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They're on HP according to wiggy. They don't own them until the final payment and can't sell them before that. But they can do a voluntary termination at any time,.
Ahh ok, I thought they may be on on a deal where once all the payments are made then they can decide to refinance the balloon payment or just hand the keys back and walk away
what ever the details may be, at this moment in time they are causing the most hurt every month“People are caught up in an egotistic artificial rat race to display a false image to society. We want the biggest house, fanciest car, and we don't mind paying the sky high mortgage to put up that show. We sacrifice our biggest assets our health and time, We feel happy when we see people look up to us and see how successful we are”
Rat Race0 -
Ok. So the plan is to ditch both cars but hold on for as long as possible so we can use them whilst saving a grand for a vehicle. Also to stop paying all other non-priority debts and hold on again until they all start to default. Hopefully we will have our budgeting in place by then and small emergency fund before setting up a DMP. I gather we will have around 3 month before they start recovery proceeding for the cars which we will then return.
Approximately how long from 1st missed payment would you expect CCJ's and bailiffs to be involved? Should i offer token payments until a more permanent option in place?
Already heard back from 1 creditor today and have froze the account for 30 days.0 -
Ok. So the plan is to ditch both cars but hold on for as long as possible so we can use them whilst saving a grand for a vehicle. Also to stop paying all other non-priority debts and hold on again until they all start to default. Hopefully we will have our budgeting in place by then and small emergency fund before setting up a DMP. I gather we will have around 3 month before they start recovery proceeding for the cars which we will then return.
So you're planning on defaulting on the cars rather than doing a voluntary termination?
Have you read that factsheet I posted earlier and understand the two different ways of calculating the debt? The first has 100% of the total sum payable as the starting point, the latter 50%. Once they have terminated the agreement, you cannot do it and have lost your right to do so.
Have you checked your initial agreement to make sure this genuinely is Hire Purchase?
Not saying you're wrong here - just want to know that you understand what you are doing. If your attitude is 'hang on to the cars for as long as possible and bung everything into bankruptcy' then that's ok. If you're looking at a DRO or a debt management plan (which you infer you are) then you want to limit the damage.
If you intend to go down to one car ultimately, why not VT the more expensive one now and keep the cheaper one on for a bit?Approximately how long from 1st missed payment would you expect CCJ's and bailiffs to be involved? Should i offer token payments until a more permanent option in place?
As a rule of thumb, one in ten debts see court action. So the quick answer is 'I wouldn't'
For the ones that do, an average would be around 3 years.
I'm not a fan of token offers generally0 -
I have to agree with everyone else - ditch the cars 100% - there is absolutely no need to be driving round in cars that cost you that much when you're in debt.
Are you sure you're claiming all the benefits you can?? I'm sure x2 child benefit is more than £90 and you have not listed any tax credits!!0 -
Hi there just looking at your income with 2 young children is there any working tax credits /child benefit looks only to be for 1 child also. you might want to speak to someone at DWP to see if your entitled to more/help with childcare costs. This would signficantly help with covering costs as with exception of the cars your spends dont appear too excessive?
just noticed Anna _1977 has also noted the benefit situation too.LBM Sept 2012
started DMP 1.11.12
Debt [STRIKE]£37012[/STRIKE]/£0 DFD January 2019 :beer:0 -
Entitled to £110p/w tax credit but currently get £90p/w due to slight overpayment (my mistake that is what i put for monthly benefit). This bascially covers our childcare costs. 30ish a week for child benefit. Updated my SOA.
I read the VT link but now too sure of how it works. Take my car for example: £13,000 left to pay - made 12 of 48 £350 payments. Valuation of £10,500 on WBAC.
Would rather pass on both cars rather than 1 so can just start afresh and not worry about repayments.
However, after wev'e done this still unsure on what to do after? Whether to just go bankrupt or do a DMP. Suppose it comes down to what would be cheapest in the long run , in terms of the IPA and disposable income.0 -
Entitled to £110p/w tax credit but currently get £90p/w due to slight overpayment (my mistake that is what i put for monthly benefit). This bascially covers our childcare costs. 30ish a week for child benefit. Updated my SOA.
I read the VT link but now too sure of how it works. Take my car for example: £13,000 left to pay - made 12 of 48 £350 payments. Valuation of £10,500 on WBAC.
Would rather pass on both cars rather than 1 so can just start afresh and not worry about repayments.
However, after wev'e done this still unsure on what to do after? Whether to just go bankrupt or do a DMP. Suppose it comes down to what would be cheapest in the long run , in terms of the IPA and disposable income.
To VT you need to pay 50% of the total including and deposits so for eg: 50% of £13,000 = £6,500 so you would have to make about 19 payments to walk away of the deal that is based on the total being 13k but i dont think that is your total and i dont think that includes deposits and interest
as a rule normally i would say that you will have to make at least 40 payments before getting out of the deal as vt is fairly close to when the deal is coming to an end, car manufacturers are many things but are experts when it comes to numbers and they make sure they dont lose out
one possible solution may be that you sell both cars to wbac and they will pay the finance company and you will have to make up the remaining amount but im sure if that would be a good idea or if the finance company will accpet that“People are caught up in an egotistic artificial rat race to display a false image to society. We want the biggest house, fanciest car, and we don't mind paying the sky high mortgage to put up that show. We sacrifice our biggest assets our health and time, We feel happy when we see people look up to us and see how successful we are”
Rat Race0 -
I read the VT link but now too sure of how it works. Take my car for example: £13,000 left to pay - made 12 of 48 £350 payments. Valuation of £10,500 on WBAC.
350 x 48 = £16800
50% is £8400
You have paid £4200
Therefore your liability is £4200
There may be some wriggling by the lender and this is covered by an excellent legalbeagles article
http://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/77730-a-guide-to-voluntary-termination-your-rights?77612-How-to-Voluntary-Terminate-a-HP-Agreement-*UPDATED*=0 -
Perhaps things don't look as bad as first seemed with the updated budget . If my calculations are correct and we do a VT on the cheapest car to put the money towards minimum payments, we would be left with £50 surplus per month for wiggle room (not including what we would have to pay for VT). Obviously means we have to stick to our budget strictly for next next few years, including no luxuries, but now seems manageable and as I have said before, will eventually get better when childcare costs reduces, salary increases and minimum costs reduces.
Keep the more expensive car as it is the one with most payments paid and shortest agreement, slower depreciation and the larger car.
What does everyone think?0 -
but if the finance company terminated the deal, I would be liable for the £13,000 minus whatever the car fetches at auction? Is that correct?0
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