Several debt accounts - need help - do not know what to do

[Debt Camel]

Re: Several debt accounts - need help - do not know what to do

Two children 4 and 6. We have two bedroom flat so kids are in one bedroom. We should have 3 bedrooms.

So how long can you stay in your current flat? There is no use basing a long term debt plan on staying in a flat which is unsuitable for you for the length of the plan.

What are the economics of your current flat - how much equity is there if you sell it? How much would it cost you to rent the same size flat as opposed to 75% rent / 25% mortgage? is your mortgage on a variable rate, if so have you considered what a mortgage rise will do to your precarious finances? How much would it cost you to rent a bigger place you could plan to stay in until the kids leave home?

Stupid trip to Safari Park with kids costs easily £80 etc. If I went for that plan with step change, my kids would be out of social life for several years...

There isn't an easy way of putting this, but it needs to be said... you and your wife have borrowed a lot of money that you cannot repay. You have been spending more than you can afford for years, People can and do bring kids up without spending £80 on a "stupid trip" to a Safari park. It is also easier to do this when your kids are small rather than be forced into it when they are teenagers.

[Kraken]

Re: Several debt accounts - need help - do not know what to do

So how long can you stay in your current flat? There is no use basing a long term debt plan on staying in a flat which is unsuitable for you for the length of the plan.

What are the economics of your current flat - how much equity is there if you sell it? How much would it cost you to rent the same size flat as opposed to 75% rent / 25% mortgage? is your mortgage on a variable rate, if so have you considered what a mortgage rise will do to your precarious finances? How much would it cost you to rent a bigger place you could plan to stay in until the kids leave home?

I am not exactly sure about detailed equity and cost of my current flat, but more or less my 25% share could be worth around £40k and my mortgage is still for £27 (so £13k possible equity, not sure if this will be enough for bank to start whole procedure to reposess my home.) My 25% mortgage + 75% rent is cheap around £400 to rent simillar flat in my area would be up to £800. This is why I want to keep my flat as is cheap to run. I have mortgage set for another 2 years with no raise. Even if will rise to my standard rate I would pay £50 extra monthly at max. I will not find another flat in new development as cheap as this one. It is a shared ownership flat and 75% belongs to housing association. Preferably I would need one more bedroom, but in worst case scenario two kids can live in one bedroom for another few years.

There isn't an easy way of putting this, but it needs to be said... you and your wife have borrowed a lot of money that you cannot repay. You have been spending more than you can afford for years, People can and do bring kids up without spending £80 on a "stupid trip" to a Safari park. It is also easier to do this when your kids are small rather than be forced into it when they are teenagers.

I cannot agree with this. I think my problem is not only about spending too much but also banks being greedy. They observe how you use for example credit card and put on higher interest when you have bigger limit used. It is a closed circle. You end up paying only interest. For example credit from BOS for £17k for 5 years. Repaying £460 monthly of which £220 was interest only.
They can see you struggle so put interest up.
Any person having kids at school knows how it is. When you have 5 or 6 birtday parties in one class you have to go, pay for petrol to get to (somtimes it outside the city), you have to buy small present etc. Do you think £80 trip to Safari Park once a 6 or 12 months is a luxury life? I have repaid hell a lot of my debt in interests and when was asking bank to help me reducing any penalty charges they simply did not bothered. I put my family first, not a greedy bank who probably had that money insured any way and sold taht debt.

[warwick65]

Re: Several debt accounts - need help - do not know what to do

Kraken
I do have some sympathy for you . It is only natural you want the best for your kids and I do believe that poverty only exacerbates the cycle of inequality and achievement. People from lower socio economic groups do less well at school and have worse health, earn less etc etc yet cost the state more.

However you did borrow the money for whatever reason and maybe made some bad choices, you need to avoid CCJ's etc for your job and i am afraid there is , to coin a phrase, no magic money tree.

I was in a DMP for 5 years or so and did pay a lot of my debt off although it didn't feel like it. It was only towards the end of that time that I finally faced up to where the money had gone and how much of it was my fault- yes I think Government had a part to play but that's another story.

I don't think anyone is expecting you to feed the kids bread and water with no presents and pudding bowl haircuts.

[Kraken]

Re: Several debt accounts - need help - do not know what to do

Kraken
I do have some sympathy for you . It is only natural you want the best for your kids and I do believe that poverty only exacerbates the cycle of inequality and achievement. People from lower socio economic groups do less well at school and have worse health, earn less etc etc yet cost the state more.

Thanks.

However you did borrow the money for whatever reason and maybe made some bad choices, you need to avoid CCJ's etc for your job and i am afraid there is , to coin a phrase, no magic money tree.

For example loan was taken to repay ovedraft and credit cards as was paying almost intrest only. Some lenders wants you to be on the edge, that's perfect customer for a bank, you can repay forever...

I was in a DMP for 5 years or so and did pay a lot of my debt off although it didn't feel like it. It was only towards the end of that time that I finally faced up to where the money had gone and how much of it was my fault- yes I think Government had a part to play but that's another story.

I don't think anyone is expecting you to feed the kids bread and water with no presents and pudding bowl haircuts.

I know will need some sort of plan but now have only 1 week to reply to Soo smiths/Cabot before any legal action.
If I will send CCA (to both of them?) and they will come back with original CA what will happen next? Sill can repay or make an agreement or they will add charges and take me to court?
If they cannot produce CA, can they come out of blue in one year time with CA magically found?

[warwick65]

Re: Several debt accounts - need help - do not know what to do

let me guess, when you got the loan you did not quite manage to pay off all the OD's and credit cards ? Been there done that - the road to hell and all that

I would get a CCA request off asap

If they come back with credit agreements you probably have little choice but to enter into a repayment plan. I do not know how the Scottish system works to offer any real advice.

