Credit card debts

Martico

While you wait for answers tailored to your situation, it's worth reading this thread so that you're acquainted with some of the steps and possibilities open to you. Any questions or concerns arising from that, just post here (ie in this, your own, thread)  

Looking4silverlining

EssexHebridean said:

fatbelly said:

There's a 9k car in here. The limit in a DRO is 2k.

The limit for surplus income is £75

And the op is right up against the limit for debt total.

Blast - missed the car - sorry OP! Thanks Fatbelly! 


Can you make sure that your shopping is always done on days when you are already using the van for work? That will reduce the travel aspect a bit. 

Yes of course that's pretty much what Ive always done but I have to dodge parking tickets at supermarket car parks (which is a nightmare) My van is a long wheel base so I hang over spaces. Im just about to pay for one as we speak. £60 for being 2 feet into the box behind! Its easier on the bus.
Yes the van is worth £9k. If I sell it and spend £2k on a car I can pay part of the debts back but by the time the interest free deals run out Ill probably be near back to the start again.

EssexHebridean

On the contents insurance - it genuinely is a false economy not to have it - it should be considered as one of your essential spends. As a rule, the less able you would be to replace things if the worst happens, the more important it is. 

On the groceries spending - I currently spend around £225 per month to feed two of us - all household items, some toiletries in there too. even allowing for pet food, yours can definitely be reduced, I'm confident of that!

We're not asking you lots of questions to pry, or to be nosy - we only ask for stuff that genuinely help us to help you. 

Looking4silverlining

EssexHebridean said:

On the contents insurance - it genuinely is a false economy not to have it - it should be considered as one of your essential spends. As a rule, the less able you would be to replace things if the worst happens, the more important it is. 

On the groceries spending - I currently spend around £225 per month to feed two of us - all household items, some toiletries in there too. even allowing for pet food, yours can definitely be reduced, I'm confident of that!

We're not asking you lots of questions to pry, or to be nosy - we only ask for stuff that genuinely help us to help you. 

Hi and thanks.
I know no one is prying. I don't have anything worth insuring to be honest. I used to but I sold everything to pay me rent years ago when the debt started. Ive got a really old lap top, my clothes are all charity shop and on their last legs, most of my stuff was bought second hand or given to me (or scraped from jobs) Also because of where/how I live they would just laugh, I doubt they would even consider it. Maybe I should have reduced my food bill and put some other bits on the form I just whacked it all together. I think I probably do spend a little bit more on clothing. I mean there are lots of things not on there like my bedding or the laundrette bills etc. Maybe I should re do it but I don't think its far off.

EssexHebridean

How about…your clothes, shoes, any furniture you own, mobile phone, any other tech you own, things like books, music, anything relating to any hobbies you enjoy, crockery, cutlery, any appliances, towels, bedding, your purse or wallet and the contents of it…

Alternatively - you have just had to leave your home in the middle of the night with no warning. You are standing in the street wearing a t-shirt, pants, slippers and a dressing gown. The news is broken to you that nothing inside your property can be saved, so those clothes are now your only possessions, with no contents insurance, where do you go next…? 

Contents insurance doesn’t need to be expensive. Last time I had contents only it worked out to under £10 a month for cover of around £60k, from memory. Even when things were really tight here, we were always happy to pay for the insurance on the basis that although we very much hoped it would be money “wasted” as we would never claim, if the worst ever happened, it would immediately become by far the best money we had ever spent.

Looking4silverlining

EssexHebridean said:

How about…your clothes, shoes, any furniture you own, mobile phone, any other tech you own, things like books, music, anything relating to any hobbies you enjoy, crockery, cutlery, any appliances, towels, bedding, your purse or wallet and the contents of it…

Alternatively - you have just had to leave your home in the middle of the night with no warning. You are standing in the street wearing a t-shirt, pants, slippers and a dressing gown. The news is broken to you that nothing inside your property can be saved, so those clothes are now your only possessions, with no contents insurance, where do you go next…? 

Contents insurance doesn’t need to be expensive. Last time I had contents only it worked out to under £10 a month for cover of around £60k, from memory. Even when things were really tight here, we were always happy to pay for the insurance on the basis that although we very much hoped it would be money “wasted” as we would never claim, if the worst ever happened, it would immediately become by far the best money we had ever spent.

Thanks for the info but Ive never bothered before and pretty much lost everything (nearly all) Ive lived a strange life that most won't understand. Ive not lived in a house since I left home at 16 and Im pretty sure Im not insurable now.

Looking4silverlining

Hi all. Ive decided that I am going to have to sell my van. I think that my work is going so slowly that if I get any decent jobs come in I will just hire one. If I sell the van this changes everything as I will be able to pay off some of the debt which will hopefully mean that I will be able to do a few balance transfers and get the interest down a bit for now. My mum is on her last legs and I would hate to be in the middle of an IVA or DRO and them take everything and my credit file will still be messed up for 6 years. She has already lost her house and had to pay most of it to the care home as they won't cover for people with Alzheimers. She is very ill, can't even speak properly but they still won't pay for her care. Awful, as she has spent her entire life paying tax after tax. Anyway, moan over. I don't know which way to go as Im so scared of not being able to insure a vehicle or hire a vehicle etc and I need to work. Im getting on a bit myself now so need to do what I know to work, Im not so well myself. Can anyone tell me if I default on the cards and then pay a lump off if my credit score will still be all messed up for 6 years afterwards?

enthusiasticsaver

If you default then yes your credit file will be messed up but honestly borrowing more is the last thing you should be considering anyway so defaults are not the worst thing. If you enter a DMP the interest will stop and an affordable monthly payment set. Given your income is erratic and you are way short of income to cover minimums maybe that is worth considering. If the van is essential for work I am not sure selling that is the best option. 

stu12345_2

how did you get charges at supermarkets with van cos my Tesco just has cameras at entrance , exit for 2 hrs max. it can't tell how you park. I live near seaside and in summer it is full of big campervans taking 3 spaces etc
 but they don't go beyond 2 hrs .
as for selling van and hiring. if you default in your credit cards you may not be able to hire cos normally they ask for credit card to cover the £500 or £1000 compulsory excess. as your cards will be cut up and accounts closed by then

I have 6 defaults, cards cut up. can't hire anything.

and my mum is very ill too, Parkinson's disease, she gets carers in 3 times a day, it costs her nothing. council pays for it. 
she has a bought flat and she has no charges on it. in fact it's my inheritance she said. her speech is bad and she is housebound. she can't cook  etc
 her movement and grip is so limited. 

Looking4silverlining

enthusiasticsaver said:

If you default then yes your credit file will be messed up but honestly borrowing more is the last thing you should be considering anyway so defaults are not the worst thing. If you enter a DMP the interest will stop and an affordable monthly payment set. Given your income is erratic and you are way short of income to cover minimums maybe that is worth considering. If the van is essential for work I am not sure selling that is the best option. 

Then I must try not to default. If I sell the van my credit rating will go up again so Ill be able to do another balance transfer and get the interest down. Its the interest that's bothering me as Im managing to make the monthly payments then I spend the amounts (minus the interest) on food and fuel etc. This has been going on like this for a while. Im trying to fob it off for as long as I can as Im hoping that my work situation is going to improve. I have recently moved somewhere hoping that Ill get into a better work situation. A debt plan is so tempting but I can't do it and keep the van, but if I sell the van then Ill need to hire one so Im a bit stuffed. What happens if you become completely unemployed on a debt plan?