreed repayments of £25 per month, 2 payments made thus far

I wondered if anyone has good advice on how best to address the remaining debts. I'm conscious that my CCJ should be the priority - I am concerned however that if an attachment of earnings is applied to my wages, this will remove all of my disposable income if not more, plunging me back into the situation I have been for the past 5/6 years. Is it worth clearing the smaller debts first to get them out of the way?

Any advice appreciated

Comments

  • sourcrates
    sourcrates Posts: 31,516 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Hi,
    Re- the debt with the CCJ, it dosen`t matter if they want payment in full, you only pay what the judgement says you pay, if it was a "forthwith judgement" then fair enough, but you can apply to the court for an affordable installment order, best to do this before the attachment to earnings becomes a thing.
    You need court form N-245 to apply, there may be a fee to pay.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.