Please, please help!

claire_80_2

Hi there,

This is the only place that I can think to come where I might get some sensible answers as to what to do.

I was out of work last year until March, when I started a new job. As I hadn't been working I had an agreement with barclaycard that I would pay £30 a month. My credit limit with them is £1200 (hardly millions, but there we go) and my balance was about £1300 at that time. I started my new job and kept up my payments.

Then at the end of July it all went wrong and they brought in someone much, much cheaper than me to do my job (I looked into this legally, and as I was still in my probation period they could basically do what they liked) and I found myself without any work again. I wrote to BC and told them this, and believe I made my last payment in August.

I started a new position just before Christmas and wrote to them again saying that I would be able to make a payment very soon (Jan/Feb, depending on when I got paid)

Well, this morning I received a letter from 'Credit Solutions' - I don't know if this is a seperate company to BC, or a sub-dept of them if you see what I mean. It was a final demand for payment. I rang them right away and explained my situation, and that I was being paid on the 1st Feb.

The lady said that they would require either the full balance, or minimum £200 a month. I said that I could do neither, and that the most I could afford would be around £50 a month.

She said that she would accept that as a first payment, to come off of my Solo card on the 1st Feb, but that they would then 'look at my finances' to see what I could afford, and that I would need to send them my payslip and a list of all of my outgoings.

Now, I am not entering into an IVA with them, so do I really need to send them this information? I know that if I do this they will say I can afford more than £50 and I will basically have no money to live on until the debt is paid off.

I don't know what to do for the best, I have been in tears this morning as she mentioned being taken to court and it going on my credit file for 6 years - I thought things only stayed on your credit file for that long if you had an IVA or bankrupcy?

Can someone please help, I don't know what to do!!!!

chevalier

she is right IF if got to a CCJ then they do stay on your credit file for 6 year.

BUT a lot of what she is saying is scare tactics to bully you into paying more than you can afford, even if this puts you in arrears with other people. They don't care as long as THEY are paid.

I would write a letter with my income and expenditure (not a payslip though), and debts you have, and make an offer of payment. Include a cheque for that much. Keep on doing this. Then if it does go to court, you can show that you have been paying on the debt and what you are paying is realistic. Most (but not always) the court will accept this, and make the ccj for what you are paying anyway. Debt collection agencies (DCAs) know this, so try to harass you into paying more.

hope this reassures a bit. Have you put up a statement of affairs on here (see the newbie sticky at the top of the forum)? If you do we maybe able to see cut backs to help you pay your debts off quicker.

chev

claire_80_2

Hello Chev, thanks for that long post, and you have ressured me somewhat!

I haven't put up a statement of affairs on here yet - if I have to send one to this company I am worried that they will tell me I have to cut back on/laugh at certain things in my life, such as my driving lessons etc, and my holiday cottage fund...

In my eyes I think that they will think I shouldn't be doing these things and that I should give them this money, but we have to live, don't we?

consultant31

I can understand that you have a life outside of the debt, but can you nor postpone your driving lessons until you're financially straight?

The "holiday cottage fund" - is this for a holiday or to buy a dream cottage one day? If it's to buy one, I do think you should pay off the debt first. The interest on CCs are horrendous and all that is coming out of any potential fund anyway.

CLAPTON

The first thing to do is to read the sticky for new people and post up an SOA.

Do that before sending anything to them because its very easy to leave out things out, so it may appear that you have more than you really do.

Its quite usual for them to ask for your income and expenditure so they can see you are really struggling.

Credit Solutions is a DCA used by Barclays ... nothing specific to worry about.

If I understand you correctly you have already defaulted on your agreement (i.e you are paying less than the CC minimum amount). If so its probably they have defaulted your account already ... if so them this will stay on your credit record for 6 years and adversely affect your ability to get new credit.
A CCJ won't really make things much worse.
You can check this by getting copies of your credit files from the CRAs (the basic report is £2 although you can get 'free' 1 month trials.

Obviously they will say you have to pay the full amount or at least a high amount... thats basically what they do to frighten you into paying more than you can afford.
Similarly with the threat to take you to court. Its possible but relatively unlikely for a relatively small debt especially as you will be able to pay a bit each month.

Do you bank with Barcalys? If so then you should consider opening a new bank a/c with someone you owe nothing to and getting your salary paid in there (this is to stop barcalycard raiding your barclays a/c).
Unless you have already given them your Solo number I would advise against paying this way as you have no real control over how much is taken ... better to pay by check or BACS transfer.

claire_80_2

I've read the sticky and am just about to sit down and work out an SOA.

I can't really postpone my driving lessons, we moved out here from London and I am 3 miles from the nearest town and we have no bus service, I am literally in the middle of nowhere and desperately need to drive to get further afield to try and get a higher paid job!

I don't bank with Barclays, I bank with HSBC - one thing that you have said has concerned me though, in that I gave them my Solo number and said they could take £50 on the 1st Feb (when I am paid) ....I am now thinking this was a very silly thing to do, but I felt like I *had* to do it.

You understand it completely!

stapeley

hi there i echo whats already been said . I would add , do not phone them, it just puts them in driving seat . They will now call you when ever they feel like it . Write to them and ask not to be contacted by phone , if they call refuse to speck to them Keep copies of all letters . Did you give them your last 3 digits on security number? If you did , ring bank and get new card sent . Cancel your old card . Send only cheque , good for your records . good luck

Verbatim

Hi Claire,

Welcome to dfw. Sounds like you're taking Clapton's excellent advice onboard. Once you have your SOA up here you'll get a lot of responses with suggestions on how/where you might find stuff more cheaply.

Well done on startint to get it sorted

fatbelly

Yeah, great advice as usual from CLAPTON.

I'll just add that i see a lot of cases handled by CSL and I've not yet had court action on any of them. As DCAs go, there are a lot worse. Make an offer you can afford, justified by an SoA and you should be OK.

setmefree

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claire_80_2

Thank you so much for all of your replies, it's very strange but all of this happening today...things coming to a head as it were...it feels like a relief almost, and I can see that by talking to all of you that there is a light at the end of the tunnel and that I won't always have these debts hanging over me!

I have sat here this evening and have formulated this letter (what do you think?) ....



This morning I received a letter from yourselves, stating that I have defaulted on my credit agreement with Barclaycard and that the matter has now been passed on to you to deal with.

Unfortunately, since making the above agreement with Barclaycard, my circumstances have changed.

I cannot afford to pay the total balance in full as after losing my job last summer as a Secretary, I have only just found full-time employment in the area where I live.

I did agree an amount of £50 on the telephone with yourselves this morning, to be paid by debit card on 01/02/08, as this is the date when I receive my salary. Having thought about the situation further, and having taken some advice, I have decided to instruct you to cancel the above arrangement and for you to not take any payments via my debit card.

I feel it will be easier and more practical for me to organise my finances if I was to make the payments to you by cheque each month.

I would therefore like to make the following proposal to you, which I feel is very reasonable:

1. To make payments to you of £30 per month on the first of each month.
2. These payments to be made by cheque.
3. That the first cheque be sent to you on 01/02/08.
4. That all interest and other charges are frozen immediately.

I hope that this proposal is acceptable to you.



Yours faithfully,