help please

[Duckinorange]

I am new to this site and not sure what to do or where to post.

I have a few debts and used to pay them all on time but my husband is on a much lower income due to the recession so we start using the credit cards to get through each month. We have now run out of credit and have started falling behind with payments.

As I am having problems paying these debts, I am worried that I might lose everthing. I need my car to get to work. Can they take my car?

I am three months behind with my MBNA card and they are now demanding I pay them £509 immediately. I am also three months behind on Egg and need to find £375 for them too. I just haven't got this much money.

The phone doesn't stop ringing and when you do speak to them they just demand money that I haven't got.

Can someone tell me if I can get some help?

Thank you
Duckinorange.

[leclerc]

Re: help please

I am new to this site and not sure what to do or where to post.

I have a few debts and used to pay them all on time but my husband is on a much lower income due to the recession so we start using the credit cards to get through each month. We have now run out of credit and have started falling behind with payments.

As I am having problems paying these debts, I am worried that I might lose everthing. I need my car to get to work. Can they take my car?

I am three months behind with my MBNA card and they are now demanding I pay them £509 immediately. I am also three months behind on Egg and need to find £375 for them too. I just haven't got this much money.

The phone doesn't stop ringing and when you do speak to them they just demand money that I haven't got.

Can someone tell me if I can get some help?

Thank you
Duckinorange.

have you explained to them that you are suffering financial hardship?
Furthermore, are you missing payments on priority debts, ie house, utilities?

[Duckinorange]

Re: help please

Hello leclerc and thank you for replying.

I told the girl on the phone when she rang (from an overseas call centre I think) that I couldn't pay as my income had dropped since last year. She didn't seem to care and just wanted paying in full.

I asked if I could just pay her a bit, knowing that if I paid her everything then my rent would bounce. She wasn't interested and demanded the full £509.00 immediately, so I hung up. I've ignored all calls since as I'm frightened what they might say.

My rent, gas and electric and council tax have all been paid so far so no problems there at the moment.

[leclerc]

Re: help please

Hello leclerc and thank you for replying.

I told the girl on the phone when she rang (from an overseas call centre I think) that I couldn't pay as my income had dropped since last year. She didn't seem to care and just wanted paying in full.

I asked if I could just pay her a bit, knowing that if I paid her everything then my rent would bounce. She wasn't interested and demanded the full £509.00 immediately, so I hung up. I've ignored all calls since as I'm frightened what they might say.

My rent, gas and electric and council tax have all been paid so far so no problems there at the moment.

For MBNA here is something from their site:

"What if I cannot afford the new payment?
You can call us on 0800 028 0690 to discuss your financial situation. If you are experiencing financial difficulties we will need you to complete an income and expenditure form to demonstrate how much you can afford to pay. Once you have done this we may be able to assist you by offering you a reduced payment plan or accepting what you are able to afford and reducing or freezing interest and charges."
(the new payment related to changes in their interest rates but it does explain how they can help.

Extra help - Money worries
The above is for Egg. Try the approach of calling them because of your difficulties and explain the circumstances of the reduction in income coming into your household. Explain that you've tried balance transfers at 0% to reduce your overall repayment amounts to something more manageable. Work out an income and expenditure list and an amount that you feel is reasonable to pay(do not try and work out something that is too low and try not to overstretch anything.

See what they say and post it up here and we'll see what else can be told to them to listen to your request. If an indian call centre calls up, then ask them whether they are in the UK or overseas and if they say overseas state that you will only speak to a UK based operative since you are suffering financial difficulties. If they become rude tell them politely that you are hanging up as they are not prepared to help you.

[Caspar]

Re: help please

The first step is definitely filling in the Income Expenditure sheet (link to one at the top of page under IE Sheets). Fill it in honestly, do not try to live on nothing and pretend your car can run without fuel, repairs, MOT, tax, insurance etc..... Also remember things like haircuts etc... it's probably all on the form anyway.

How many children do you have under the age of 14, and how many between 14 and 18? It is relevant!

[Duckinorange]

Re: help please

Thank you both.

I have two children, one is 10 and one is 12. I'll have a look for the IE sheets that you mentioned and try to fill it in. It is very difficult with hubby being self employed, as one week he can earn £500 and another nothing, but I'll try and do an average based on the last few months.

Can I come back here if I get stuck on anything please?

[enaid]

Re: help please

Just wondering if there was any PPI on your cards as if your OH is self employed it's possibly been mis sold and you could claim it back.

Enaid x

[Duckinorange]

Re: help please

I have no idea enaid, is that the insurance policy for redundancy?
Will it tell me on my statements as I can't see anything about insurance on them.

I'm still worried that if I don't give them enough money that they will come and take all of my things to sell off. My tv and washing machine are quite old so not worth a great deal and my car is probably only worth a few hundred pounds, but I'd struggle without it.

[The Debt Star]

Re: help please

Good advice from Caspar there.

First thing, DON'T PANIC.

