Help Needed

[Treadingwater]

Hi Niddy,

I have been looking at your website over the weekend and have been really impressed with the amount of support and guidance offered and how everyone helps each other. Think its great.

So, I am hoping that you can assist me! I will tell you a bit about my situation- we have refurbished a house and spent far more than expected (mainly through having to do more than we anticipated!) and have tried to sell it over the last year- have now decided to move into it and rent our existing house out. We have now got ourselves into a bit of a dire situation.

We have managed to keep up to date with all our repayments and have also managed to make additional lump sum payments- it is mainly credit card debt and my partner has an overdraft and business account. By keeping up to date with payments this has been to the detriment of our lifestyle and basically feels like our lives have been on hold for the last few years just so that we can pay all our minimum payments, we now feel that we want some control back and that life is far too short to continue as we are. My partner is self employed in the building trade and has suffered with lack of work over the last 3-4 yrs and I am employed and have changed my occupation which has meant a substantial drop in income- therefore combined income is really very different to what it was a few years ago.

We have struggled to maintain our payments whilst the lenders have continually increased their interest rates and reduced some credit limits as they do

We have never had defaults as we have been so worried about our credit ratings bearing in mind we have residential mortgage and buy to let.

I understand a little about UE but really want to know the best route that we should be looking at. How does freezing interest rates work? Are we able to continue paying on some cards perhaps at reduced interest and perhaps go UE route on others? or does it not work like that? The thought of stopping payments scares me but then the thought of being in the same situation in 10 years time no further forward scares me even more

I think all the accounts are pre 2007 apart from 2 MBNA accounts that my partner has that they sneakliy closed down and reopened the same day I believe! These were originally pre 2007 and then were reopened post 2007.

Here are details of cards os:

Mine

MBNA £9700 3/02
MBNA £7700 3/05
Mint £3090-due to inc rate by 5% wef June 7/05
B/Card (formerly Egg) £6766 12/00
N/Wide £291.29 -likely to pay this off 6/98
Tesco £3256- LOB rate 6.9% 6/98
Halifax £2965 4/05
B/Card Goldfish £10800 -this is on LOB rate approx 6.9% quite happy to continue paying this. 7/98

Partners:

MBNA £12360 12/07
MBNA £8138 01/08
Amex £5104 6/06
B Of Scot £3218 12/05
B/Card £4234 12/06
B/Card (formerly Egg) £11671 8/04
Halifax £6530 4/95
Lloyds £15361 12/04

Looks horrendous when you see it in black & white! Although I feel a bit better just writing to you now Niddy

We did have a couple of loans that have been repaid now.

Would our first priority be to obtain our credit files?

Really hope that you can help and point us in the right direction- sorry for the lengthy message- please let me know if you need any other info.

Thank you so much Niddy,

Treadingwater

[Deepie]

Re: Help Needed

Hi & Welcom
When were the cards taken out ?

[Never-In-Doubt]

Re: Help Needed

Thread moved to UE section. As I2D asked above please provide more details. If you want to consider UE then read post 2 here --> Unenforceability Diaries - Read me First! - allaboutFORUMS

[Treadingwater]

Re: Help Needed

Hi Niddy,

I have been looking at your website over the weekend and have been really impressed with the amount of support and guidance offered and how everyone helps each other. Think its great.

So, I am hoping that you can assist me! I will tell you a bit about my situation- we have refurbished a house and spent far more than expected (mainly through having to do more than we anticipated!) and have tried to sell it over the last year- have now decided to move into it and rent our existing house out. We have now got ourselves into a bit of a dire situation.

We have managed to keep up to date with all our repayments and have also managed to make additional lump sum payments- it is mainly credit card debt and my partner has an overdraft and business account. By keeping up to date with payments this has been to the detriment of our lifestyle and basically feels like our lives have been on hold for the last few years just so that we can pay all our minimum payments, we now feel that we want some control back and that life is far too short to continue as we are. My partner is self employed in the building trade and has suffered with lack of work over the last 3-4 yrs and I am employed and have changed my occupation which has meant a substantial drop in income- therefore combined income is really very different to what it was a few years ago.

We have struggled to maintain our payments whilst the lenders have continually increased their interest rates and reduced some credit limits as they do

We have never had defaults as we have been so worried about our credit ratings bearing in mind we have residential mortgage and buy to let.

