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**MrsD** · 29 November 2011, 17:58

Re: Debt help

One thing you have to take into account that if your default on these, your credit is going to be trashed completely, may well already be if you've missed payments, it is mendable but eventually, very difficult to quick fix it. I definitely wouldn't look at an IVA, too drastic. UE won't apply to most of this, so really looking at a DMP which we can help with here. Do you have disposable income after paying your priorities (rent, CT etc)?

**BBoo** · 29 November 2011, 19:49

Re: Debt help

Looking how the total debt is made up, I would be advised by this site on which to send CCA requests to beofre rushing into anything. Some of those are likely to be UE I would imagine.

As for the rest, I'm sure Niddy will be able to recommend a way forward, possibly a DMP, when the time comes.

**SaltnVinegar** · 29 November 2011, 20:08

Re: Debt help

Originally posted by allanakimberly View Post

Hello

I wasnt sure where i should post this so i hope this is ok.

I have a few debt with various people:
Wonga - £78.67 (now £145)
Minicredit - £500 (£400 original loan now £900 and rising)
Payday 1st - £236.25
Quick Quid - £763.75
WageDayAdvance - £312.50
Natwest overdraft - £1704.89 (£704.89 OD on my overdraft due to Wonga eep)
Natwest Grad Loan - £3240 (£93 a month payments - one month behind)
Natwest Credit Card - £3088 (£50 a month payments - one month behind therefore £40 over credit limit of £3055)
Gas bill from previous property - £237.49 (getting recalculated as a month too much - have made £10 token payment)
Water bill from previous property - £60 (made £10 token payment)
Council tax arreas from previous property - £426 (made £10 token payment - £94 DD set up - one month behind)

Total of £10,649.55

I spoke to PayPlan and they offered me a IVA - i was in the process of setting this up when i realised that i didnt have enough debt for this and that i is maybe too drastic a choice of action for me...

I have no defaults on my credit history - it is 'poor' due to having many creditors but thats mendable.

Can anyone give me some advice on what i should do?

I have at most £100 a month i can offer as a total repayment for everything.

I have spoken to CCCS who suggested a temporary repayment offer....

Im setting up a new account with Barclays so my wages will get paid to that when i recieve my account details.

Pretty lost when it comes to this

Hi!

Welcome to AAD

First thing you need to do is arrange your debts and split them into priority and non priority debts. My view (and order of priority) would be this:

PRIORITY DEBT

Council Tax and arrears - This is the most important and urgent and will cause you the most grief
Gas bill
Water bill

NON PRIORITY DEBT

Natwest Overdraft
Natwest Credit Card
Natwest Grad Loan
Quick Quid
Minicredit
Wonga
WageDayAdvance
Payday 1st

Why did CCCS suggest a temporary payment offer as opposed to a full DMP? Have you filled out an income/expenditure form yet? Would it be an issue for you to share this with us?

I agree that an IVA is a waste of time. IVA's are suitable only for a small % of people and I wouldn't suggest you are one of them on the info supplied so far.

Its essential you pay your priority debts first and get back on track with these. The others can be dealt with on a case/case basis.

SnV

**Never-In-Doubt** · 29 November 2011, 20:31

Re: Debt help

We have our own partner DMP company working here, please PM me if interested in details (they're also free)....

**allanakimberly** · 30 November 2011, 10:11

Re: Debt help

Sky 31.00
Rent 325.00
O2 36.00
Flat Cover 9.13
TV licence 12.12
Phone and Broadband 21.12
Water 17.50
Electricity 35.00
Council tax 46.00
Food 100.00
General toiletries/cleaning 20.00
Fuel 100.00
Total 752.87

Wages 940.00
Left over 187.13

This is what i worked out with PayPlan....so im not suire why they worked out that me paying back £116 would be doable....what if i get a massive bill or something breaks etc? Christmas?

I would love to work out a plan to pay the priority debts off and then just tackle the rest systematically. I would say that the Natwest accounts are my next main concern...would you reccomend that i go into my branch and talk to a money sense advisor and inform them of my situation?

What can i request from the PayDay loan people to stall anything in the meantime? Im making £1 token payments to them all. As the Wonga amount is quite small i would like to pay that off soon and take that off. Would that be wise? Or should i treat all of them as one large number?

Not sure how far i will get with minicredit...from what ive heard/experienced they are major

.....

Thanks yet again

Sorry for all the questions!

**Pixie** · 30 November 2011, 11:26

Re: Debt help

BBoo - I doubt that these debts would be UE (except perhaps for the NatWest credit card) due to allanakimberly's age.

allanakimberly - could you let us know approximately (month and year) when you took out each of these debts? This will help us to help you. I agree with SnV that the council tax/arrears are the most urgent of your priority debts. I would try to make sure you are up-to-date with your payments for this.

