Newbie

[sunnylolly]

Hello everyone, I just signed up yesterday and am not sure where to start. I have been lurking around reading stuff but thought I would take the plunge and post to say thank you for letting me join in the fun! and also to ask for some advice on where to start. My Husband and I have run up debts between us of around £100K (ouch I can't believe I have said that out loud!) Mainly credit cards but one loan. This was all used to fund our business and keep us going through product development for a big company who have not come through as promised. We lost one business but still have another which we still hope will come good, but cash has currently dried up and we have not had wages for a couple of months and owing as much as we do it takes a lot to service the debt. So we have decided to tackle the debt and take control. We have missed one payment on most, two months on a few. I found a letter on citizens advice which I sent to our creditors explaining the cashflow position and asking for an up to date balance and a freeze on charges and interest for 3 months whilst we sort things out. I am not sure if that was the right thing to do, but I don't think any of them have taken any notice of the letters as we keep getting phone calls etc., New Day are the worst, we missed one months payment for about £35 and my Husband must get calls 6 times a day at least, all through the day and up to about 9pm. We are currently ignoring all calls but I am really not sure what my first move should be? We are also considering selling our house and downsizing in to something smaller whereby we will be mortgage free with lower overheads. We would have some left over but not enough to clear all debts so we were considering full and final offers and it was researching this that led me to this forum. I am worried about losing our house or not being able to purchase something smaller as it appears unsecured does not necessarily mean unsecured. Hope I haven't waffled on too much and somebody can help me with where to start? Many thanks

[Roger]

Welcome to AAD

There are no quick easy fixes I'm afraid. The simply fact is that bad debts will plague you for six or more years. They will impact on your creditworthiness and as you have started to notice the phone calls/SMS/emails etc.. will start up.

In the Unenforcible Diaries you will find a similar experiences as your own.
The key is taking control (through knowledge and experience of your Debts rather than being hounded by the Debt collection agencies).

A starting point is the Diary entry
The purpose of the Diary is to provide a timeline background to the letters sent; communications received (Audit track of correspondence). This will help assist in the MODS giving good advice as well as your own control of each Debt.

https://www.all-about-debt.co.uk/for...3228#post43228

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)

Providing the above information, for each account helps me. Then, when you start the process lay your diary out in a format like this example

--->

Example of perfect layout

Normally the advice is to send out S.77/78 CCA requests using AAD template letters for each debt. But it might be better to set up your Diaries first.

[sunnylolly]

Hi Roger, thank you for the quick reply. I will start there. I have just checked and a few are pre April 2007. Thank you for your help.

[Roger]

Hi Roger, thank you for the quick reply. I will start there. I have just checked and a few are pre April 2007. Thank you for your help.

It will help you and MODS. You are very early into this so a better placed than most..
The CCA S 77/78 can be delayed if the debts are still in the hands of the Original Creditors but see what other think.

The sort of information will be for instance is the existence of PPI or not. The Loan and its background could be useful.
These are the Unsecured Debts I take it?

You might also look now at setting up a current account with perhaps a bank that doesn't appear on your list so that any surplus monies are not available to your existing Creditors sic Banker right of set off!

Planning at this stage will pay dividends down this UE route.

[Still Waving]

Hi

Once creditors are aware that you are struggling, I think it is the experience of many people that, rather than adopt a sympathetic and helpful approach most are quick to turn the screw (letters/phone calls).

Once you start to flesh out the broad picture you have given, as Roger has suggested, then it will be easier to give advice on a plan going forward.

Above all, don't worry about losing your house. You are starting to take control of your situation. Treat your mortgage as a priority debt and keep it up to date, at the expense of other debt repayments if necessary.

[sunnylolly]

Hi Roger yes all unsecured, all credit cards except one loan. We both have Monzo current accounts now. I think these are independent and not linked to any cards etc that I am aware of. Certainly we don’t have any credit with Monzo. I’ll work on this tomorrow. Thanks again.

[sunnylolly]

Hi Still Waving, yes I think we will start to see that side. It’s exhausting forever trying to explain yourself to these companies. A couple tried to push my Husband in to doing income and expenditure on the phone but I wouldn’t let him! Thank you for replying.

[Joanna Connolly Solicitors]

My Husband and I have run up debts between us of around £100K (ouch I can't believe I have said that out loud!) Mainly credit cards but one loan. . . . So we have decided to tackle the debt and take control.

. . . . so we were considering full and final offers and it was researching this that led me to this forum. I am worried about losing our house or not being able to purchase something smaller as it appears unsecured does not necessarily mean unsecured.

Hello sunnlylolly

First of all you're a long way off losing your home!

They would have to take you to court (and win) then make an application for a Final Charging Order (which can be contested) and then if the property is in joint names and the debt is in the sole name of you or you husband it would be a Restriction, so they couldn't force the sale only wait for you to sell it one day, and even then they may not get their money.

So put all of those dark thoughts to the back of your mind while you roll up your sleeves and start work on identifying which of these debts are likely to be unenforceable (with the help of forum members).

It is not only accounts opened prior to 2007 which can be unenforceable and it's not only a flawed credit agreement which can be the fatal blow. So let's see what unfolds as you get to grips with these debts.

I look forward to helping you.

Di

[Still Waving]

Hi Still Waving, yes I think we will start to see that side. It’s exhausting forever trying to explain yourself to these companies. A couple tried to push my Husband in to doing income and expenditure on the phone but I wouldn’t let him! Thank you for replying.

Well done on that.

You have notified the creditors in writing of your difficulty. Now the AAD way should kick in, which is not to talk to creditors but insist that everything should be in writing.

[sunnylolly]

Hi Di, thank you for your kind words and encouragement, much appreciated.