Debt help needed!!

weasel24

4 years ago I managed to max my credit cards and overdraft totalling £6500. My wife has also got maxed cards and a loan with barclays totaling upto about £35000.
To give you a bit of background I was addicted to gambling and ran up all this debts on both our credit cards. We used the loan to pay them off however I was sucked back in and maxed the cards agian. Something I regret and have had to move on. Im still dealing with it now and my wife has supported me all the way.
We have not paid anything for about 3 years and have moved address 3 times so have no idea what has happened to these accounts/loans etc. We are now in the postition to sort ourselves out. but dont know where to start.
We are in a rented property so have no mortgage so thought an iva might be unsuitable. What does everyone suggest because we wanted to buy a house in the next couple of years. Looking forward to your replies and help.
Thanks
Ben

GeorgeUK

Tough one that.

I too have had problems with gambling, but hopefully not going to relapse again. Glad you're getting support on the home front.

A debt becomes statute barred 6 years after the last payment, (5 in Scotland), or written acknowledgement of the debt. So the debt is not statute barred yet.

You could attempt a debt management plan (DMP), where you agree to pay a set amount to your creditors until the debts are satisfied. There are free debt charities that can help you set these up.

If you don't own your home, then an IVA is probably not for you. Again the charities can advise on this. Alot of the companies advertising IVA's get about £5k for each one they set up. No wonder they like them so much.

When you say you are in a position to now sort yourselves out, what do you mean by this? If you have some savings, it may be possible to offer a reduced settlement, but be careful not to send payment before receiving a letter from the company and make sure it is a "full and final" offer.

weasel24

When I say we are in a position to sort things out i mean we have enough disposable income to make regualr payments to pay off this debt. When you say a debt becomes statue barred, what does that mean? Sorry to sound stupid, I believe that the debt isnt enforceble is that right. However the debt remains on your file?
Thanks
Ben

GeorgeUK

If the debt is statute barred, which yours don't appear to be, they are not enforcable and even the courts won't make them enforcable if they are aware they are statute barred. The debt will still exist though, but you won't be under any legal obligation to pay it. All debts/defaults disappear off your file after 6 years.

If you think you have enough disposable income to start repaying the debts, be aware that the debts have probably been passed on to debt collection agency (DCA). You may also need to check if there has been a CCJ against any of these debts. If you are contacted by a DCA to repay a debt, ask them to provide a copy of the credit agreement, notice of assignment and statement of account. Alot of these agencies play hardball and will threaten you with court action from day one. This is why we suggest asking for a copy of the credit agreement - to make them aware that you know your rights and that working with you will be far easier than making threats.

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If you want to get the ball rolling on this, you would probably only need to request copies of your credit reports. They would see that your address has been updated and contact you. It is advised never to phone them as they will be constantly on the phone to you trying to get you to pay more or to settle the debt in full. Also, you should never give your signature to a DCA - just print your name or initial letters you send.

cantcope

Hi,

I too got into debt through gambling (online) after losing all the profit i'd made from selling my property. There is always a way out. I'd take the advice from GeorgeUK and get a copy of your credit reports to start with.

nice to hear you are getting the support you need on the gambling front and hope it continues. You will get lots of support and gret advice on these boards.

Good luck x