Facing Up to our Debts - at last

luna2528

Hi all

This is my first post after reading all the invaluable advice and guidance on these forums for the last few weeks.

Last week was our lightbulb moment - we have a huge mountain to climb but a situation which is improving and will improve further this year. I will post our currently grim SOA later (realistically tomorrow), but need some advice on the following:

We have decided to go into a DMP with CCCS and I will be speaking to them tomorrow to talk this through, having completed info on their website.

I need to write to our creditors tonight/tomorrow explaining that we have financial difficulties and that we are seeking advice and guidance to deal with this. We are unable to meet our agreed payments at this time, but would like to ask them to hold any action for a period of 28 days whilst we work through our statement of affairs which will enable us to make a proposal to them for reduced repayments.

We are confident that with some short term assistance from our creditors that we will be able to increase the amount we pay them on a regular basis as our income grows throughout this year (I'll explain more when I post SOA).

1) Do I tell them this?
2) Do I send a small payment with the letter to show we are willing to make a regular reduced payment?
3) Do I send back credit cards at this stage, chopped in half? I never want to lay hands or eyes on one again - I know the DMP will put paid to that anyway.

I will post more tomorrow - it's just a relief to have actually summoned up the courage to post on here and admit there's a problem to someone other than each other. None of our friends and family know and, quite frankly, I wouldn't know where to start.

Thanks in anticipation,

Nalu
xx

boredofbeingathome

The first step is the hardest and well done for posting on the best forum. The day shift are usually the best ones for advice, and from quick glance you seem to be on the right track. Most folk post an soa on here to see if there are futher ways to improve so when you feel ready it is an option. Well done again and good luck with letters and the cutting up ceremony.

Sue-UU

A warm welcome to the Forum Nalu. It's great when you've taken that first step, so congratulations so far. As for writing to your creditors to explain it all, there is at least one person who has a template which would be just fine for you, that is if you're not too sure yourself. Apologies if you're ok and must admit you do sound quite sure of what you have to do anyway.

Just as soon as we see that SOA things will be much easier for people to advise you of. Do remember to include everything re your expenditure, Christmas, Birthdays...the lot!

Good luck with a good financial future in time.

Sue.

mattmoo_2

Hey i am currently involved in getting my finances sorted and in almost the same boat, please can you tell me what an SOA is?

I will also need to post here for advice and will do once i have all my debts in some manageable form which i plan on doing over the next day or so.

Thanks

Matt

boredofbeingathome

There is a sticky at the top of the thread which tells you how to list it- an SOA is state of affairs, it lists your income and outgoings.

mattmoo_2

oops my bad, just reading that now. Lists my outgoings eek is this where i realise what stupid things i spend my money on haha.
Thanks

matt

CCCS_Alan

Hi Luna2528

Welcome and well done on taking the first steps by posting on the forum.
Regard your questions do make them aware that you are in financial difficulties and that it is not possible for you to meet your contractual payments in the letter you send. Send it to each creditor for each debt and include your client reference number as well once you are provided with one.
Make a token payment to each debt as well of whatever you can afford, be it £1 or more. This shows you are not ignoring your debts by making a gesture of payment towards them.
Do destroy your credit cards and return them to the providers, this removes the temptation to keep spending on them.

Good luck and keep us all posted how things are going.

CCCS_Alan

chevalier

welcome, we will look forward to your SOA.
chev

chevalier

ps
Matt if you start your own thread you will get more responses to your particular issues
chev

luna2528

Thanks all for your support.

Although I have not yet done SOA (we're going to go through it together thoroughly on Thursday and I've been juggling work and children today), I have today written to three of our major creditors (the ones we have missed recent payments with) to explain our current difficulties and ask them to hold any action for at least 28 days whilst we go through our SOA and seek advice and guidance ref our situation.

And I know I should have done it along time ago, but I have chopped up the credit cards (3 have been returned to the creditors above and others will be returned with letters tomorrow). This is a huge step for me - the cards are a millstone around our necks but have been part of our lives for so long.. No-one to blame but ourselves.....

There is some fantastic advice and info on this site - just wished I'd found it a bit sooner.

Nalu

Sue-UU

luna2528 wrote: »

And I know I should have done it along time ago, but I have chopped up the credit cards (3 have been returned to the creditors above and others will be returned with letters tomorrow). This is a huge step for me - the cards are a millstone around our necks but have been part of our lives for so long.. No-one to blame but ourselves.....

There is some fantastic advice and info on this site - just wished I'd found it a bit sooner.

Don't worry or consider yourself silly or taken in, Nalu, truth is the majority of us here are (or were) in the same situation as you. Yes, we're all to blame but so are the credit companies who have been so happy (still are) to drag us all into debt, happy too to keep on giving it to us so we go further down. I've only recently come onto the site, but at least we're here now and can go forward from here!

Best wishes, Sue.