Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    New Start - hope to clear debts
    • #1
    • 30th Jun 11, 12:40 PM
    New Start - hope to clear debts 30th Jun 11 at 12:40 PM
    Hi Guys,

    I have been burying my head in the sand for too long regarding my debts, and I feel it is time that I finally start making steps to a less stressful life by remedying my financial issues.

    Basically, as a student I managed to run up a large amount of debt on credit cards, and around 8 months ago after losing my job I found it very difficult to make payments on my cards, at the time lloyds also decided to withdraw my overdraft, and I have been battling since then!

    Now I have become self employed and have managed to turn my life around in many ways in the last year, but my debts are still a constant worry.

    I have roughly 200 a month (and rising) free to cover my debts and hopefully have some chance of eventually having a credit rating (although I expect mine is now damaged beyond repair)

    I am a stage now where despite writing to the lenders and asking for reduced repayments, the debts are with collection agencies and if I leave it any longer, I would not be surprised if they try to take me to court, so I would like to take action and make a start on paying my debts. I know it is too little, too late but this is the situation I am in.

    Liabilities are as follows -

    Lloyds TSB -903.67 (Administered by Apex Credit Management)
    Graduate overdraft removed with little warning, 50 per month repayments agreed, but still hassled by LTSB collections debt, few days late with one payment and passed to DCA.

    Capital One - 566.76 (FTC Debt Management)
    Halifax CC -2141 (Albion Collections)
    MBNA - Circa 2200 (with DCA but cant remember who)

    Halifax - 540 (I have disputed this as basically I was overdrawn by around 30 for around two weeks, I paid them around 180 (original money overdrawn + fees, but on the next billing cycle they added more fees, ignored my appeal against the additional fees, and have now passed onto moorcroft).

    Any advice going forward would be greatly appreciated - in many ways it feels better to be all out in the open!

    This Forum Tip was included in MoneySavingExpert's weekly email

    Don't miss out on new deals, loopholes, and vouchers

    Last edited by Former MSE Helen; 05-07-2011 at 8:10 PM.
Page 1
  • GeorgieFTB
    • #2
    • 30th Jun 11, 12:46 PM
    • #2
    • 30th Jun 11, 12:46 PM
    The first advice anyone round 'ere is going to give you is fill out an SOA, statement of affairs, once we know how much you have left or can trim then we can help you with which debts to pay.

    I've said this before but... picture DCAs like children, they respond to firm but consistent communication, they will have a tantrum if they think you are ignoring them!

    You should also get your credit file, I think you can get your statutory one from all three credit ref agencies for 2 a time, this will help you find out where all your debts are.

    Mortgage at 08/10/10: 110k
    Current Mortgage:... 109,200
    OPs 2011: 100.50/4000
    Current MFD: 02/10/45 (will be 63!!!)

    Make a payment a week challenge TW 100/123.79
    • rdchick
    • By rdchick 30th Jun 11, 12:50 PM
    • 1,643 Posts
    • 4,732 Thanks
    • #3
    • 30th Jun 11, 12:50 PM
    • #3
    • 30th Jun 11, 12:50 PM
    Hello and welcome!!

    You've made the first step of becoming debt free and with regular posts on these boards, a few challenges and the such you'll be debt free in no time. It is scary but no one is going to judge you here.

    You say 'too little too late' but I don't think so. You have realised there is a problem and now you're facing up to it, some people don't realise they have a problem until the bayliffs are knocking, so at least you can stop it before that happens.

    If you post a full statement of affairs (SOA) located in the stickies threads at the top of the board we can help see where you can trim some of the fat on your other spendings making you debt free quicker

    I wish you all the luck in getting debt free and remember you've done the right thing by facing up to what you owe
    Life is too short not to love what you do.
    • Martin Borgars
    • By Martin Borgars 6th Jul 11, 4:29 PM
    • 2 Posts
    • 1 Thanks
    Martin Borgars
    • #4
    • 6th Jul 11, 4:29 PM
    • #4
    • 6th Jul 11, 4:29 PM
    Once I finally admitted that I had similar issues, I approached CCCS in Leeds (wwwdotcccsdotcodotuk). I could not recommend them more highly. They helped me set up a DMP, and negotiated with all those I owed money to. That was just over 5 years ago. It's been a hard slog, but at current rate of progress I should be debt free in 6 months time. The hardest step is admitting that there's an issue!
    • hard slog
    • By hard slog 10th Jul 11, 5:18 PM
    • 25 Posts
    • 22 Thanks
    hard slog
    • #5
    • 10th Jul 11, 5:18 PM
    • #5
    • 10th Jul 11, 5:18 PM
    I registered with a company advertising to manage all my debts (20k after divorce & single income finally sank me) they came to see me it all seemed stress free i just paid them 400 a month, they'd sort my creditors and at last i'd have peace of mind. Then i found out (maybe he did tell me but not so that it registered) the 1st 2 months are their fees!! So I still had constant calls from my creditors till a lovely lady at LVBS told me to cut my losses (1st 400), cancel the 2nd payment and get in touch with CCCS - it was the best thing I did. I'm in my 3rd year with them, have paid off 2 debts in full (thanks to Martin & reclaiming PPI) & 2 years to go - hopefully less if I can claim credit card PPI. Don't struggle on your own - GO TO CCCS.
  • 117
    • #6
    • 9th Apr 12, 5:52 PM
    • #6
    • 9th Apr 12, 5:52 PM
    Hi Guys,

    Ok almost a year on, things have improved for me, I have setup payment plans with all but two of my lenders, and managed to make some inroads, but my credit rating is horrendous, really regret burying my head in the sand last year!

    The main problem I am having is the number of defaults on my file,
    (5 or 4 in reality, yet it seems arrow global have registered a second default on behalf of MBNA despite me setting up an agreement with them, also MBNA and cit group never actually notified me that they were issuing a default)

    My current score with equifax is 'very poor' and although I now have the ability financially to clear all my debts within the next 3 months or so, I want to do so in a manner which will also have the most positive impact on my credit file, so any advice is appreciated.

    I have posted a summary of what is reported in my equifax file below

    Credit card / S...

    Current Account



    Current Account

    Hire purchase/C...

    Credit card / S...

    Credit card / S...

    Credit card / S...
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,774Posts Today

10,536Users online

Martin's Twitter
  • Just sent a text about postgrad loans. My Swype text auto-corrected it to pothead loans. Does it know something I don't?

  • Are you an overdraft prisoner? How to escape it! My new blog on ways to get rid of your overdraft...

  • RT @bbc5live: .@MartinSLewis joins @annaefoster from midday to answer your money saving questions. ???? 08085 909 693 ???? 85058 Or post your q?

  • Follow Martin