Starting to miss payments

DrEskimo

lillypoo said:

My current car is on Ford options, the agreement runs out next autumn and I either have to fibd £7000 to give them if I want to keep it ( not gonna happen) , or just hand the car back. 
So I am hoping I can build up enough in my emergency fund to be able to get an older cheaper vehicle when this one goes back.

The Ford Options looks like just a standard PCP finance arrangment.

In which case, it is always worth looking at what the value of the car is a trade value (use WeBuyAnyCar to get an indication) relative to the settlement figure (not outstanding balance, the cost to settle the finance and buy the car).

It's likely you have equity in the car, which could go towards a cheap replacement.

You also don't have to wait till the end of the term to do this. You can settle whenever you like, so could look tomorrow to get a range of trade in quotes (try online brokers, local garages/dealers, potentially as a part-exchange if you can't go without a car), and compare that with the settlement quote you can get from ringing Ford Finance.

lillypoo

DrEskimo said:

lillypoo said:

My current car is on Ford options, the agreement runs out next autumn and I either have to fibd £7000 to give them if I want to keep it ( not gonna happen) , or just hand the car back. 
So I am hoping I can build up enough in my emergency fund to be able to get an older cheaper vehicle when this one goes back.

The Ford Options looks like just a standard PCP finance arrangment.

In which case, it is always worth looking at what the value of the car is a trade value (use WeBuyAnyCar to get an indication) relative to the settlement figure (not outstanding balance, the cost to settle the finance and buy the car).

It's likely you have equity in the car, which could go towards a cheap replacement.

You also don't have to wait till the end of the term to do this. You can settle whenever you like, so could look tomorrow to get a range of trade in quotes (try online brokers, local garages/dealers, potentially as a part-exchange if you can't go without a car), and compare that with the settlement quote you can get from ringing Ford Finance.

That's really useful. Thanks so much

fatbelly

lillypoo said:

Thanks sly

Sorry to ask a silly question but what does CCA stand for?

Consumer Credit Act agreement 

https://nationaldebtline.org/sample-letters/information-about-your-agreement-under-consumer-credit-act/

RAS

lillypoo said:

Sly72 said:

lillypoo said:

Hi , morning all

Wish I could have come up with a catchier discussion title but my heads scrambled.

After a long long struggle with debt I am now getting letters about persistent debt from my two big credit cards. The recent interest increase has made it worse. So to cut a long story short, I've done the online stuff with SC who recommended mortgaging the house  first but also said a dmp is suitable.

Thanks to all the info on here, I will be opening up a new bank account this week and maybe missing first cc payments next month.

So. ..questions:

I read that defaults are now taking longer to happen. Does anyone  have any recent experience with lloyds bank or m&s bank (hsbc group) ? 

My current car is on Ford options, the agreement runs out next autumn and I either have to fibd £7000 to give them if I want to keep it ( not gonna happen) , or just hand the car back. 
So I am hoping I can build up enough in my emergency fund to be able to get an older cheaper vehicle when this one goes back.

Secondly.

I looked at applying for a new bank account last night. Both online applications asked for details of my existing current account and my employers details 

Are they likely to contact my employer? And if they  see that I have a huge overdraft which I am using sll of ...are they really going to accept me?

I am currently only in debt to lloyds and m&s so I'd looked at tsb snd coop banks. If anyone has a better  recommendation I'd be grateful

I think that's it for now ...spending most of my sleepless nights reading the boards has answered most of my questions but I'm sure I'll think of more

Thanks in advance

I stopped making payments (7 Debts) in October 22 around end of Feb had letters to say if I don't pay outstanding amount or make contact within 28 days of letter date they will default me. So far 2 defaults are showing on credit report and have requested CCA so no payment agreements until that's resolved, other 5 waiting for default confirmation then CCA requests.

Thanks sly

Sorry to ask a silly question but what does CCA stand for?

The only silly question is the one you didn't ask.

Very few of us start knowing what we need to know about any new situation. In a year or so, you will be guiding new folk on here.

So, just ask.

lillypoo

Morning

Part of my debt is a £2500 overdraft (agreed) with what will soon be my old bank (lloyds)

The interest is charged daily depending on how much of the o/d is in use. 

Sad to say its maxed out by the end of each month and will be maxed out when I start not paying them for my two Ccs snd have moved yo my new basic account elsewhere 

So does anyone know what will happen to that? I can't get my head round it. Obviously I won't be paying my salary in so won't be paying off the o/d or the interest so will that mean I just gradually owe more and more till they default and I start my dmp?

I've got myself a bit confuddled

enthusiasticsaver

The overdraft will need to be included in the DMP and yes I would tell them you won’t be paying in to the account anymore and ask them to freeze charges. It will show as a default on your credit record. 

hoverFrog1

You have the option of writing to the bank and the credit card companies and asking for a payment holiday. You'll still accrue interest but it might give you a bit of wiggle room. Ask for two or three months.

Alternatively you could default on the credit cards. If you write to them, returning the cut up cards, and say that you can no longer afford to make payments but would like to come to an arrangement to repay the debt they'll have to accept that. It is unsecured debt after all. As long as you are making a reasonable repayment then you'll avoid court action.

This will give you a chance to clear your overdraft. Overdrafts are really expensive so you want to clear that first. If you're paying £1000 a month on credit cards and you get a two month breather then your overdraft will almost be clear. Your repayments to the credit cards will be less than the normal repayments and you can ask that they suspend interest. They'll probably do this though it will go on your credit rating. Definitely stop using them regardless.

I'm afraid I know nothing about car finance so I can't comment on that.

lillypoo

Hi again

Overthinking here but just want to be 100% sure on things

Wanted to post SOA today but car payment is due on 4th so can't get an accurate settlement figure on the car till that's cleared

Tomorrow I start cancelling DDs as they are paid for May...moving essential ones over to my new account

Tomorrow I am also due to pay cc bills, 2 of which are with my current bank but one is elsewhere. Can I NOT PAY that one this month? Is there any reason why I shouldn't miss this payment?
Then stop paying the ones with my current bank next month when I will no longer be using my current account with them.

Thanks in advance.

RAS

Is you are sure the elsewhere account doesn't belong to a provider that belongs to the same banking group as you current account, cancel it.

lillypoo

RAS said:

Is you are sure the elsewhere account doesn't belong to a provider that belongs to the same banking group as you current account, cancel it.

My current account is  lloyds and the cc is m&s bank which appears to be hsbc