Advice re debts please

EssexHebridean

OP your priorities as far as I can see need to be
1) Get that statute barred letter off re the 2010 debt that you have not made payment to. 

2) cancel the DMP until such time as the debts have defaulted
3) get your SOA (statement of affairs) done and a proper budget worked out - this time you need to keep sticking to the budget throughout, including when you get debt free. 

4) use the time between stoping the DMP and the debts all defaulting to build an emergency fund using the money you are no longer paying to debt.
5) re-start the DMP once you have the defaults. 

Remember how nasty being in debt you can’t pay feels? Hold onto that memory - and in the future, when you are tempted to buy something you can’t afford quite yet using standard consumer credit, remind yourself of that feeling and that you don’t want to return to feeling like that. 

Grumpelstiltskin

moneysaver12 said:

Hi I forgot to add that a person from a debt collector agency turned up at my house,  think it was December.  I’ve been unwell with my mental health and at that time i wasn’t in the right place to talk to them.  I told them that I’m not well with my mental health.  I think they gave me a letter but I think I ended up binning it and not reading it.  I really couldn’t deal with it. 

You did the right thing, they are not bailiffs and have the same authority as next door's cat.

Never engage with these people.

Brie

EssexHebridean said:

Remember how nasty being in debt you can’t pay feels? Hold onto that memory - and in the future, when you are tempted to buy something you can’t afford quite yet using standard consumer credit, remind yourself of that feeling and that you don’t want to return to feeling like that. 

An interesting approach.  Not actually disagreeing as I'm sure it will help some people but sometimes recalling something nasty may not help others.  As an alternative, and what I did, was I wrote down a list of my debts and kept that in the back pocket of my trousers.  Whenever I was considering doing something excessive I'd remember what was in my pocket - actually did that "Asda back pocket pat" frequently.   It didn't always work but sometimes it did too.  Obviously what worked for me won't work for others.  Find whatever method works well for you.

RAS

moneysaver12 said:

RAS said:

With regard to the one on which you continued to make payments, was this an overdraft or a credit car? When was it set up.

Hi thank you. It was a credit card.  I can’t remember when it was taken out.  Lowell told me 2010 but I’m not sure if that’s when it was taken out or when it was sold to them

Good, I was wondering about a prove-it letter, but I think you should make a request from the Consumer Credit Agreement on that card?  It does take a bit of nerve because some DCA's specialise in sending random junk instead of the agreement so you'd need to come back for advice.

And given your most recent comment, maybe you should discuss asking for write-offs if you've been in debt for a long time and have health issues? Perhaps check out whether CAB or CAP have local offices? Was amazed that Lowell wrote off another poster's debt recently.

And well done for standing your ground when they sent their collector.

Grumpelstiltskin

OP You have had a lot thrown at you in the last hour or so and you may be feeling a bit overwhelmed.

Nothing is desperate so take everything in and don't rush into anything.

Having said that I am going to throw something else at you.

SOA Calculator   The link to the SOA. That wants going through slowly so it is correct and detailed but it is important to get it on here. Format for MSE and copy on here then when we can see your full financial position we can give the best advice.

moneysaver12

EssexHebridean said:

OP your priorities as far as I can see need to be
1) Get that statute barred letter off re the 2010 debt that you have not made payment to. 

2) cancel the DMP until such time as the debts have defaulted
3) get your SOA (statement of affairs) done and a proper budget worked out - this time you need to keep sticking to the budget throughout, including when you get debt free. 

4) use the time between stoping the DMP and the debts all defaulting to build an emergency fund using the money you are no longer paying to debt.
5) re-start the DMP once you have the defaults. 

Remember how nasty being in debt you can’t pay feels? Hold onto that memory - and in the future, when you are tempted to buy something you can’t afford quite yet using standard consumer credit, remind yourself of that feeling and that you don’t want to return to feeling like that. 

Thank you.  I will do what you advise.  I will get a letter sent.  I will contact stepchanges and tell them I want to stop the DWP.  I will save the money.  Then restart paying when have all defaults.  I don’t want to get in debt again.  It is a horrible feeling.

moneysaver12

RAS said:

moneysaver12 said it u:

RAS said:

With regard to the one on which you continued to make payments, was this an overdraft or a credit car? When was it set up.

Hi thank you. It was a credit card.  I can’t remember when it was taken out.  Lowell told me 2010 but I’m not sure if that’s when it was taken out or when it was sold to them

Good, I was wondering about a prove-it letter, but I think you should make a request from the Consumer Credit Agreement on that card?  It does take a bit of nerve because some DCA's specialise in sending random junk instead of the agreement so you'd need to come back for advice.

And given your most recent comment, maybe you should discuss asking for write-offs if you've been in debt for a long time and have health issues? Perhaps check out whether CAB or CAP have local offices? Was amazed that Lowell wrote off another poster's debt recently.

And well done for standing your ground when they sent their collector.

Thank you.  I will request a consumer letter for the card.  I’ve had mental health problems for a long time.  I get my self fixated on certain things,  for example Lego,  I end up spending lots.  Then it will be something else.  The diagnosis I have has an impact on my spending and getting into debt.  I hopefully starting the therapy I need finally this year and I hope I can address this part.  I don’t want to keep getting into debt.  I think that the CAB do a clinic, need to find out the day and times.  I’m currently off work sick, i will see if i can get an appointment before im due to return to work.

moneysaver12

Hi i received letters from the debt collectors whilst I’ve been unwell and I threw them away.  How do i get the information I need for CAB.  I have the names and balances on the step changes website and the account numbers.  Will that be enough to show to CAB.

Also should I phone or email stepchanges to cancel the payments.  I’ve cancelled the direct debit with my bank 

sourcrates

EssexHebridean said:

Grumpelstiltskin said:

RAS Have you seen the OP's other thread?

IVA — MoneySavingExpert Forum

I think this is the second thread in a few days where Stepchange are pushing IVAs when they are not appropriate.

Flagging this to @fatbelly as well. 

RAS said:

Maybe the mods can merge the threads?

@sourcrates can you do merges or is that a forum team thing? 

I can`t merge posts on different boards, so I have closed the OP`s original thread, as they were advised to post on here, so continue to use this thread now.

Brie

moneysaver12 said:

Hi i received letters from the debt collectors whilst I’ve been unwell and I threw them away.  How do i get the information I need for CAB.  I have the names and balances on the step changes website and the account numbers.  Will that be enough to show to CAB.

Also should I phone or email stepchanges to cancel the payments.  I’ve cancelled the direct debit with my bank 

don't worry that things have been thrown away.  

Stepchange will have a financial statement that they have drawn up for your DMP.  That will list the creditors you have been paying.  They should be able to email that to you.  That way you can check off what creditors are on there and think about those that aren't.  

When you are ready to start again to get things sorted you can go back to SC or to another debt advice charity (NationalDebtline, Community Money Advice, CAP, CAB) and hand the financial statement.  They will then look at your credit history and see what else might be on there.  Again if you do go to someone other than SC you could ask SC to give you a copy of your files as that will help any new agency build up a picture quickly.  

Obviously a debt for 6+ years won't be showing so for those like the very old Barclays bill you will be dependent on someone writing to you.  If you are responding (by snail mail only, never by phone, text or email) be sure that you never admit the debt but that you want them to prove you owe something.  

And don't forget that once an agency has done all the hard work you don't actually need to use them to make the payments on your behalf.  You can set up standing orders to the various creditors and pay them yourself.