I understand a little about UE but really want to know the best route that we should be looking at. How does freezing interest rates work? Are we able to continue paying on some cards perhaps at reduced interest and perhaps go UE route on others? or does it not work like that? The thought of stopping payments scares me but then the thought of being in the same situation in 10 years time no further forward scares me even more

I think all the accounts are pre 2007 apart from 2 MBNA accounts that my partner has that they sneakliy closed down and reopened the same day I believe! These were originally pre 2007 and then were reopened post 2007.

Here are details of cards os:

Mine

MBNA £9700 3/02
MBNA £7700 3/05
Mint £3090-due to inc rate by 5% wef June 7/05
B/Card (formerly Egg) £6766 12/00
N/Wide £291.29 -likely to pay this off 6/98
Tesco £3256- LOB rate 6.9% 6/98
Halifax £2965 4/05
B/Card Goldfish £10800 -this is on LOB rate approx 6.9% quite happy to continue paying this. 7/98

Partners:

MBNA £12360 12/07
MBNA £8138 01/08
Amex £5104 6/06
B Of Scot £3218 12/05
B/Card £4234 12/06
B/Card (formerly Egg) £11671 8/04
Halifax £6530 4/95
Lloyds £15361 12/04

Looks horrendous when you see it in black & white! Although I feel a bit better just writing to you now Niddy

We did have a couple of loans that have been repaid now.

Would our first priority be to obtain our credit files?

Really hope that you can help and point us in the right direction- sorry for the lengthy message- please let me know if you need any other info.

Thank you so much Niddy,

Treadingwater

Hi & Welcom
When were the cards taken out ?

Thanks I2D - updated posts with all the dates

Thread moved to UE section. As I2D asked above please provide more details. If you want to consider UE then read post 2 here --> Unenforceability Diaries - Read me First! - allaboutFORUMS

Thanks Niddy will have a look at this

No, many of us have been on the UE path for years without ever looking at a credit file.

I'd say your first step would be to send your creditors a CCA request and see what they come back with. ---> http://www.all-about-debt.co.uk/temp...lity/s1-t1.php

Then send the agreements to Niddy for his expert verdict and take it from there.

Bear in mind that failing to keep minimum payments on cards or agreed payments on loans will very likely result on defaults that will stay there for 6 years and could affect you if you try get a mortgage or remortgage. This will be the case whether you go on a DMP where you make reduced payments (and there's no guarantee interest will be frozen) or go down the UE route where you don't pay anything on UE debts to let them go SBd.

Thanks Flowerpower, so basically stop all payments whilst requesting ccas- if any ccas are returned UE then still continue not paying and use relevant templates and with your guys help try and remain sane! What about ccas that are not UE? As from what I understand if you go into dmp then this will take you longer to rebuild credit file. Thanks again guys!

[Deepie]

Re: Help Needed

If that's the route you want to take, we will deal with the enforceable one's when the time comes ...........your credit report will be trashed for 6 years.
When you send your CCA request do them all in one go. It's a lot to do but will be worth it.........Good luck

[swanfan]

Re: Help Needed

And just to add make sure you have a bank account set up for wages etc with a bank you don't owe money to, before you request ccas so that the banks cannot attempt any offsetting.

[Treadingwater]

Re: Help Needed

If that's the route you want to take, we will deal with the enforceable one's when the time comes ...........your credit report will be trashed for 6 years.
When you send your CCA request do them all in one go. It's a lot to do but will be worth it.........Good luck

Hi I2D,

I think thats the only real option we have! After having spent most of Easter weekend reading through this site, I felt a weight had been lifted for the first time in years....thought things felt crystal clear and knew we had no other option to take. However, last week kept thinking is this the right thing to do? Bit of a battle with my conscience and started getting really worried . Then other half had another letter stating int rate going to be increased as we are aware of your os debts etc etc ..why do they continue?? As much as we are trying to pay it off they just keep making it harder! We have kept paying min payments and as so many others on here just end up with little reduction in balance...never paid late and never missed any payments..spent so many years trying to keep squeeky clean credit file now feel that we are going to trash it all in a very short space of time!!

Did any of you guys feel like this? Do I just need to bite the bullet and get on with it?

Had a few other worries....post trashing file... how does it work as never ever had credit refused before...just lots of things to worry about....will we ever be able to buy a sofa on interest free credit again?? What about mobile phone contracts, utilities- can you change gas/elec providers? Maybe just worrying too much.

Also, is it really important that all CCA requests get sent at same time?

Thanks for all your help.

And just to add make sure you have a bank account set up for wages etc with a bank you don't owe money to, before you request ccas so that the banks cannot attempt any offsetting.

