Feels like im going under!

kimwp

NiteEyez1980 said:

Hi Kim 

The letter basically says pay arrears by 30/01/2023 or we may:

Notify credit agency of default 
Ask for the full amount to be paid
Take you to court

Luke

Oki doki. Then stay the course - you need the first (notify credit agency...) to happen. They can ask for the full amount to be paid, I can also ask for a giant kangaroo to scoop me up in its pouch and feed me mangoes, it's not going to happen. The court possibility, I've already said my thoughts on.

EssexHebridean

Sncjw said:

Is your insurance not able to help with repairs isn't that what you pay them for 

Normal car insurance doesn't cover repairs like this - it's there for if you have an accident, or the car is stolen. The sort of insurance you are thinking of would be a maintenance policy - and very few people would see those as worthwhile because it would be hugely costly. 

OP - stop, take a breath. If you can get £800 spares/repairs for the car, then you can easily buy a runaround with that - if you can add a small amount to it you'll get something a little better obviously, but there are options. Do a search on Autotrader, exclude category D etc, and set the pricing as min £500 - Max £1000 and see what comes up. Scan through for stuff that's marked as running and preferably with some MoT left on it. Personally I'd also be looking at buying from small traders rather than privately - but I'm risk-averse about buying cars from private sellers! 

As for the company chasing you - they COULD do any of those things, but they are only realistically likely to do the first - ie inform the credit reference agencies. Taking you to court costs them a vast sum of money, and if you have nothing to pay, the court will tell them to accept £1 a month, potentially, if that. it's just not cost effective. They use the credit reference agency threat as a first line because they know that terrifies most people who aren't as savvy about things as you now are. In your case you WANT them to inform the CRA's - preferably by way of a default! They can certainly ask for the full amount to be paid, but again - they ask, you say "can't be done" (by ignoring them) and thats the end of that. that letter helpfully says they won't do anything until the end of the month though, so park it for the time being while you sort out more important things like the car issue and the overall budget. 

It's probably a good idea to revise the SOA you did originally now using the new budget so you can see how that's measuring up with your previous shortfalls. 

NiteEyez1980

Hi Essex

Exactly what I'm doing about the car to the tee👍

What's shocking and I think I've mentioned it earlier.  My wifes friends husband consolidated 50k of debt about 5 years ago. He now has racked up another 40k in a loan (she didn't known of) and 20k in cc debt (living like royalty may I add). 

There mortgage has just hit the roof so he's looking to re consolidate again.  That's hit the skids so he's taken a bridging loan out of 75k. Against the sale of his property that not one perosn has viewes.....and he's already dipped into the cc again for a lads holiday!!! 

Makingabobor2

NiteEyez1980 said:

Hi Essex

Exactly what I'm doing about the car to the tee👍

What's shocking and I think I've mentioned it earlier.  My wifes friends husband consolidated 50k of debt about 5 years ago. He now has racked up another 40k in a loan (she didn't known of) and 20k in cc debt (living like royalty may I add). 

There mortgage has just hit the roof so he's looking to re consolidate again.  That's hit the skids so he's taken a bridging loan out of 75k. Against the sale of his property that not one perosn has viewes.....and he's already dipped into the cc again for a lads holiday!!! 

Some people just never learn and can't see the folly in what they are doing. I'd say your friend is a very bad example and hopefully you can teach him some better ways

Singlespeeder

NiteEyez1980 said:

Hi Essex

Exactly what I'm doing about the car to the tee👍

What's shocking and I think I've mentioned it earlier.  My wifes friends husband consolidated 50k of debt about 5 years ago. He now has racked up another 40k in a loan (she didn't known of) and 20k in cc debt (living like royalty may I add). 

There mortgage has just hit the roof so he's looking to re consolidate again.  That's hit the skids so he's taken a bridging loan out of 75k. Against the sale of his property that not one perosn has viewes.....and he's already dipped into the cc again for a lads holiday!!! 

Isn't this terrifying ! It patently scares you now, and it could possibly have been you to a lesser degree.... we're all so glad you can look in on this stupidity  as a wiser outsider

MissPennySave

NiteEyez1980 said:

Hi Essex

Exactly what I'm doing about the car to the tee👍

What's shocking and I think I've mentioned it earlier.  My wifes friends husband consolidated 50k of debt about 5 years ago. He now has racked up another 40k in a loan (she didn't known of) and 20k in cc debt (living like royalty may I add). 

There mortgage has just hit the roof so he's looking to re consolidate again.  That's hit the skids so he's taken a bridging loan out of 75k. Against the sale of his property that not one perosn has viewes.....and he's already dipped into the cc again for a lads holiday!!! 

Wow, that is scary! I mean I'm no saint (as you can see by my signature) but the above sends shivers! It will all end in tears! Not your tears as you came here and have now been given some amazing advice and are on the path to turning things around for you and your family!

Good luck sorting the car out! 

Sncjw

So is he trying to sell his house to pay for the 75k of debt. How will he get a new place to live? 

That's madness..

kimwp

You might want to point him to the forum....

EssexHebridean

kimwp said:

You might want to point him to the forum....

Or maybe not allowing for the personal information the OP has posted here - I'm guessing he'd be instantly recognisable to his friend!

I suspect there are more people like the OP's friend than we can even begin to dream of. You only have to think of how many people here arrive intending to remortgage to clear debt, consolidate, etc - it's an incredibly rare situation where it is suggested that would be a wise thing for them to do. there CAN be situations where particularly consolidation can work, but they're few and far between, and a high interest loan against the possibility of selling a property is a gamble further than I'd be willing to take!

As a society, debt has been normalised to a frightening extent. Even discounting mortgages, I bet that an enormous majority of people in the UK are now in some form of debt between credit cards, loans and overdrafts through to the buy now pay later and PayPal credit type deals that most of those who have them don't even SEE as debt in the traditional sense. Every single time someone here sees their lightbulb flicker on, stops and says "no more" it's a tiny win for the minority - and will undoubtedly be a giant win for the person with the LBM down the line. 

ladyholly

Have you tried to source a second hand head gasket. I dont know if this is possble but I do know there are on line breakers that sell second hand stuff as my dh has use them in the past. Sorry I know nothing about cars except thay have an engine and a wheel at each corner ( well most of them). I just thought I woul mention it in case it is some use.