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Also when I spoke to MBNA she went through a budget thing with me and said that they would set a payment (which happens to be £190) but they didn't expect me to be able to pay that. They have also stopped all interest. Does this mean that I have some payment plan with them and again wont have people knocking at my door? I haven't defaulted on anything yet but will do soon as I cannot carry on like this. How will this affect things like my banking, getting car insurance, contents insurance etc? Would it mean i'd have to pay in full rather than monthly? Currently we have sky, mobile, car tax and utilities that are I guessed based on credit. Would all this change? Sorry for all the questions.
Originally posted by sammyjo1979
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Ok, take a breath........r e l a x........lets summarise, you seem confused about what you have actually agreed too, that is why its always best to do these things in writing only, it appears you have agreed to something you cannot afford to pay with MBNA.
As a first step, remove all ability for your creditors to take payment from you, that means cancel direct debts, card payments, standing orders etc.
Next write to all your creditors telling them you are in financial trouble, you will automatically get 30 days grace with no collection activity, do a proper budget that shows no surplus, include a copy of your budget in the letters, tell them you are taking advice.
After that, get in touch with one of the free debt advice services in my signature, see what they advise you to do.
I would suspect they will opt for bankruptcy, but see anyway.
No one will be knocking on your door, please read up on when bailiffs can and cannot be used, you are a long way off that happening, there would be a court process to go through first.
Creditors are much more in tune with customers in difficulty nowadays, and have been ordered by the regulators to treat everyone fairly, there is a solution to this, it is just another problem that needs to be solved, you just need the right advice.
You will have no problem with any insurance etc, I was insolvent and I managed just fine.
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