or just very naive?

[beachesandboats]

I have got myself into real trouble with a catalogue company - Very.

I just cannot keep up with the minimum payments any more. I've been very stupid about using this account and have run up debt with them buying things like school uniform, household stuff, I'm so angry with myself. It's taken five years to get to this point but I've just come back from holiday to a letter from them. I've just paid them £265 and the minimum payments are now going to be £231 per month. That is a big chunk of my monthly salary, I just can't pay it. I think I have also ruined my credit rating by not always paying their minimum payments as I have defaulted a few times.

AIBU and naive to think I could phone them and ask them to consider a payment plan? I could afford to pay a maximum of £140 per month, or will they tell me to forget it? I am so scared. Please don't flame me for being stupid at doing this, I really do know and DH has lectured me too, he was unaware of all of this!

It's OK, there's a fair few in the same boat. Have you done a budget? Income and outgoings? The CAB can help you do this, they can also negotiate with them about the payments. It may be easier for you to go through the CAB. Don't be scared, it will be OK.

It happens, best vice them a call ASAP so they put a stop on the account, most companies will take a payment plan.

But deal with it, it would go away otherwise, it's so easy to spend money when you don't see it

It's probably worth getting in touch with a free debt help service. Citizens Advice are good, also the Consumer Credit Counselling Service. They may be able to negotiate on your behalf.

Don't go to anyone who charges for their services, they are scum who make money from desperate people.

Eeek, that's a fair whack to be paying in minimum payments, but you know that already.

I would get onto them first thing tomorrow morning and explain how you feel about it, at least you're bothered and (hopefully!) learnt a lesson.

Don't be scared, it's only cash, so not the end of the world

I'm sure they'll be fine with £140 a month, a lot of people wouldn't offer them so much, and they'll want to get their money back so it's within their interests to work with you.

It's good you're worried about it, but don't get it too out of perspective

Yes, you should be able to set up a payment plan and there are standard letters to send that Citizens Advice will give you help with. You've been a fool, but you're not the first and you won't be the last. Call CAB tomorrow :).

Not a flaming BUT I don't hink you were naive, I think you were thoughtless and careless. I would call them asap and explain how difficult it is - tell them you have missed payments, are struggling, etc.

Well done for facing up to it though, lots of idiots people stick their head in the sand about debt.

Poor you. Never mind how you got there, let's see what we can do to get you out. First off, you could simply start paying them £140 per month to try and clear things: they'll happily accept your £140, I'm sure, and cut your credit limit to stop you increasing the debt further, which is probably a good thing. However, in reality there's a good chance it won't help you clear the debt any time soon, because the interest on these things is generally quite high.

It would probably be better to talk honestly to your bank and see if you can take out a loan to pay off the full debt to the catalogue company, and set a term that allows you to make repayments of £140 a month. This would be a far cheaper solution. And once you've done this, make damn sure you cancel your account with the catalogue company.

If need be, see if your DH will take out the loan with you or instead of you, while you make the repayments - just in case your credit rating is screwed - but you need to just tackle it head on.

Good luck.

Contact them, they will put a stop on your account and arrange a payment plan with you.

Although your debt is very personal to you, remember that you are just a name on a screen and people cannot afford their debts for a variety of reasons, they will be happy for you to pay what you owe at a rate that you can afford.

Your credit rating will improve once this debt is paid. I have known Very to offer them credit again, which once again puts their credit rating up.

I agree, CAB were great with me when I had issues with debt a few years ago. I would get the advice from them first before phoning the company so you know where you stand.
We've all done it, some worse than others so don't beat yourself up, whats done is done.
I learnt a hard lesson and won't touch any credit any more - not even a credit card.

When I volunteered for CAB during my degree, much of my work was setting up payment plans just like the one you are suggesting. They will be able to help you! Good luck with getting it paid off - stick at it and your credit rating will recover eventually too.

If they sent the debt to a debt collecting agency you could pay £100 a month and be safe, sometimes they have to take £10 a week! So worry not offer what you can afford and pay that, yes it will affect your credit rating.

Hi Beaches,

Based on the way that the Citizens Advice Bureau service helps people to reschedule their debts:
Offering an affordable payment plan is exactly the right thing to do. You can also ask them to freeze the interest, so that the debt doesn't just keep getting bigger, even though you are paying it back.

Have a look at this site for lots more info.

www.adviceguide.org.uk

Sorry, don't know how to link.

Don't judge yourself. You're doing the right thing now by sorting it out. Make sure you are being realistic about what you can pay - lower the amount if you have to.

I went to a CAB 20 years ago because I had got into debt. Now I am really proud to work for them (but not as an adviser, so I can't advise people).

Good luck!

Hi Beaches,
Lots of good advice here, but one thing I wanted to point out is that the amount of interest you will be paying Very is huge.

If you can get credit you may be better off taking out a low interest loan and paying the Very debt in full, and setting the monthly payments of the loan to those you can afford I.e. Take out a £1200 loan and pay it off £100 a month for a year or £50 a month for two years (these figure aren't exact as they'd be interest to pay as well, but it should be considerably less than you'd pay to a catalogue company and will seriously reduce your overall debt)

If you can pay Very by credit card(not sure about this as haven't used Very services) then there are several credit cards that offer interest free periods, so this would be even better than a loan, BUT once you have used it to pay Very chop the card up and don't use it again, and make sure you pay off the total amount before the end of the interest free period.

Then (in my opinion) you should also show your spouse (& yourself) how you've learnt the error of your ways and cut back in other areas, sell some unwanted/unneeded possessions on eBay/at car boot sales etc, and pay back your debts asap.

Money worries can be a huge strain on relationships, but if you take control of them it can be something that you work at together and eventually overcome.

Good luck and I really hope you get this sorted. X

Don't contact them and offer them anything.

Contact CAB first and they will go through what money you have coming in and what essentials you have to pay out to keep a roof over your head, food gas electric water etc.
CAB will then contact the company on your behalf to offer a reasonable payment that they have worked out that you can afford ,which they will hopefully except and not add any interest to the debt in the mean time.