Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Debt Advice

4 replies

dazzzle · 25/03/2018 22:19

Hi everyone,

I need some advice on my best options to become debt free and start re-building my credit score to hopefully one day own my own property. I am 25 years old, and I had little to no knowledge on the importance of money. Now, I do, so I am finally taking the steps to clear my debts and start afresh.

Any adivice on what you think I should do would be massively appreciated.

My debts consist of:

Nationwide Building Society (Loan and Credit Card)

Credit Card: -£1500
Date of default: 20/08/2014

Loan: -£1263
Date of Default: 06/08/2014

Cabot Management Group Limited (Vanquiz - I believe):

Credit Card: -£393
Date of default: 31/03/2015

Lloyds Bank:

Current account overddraft: -£700
Date of Default: 29/08/2013

British Gas:

Gas and Electricity: -£1200
Date of default: - 07/04/2018

These are debts that are on my credit file, I have more - but to be honest, I have no idea to whom I owe what. I have moved 4 times in the past two years, and yeah, I neglected contacting creditors because I was and am strugging for finance. I am in a horrible predicament, in constast worry and no one to turn to for help. Though, the saving grace is that I will have a better paying job within the next 4 weeks. I would say I owe between £5-7000

I am mostly concerned about the debts on my credit file for the time being, I know I owe money for council tax, so will be sorting that out as a priority.

So I have been reading so much forums on what people have done and where people stand. If anyone has any clarity on any of the below, I would be so greatful if you could help me:

-i have continuously read about CCA and still unsure if I should do this to all creditors?
-Do these debts just fall of from my credit file after 6 years from the default date?
-If the debts have been sold on - what do I do?
-Statute bar?

So, over the past months, I have read a lot on DROs and it is something that sounds ideal, but I would rather not go to the extremits of insolvency. So, I have been reading on people doing Full and Final settlements with creditors from 30-70% of the full outstanding balance. So a £5ooo debt could reduce to £2500 at 50% discount - is this adviseable? What should I do? Where do I even start? Do I go for a DRO? Do I do a DMP?

Thank you for taking your time reading this, debt is crazy, and real, and deadly.

DJ

OP posts:
strawberrysparkle · 25/03/2018 22:21

I would advise you contact step change debt charity. They will go through your financial situation with you and advise what's best based on your individual situation.

MyBrilliantDisguise · 25/03/2018 22:24

Are you in the NW? My friend's husband works (for free) for a debt charity. He said most people come in with hundreds of unopened envelopes. He said it's really, massively important to try to think of everything you owe - nothing shocks him. It's just that to deal with it when you're only dealing with 80% of it is pointless.

He phones the companies and asks them to accept a certain amount per month - very small - to make it manageable. They tend to agree.

One thing he said was that once people made their first visit to him, they look 10 years younger afterwards as they are sharing the burden. It's the loneliness of debt that's as horrible as the debt itself.

I can get the name of the organisation if you like, but I'm sure there are tons similar.

Firstworlddramas · 26/03/2018 19:55

Step change - very good

Also look at debtcamel!

AdaColeman · 26/03/2018 20:07

Another vote for Step Change, and I've also heard good comments about Christians Against Poverty, (they will help anyone, it's not limited to Christians}.

Lots of luck dazzle, you've taken that first step now!

New posts on this thread. Refresh page