I really need my life back

[Survival]

26
owe around 5k in debt
5 defaults (didn't know littlewoods defaulted me until i used free trials to check my credit report)

last default was for me to able to pay littlewoods caterlogue registered 28/04/2012

oldest default 17/10/2010 HSBC

I basically had a decent enough job, and was given access to alot of credit, and took it, lost the job in 2010 due to recession, and really began struggling.

Before I was comfortable although in truth was probably keeping my head above water with salary, credit cards and OD etc.
I was renting as soon as I got a job from age 18, family are nutters, with my dad abusing alcohol and mother abusing drugs. and now at 26 (nearly 27) there is no way I can go back 'home' nor do I want too, it was far to physically violent, for me to even consider it.

so when i lost my job, i couldn't afford my credit card payments, the bank decided to withdraw my OD, I stopped paying and ignoring them and my other creditors (silly I KNOW)

I also started losing my hair, i don't know if this was stress related, but this really knocked my confidence even more than losing my job.
I was on unemployment benefit, eventually after nearly 2 years i work 25 hours a week, I did claim housing benefit which covered my rent, in period of unemployment, but since I strated this job, I couldn't afford the rent and bills so now I rent a room, BUT all bills for electric etc inclusive.

monthly income 677
monthly expenses 446

debt owed:

HSBC OD £1772.11
Virgin CC 1703.85
HSBC CC 1306.67
littlewoods £380.77

I did recently contact everyone including littlewoods now, requesting to do their SOA all via paper.


this going to take me years to pay off, my credit score was 488 'VERY POOR'.
I'm not going to be able to get access to any credit, not that I want too, but since i got in contact with all my creditors, and gave them my new contact details, even though I requested the soa and everything on paper, they keep calling me.
it's been about a week and these debt collection agencies are calling me several times a day.
I've said im waiting for the SOA form, and their trying to bully me into filling it out over phone and asking for my card details to make payment.

what do i do?

[Deepie]

Re: I really need my life back

Welcome

To help us, to help you, please provide the following information for each account:

• Type of account (credit card/loan)
  
  
• Date commenced (ideally before Apr 2007)
  
  
• Approx balance
  
  
• Date last paid (approximate date you last made a FULL payment)
  
  
• Are you on arrangement or not paying
  
  
• Status (default/in arrears/up-to-date)
  
  
• Account owner (who is writing to you, a DCA or the lender)

[Survival]

Re: I really need my life back

HSBC current account opened in May 2009 £1772.11, last paid I think would be april 2010. DEFAULT
Virigin Credit Card was opened in nov 2010, last paid april 2010, DEFAULT balance owed £1703.85.
HSBC Credit card, opened same time as i had 'upgraded' my current account last paid was all around april 2010. total £1306.67 defaulted
littlewoods £380.77 credit catalogue DEFAULTED 28/04/2012, last paid was a minimum payment in july 2011.


i am about to enter arrangement to pays but in order to do i want the paper SOA.

if i missed any other info out, it's coz i'm at work, on my lunch break typing away.

[SXGuy]

Re: I really need my life back

Well dont ever speak to them on the phone, just hang up on them.

Send out the telephone harassment template.

http://www.all-about-debt.co.uk/temp...assment/t2.php

and if you can list all your debts someone here will be able to help you more.

[Survival]

Re: I really need my life back

ah ok thanks, so in 6 years i will have a fresh bill of financial health!
no chance of me looking for a mortgage, my job is not even really fulltime tbh

My heath is crap, and as i live in london, no way me being single on my wage will i get a mortgage.


will look at the default link, and i am now ignoring my mobile and only answering numbers stored in my contacts.

In an ideal world, i'd love my debt to be unenforceable, but I'll pay back what I can afford, but I don't want to be bullied into a repayment plan which i can not afford

[MrsD]

Re: I really need my life back

if you want to set up a repayment plan, that's fine, but YOU decide what you are paying each of them per month, for the moment I would be suggesting very little. I would be using our templates to tell them what you will be sending them, get their details for SOs and se them up, leaves you entirely in control. Don't answer the phone if you don't know the number.

Realistically what exactly can they do?

Even if they took you to court (very unlikely) your payment would be set at an affordable level, you have no assets so no COs, effectively they are very powerless and all these phonecalls is them running interferance because they KNOW that they have little power in your case.

Cheer up a perfect credit score isn't everything, none of us have one here and we all manage to live pretty good lives......................

[SA Gold]

Re: I really need my life back

Hi Survival,

I thought i'd drop you a message; one newbie to another. Reading between the lines i may be in a similar position to you, other than i owe more than you.

I hit a brick wall end of 2010 and to be honest felt pretty low about it until recently. It was always in the back of my mind and i often spent a lot of time thinking how i could have stopped it all from happening.
I found this forum whilst searching the web for "mortgage application with defaults" and originally posted pretending to be my girlfriend (hence the girls name!) asking for advice about me.
Why? Well i was worried debtors may be sniffing around.

Since that day, all the great advice i've had and read about on here has really changed my view on the whole debt issue and how widespread it really is. The main thing that has sunk in is there is light at the end of the tunnel and there are so many people in the same position as us is reassuring.

