Help with where to start with this mess

Tracker90

fatbelly said:

Follow the guidance here

https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps/p1

Use the figures that you have now

When your surplus income increases, throw that into your fighting fund along with your inheritance and any other monies you can generate.

As for ajjb, threats mean nothing but if you get a formal preaction letter with reply form and 30-day limit, you do have to respond (ask if it happens). You may ultimately have to dip in to your fighting fund on that one, but let's kick it down the road as much as we can.

After around six months all the debts should have defaulted and you can start to make f&f offers from your fund

If you want to get rid of Virgin, that's up to you. 

That’s great I’ll check the guidance out. Would it be safe to keep any “saved” funds in a bank account I have defaults with? Like Halifax with their CC being defaulted?

I’ll ignore the AJJB contact for now then until that eventually comes along. 

Also, with JN bank, the total stood at £7000 owed but is now at £7400 (from a recent email from JN).. however westcot (or 2f) sent a letter out with a reduced settlement offer where it stated original owed was £7000 (they offered to settle at £5900). I haven’t replied to this but still have the letter. Should I just ignore all approaches from them currently?

I’ll just think about the fnf offers in future as I don’t have funds anyway currently for doing that. 

I think I’ll just cancel DD’s on Barclaycard & PayPal.. let them eventually default and maybe just pay off Virgin money at end of Jan to get it out the way.

EssexHebridean

I would look at opening a new bank account with an organisation not linked to one you have debts with, if I were you. 

fatbelly

EssexHebridean said:

I would look at opening a new bank account with an organisation not linked to one you have debts with, if I were you. 

Yes, the reasons we suggest that are

Because the bank has the right of set-off, where they help themselves to funds in your current account. They can see the pattern of income coming in so would be likely to do that at the worst point of the month, for you.

There are rules about how and when they could do this, and it is rarely done, but prevention is better than cure. I wouldn't trust a creditor to follow the rules.

The other reason is that anyone who can see your current account can know a lot about you and in debt management you only want the creditor to know what you tell them!

Tracker90

That’s great, thank you both for clarifying. I do have a basic bank account setup with another bank with no links to anything so I’ll transfer into that and also the inheritance/anything I sell. 

Do I need to reply or contact creditors regarding anything at this point? Is it worth telling them anything or requesting something from them?

stu12345_2

I' have debts with the RBS, ( which I repay in a self managed dmp)I read their set off rules and it states if they are going to set off my bank , they give 14 days notice and cannot leave you without enough money for  essential bills and living costs.
I have a basic account elsewhere. but it makes a mockery of the set off rules if they are going to give 14 days warning.
you just take out what little money anyone  has and/or open a new bank account for your wages to go in in that time period. and set up DD for bills in that new bank
I chose the nationwide basic account , wife choose Lloyds 

Tracker90

stu12345_2 said:

I' have debts with the RBS, ( which I repay in a self managed dmp)I read their set off rules and it states if they are going to set off my bank , they give 14 days notice and cannot leave you without enough money for  essential bills and living costs.
I have a basic account elsewhere. but it makes a mockery of the set off rules if they are going to give 14 days warning.
you just take out what little money anyone  has and/or open a new bank account for your wages to go in in that time period. and set up DD for bills in that new bank
I chose the nationwide basic account , wife choose Lloyds 

This is good to know, I also opened a basic Nationwide account in anticipation of this. I’ll give my work these bank details and have it swapped going forward. 

fatbelly

Tracker90 said:

Do I need to reply or contact creditors regarding anything at this point? Is it worth telling them anything or requesting something from them?

At this stage you don't need to tell or ask them anything

Tracker90

Received this today.. should I still wait? They keep changing wording in text messages..

fatbelly

Doesn't really mean anything, does it? 

EssexHebridean

I think it means “we’re going to use some scary words like ‘court’ to try to scare you”… 😆 Pretty classic low-life tactics, sadly.