Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By jackslade
#3681 I have got myself into a right load of debt, Unsecure loans with Lloyds Bank 2, Northern Rock, MBNA. Approx 40K. I also have a secure loan 20K Credit Cards total debt 39K.I hold 11 different cards. Yes these figures are correct and every creditor has give me credit over the past 2 years over the internet. I never spoke to one person. I took one loan to pay the other, the same with the credit cards. Now I have come to the end I cannot afford the repayments. I am married but my wife is not aware of huge debt I am in. It all started when I was made redundant 5yrs ago I have tried to to maintain my standard of living with other peoples money. I am employed fulltime but my salary is small. I have been advised to open another bank account, and go to CAB. Will I lose the house. Will my creditors make me sell everything. As yet I am still not in arrears by much, but the **** will hit the fan in a month or two. Any advice would be of help.
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By JaneClack
#3682 Evening Jack!

The first thing you have to do is work out if you have anything left over at the end of the month to offer your creditors after ensuring all your priority payments - like mortgage, secured loan, council tax, utilities, food, clothing and transport to work are paid. It is what is left over you can offer to your creditors and if you can repay the debt in a reasonable period of time then you could think of doing that - the only scenario in which you are going to be able to keep this secret from your spouse.

It is because you own a property - which might have equity in it - that you are vulnerable as further down the line creditors might want a share of that equity - but they cannot make you sell the house. There are other things that are tried first and each creditor has its own unique debt recovery cycle which can get to court action in months or sometimes years. Keeping creditors informed of what you are doing always helps.

You were given very good advice in being told to open a new bank account and go to the CAB. I would add to that to go to one of the free debt advice agencies such as NDL, CCCS or FCL/Payplan who all have trained debt advisers who will be able to give you free, confidential and no obligation advice. This I think should be your next step.

Good luck and let us know how you get on.
ByVanessa
#3683 From a very personal point of view, you do need to discuss this with your partner. Whilst you say that 'she knows nothing' she must be aware that your spending is in excess of your income - unless you're keeping another woman in which case.. :shock:

It took me ages to tell my other half and it was a huge relief and far easier to deal with
By jackslade
#3724 Thank you for the advice so far Sarah, and I also took your advice Vanessa. I told my wife of the trouble I'm in, and you were right. My wife also wishs to say thankyou.
Not much to report so far, tried to see CAB, but they are so busy. Could not get near the place the past few days. I know I'm not the only one.
So I tried to do things myself, contacted Lloyds bank. They were so unhelpful, wish they had been this way when I applied for the loans.
Then I contacted CCCS, a helpful lady at the end of the phone, but they are so busy. I could not get a appointment for a counsellor to interview me over the phone until 9th March. That being the case I now have another month to passby of worry.
So do I try somewhere else,or do I wait. Also on opening a bank account who do I choose. Has anybody got any feedback on First Direct
ByDavidc
#3726
jackslade wrote: Has anybody got any feedback on First Direct


Same as any other bank really. Internet based only. No branches. I had an account for years and was very impressed. The account is highly credit scored and unless your credit record is imaculate They will not look at you.
David
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By JaneClack
#3727 Well there is also NDL (the National Debt Line) and FCL/Payplan who would be able to talk to you more quickly. Then you are looking at options while you are waiting. There is nothing to stop you trying them all.

I know you would have an appointment with FCL/Payplan within the next few days. CCCS does a splendid job but to wait a month for some advice is a long time when you could have a financial assessment by the weekend. There is no need to worry for a month! (However CCCS will be sending you some information to read to help put your mind ar rest and notes of what information to get together so you can be prepared).
By simongr
#3735 From personal experience, try Payplan, they have been excellent. Another action I would advise is to make sure you make some payment - even if it's only £5 - on time to each of your unsecured creditors because although you may speak to Payplan and fill in all the paperwork within a week or two, it takes ages for the creitors to acknowledge that you're dealing with Payplan, and they will keep hassling you on the phone and by post. The worst are MBNA.

You do need to open a new bank account. Payplan will advise you which banks are not associated with your creditors to make it easier for you.

Good luck.
By jackslade
#3738 I contacted Payplan this morning and they have got me a appointment for tomorrow. The bank account thing is another problem, which bank. I have so many creditors trying to find one with no association is difficult. Even stumped the payplan people.
I have had a row with the MBNA people already, and it was not over defaulting. The two people I spoke to and one was a manager or so he said. They were both so rude and unhelpful, I am dreading the contact when they find out I cannot pay.
ByDavidc
#3739
jackslade wrote: The bank account thing is another problem, which bank. I have so many creditors trying to find one with no association is difficult. Even stumped the payplan people.

without knowing who your creditors are we cannot help, but if you want to list them we are quite resoursefull and may be able to come up with a few options for you.
David
By jackslade
#3743 My Creditors
Lloyds Bank, MBNA,Northern Rock(Now co-op Bank),Sainsbury's Bank,Capital One,Egg, Morgan Stanley, Bank of Scotland, Barclaycard, Mint. Plus HSBC, because that is who my wife Banks with and she don't me with them.
ByDavidc
#3748
jackslade wrote:My Creditors
Lloyds Bank, MBNA,Northern Rock(Now co-op Bank),Sainsbury's Bank,Capital One,Egg, Morgan Stanley, Bank of Scotland, Barclaycard, Mint. Plus HSBC, because that is who my wife Banks with and she don't me with them.


Nationwide flexaccount:
Excellent internet banking with on line cheque ordering facility, next day delivery post allowing.
Full STO & direct debit facilities.
Cash card only
Basis account no credit check
Account opened on the spot subject to required ID provided.
David
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By JaneClack
#3751 I am surprised it stumped the Payplan people - Nationwide is the account they always recommend. That and the Co-op cashminder which you cannot use obviously!
By jackslade
#3752 All they suggested was HSBC or Yorkshire Bank. HSBC was out and there is no Yorkshire bank nearby.
By jackslade
#3760 Another question for those of you who are in the know.
The mortgage on our house is still in my wifes maiden name, only. We have since married but she has kept all her finances in this name. This being the case if the worse thing that could happen, happened. have my creditors, the unsecured debts are in my name, would have a claim on the house.
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By JaneClack
#3763 That depends on how long you have lived together, whether she had the house before you moved in and whether you have paid anything towards the mortgage. Of course you haven't (and stick to that) but if you earn twice her income they will say you have some beneficial interest in it. And would want your part of it.