- - - Updated - - -

By the way, I am suspicious of people like step change because I know how they are funded however i am equally suspicious of certain alcohol and gabling support groups for the same reason

[Kraken]

Re: Several debt accounts - need help - do not know what to do

let me guess, when you got the loan you did not quite manage to pay off all the OD's and credit cards ? Been there done that - the road to hell and all that

When I got a loan it was to replace high interest credi cards and overdraft. I was paying for one credit card about £120 pm where interest was above £100. Paid like this for several years, all my creditors got a lot of money in interest. Then suddenly lost source of income which let me to pay about £1200 pm for debts.

I would get a CCA request off asap
If they come back with credit agreements you probably have little choice but to enter into a repayment plan. I do not know how the Scottish system works to offer any real advice.

Is letter for CCA same for England and Scotland?

- - - Updated - - -

By the way, I am suspicious of people like step change because I know how they are funded however i am equally suspicious of certain alcohol and gabling support groups for the same reason

To be honest, had a big problem with Scottish Power and case went to Ombudsman. Never seen so biased service... so when I take life change steps need to be careful.

[warwick65]

Re: Several debt accounts - need help - do not know what to do

A CCA request is the same- the consumer credit act is a reserved power ( Reserved to the UK Parliament) and the Scottish Parliament have no rights to interfere

- - - Updated - - -

Incidentally , I am not judging you at all- been there, done that and got that T shirt

[Kraken]

Re: Several debt accounts - need help - do not know what to do

A CCA request is the same- the consumer credit act is a reserved power ( Reserved to the UK Parliament) and the Scottish Parliament have no rights to interfere

How this CCA letter should look like? Do I send it to Cabot and Soo hmiths or different letter do each of them?

[MIKE770]

Re: Several debt accounts - need help - do not know what to do

CCA Request Letter

[Amethyst]

Re: Several debt accounts - need help - do not know what to do

This Next account sounds quite old, so it is worth sending a CCA request to Cabot in the first instance CCA Request Letter

If the letter from shoosmiths seems like a letter before action then you should also respond to that. It does sound like it it.

Please treat this letter as notice that, unless an agreement is reached within 14 days of the date of this letter, we are instructed by our client to commence court proceedings against you for recovery of the sums outstanding.

So reply with something like

Dear Shoosmiths
Ref: xxxxxxxxxxxxxxxxxx

I am in receipt of your letter dated xxxxxxxxxxx 2017 regarding an alleged agreement held between myself and Cabot Financial (UK). I do not recognise this debt and, in order to find out more information, have sent a formal request to your client, as the alleged creditor, for a copy of the original credit agreement pursuant to sections 77/78 of the Consumer Credit Act 1974.

When they send the documents required they should include a statement of the account, along with the terms of the agreement, which will enable me to consider my position with regards settlement or dispute of your claims.

You will be aware that your client must provide the document within 12 days or the agreement becomes unenforceable while they remain in default.

I would therefore be grateful if you could put any legal action on hold until such time as your client complies with my request, and I have had the opportunity to consider the claim, and if necessary seek legal advice.

Kind regards

xxxxxxxxxxxxxxxxxxxxxx

[Kraken]

Re: Several debt accounts - need help - do not know what to do

If the letter from shoosmiths seems like a letter before action then you should also respond to that. It does sound like it it.

So reply with something like

Thank you for your help.

[Kraken]

Re: Several debt accounts - need help - do not know what to do

One more question. Does £1 postal order goes to Cabot or need to send it to Soohsmith as well?
What should I provide? My name and addres only?
What about signature? Can I sign in word and then print it out or letter must be hand signed?

What kind of delivery should I use to be sure they will get it? Do I need any proof? Signed for or special delivery?

[Kraken]

Re: Several debt accounts - need help - do not know what to do

Today I received an email from Sam N Parcs Debt Managers about my Next account.

"Debt Managers (Services) Ltd
Notice of legal assessment
PRIVATE AND CONFIDENTIAL

Dear Mr

Your failure to make an offer of repayment has resulted in your account being assessed, after which Court Action may be recommended. As an alternative to us recommending legal action you should telephone us on 01709 537 265 to discuss the repayment options available to you to clear the outstanding balance in line with your current financial situation.

Payment may be made by card securely online at www.dmpay.co.uk https://www.dmpay.co.uk/ using your reference number, xxxxxxxx. If you would like to pay using this method you will also require your unique password details. The password may be contained in the letters we have sent to you through the post or you can email us for the details at sam.n.parcs@debt-managers.co.uk sam.n.parcs@debt-managers.co.uk . You will need to quote your name, address, date of birth and reference number when requesting the password information."

Is this final notice before court action or just they will decide if should pass me to solicitors?

Should I send them CCA just now or wait?

[Amethyst]

Re: Several debt accounts - need help - do not know what to do

It's with Shoosmiths already so I'd ignore Debt Managers, and tbh worry less about the letter from Shoosmiths. Have you had anything else previously from Debt Managers ?

[Kraken]

Re: Several debt accounts - need help - do not know what to do

It's with Shoosmiths already so I'd ignore Debt Managers, and tbh worry less about the letter from Shoosmiths. Have you had anything else previously from Debt Managers ?

Cabot / Soohsmiths is for my wifes Next account.
Today got from Debt Managers about mine Next account.

Two different cases, two different names but they contact us almost about same time.
Is this letter from Debt Managers a real notice before action or just another hop ?

I know what to do with my wife's Cabot/Soohsmith now (Should I just print her name and do not sign?)
but not sure if I should send CCA to Debt Managers in my case or should I wait?