<NEWBIE HELP!> Ditching Eurodebt -What are my options?

MetalMickey_3

Hello I’m new here & was hoping for some advice about ditching Eurodebt & the options available once I do so.

First off I’d just like to apologize for this very long winded post, I typed this in Word & only realized at the end that it’s 2 A4 pages long!!

My history....Married 2 (soon to be 3) Kids, I work full time, my wife is a housewife, we receive working tax credits & child benefits. We are council tenants.
My wife & I had been experiencing problems after spending beyond our means with Credit cards & using one loan to pay off another.
Towards the middle of 2004 we went to our CAB for advice. After explaining our situation & how we were struggling to pay back the necessary amounts we inquired about the possibility of going Bankrupt. They advised that due to the debt amount (which they considered to be low) that a better route would be a payment plan.
however after a few months we found that we were still struggling to meet the proposed plan & many of the companies outright refused to accept the proposed payments.
We returned to the CAB to seek further advice, but this time found them not as helpful. They said that they have no power & can’t force the companies to accept the plan & we should be making more of an effort to stick to what we agreed on. Again we asked about the bankruptcy route but were told it was not an option.
So on we struggled, paying less than before but still having difficulties & because of this the creditors got more & more aggressive.
As it went on, the strain on work & home got steadily worse, I found myself switching jobs in the hope of better pay, looking for extra work (cash in hand etc...) or even borrowing again. My wife was effected further, due to being a housewife, she had no work to escape to, so basically spent the whole day sifting through demands & trying to deter the constant hounding from creditors. Eventually she was prescribed medication for depression, we had hit our low point.....
I don’t quite remember how we got involved with Eurodebt but obviously we were desperate & they promised to rid us of all our problems & harassments.
They sent their best salesman round, he went through our incomings & outgoings & made us feel that we could actually stop worrying for a while.
They explained that as long as we made a regular payment, regardless of the amount the creditors would freeze all interest & any attempts to claim more or take through court would be safely handled by Eurodebt.

The initial set up fee was £945.00
After that we would be paying £51.91 per month.
However their monthly management fee was £35.00 leaving only £16.91 going to the creditors. Although this seemed a ludicrous amount to share between 9 creditors they assured us it was all legal & they had to except it & that after a few years they would ask for a settlement figure (usually £100 or so..) & everything would be wiped off....

So here we are, nearly 4 years down the line & no closer to getting rid of the debt.
All we have successfully managed to do is line the pockets of Eurodebt while paying our creditors an average of £2.00 each per month.
The kicker is that over this time the Management fee has slowly risen, so we now pay £63.82 per month. On the last increase I phoned them & asked to explain themselves, they agreed that at my current rate I would be plodding along like this for the rest for my life! I explained that this was all on their advice & they said if I paid more it would go quicker!
I have also found out that because my plan is paid by standing order not direct debit, they could not claim their new charges, so they have been taking it out of the amount being paid to the creditors, meaning I have now defaulted on my arrangement because Eurodebt have kept the money themselves.

So working it out at the initial rate of £51.91 over 4 years we have paid £2491.68. or £1680 to Eurodebt & £811.68 to creditors.(roughly £90 each).

It’s actually more than that now as it’s steadily increased to £63.82.

So I am hoping to ditch Eurodebt altogether & either look at a free alternative or the possibility of Bankruptcy.

Even if we decide to change to a free company, we can’t really increase payments that much & would the creditors accept it anyway? I think they’re getting a bit fed up of it now.

The thing that annoys me the most is, we feel we have been wrongly advised or promised things that are not actually true & if given better advice from the start we could have had this sorted earlier. Admittedly we made the wrong choices & went down routes we shouldn’t have, but at the time it seemed that was the only road.

As a matter of interest a colleague of mine at work (who coincidentally has the same initials & surname as me) was going through the exact same thing at the same time, however he was advised to declare himself bankrupt immediately. He made 3 payments, then it was cleared & he hasn’t heard a peep since, which is very annoying to hear 4 years down the line.

So I was wondering is their a certain criteria for filing for Bankruptcy? I if this is a possible option what are the costs involved?
Or am I just looking for an easy way out? & would this mean creditors looking at recouping via other means, like turning up at my house to take my T.V. & furniture away!?! (which they’re not far off doing anyway!)


Who do we owe money too?

Abbey (connaught collections uk ltd) £ 1391.29
Abbey (Link Finance LTD) £ 4192.87
Abbey Card (Cabot Finance) £ 748.95
Ace Cards & Gifts (Robinson Way & co) £ 1653.27
HFC Bank (Robinson way co) £ 1209.92
Littlewoods (Fredrickson international) £ 890.80
RBS (Unidebt collections) £ 156.72
RBS £ 1988.27
Welcome Finance (Lewis Group) £ 3733.65

:mad: UPDATE!! - Arrived home today to another letter from Eurodebt asking to increase my payments to £80.61. (not including the creditors I instructed them NOT to pay anymore!?!? :eek: )

Thanks for reading this far! - Sorry it's so long!

Deep_In_Debt

Hi welcome to the forum. Contact CCCS or Payplan who will not charge you for advice. I'm on a DMP with CCCS at the moment and all my money is going to my creditors each month so I can see my debts reducing as they charge no fees. They will also give you advice that is right for you. CCCS also have an on-line debt remedy which you could do which will give you your options. Also, try National Debtline - again free.

Sorry I can't be of more help with the specifics.

Good luck, you've come to the right place for all the help and support you need.

poorandindenial

Here is a link to all the not for profit debt advice agencies. These guys have a pretty good rep on here. You can also run your own DMP and they can give you advice on doing this, also there is a support thread on here for people who are on DMPs whether they are managed or self-run (I will post a link in a second)

Good luck and hopefully you will be away from Eurodebt soon.

Link to support thread

linniestorm

I agree with Deep In Debt, definitely contact CCCS or Payplan rather than go with a company that will charge you. These make sure you have a workable budget that allows for all your essentials and everything else goes to the creditors rather than the company's profit margins! I realise that after the years you've had with this hanging over your head, the feeling of release bankruptcy would give you is tempting but the free debt advice charities will give you the best advice for your situation anyway, be that bankruptcy, DMP, IVA, whatever, check out the websites and give them a bell. And keep posting, we're here to give you the moral support through the tough times!!

MetalMickey_3

Thanks for the support everyone....
Yeah 'linniestorm' you're right there, I suspose it does seem like the easy way out, but I'll followe the links you all provided & see what advice they can offer me.
I feel a bit better already, but it's just the start of a long journey (AGAIN!)
Hopefully this time I can choose the right road this time:o

Just a few quick things to confirm....

What shall I do about Eurodeath? just cancel the standing order? & do no more?

Do I need to contact all my creditors again to notify them of my new plans or will NFP agency do it for me?


**** Whilst I was typing this Eurodeath just rang to ask if there was anyone I could reccomend their services too, there's a £120 reward for everyone I convince to sign up with them:eek: ****