Help and advice for debt of over £80k+

[Frosty873]

Hello all I'm new to this forum and I'm really hoping you are all a friendly bunch who won't judge me too much

My husband and I have always been in debt for as long as we've been together, and we are at the point where we are just being crippled every month with high interest and fallen into the trap of payday loans just to help with everyday expenses.

In a nutshell we have 19 creditors between us and we've ended up borrowing about £50k but with all the interest added on, and after asking them all for outstanding balances it adds up to a total debt just shy of £90k 😔

This is the first month that we are going to have to start missing payments. I'd already contacted StepChange to see what options we had available and we didn't qualify for DRO, Bankruptcy or and IVA- the best option for us was a debt management plan. I'm under no illusions that our credit files will be both be shot for at least six years but my question to this forum is this- as we haven't formally missed payments yet and been served a default notice, should we save up for a couple of months and then try to clear some of the smaller ones? We will still have to arrange a DMP for at least 75% of the creditors, and just wondering if it's cheaper in the long run to get the default notices so all the interest freezes (as it's the interest that's crippling us).

Step Change advised it will take us 3.5 years to clear the debt, and all the money paid to them gets distributed proportionality to all the creditors (as they are a debt charity).

I feel so so low about all of this- we've had to put off starting a family and we have absolutely no assets (currently rent, two cars less than a grand in value). Please tell me there is a light at the end of the tunnel! I'm aware defaults stay on your credit file for six years from when they were issued too.

look forward to hearing from you all,

frosty873 xxx

[Susie]

Re: Help and advice for debt of over £80k+

There is light at the end of the tunnel, although at the start you may feel the tunnel is too long to be able to see it. If you are going into a DMP it is normally thought better to stop paying for a while until the accounts are defaulted, oherwise they will mark you as on arrangement to pay and will often default you a lot later.
How old are the accounts? If they are older you may find some will have an incorrect or even no agreement.
Personally I would stop paying now and save some money so that you have an emergency fund, and then when they are defaulted (and hopefully sold on) you can decide if you want to make offers on the smaller ones.
Have a look at the guide in the unenforcability section and pop a post on for each of the debts so that those who know more than me can help you

[nightwatch]

Re: Help and advice for debt of over £80k+

Hello and welcome Frosty873
we are her to help and not judge, on this site you will find that all of us have had debt problems, some of us still do.
Hubby and I were in debt of over 100k, so I can honestly say there is a light at the end of the tunnel, for you at the moment it may seem to be a dark place but it does get lighter.

Why not have a look at some of the unenforceable diarys http://forums.all-about-debt.co.uk/f...bility-Diaries,
(mine is in there somwhere started 2012) to see how we set out the list of creditors and such, to help you take back control of your life,

Any questions at all ,ask and someone will answer
Best wishes
NightWatch xxxx

[The Tech Clerk]

Re: Help and advice for debt of over £80k+

Irresponsible lending - OFT guidance for creditors - UK Government ...

webarchive.nationalarchives.gov.uk/20140402142426/http:/www.../oft1107.pdf



wondering if this may turn out to be in your case? just a thought!

[Frosty873]

Re: Help and advice for debt of over £80k+

Thank you for the replies- I definitely think there may have been some irresponsible lending going on but not sure how we go about giving evidence/challenging this...

Just contacted one of our creditors to ask if they could freeze the interest on a loan we have with them, as this is what's causing difficulty with paying it off and was told 'interest is front loaded onto the loan and we cannot stop charges for missing/late payments' - has anyone come across this before? Surely if I defaulted but then wanted to settle the debt they'd take off the interest that's been added up front?

just feel like giving up!

[Frosty873]

Re: Help and advice for debt of over £80k+

Also, do any of you know roughly how long it would take to receive formal notification from the courts for a CCJ to be issued?

Just wondering realistically how long (and how many missed monthly payments)before being passed to a debt collection agency and then ccj? Trying to work out how much time we have to try and save up and then offer a final settlement figure xx

[cymruambyth]

Re: Help and advice for debt of over £80k+

Hi and welcome to AAD, you have now taken the first steps to regaining control of your life! It won't be easy and you will get a lot of post and phone calls but if you read around the site you will see that it is possible to recover.

To get the help you need follow the link in post 3 to the diaries and see how people have coped and the route that can be taken. You state you have contacted Stepchange; I think they also charge a small amount for their services. If you are feeling strong enough you can be guided to deal with this on your own. If you haven't been defaulted for your accounts it would be best to stop paying and get your default registered because this will drop off your credit file after 6 years. How you deal with everything depends on the date your accounts were taken out, so if you start with a diary and do a seperate post for each account - this is really scary when you list it ( like several others on the site our debts were unfortunately much larger than yours) but it is the first step to gaining control.