Yes, a default is a nightmare if you were hoping to obtain a mortgage, but think of it like this:

Put the default(s) aside for a minute. If you were struggling to keep up the repayments of existing credit, minimum amounts, the odd late payment etc, it may be that you wouldn't have been accepted for your mortgage anyhow.

Unlike the James Bond film, Defaults are not forever! As far as i am concerened its like a long egg timer - it will go eventually!

Hope your health improves, and stick around here for top quality advice.

[Never-In-Doubt]

Re: I really need my life back

Plus in the default period it's good to save the money you're not using on the debts to save a bigger deposit

Bigger deposit = better rates/deals

[SA Gold]

Re: I really need my life back

Plus in the default period it's good to save the money you're not using on the debts to save a bigger deposit

I forgot that one!

[Survival]

Re: I really need my life back

thank you firstly for all being so welcoming
secondly for not being judgemental
and thirdly i already fee alot better, i've been looking at all the templates, and it's already making me feel like i can get my life back on track.

I'm thinking of proposing repayments of only £10 per month to each creditor, i know this is low, but i don't want to propose too high a number and then something crops up, especially health wise and i'm unable to pay.

as it is i rarely do anything, apart from going library for books to pass my time, and going to work, i try not to spend anything as i feel guilty thinking that surplus should go all to debt. I'm not going to think like that, i'll pay what i can afford.

i'm going to stick around, clear my debts and just stay positive.

[SXGuy]

Re: I really need my life back

Firstly, pay what you can afford.

secondly, do NOT feel guilty about spending your own money.

Other forums will prob tell you to live in poverty but we will not.

By all means if you feel you should repay your debts, then do so but only on your terms, offer them something which you feel would be comfortable to repay, and still leave you enough to get by, and treat yourself every so often.

Some advice, most creditors will tell you the amount they are willing to accept as min payment to avoid defaulting you, what they call a payment arrangement.

They have no choice really, but to agree an amount you can afford, but they prob will default you if its less than what they ask for.

But, that being said, if you are in no real need for credit for the next 6 years, then why should it matter, at least you are in control with your debts.

I and im sure others here will prob say, offer them something like £1 a month with review in 6 months time, see what happens.

I know from expierence, even those that declined, soon accepted the offer once you keep telling them thats all you got.

If there gonna default you anyway, may as well pay as little as possible, and make your life better.

[Undercover Elsa]

Re: I really need my life back

Hi Survival,
Sorry to read about all your problems, but you've done the best thing to start sorting them out by coming here.
It's a shame that your debts are post April 2007 as unenforceability is usually our first line of defence on here, but unfortunately the rules changed at that time.

That said, don't be despondent, there's lots we can do to help. Have a read around the forum and you'll see that in the grand scheme of things £5K is not a terribly large amount to owe, although it seems so to you in your circumstances. The main thing is, you're not dealing with this alone now, we can help you work through it and your stress levels will soon drop...we've seen it happen so many times and it's very rewarding

Can I just ask whether all your creditors have now stopped adding charges and fees?

I note that you intend to offer them all £10 a month. What the creditors will expect after sight of your SOE is pro rata payments, so that the larger debts receive more each month.
Based on your £10 and 4 debts, I assume you have £40 available. If you're sure you can comfortably afford this then pro rata payments would work out as follows, using the standard formula of
amount owed to creditor divided by total debt multiplied by available income
Hence yours works out at:

HSBC OD £1772.11 ....£13.72
Virgin CC 1703.85........£13.20
HSBC CC 1306.67.......£10.12
littlewoods £380.77.......£2.94

Obviously you can round the figures off if you wish.
These payments would clear the debts in 10 years providing no interest is being added. 5 years if you doubled what you pay, which would see you clear ready for them dropping off your credit file.

The other thing you need to consider is whether there are any unfair charges or missold Payment Protection Insurance on any of the accounts which could be reclaimed.

Hope you're feeling better now that you've taken the plunge and posted your problems. Very often just doing that helps to stop everything racing round in your head with the stress, and the support you will get on here is unique. There's no other forum like it..and I've tried them all!

Take care,
Elsa x

[Never-In-Doubt]

Re: I really need my life back

Based on your £10 and 4 debts, I assume you have £40 available. If you're sure you can comfortably afford this then pro rata payments would work out as follows, using the standard formula of
amount owed to creditor divided by total debt multiplied by available income
Hence yours works out at:

HSBC OD £1772.11 ....£13.72
Virgin CC 1703.85........£13.20
HSBC CC 1306.67.......£10.12
littlewoods £380.77.......£2.94

Also see this (for templates etc) ---> allaboutDEBT | Our Templates | Making Creditor Offers - The Formula Used

[Survival]

Re: I really need my life back

thanks so much, i never realised there was a formula to working out my repayment offer.
Also the templates for my monthly payments are amazing and also the information on sign digitally was very interesting.
I doubt i'll ever sign a letter to a creditor again, I'm going to cover myself with digital signature.

also I'm going to go for the figures of:
HSBC OD £1772.11 ....£13.72
Virgin CC 1703.85........£13.20
HSBC CC 1306.67.......£10.12
littlewoods £380.77.......£2.94

I'm also going to propose I start the payments from the 7th of every month, meaning October.

[SXGuy]

Re: I really need my life back

good luck, let us know how it goes, keep us updated.