Originally posted by cadwahExcellent post.
I work as a debt collector for a major credit card providor in the UK. (they shall remain nameless as I don't need the hate mail😛)
1st and foremost he needs to contact his creditors and advise them of his difficulty. He's not the only one and i'm sure his bank has whole departments paid to deal with people in such situations.
The first thing he needs ...[text shortened]... lot of people it isn't, do your own research and make up your own mind.
Hope this helps.
Originally posted by cadwahWOW, Cad you're a star!! I may be tapping you up for more info in the future but this is exactly what i was looking for! Thank you 😀
I work as a debt collector for a major credit card providor in the UK. (they shall remain nameless as I don't need the hate mail😛)
1st and foremost he needs to contact his creditors and advise them of his difficulty. He's not the only one and i'm sure his bank has whole departments paid to deal with people in such situations.
The first thing he needs ...[text shortened]... lot of people it isn't, do your own research and make up your own mind.
Hope this helps.
1 edit
Originally posted by MarinkatombJust one more point dude. When I was in financial lumber, I was informed about priority and non priority debts. Priority debts are generally council tax and TV license, simply because you can end up in prison (eventually) for non payment of these, and of course debts secured upon property, in which case the property can be forfeited. Tell him not to worry about the others a great deal, for as long as they are dealt with in the proper manner, no harm can come to him. As Cadwah mentioned about the letters you can send, interest can be frozen etc. If the credit companies are at first unsympathetic to his requests, contact the Citizen's advice bureau or one of the other two agencies that deal with this, and heed has to be taken to his needs by law.
WOW, Cad you're a star!! I may be tapping you up for more info in the future but this is exactly what i was looking for! Thank you 😀
Hope all goes well
Jim
Originally posted by cadwahGreat post Cad. I noticed on the site i provided a link for you can download sample letters and the personal budget sheets you metioned.
I work as a debt collector for a major credit card providor in the UK. (they shall remain nameless as I don't need the hate mail😛)
1st and foremost he needs to contact his creditors and advise them of his difficulty. He's not the only one and i'm sure his bank has whole departments paid to deal with people in such situations.
The first thing he needs ...[text shortened]... lot of people it isn't, do your own research and make up your own mind.
Hope this helps.
A couple of my friends are in debt, and use multiple credit cards with 0% interest for the first six months for balance transfers. As soon as the 6 months is up, they cut up that card, and get a new one with similar terms.
I wouldn't like to be in their boat personally, but it seems to be working for them.
D
Originally posted by MarinkatombAll previous posts have had good advice.
Ok, my mate has managed to completely shaft himself! He owes some £3000 to the bank, has to pay his £750 rent in the next week or two and has a few other debts mounting as well.
My question is this, is there a magic bullet?
He is in a situation where he will soon be clobbered with immense amounts of interest payments (at the end of the month, one a ...[text shortened]... ould be much appretiated. If he gets hit by interest this month, he's sunk, simple as that. 🙁
I'm no stranger to debt myself. I would suggest:
Talk to the bank. Tell them what is going on.
Talk to the landlord.
Depending on what they say agree a minimum payment.
Try not to miss 2 consecutive payments. Especially if property is scuring the loan. Better to make two payments of £250 over 2 or 3 months, than one of £500 one month followed by 2 of nothing.
Side tips:
Keep up appearances, people will take you more seriously if you are smart, sober and making an effort.
Work out what you really need. If you sell the TV, you have more time to earn money, you get money for the telly and you don't have to pay your TV licence.
Originally posted by Ragnorakthats okay if you have a good credit rating and can get another credit card.
A couple of my friends are in debt, and use multiple credit cards with 0% interest for the first six months for balance transfers. As soon as the 6 months is up, they cut up that card, and get a new one with similar terms.
I wouldn't like to be in their boat personally, but it seems to be working for them.
D
Originally posted by wucky3Yeah, a lot of what you need to do is widely available, it just winds me up when people who are in significant financial difficulty are charged for information available for free.
Great post Cad. I noticed on the site i provided a link for you can download sample letters and the personal budget sheets you metioned.
A few more points, letters take ages, it may take up to 2 weeks for the information in a letter to get into the notes on your account. It is these notes that the collectors uses to make decisions regarding further action.
I would advise picking up the phone, God knows, the banks send out enough letters asking you to do just that. If you get to speak to someone good, an arrangement like the one I mentioned can be sorted out within 15 minutes, if the person you get to speak too is just asking for money without any thought for future arrangements or your situation, politely ask to speak to their manager and explain exactly what help you need.
You have other options as well, one that is more prevailent in the states than over here is a short settlement, This is where the creditor will accept a reduced amount to settle the debt ie. A £5000 payment to settle a £10000 debt. If you are in difficulty which is more long term than short it sometimes makes more sense for the creditor to cut their losses and accept the reduced amount. This is because when an account defaults(normally after 180 days for credit cards and 120 days for loans) the creditors sell the debts for pennies in the pound. This shows up in your credit file though as a partial default meaning you will find it hard getting credit for 6 years but at least you would save yourself some money and not have the debt hanging over you in the long term.
With regards to future credit, I find that very few people, once they have sorted their debts out would go for any more credit, Being in serious debt is a hard lesson and people rarely understand how much it changes your life.
DO NOT try to juggle your debts with 0% balance transfers etc unless you are strong enough to resist spending as well. Make sure you are paying enough off each month to reduce the debt or in 6/9/12 months time you are back in the same position.
The only way to sort out your debts is to control your spending and pay them off.
Quick fixes like IVA's dont work for a lot of people because they have been missold them. An Insolvency practitioner can make you bankrupt for breaking an IVA agreement, say goodbye to the house and car etc.
Most importantly seek free, impartial advice, the cccs offer this
http://www.cccs.co.uk/contact/contact.htm
payplan too
http://www.payplan.com/contact-us.php
Just do something, sitting there worrying and ignoring letters, phonecalls and knocks at the door will NOT HELP MATTERS.
Originally posted by cadwahGood posts Cad, not just an ugly face!😛
Yeah, a lot of what you need to do is widely available, it just winds me up when people who are in significant financial difficulty are charged for information available for free.
A few more points, letters take ages, it may take up to 2 weeks for the information in a letter to get into the notes on your account. It is these notes that the collectors uses ...[text shortened]... g there worrying and ignoring letters, phonecalls and knocks at the door will NOT HELP MATTERS.
I would also like to add, if you do go for the juggling act of the 0% interest credit cards, NEVER spend on the card you have just transfered to.
My two pence worth! LOL!
Originally posted by Hand of HecateI took you completely seriously, he has set up a stall already on the highstreet down the road. As far as i'm aware he hasn't been arrested yet, so you could say it is going as well as can be hoped for. 😛
I still think my suggestion of selling blood and semen is a good second option.