Taking the first steps

[Lanzo]

Dear all
I’m taking the first steps in getting my finances under control, I’m not sure how it came to this but I seemed to be managing things ok until earlier this year, however after reading things on this forum I’ve probably been kidding myself for a long time (robbing Peter to pay Paul etc). In the end I had 6 credit cards and all of a sudden I just found at the end of the month I didn’t have the money to pay the minimum on any of them. Then the phone calls started I just retreated into my shell, when my wife saw how I was behaving and the visible strain on face she said I should face up to things rather than run.

Anyway the first step was to cash in most of our savings and clear 4 of the cards roughly £2k, the fifth card has £100 balance which I’m chipping away at, the last one still has £4k on it and the £89 minimum monthly payment is killing me, at the moment I need £179 to bring the account up to date. I was up to date with all of my priority bill but now I’ve stopped borrowing things seem to be teetering on the brink and this one card seems to make a big dent in my finances, and I need to get to grips with it.

So that’s where I am now, looking for a way forward. Oh another thing, all card have been cut up, the next step is cancel the accounts.

Last thing, I tried to link to the personal budget sheet in this section but it won’t let me have access, can anyone one link me up to a simple I & E sheet.

Thanks in advance

Lanzo

[enaid]

Re: Taking the first steps

Hi Lanzo,
Always pay your priority debts before any credit cards, they being mortgage/rent, council tax and utility bills.
Have you spoken to the lender about your problems meeting the minimum payments?

[enaid]

Re: Taking the first steps

Personal Budget Sheets

Legal Beagles Consumer Forum

[BillandBen]

Re: Taking the first steps

Trust me the first steps are always the hardest You've started now, and well done foe cutting up your cards

[Caspar]

Re: Taking the first steps

Well done for taking the first steps, and even more so for taking them so early on before things got really out of control.

I wouldsay cancel the agreements you've paid off, but not the others just yet in case they get worried and start demanding all the money - don't know what others think about this?

As Enaid said, get in touch with your creditors, tell them your difficulties and see where that geets you. It's worth doing an IE sheet first so you have a realistic figure of your disposable income. When filling these in, many people vastly underestimate their actual expenditure on things, so make sure you're true to yourself whatever the picture at the end. At least then you know what you're dealing with.

Well done once again for doing the hardest bit and I'm pleased you've got a supportive wife - it makes a massive difference when you can share things!

[Angry Cat]

Re: Taking the first steps

http://www.nationaldebtline.co.uk/en...bs-monthly.pdf

[Lanzo]

Re: Taking the first steps

Dear all

I am just about coping with all the priority debts. Surviving Christmas will be a challenge though.

Regarding the credit card I have briefly spoken with the company when they were chasing late payments and they were on the brink of defaulting the account. I did mention making some sort of voluntary monthly agreement with them but they said I would actually have to default the account, and fill in one of their IE forms before they could take things further so I have held off going down that route as I’m not fully sure of the implications. Any advice on that would be appreciated.

Caspar, my wife is being supportive, as she says we’re in this together but she’s pretty angry with me and has already given me a earful, so it’s up to me to man up and sort this whole thing out.

Angry Cat, thanks for the IE sheet, it seems the other links on this site wouldn’t work for me, now I need to sit down with a large cup of tea and start to honestly note things down.

Thanks again to all of you for responding I feel much better knowing I’m not on my own in all of this.


Lanzo

[Angry Cat]

Re: Taking the first steps

Please, post up your completed I&E/Budget sheet before you submit it. Many people include costs re: dog/cat food, satellite televison and tobacco etc...that will be rejected. (minus of personal details, of course.

We will check it for you

[Caspar]

Re: Taking the first steps

Please, post up your completed I&E/Budget sheet before you submit it. Many people include costs re: dog/cat food, satellite televison and tobacco etc...that will be rejected. (minus of personal details, of course.

We will check it for you

Couldn't agree more AC - a critical document to get right. You may read on other consumer forums that you don't have to supply an IE sheet to anyone other than a judge which strictly speaking is true, but it won't help your cause if you don't provide it as solid evidence to back up your case.

[Lanzo]

Re: Taking the first steps

Hello all,

Taking these first steps has been great eye opener for me, now that I've opened my eyes and I'm looking at my bank statements I can see that I should not be in trouble at all, I can see that I've just been very poor at managing my finances. (or I've done it with my head in the sands)

Over a period of time whenever I've had a shotfall I've banged it onto a credit card and I had let it mount up, Cards have gone now and even allowing for the monthly payments on the card that I have I should be managing ok.

The other thing I've lost track of recently is Bank charges, wow, I've exceeded my overdraft monthly and I get hit with big charges, Mr Nat West has been a big winner recently.

I'm in a bit of a hole this month cost a couple of items have backed but I should be able to manage my way out of this.

Going to make an appointment with them asap.


Lanzo

[enaid]

Re: Taking the first steps

Hi again Lanzo,
I am pleased you are starting to see that your problem is not as great as you first thought.
The credit card that you are having problem with, does it have any charges on it? ie late payment or going over drawn, if so you can reclaim them and thus reduce your balance and indeed your minimum payments.
Enaid x

[Lanzo]

Re: Taking the first steps

Hi Enaid,

I think over the months that one credit card has cost me loads in penalty charges. It's not in default but has 2 payments due on it now which I'll try to make at the end of this month. How do I go about claiming back the charges ?

Overall if I get back to within my overdraft I'm sure with good mamagement I could stablise things. I did have a review with my bank a couple of months ago but all they wanted to do was to switch my insurance, mortgage and other things over to them, not a word about why I was over my limit every month.

I'm going to make another appointment with them to get things looked at again.


Thanks

Lanzo

[enaid]

Re: Taking the first steps

IMHO and I maybe totally wrong here, the bank reviews that I have had have been a way of them subtly getting me to take on a CC with benefits that are of no use to me or to consolidate my debts and sell me anyhting else they have going.
If you have your statements from the CC in question and you can add up the charges thats a good start if not you will need to SAR (subject access request) then they have to send all the info they hold on you including copies of all statements.

Here is the info on how to reclaim your charges Legal Beagles Consumer Forum
please ask if you are in doubt about any of the steps to do it, we are all here to help in anyway we can.
Best of luck Enaid x

[Lanzo]

Re: Taking the first steps

SAR letter for the credit card written and in the post.

I'll keep you (all) updated of progress.

Lanzo

[enaid]

Re: Taking the first steps

SAR letter for the credit card written and in the post.

I'll keep you (all) updated of progress.

Lanzo

I do hope you included the tenner :santa2: