Debt help, another clear start victim

Starlight1934

Hello all,

This is my first time posting on a forum ever so am nervous and also a little ashamed that I have let my situation get so out of hand but after a couple of years with my head in the sand I'm finally strong enough to tackle my debt issues head on.

After reading on here and on other forums, I've realised I too got through to an imposter step change who put me in touch with Clear Start. They took money from me to begin with and would set up a payment plan but said they weren't hearing anything back from my debtors but a solicitor might be able to help in writing my debts off. They put me through to Mellors Solicitors who advised if they couldn't reduce my debts or write them off within a year I would get my fee back. Well they have now gone into administration (surprise surprise)

After doing some investigation and complaining to clear start I've realised they are a scam company. I've made an official complaint with them demanding my money back and as soon as the 8 weeks complaints procedure has passed I will be filing a complaint with the financial ombudsman. Hopefully I can try and claw some of my money back that way (although I don't hold much hope)

Anyway, I was in such a bad place mentally that I just got taken in and 2 years down the line I'm in an even worse situation? than I was before as I've have not been paying any of my debts off for 2 years and have defaulted on all of them and some have been sold onto the 3rd party companies.

My question is, what to do next?

I have £35k debt
2 x loans with Halifax
4 x credit cards

Do I just continue not paying and keep defaulting and then when the 6 years has passed they will be wiped and I can start again by building my credit rating up? Should I contact them, tell the situation and try and come up with a payment plan myself?

They don't chase me anymore at all, only thing I do get from them is a statement of my account and saying we're here if you need help (Halifax) and I'll get a letter from Moorcroft once in a blue moon.

I have access to grocery aid though work so can also speak to them but I'm just a bit suck to be honest and don't know what to start with.

Any help would be greatly appreciated.

RAS

Hi, sorry to hear you are in such a predicament. Looks like you were caught out before new rules about using names that suggest they are reputable debt charities.

The good news is that all the debts are defaulted (do check) so your credit record will be repaired 6 years after the defaults, rather than being on Arrangement to Pay markers.

The other good news is that you are largely being ignored by the debt collectors. Do put an SOA on here so we can help you sort out your budget. Once you know how much spare you have got you can think about your future strategy.

Do you rent or have a mortgage? Family etc? 

sourcrates

Unfortunately if said company went bust, you will be in a long line of creditors and likely won`t see a penny back of what they took from you, the kind of people behind such companies tend to pop up again, and again under another name, and its rinse and repeat.

You could do nothing, watch the post, see if collection activity re-starts, or any letters before action are sent.

Its not a perfect strategy, but sometimes that`s how it rolls.

Use the time to save up a settlement fund, so if one or more creditors do start to become annoying, you have options available to you.

Starlight1934

Thank you both for your kind words and thoughts.

I will 100% upload an SOA as soon as I can to help and my plan is to start to get a pot together as soon as the new year comes around. Praying for a pay rise however small, every little helps.

I’m single, mortgage and no dependants so thankfully in my situation there is just me to think about which is a blessing. 

RAS

Thanks for the update. Try and make the SOA reflect your actual spends, even if it means going through the last 6 months statements to allocate everything to a category. 

Apart from the introductory fees, were you paying anything monthly to Clear Start?

enthusiasticsaver

If you are not being chased I would just focus on sorting out a realistic budget and save as much as possible. The defaults have already happened and as said up thread they will drop off your file 6 years after the defaults.  Maybe in time you might be able to clear them by offering full and final settlements.