As for court, there are many steps that have to take place before you reach this situation. You need to read otherwise you will drown in the information being given to you.

Do not be embarrassed or ashamed and ask questions, no matter how silly they seem because that is the way you learn and it stops you from making errors that can be avoided.

Good luck.

[nanna58]

Re: Help and advice for debt of over £80k+

N need to be embarrassed or ashamed we are here to help, snoop round the diaries and get a feel for how things tend to work.To go down the unenforceability route you need stop paying and send for CCAs.
You will be more informed the more you read.Ask away no question is too daft .BTW welcome.

Feel free the start your own diary listing each alleged debts separately giving as much info as possible.Good luck x

You are not allowed to give up !!!!!!!!! Let's get you sorted .

[Frosty873]

Re: Help and advice for debt of over £80k+

Thank you everyone for your very kind and encouraging words. I've had a look at the diaries but I'm not entirely sure whether all of our credit agreements are unenforceable or not (I think they are all enforceable, knowing our luck but I've no idea).

wasnt sure whether I should post a diary with all our debts just yet as we haven't had the default notices. Would some mind giving a rough idea of what usually happens when you stop making payments and what you should do, when etc?
example: stop payments April 17
issued default notice may- June time 17
then send payment offer?
request a copy of credit agreement?
etc etc sorry I'm a complete novice to all this! Xx

[Roger]

Re: Help and advice for debt of over £80k+

Thank you everyone for your very kind and encouraging words. I've had a look at the diaries but I'm not entirely sure whether all of our credit agreements are unenforceable or not (I think they are all enforceable, knowing our luck but I've no idea).

wasnt sure whether I should post a diary with all our debts just yet as we haven't had the default notices. Would some mind giving a rough idea of what usually happens when you stop making payments and what you should do, when etc?
example: stop payments April 17
issued default notice may- June time 17
then send payment offer?
request a copy of credit agreement?
etc etc sorry I'm a complete novice to all this! Xx

Much better to create the UE diary before doing anything.
The hardest step is that first step.
I would take things one step at a time which puts you in control.
Good Luck

[nanna58]

Re: Help and advice for debt of over £80k+

Ok hun
Start your diary listing each one separately with what letters you have received from them , DCAs etc.Whether or not you have sent for you CCA enclosing £1postal order. Regarding unenforceability we need to know all your info to be able to point you in the right direction .Niddy( Never_in_ doubt) will know whether UE or not .But first things first let's get them listed and go from there.x

You will indeed be in control.

[cymruambyth]

Re: Help and advice for debt of over £80k+

If you send a CCA request, http://forums.all-about-debt.co.uk/s...l=1#post495038 with £1 postal order and proof of posting, after 14 days (12+2) if they haven't replied it becomes unenforceable until the agreement is supplied and then stop paying. If you receive anything send it with all details showing to webmaster@all-about-debt.co.uk. This is totally secure and is nidddy, the website owner. You will then get guidance as to how best to proceed.

When you stop paying you get letters and phone calls!

[Frosty873]

Re: Help and advice for debt of over £80k+

So I should request a CCA for all our creditors, even though we haven't been served a default notice yet? X

[nanna58]

Re: Help and advice for debt of over £80k+

Yes, get them off asap £1postal order send recorded as proof of posting keep the receipts.x stop paying .

You'll find CCA request in our templates.

[nightwatch]

Re: Help and advice for debt of over £80k+

most companys ask you to call them when in difficuties to see if they can help, suprise, no they wont, they put the squeeze on very quickly, Please DO NOT talk to them on the phone, they can get you to agreee to anything while you are in panic mode, just say you would like everything in writing. if possable ignore all phonecalls if you don't know the number, ( I am thinking you have caller display)
or fail the security questions, give wrong date of birth or wrong address, If possable when you know the number of each company block it if you can.
I told one the address of the local chippy, one wrote for a number to call me on, I am Miss Whiplash on 0898 xxxxxxxxx,
I kid you not some day down the line you will have us laughing at what you can come up with,
we will support you all we can, BUT we cannot make choices for you, you must decide where you wish to go, and we will be behind you what ever you decide,

NW

ps; the hardest step is the first one, you have taken that step and you have joined one of the best familys in the field, we are always there for you no matter what the problem xx