Author Topic: help me out  (Read 1150 times)

too-much21

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help me out
« on: Aug 04, 2011, 09:20:30 PM »
Hi

I have got myself into a mess financially and not sure what to do for the best, My Partners job was made redundant a few months ago, But he was given the option of taking 4k redundancy or taking another position on 6k less . Due to his age he opted for different position. i work part-time. we have an overdraft of £2050, Payday loans of £700 and a 10 year old credit card debt which started out at 3k. 3 Years ago payments for credit card stopped coming out of my Bank after 7yrs i presumed it had been settled. But a few months ago i received a letter saying i owed over £5000 after all living expenses we are left with £27.03 a month at that it would take over 20 years to pay just don't no what to do Ive already paid £1900 of original debt.

James Falla

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Re: help me out
« Reply #1 on: Aug 05, 2011, 09:12:17 AM »
Hi there too-much21
 
From what you have said you owe c7000 including the amount owed to the old credit card debt. The first thing you need to do is calculated your disposable income. Disposable income is your income less all of your reasonable living expenses have been taken into account (not including debt repayments).
 
Once you have a good ide of your disposable income you can decide the best thing to do. This could be a debt management plan or perhaps a debt relief order (DRO). A DRO is designed for people who can not afford to pay the debt they owe and would mean you would become debt free after 12 months.
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too-much21

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Re: help me out
« Reply #2 on: Aug 05, 2011, 09:30:59 AM »
i only have 27.03 after all living expenses without paying anything off debts all ive been doing for months is robbing peter to pay Paul to stop payday loan sending cheques to bank and making things worse .The bank are not asking for anything as our pay goes into account every month its the credit card debt which as been passed to another collection agency, They tell you if you borrow from a friend or relative they will except a lump sum pay off

James Falla

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Re: help me out
« Reply #3 on: Aug 05, 2011, 11:13:53 AM »
Given that you have little or no disposable income too-much21, a debt management plan will probably not work for you. Are you a homeowner? If not then I strongly recomend that you consider a debt relief order. It is designed for people who have little or no disposable income or assets and will write off the debt that you owe. The cost is £90 but after that you will no longer be expected to make any payments towards your debts.
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too-much21

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Re: help me out
« Reply #4 on: Aug 05, 2011, 11:40:58 AM »
Hi

Thank you for your response i have just spoken to Debt collection agency and explained situation they say i could go for Debt relief order but there are no guarantees and i could end up with court costs they say because they received payments of £33 per month up to 2007 the court would rule in there favor.

James Falla

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Re: help me out
« Reply #5 on: Aug 12, 2011, 06:15:54 PM »
Hi there too-much21
 
The person at the debt collection company you were talking to clearly either just wanted to try and scare you or simply did not know what they were talking about. Given your circumstances and as long as you are not a homeowner, there seems to me to be no reason why you would not qualify for a debt relief order. When you apply for a DRO the court is simply not involved in the process. You application will be put forward directly to the official receiver by an approved advisor. Once ths happens, the application will simply not be refused.
 
The whole thinking behind a DRO is that the court does not get involved and so the application is far cheaper than bankruptcy. I suggest you speak to your local CAB or the CCCS about starting a DRO as soon as possible.
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