Hi Swanfan,

Thanks for this- had read it somewhere- but many thanks for reminder- also- can you have a joint current account ie Halifax account? if we each have a halifax card/Bank of Scotland in individual names- or is it safer to keep clear? I have Halifax account and would ideally like to keep this but put into joint names as easy to operate online etc! But we each have halifax c/card in sole name.

Thanks again.

[Pixie]

Re: Help Needed

Hi Treading Water

I think we all felt like this - I know I certainly did! I had a lovely green credit report - albeit because I was using one credit card to pay another etc. I must have annoyed Niddy no end with my PMs to him asking 'What if...? (this was pre-AAD days.)

Honestly, it was the best thing I've done, though by no means the easiest though it does get easier with time. It's 2 years this month since I first decided 'enough is enough'.

Your credit rating is trashed for 6 years (though a lot of companies only look at the last 3 years) which is why it's a good idea to send all the ccas at one time. You also get the initial hassle from the creditors out of the way in one go.

Have you read UE - One year on - allaboutFORUMS? This thread shows what a difference going down the UE route has made to members' lives.

It looks likely that most of the debts will be UE so bite the bullet and go for it!! We're here to help you.

[swanfan]

Re: Help Needed

Thanks for this- had read it somewhere- but many thanks for reminder- also- can you have a joint current account ie Halifax account? if we each have a halifax card/Bank of Scotland in individual names- or is it safer to keep clear? I have Halifax account and would ideally like to keep this but put into joint names as easy to operate online etc! But we each have halifax c/card in sole name.

Safer to keep clear of the halifax/bos. Get a joint/sole accounts elsewhere. Just quickly looking at who you owe to you're best going to the cooperative. You can operate this through a local post office, pay in cheques, withdraw cash plus you can get online banking.

[Pixie]

Re: Help Needed

Thanks Swanny - missed that bit in my reply!

[ScabHunter]

Re: Help Needed

Had a few other worries....post trashing file... how does it work as never ever had credit refused before...just lots of things to worry about....will we ever be able to buy a sofa on interest free credit again?? What about mobile phone contracts, utilities- can you change gas/elec providers? Maybe just worrying too much.

Just to let you know my own personal experience - I've never tried to buy sofas or anything else on credit so I wouldn't know about that, but I changed electricity suppliers to the cheapest tariff after the defaults started. I've also chaged telephone/broadband suppliers twice without any trouble. I've never had a cell phone contract, I suspect that might be a bit more challenging.

Safer to keep clear of the halifax/bos. Get a joint/sole accounts elsewhere. Just quickly looking at who you owe to you're best going to the cooperative. You can operate this through a local post office, pay in cheques, withdraw cash plus you can get online banking.

Also on this one - I got my Co-op account opened after my file was trashed. They always try to get you the full account so you go through that pantomime until the Experian codes come up on the screen, and then they just send you the Cashminder stuff through the post.

I can't guarantee it will be the same for you, but I've not had any problems.

SH

[Pixie]

Re: Help Needed

I've been with the same mobile provider for years but I have changed gas/electric suppliers and home/car insurance since I started UE.

Co-op Cashminder account been fine for me too. Can even use the card at automatic petrol pumps now

[alangee]

Re: Help Needed

Funnily enough the Co-operative Insurance refused to accept monthly payments on my home insurance due to my credit file, although were happy to insure me if I paid up front.

Some utility companies want a deposit before accepting you. Post Office refused my application to change my landline to them.

Other insurance/utility companies I have had no trouble with.

I think the point is that you will notice a change if you do go down the UE route, however you have said that you are finding it increasingly difficult to keep to your monthly payments, so it looks as if sometime it will be taken out of your hands and one of your creditors will default you. When that happens, the six years will start from then, rather from around now.

You may struggle on for a couple of years, then find someone has defaulted you, and not only do you then have to wait a further six years to get a clean credit file, you have lost a further two years of your life.

It is a balance really, and only you can make that decision, because only you know your true circumstances.

Alan

[Treadingwater]

Re: Help Needed

Ahh Thank you so much- all of you- you have made me feel so much better and yes you are all absolutely right!

What a great bunch you all are, so supportive - just what I needed to hear so Thank you

Its nice to know you have all been down the path that I am about to start and you are all so positive. I am so glad that I have found this forum and just hope that you will all be able to support me and guide me as I follow you.....

[Pixie]

Re: Help Needed

just hope that you will all be able to support me and guide me as I follow you.....

Of course we will!