Second thing, try to get arrangements in place without going on a formal Debt Management Plan. Try and avoid that as you do need to be mindful of the future when things have improved and you could end up with a totally trashed credit file unless you play this carefully.

I was in exactly the same boat as you and made the mistake of panicking and going onto a CCCS Debt Management Plan. That worked fine for a whileand took the pressure off but later on I regretted it as the repayments were so low the creditors auto-defaulted me as a matter of course, while still accepting the DMP, resuling in a long-term negative impact on my credit file.

So be aware of that aspect, even if you ultimately do decide on a formal DMP. IMO its best not to but to make arrangements with each creditor that are affordable. Then focus on clearing the backlog of debt on the creditor that is the most horrible to deal with. Get them off your back eventually and move onto the next one.

The spiral of debt reliance you are describing is familiar to many of us here and this site will help you.

Run any income and expenditure sheet you prepare by Caspar by private email as he knows a thing or two about them and will help you put together a good proposal to the creditors.

[Duckinorange]

Re: help please

Cheers Debt Star.

Although it is hard not to panic. I feel sick everytime the phone rings. I need to get my head around things and do some calculations.

[Celestine]

Re: help please

Hi DuckinOrange

Welcome to Legal Beagles :beagle:

I can guarantee that after a bit more reading you will stop being so worried about what can happen as a result of these growing debts.

Firstly, the one thing most at risk is your credit reference report. Nothing else.

If you were unable to pay your credit card debts, the worst case scenario is that the CC will issue a default and start in house debt collection (dozens of phone calls and letters) or sell your debt to a DCA for a fraction of its value and then they will try and collect the debt (dozens more calls and letters).

Some debt collectors threaten attachment of earnings, a home visit or court action (a CCJ), but if an attachment of earnings or court action is undertaken, you will only have to pay what you can really afford, even if that is £1 per month.

Door step visits are very rare and they have no powers to access your home and take your property. Real bailiffs with those sort of powers, work to collect magistrates fines & council tax.
Debt collection agencies are lazy and go for the easy pickings, people they can scare and intimidate by lying and threatening drastic action that rarely happens.

Any defaults/CCJs on your credit report will stay put for 6 years then fall off, so you wont be able to get further lending in this time.

Thats the picture....so please don't be scared

[The Debt Star]

Re: help please

Right, when it comes to the 'phone there things you can do.

My tactic is always to maintain good communication with creditors, don't force them to come looking for you. So write to them and ask that all further communication be in writing. Respond back in writing when they do write to you.

Also, with regard to nuisance, pestering calls, you might want to consider either a TruCall device that filters calls or else get a "foney" landline number (no pun intended) that permits you to see who has called and listen to messages on-line via your pc. You then decide who you call back. I have a number like this from Flextel, who you can google if interested. I also bought a Trucall device and it is very good indeed.

Golden rule is not to panic and use this thread as a Diary. Post up what happens here and members will respond and help you as you battle through this.

I would agree entirely with Celestine's above post. However, if you can avoid uncessary damage to your credit files then try to do so. Late and missed payments will shuffle off in less time than a full-blown Default, so if you can try and avoid defaulting. It may not be possible and its not the end of the world if that happens and sometimes, if you take a long-term view, they are better than other types of adverse credit markers like Arrangements to Pay as they will fall off after 6 years. It all depends on your circumstances and thoughts on the matter. For me, with hindsight, there was much more I could have done 5 years ago to avoid a lot of the adverse knock-on effects I am still living with now.

So raed the site as Cel says and get familiar with the tactics you may want to employ.

[Duckinorange]

Re: help please

I feel better knowing that Celestine so thank you.
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Thank you Debt Star. I might have to do something about the phone as it is that which is stressing me out the most. The poor kids have been banned from answering it so must know something is strange.

I just don't want the kids affected as it isn't their fault.

[The Debt Star]

Re: help please

I definitely understand how you feel there.

The kids need to be protected as much as possible from the stress and trauma this is placing you and your husband under. Living with debt - or rather, living THROUGH a period of bad debt - is difficult.

That is why you should use this thread - YOUR thread - as diary and help/advice will flow in.

Please Google TruCall and also take a look at the Flextel website (which is not remotely user friendly I might add!).

TruCall devices are extremely easy to set up and use. Callers have to leave their name and are then put on hold as the device calls you and asks if you want to take the call. If you do want to take a call you can and you can also press # which puts that number straight through in future (eg its a relation). Otherwise you can * callers and permanently block them.

[CleverClogs]

Re: help please

The phone doesn't stop ringing and when you do speak to them they just demand money that I haven't got.

Do not answer their "security" questions.

Instead, tell them that you are God and that the reason you've not paid is that they have stopped worshipping you.
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My rent, gas and electric and council tax have all been paid so far so no problems there at the moment.

Good.

Priority debts/payments come first.

Pay the debt chasers what you can afford, not what some dreck bint on minimum wage + commission might demand.