I'm struggling - please help

Grumpelstiltskin

Stop paying all your unsecured debts apart from the car at the moment.

Nothing terrible is going to happen if you don't pay.

The car, well it has been explained you could get a much cheaper car which could make a DRO the way to go.

Zellyrs

Grumpelstiltskin said:

Stop paying all your unsecured debts apart from the car at the moment.

Nothing terrible is going to happen if you don't pay.

The car, well it has been explained you could get a much cheaper car which could make a DRO the way to go.

What happens when you stop paying all unsecured debts? I'm worried about bafflifs etc. 

elsien

You will get lots of letters from debt collectors pretending to be baillifs and trying to scare you. They will threaten you with court and all sorts of things. It is all talk.
You inform them that you only want communication in writing and they are not to phone you. You don’t talk to them on the phone under any circumstances because they will bully you. 
As long as you pay your priority debts (rent and council tax) the  rest is predominantly hot air. The only way baillifs will come round is if someone takes you to court and gets a CCJ, and then you don’t pay whatever token amount is agreed once you have sent your SOA to the court. 

There are many people on here who had debts much larger than yours  and CCJs have not been applied for. 

Zellyrs

So from my understanding on the advise on here, and correct me if I'm wrong. 

1) Stop paying all unsecured debts, which are credit cards and loans. 

2) Start saving an emergency fund 

3) Let the accounts default?

I'm unsure what is meant to happen next or the best possible route. 

ManyWays

So the value of the car means you will not qualify for a DRO. But what do you propose to do when the PCP ends, as you will not be able to get another PCP deal with a credit record full of defaults, nor will you be able to get finance to clear the balloon payment. Was there a deposit when you bought this car?

Shadyocuk

As others have said, dont waste any more of your fathers money on paying any of the unsecured debts. 

This might seem harsh , but you simply cannot afford to pay £585 a month for the use of a car.
(loan 352 , tax 16, ins 51 , maint 100 , fuel 66)

We dont know anything about your location or health and I dont know the ins and outs of pcp , but is it possible to hand the car back and rely on supermarket deliveries , walking, cycling or taxi's (if you have no job and say you have no friends or family (but have your father)  then why do you have to be anywhere at a certain time that can justify spending £585 a month when after rent you only have £317 a month income.

If your current location means its not possible to manage without a car (not the same as not wanting to be without a car) , can you move to somewhere that does not require one ???? or could your father purchase a much cheaper car (and remain the legal owner) that you could justify running.

Zellyrs

ManyWays said:

So the value of the car means you will not qualify for a DRO. But what do you propose to do when the PCP ends, as you will not be able to get another PCP deal with a credit record full of defaults, nor will you be able to get finance to clear the balloon payment. Was there a deposit when you bought this car?

Everywhere I read online mentions that if a car is on PCP, lease or HP it does not qualify as a asset, because you don't own the car, the finance company does and it's a secured loan, so it can't be used as asset on a DRO. 

Am I missing something around this?

elsien

Previous advice on the issue, although a few years old now. Fatbelly and sourcrates both know what they are talking about.

https://forums.moneysavingexpert.com/discussion/6140956/dro-and-hp-agreement

Zellyrs

Okay, yeah I thought it was something along those lines. I will have a look at my PCP agreement tomorrow to see wording of it. 

Shadyocuk

Unless I am missing something the OP cant afford to keep the car.

Their only income is £891 the other £800 is not income it is money their father is giving them.
Rent                        £(575)
Council Tax             £  (25)
Gas                         £  (25)
Elec                         £  (25)
Water                       £  (14)

that only leaves           £227 a month after priority payments to cover everything else 
after the medical        £(130)  they only have
                                     £ 97  a month left for food , where does the money come from to run any car ????