Received my first letter from Debt Recovery

Rob5342

If you make a payment then that will reset the statute barried clock, so if you pay each month it will never become statute barred.

Personally I would set myself a budget which included a debt repayment amount and an amount to save for settlement offers. Then I would pay the repayment amount to whoever was asking to keep them off my bsck and then make settlement offers whenever I had enough to try. 

RAS

You do not need to pay everything you've got "spare" to creditors.

What sort of emergency fund do you have in place? You won't be getting credit, so you need to retain enough to cover essential spends for a month, to replace broken items etc. If you know you could have expensive items like car or house repairs, you need to budget for them as well. 

And I'd suggest not paying Moorcroft anything until that emergency fund is secure, or send them a really low payment. Keep them happy but encourage them to return the debt to M&S sometime.

DankVielen

jones98746 said:

Thank you for all the advice, it's a lot to take in. 

I'm torn between following the advice of paying a small amount pro-rata with my other debts or holding on and not paying anything or communicating with anyone unless I receive a 'letter before action' or a claim letter. What's best to do?

Another question: If I were to pay pro-rata what I have budgeted for debt -  once the six years roll around, do I stop paying 100% as it is statute-barred?


Thank you

Sorry, did you read my long post (sorry it was so long)

https://forums.moneysavingexpert.com/discussion/comment/81444179/#Comment_81444179

Fundamentally, this comes down to 

1. Whether you care about your credit record and will need another mortgage within 12 years or can you downsize your parents house if you inherit it?

2. Do you feel that you want to keep on paying interest on debt that is created simply by putting it into a computer.

Some people have a hard time with this, a bit like not accepting a marriage is over when the partner is already having their third partner after leaving 5 years ago.

These vermin have bled you dry, they caused you to take a bankruptcy, but still you came back for more abuse and interest.

Once you have answered 1 & 2 above

Your next choice is

3. Do I want to get 60% off

4. Do I want to get 100% off

None of these lenders are your friend.

If you pay proportions of X to the power Y when the wind is blowing SSE then you trash your credit anyway AND YOU EXTEND THE DEBT

Look at the DMP advice thread

Paying a lower amount keeps the debt alive and the 6 year trashing of your credit record will end 6 years after you finish, a CCJ will still be an option for them so nothing gained there.

While if you follow my advice you are done in 6 years, again CCJ is a threat but rarely worth their time or money, "sorry judge I can only afford £1 a month" so done debt settled for 72 payments of £1.

I wonder if what you are most scared of is losing the ability to spend beyond your income.

Trust me that is no loss, some people flip to eBay and some checkout Freecycle to get that bargain buzz.

The truth is that you will be able to save and it is super empowering to only buy something when you really need it and you have the money (not credit) to buy it.

sourcrates

@dankemp

Loving your posts, but yes, a tad lengthy some of them, folk tend to lose interest if the post becomes a novel.

Plus too much information is hard for newbies to take in all at once.

But please keep posting, just in fewer words lol 

jones98746

Thank you for all your advice - I think my worry is guilt and future decisions being impacted - I know I never want credit again.

I currently live with my elderly parents (early 80s) and my 2 children (ages 21 and 15), over the next few years I will lose child benefit and universal credit -  that's £500 down a month from where I am now - hoping my business takes grows to mitigate the loss.

Anyway at some point I will inherit the house I live in - I am worried that currently, I don't physically own anything - but I will own a home shortly that I and my family reside in and do not wish to sell or have the house be taken towards debt or a charge put it on it. I want to protect the property for me and my children's future.

My worry is if I do not pay anything, currently, my creditors can't take a lot from me, but if I have property they may become more interested - so is paying something towards it each month more worthwhile to keep them quiet, and hopefully then saving up for the full and finals at 60%. 

sourcrates

How much debt are we talking about here, at present you have no assets, I`m unsure of your income, as we`ve not seen an SOA as yet, but have you looked into a debt relief order, would you qualify?

If you did, you could rid yourself of the debt before inheriting the house.

If you had a house, it cannot be taken to pay consumer credit debt, especially with a family living there, its almost unheard of these days, a charge maybe, but that would just sit there until the house were sold, however long that may be, I would not worry so much about that scenario.

jones98746

£33000 debt total - I did a SOA with business debt line, the lady said I would not qualify for DRO as my car is worth about £5250 even though its on hire purchase, plus I had £90 surplus for debts so did not qualify.