BTW ask as many questions as you need to

**Pixie** · 30 November 2011, 11:28

Re: Debt help

Just had another look at your spending. Do you really need Sky? I would class it as a luxury. You'd be better getting a freeview box but, of course, you're probably tied into a contract with Sky.

Also, do you need phone/broadband when you presumably have a mobile with O2? I cancelled my landline/broadband/cable last year and got a freeview box, a dongle for my broadband and just carried on using my mobile.

**allanakimberly** · 30 November 2011, 12:17

Re: Debt help

Hello,

My boyfriend and i work from home every few days so the broadband and phone is something i cannot get rid of really.

im in a contract with O2 and also use it for work so again it a bit tricky. I coudl definitely downgrade my package so that im on a cheaper contract though.

Sky is my boyfriends choice so i can get him to downgrade and of course pay for the sports etc himself as i do not use them - he is happy to do this as he does earn more than me (hes on £25K im on £22K).

Oh by the way. I am on £22K which after tax is £1444 which is great but with my train travel (i commute to London) £444pcm taken off it isnt ideal. In the long-term i plan on getting a position closer to home but of course being realistic this isnt quickly remedied.

I coudl also reduce the food costs and look at switching energy supplier for lower rates. Which is teh best site/method to calculate the cheapest rates?

I agree that i shoudl try and clear/get up to date with the energy and council tax.I coudl clear the water bill this month and a chunk of teh council tax. I am waiting for edf to send me an amended bill but i could set up a dd to pay that off (if you think that is best?).

Council tax has to be cleared by march as thats their tax year so i have to sort that one out asap. I may have to get my bf to help me with that, which is doable. I hate asking him to help me so much but he says he doesnt mind.....still not ideal for me to do, but i appreciate the help so much.

I do think my main issues will be the payday loans - they have a reputation for not being easy....i have spoken to them all explaing my situation and that i will be making payments. The only one who hasnt responded at all is Mini Credit.

What woudl you suggest i do with Natwest - can i consolidate all my debts with them into one debt with them or should i keep it all separate?

Thank you

**Pixie** · 30 November 2011, 12:25

Re: Debt help

Can you let us know when you took out the Natwest card? It could make a difference to how you deal with things.

I don't know enough about payday loans - perhaps you can have a look at the payday loan board?

Have you emailed Niddy regarding the possible DMP?

**allanakimberly** · 30 November 2011, 12:27

Re: Debt help

Yes i did message him and he has passed it on for me

I took the credit card in June this year.

Thank you

**Never-In-Doubt** · 30 November 2011, 12:28

Re: Debt help

Hiya

Ok I have PM'd you details of our DMP specialist that can help you with a dmp - I doubt you'll be going down financial hardship route but still, you earn too much!

Regards to outgoings etc, see what our preferred specialist says as he'll be able to get you some good repayment deals sorted.

Personally, I'd forget the small debts for now and pay your priority bills, pay extra to get them upto date if you can and sod the payday stuff - means changing cards (ie say you lost it as it generates a new card number) - the charges, we can argue those later. If the DMP guy can't do it come back here and we'll do it for you....

best of luck, don't stress about it - it's not a criminal matter so nothing can happen

**Never-In-Doubt** · 30 November 2011, 12:29

Re: Debt help

Originally posted by allanakimberly View Post

Natwest Grad Loan - £3240 (£93 a month payments - one month behind)
Natwest Credit Card - £3088 (£50 a month payments - one month behind therefore £40 over credit limit of £3055)

Please clarify the start date of both cards.... thanks

**allanakimberly** · 30 November 2011, 12:45

Re: Debt help

Credit card: 07/11

Graduate Loan: Ill have to find my contact with Natwest as i dont have a card its a Natwest graduate loan. I took it out roughly in August 2010 i think but im not 100% thats the exact month.

Thanks

**allanakimberly** · 30 November 2011, 14:07

Re: Debt help

So i spoke to PayPlan at lunch and she just sent me this email:

Hi Allana,

Further to our conversation please find below the benefits between an IVA and DMP. I will call you on Monday as arranged to discuss this further.

IVA

- Assigned Case officer to help through the process.
- Term is 5 years (6 maximum).
- No upfront fees.
- Interest and charges frozen.
- No Creditor hassle.
- No further legal action can be taken.
- Very high approval rate with Payplan.
- Legally binding with both Creditor and Debtor.

DMP

- Your current term would be 7.5 years.
- Interest and charges can not be guaranteed to be frozen and if they are its normally for a period of 3-6 months maximum.
- Can still pursue CCJ's/Charging order.
- Not legally binding so the Creditors can cancel the agreement at any time.

I hope this is helpful. I will speak to you on Monday to discuss further and see which option you would like to take.

What do you think?

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