Catalogue Crisis

krisskross

Might be worth the stamp cost to write to the companies asking for copies of the signed agreements if they exist.

Leo_2

Tony_H wrote:

Month 1

Choice: 12.35
Choice4U: 6.35
Empire: 4.00
Index: 89.92 (Paid in full)
Next: 39.41
MWard: 57.97 (Paid in full)


Month 2

Choice: 12.35
Choice4U: 6.35
Empire: 4.00
Next: 187.30


Month 3

Choice: 102.48
Choice4U: 52.63
Empire: 33.14
Next: 21.75


Month 4

Choice: 114.32
Choice4U: 58.72
Empire: 36.96


Month 5

Choice: 5.67 (Paid in full)
Choice4U: 2.88 (Paid in full)
Empire: 1.86 (Paid in full)


- - - - - - - - - - - -
These calculations might have to be adjusted slightly for interest & concentrate on paying off the account with applied interest. Most catalogues have a 20 week payment policy which means Choice, Choice4u & Empire would be exceeding this period based on the fact that the debt is current.

But they should all go for it!!

Thats exactly the type of thing i was aiming to achieve but it was doing my head in trying to plan it out on paper for her! Thats a great help mate, cheers very much As soon as my friend has got onto the catalogues ill let you know how she progresses.

margaretclare

Good grief. It's incredible. For example, Marshall Ward catalogue APR is nearly 40%. Yes, nearly 40%!! So for every £100 you spend, over a year you add £40 on to that £100.

I remember Marshall Ward from long ago. When we moved into our very first home back in 1962, and we needed things, and it was oh so easy to order and get things delivered..with a toddler and new home there were lots of things needed - that was the beginning of a very very slippery slope!

I bet that none of MW's victims will look at the APR, any more than I did in those far-off days!

The plan to pay them off month-by-month looks good and could be done, with a little effort and commitment. The point is, your *friend* would need to have had her 'lightbulb moment' and be determined to get rid of these sharks once and for all! Sharks they are, preying on the unwary and the vulnerable.

Aunty Margaret

Tony_H_3

Actually, I have just rechecked these figures and I have made a mistake. It's unlikely that the catalogue companies will accept this, but it's still worthy of a try. The only good thing that stands in favour is that all account will be cleared within the 20 week period.

I will post the corrected figures later tonight as I don't have time currently.

Regards
Tony

Leo_2

Ive checked over your figures and they definitely do add up to the amount specified.

Are you saying the companies wont accept the payments as they are not large enough?

Im sure its worth a try!

Malestrom

Ok, the way I see it, although MS and Next are charging ridiculous interest rates, your friend is actually paying more in reminders/admin charges from the debt collection companies. So MS and Next need to be paid at the minimum amount allowed for a few months. I've taken the amounts you gave although these may vary each month, its impossible for us to know exactly so allowances need to be made.

The debts that are costing the most need to be settled first via pro-rata payments, which means that each creditor gets a percentage of the available income based on the amount of debt owed. Available income each month is £210 - £8(MS) - £46.17(Next) = £155.83. This is the amount that you tell the debt management companies is available to settle the debts, not £210 as that includes other financial commitments (MS & Next).


Month 1:

Marshall Ward £8.00 (min payment) Balance £49.97
Next £46.17 (min payment) Balance £202.29
Choice £70.80 (pro-rata payment) Balance £176.37
Choice4U £36.36 (pro-rata payment) Balance £90.57
Empire £22.91 (pro-rata payment) Balance £57.05
Index £25.76 (pro-rata payment) Balance £64.16

Total payment £210.00


Month 2:

Marshall Ward £8.00 (min payment) Balance £41.97
Next £46.17 (min payment) Balance £156.12
Choice £70.80 (pro-rata payment) Balance £105.57
Choice4U £36.36 (pro-rata payment) Balance £54.21
Empire £22.91 (pro-rata payment) Balance £34.14
Index £25.76 (pro-rata payment) Balance £38.40

Total payment £210.00


Month 3:

Marshall Ward £8.00 (min payment) Balance £33.97
Next £46.17 (min payment) Balance £109.95
Choice £70.80 (pro-rata payment) Balance £34.77
Choice4U £36.36 (pro-rata payment) Balance £17.85
Empire £22.91 (pro-rata payment) Balance £11.23
Index £25.76 (pro-rata payment) Balance £12.64

Total payment £210.00


Month 4:

Marshall Ward £33.97 (max payment) Balance £0
Next £99.54 (max payment) Balance £10.41
Choice £34.77 (final pro-rata payment) Balance £0
Choice4U £17.85 (final pro-rata payment) Balance £0
Empire £11.23 (final pro-rata payment) Balance £0
Index £12.64 (final pro-rata payment) Balance £0

Total payment £210.00


Month 5:

Next £10.41 Balance £0
Capital One Card £199.59 (plus usual payment)

Tony_H_3

If all has gone to plan above this text you should see a table containing values & coloured squares. The yellow squares represent the minimum payment you would be expected to pay, the green squares represent the remainder from the £210 divided on a pro rata basis and finally the orange squares represent the final balances to clear the accounts.

**The above doesn't include account charges or interest but there should be sufficient funds in month 5 to cover these (if applied)

Malestrom

You do not need to make pro-rata payments to Next or Marshall Ward, these accounts are still trading and haven't gone to debt collection so minimum payments will suffice. The OP must clear the priority debts first, which are those that are accruing charges and these must be paid pro-rata. The catalogue companies won't agree to the above repayment plan because Index are getting a non-pro-rata payment, i.e. higher than the other three.

mandi

HI Listen you dont need to be paying the full amount back each month ...this is what you Must do... Write to each company and tell them yor in a mess.......... Ask for an immediate stop to Interest and Admin costs.., offer each one £5.00 a month, and advise them when you have spare you will send a cheque.. these people send you threatening letters but it will be months and months before court action if any is taken, basicly they employ a debit collection agency,to recover the funds, once its gone to a collection agency, you wont be paying interest any way..

secondly dont give them a landline number to contact you, because youll never be off the phone!! best to give a mobile number, then you dont have to answer if you dont want to... WARNING FREDRICKSON INTERNATIONAL, ARE A NASTY LOT!! If they threten you as they did me contact the CREDIT SERVICES AUTHORITY,already in trouble with them

Finally Dont worry.. the catalogue companys are the last people you need to worry about, just make sure rent , utility bills etc are paid

Good Luck