wiping off debts

NoobieOCer

NoobieOCer

NoobieOCer

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9 May 2007
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hi, recently i taken a look at my mums credit card bill and its £7.4k... 0.0 :eek::eek::eek:

so i remember hearing something about new law to wipe off debts and keep getting calls from random people about it, but i don't trust the people on the phone as they maybe just scammers.

so i came on here to see if any one else knows a bit more about this and how will i go about doing this for my mum and are there any drawn backs like is it similar to bankruptcy where she will have a limited amount of her pay to spend and stuff. my uncle said she wont be able to use the credit card for a number of years but this is okay as she hasn't touched the credit card for a while anyway and just living off her pay.
 
I'd have a chat with the CCCS - consumer credit counselling service.

http://www.cccs.co.uk/

Stay away from anybody else that offers to "help" you with your debts. The vast majority want to provide the same sort of options that CCCS do, but for a fee or taking a cut of your monthly payments.

Dont believe the adverts that offer to wipe them out etc.. most are a con.

The CCCS service is free and very usefull. Give them a ring and discuss your problems with them, they will steer you in the right direction better than any of us can (assuming your unlikely to divulge all personal finances on here)

They could recommend something like a DMP - Debt management plan. CCCS will come up with a budget for your mum, detailing all her expenses and outgoings, and want proof of her incommings. They work out what she can afford then negotiate a better rate of interest with the bank on her behalf. You can try this on your own, but not all lenders will be co-operative with this approach unless she's talked to somebody like the CCCS.

What happens is that CCCS work out what she can afford, then take a payment each month for that ammount, and distribute it to her creditors. During this time access to the CC will be suspended.

Bankruptcy is very much a last resort and can wreck your credit for years after. DMP is much better as then your Credit Record at least shows you making payments, even if not the full one.

DMPs are usually offered to people with more than 10k of debt to more than 5 creditors however, so will probably not fit your mothers circumstances if one 7.4 grand card is all she has. Anyway CCCS will steer you in the right direction.
 
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Might be worth getting a new credit card and doing a balance transfer to make use of 0% interest rates to give you some breathing space?
 
POB said:
http://www.moneysavingexpert.com/

Will have everything you need to know, the best way to pay of the card.

If she has not defaulted on payments see if the debt can be switched to a cheaper card to make progress on repayments.
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If she has not defaulted on payments- what does this mean....

okay that site seems like 100 adverts on a site lol, i guess u meant go on to its forums. im a total financial noob too, usually its my big sis that deals with this.... now shes moved out i started looking into it...
 
ring the CCCS

its a debt advice charity. Much easier to understand if the MSE website confuses you.

Credit cards require a minimum monthly payment. Has shee been making these ? if she hasnt then thats what "defaulting on your payments" means.
 
If she purposely doesnt mind a few marks on the credit file. Miss 2 payment call up and then offer a lower amount most freeze interest and charges and allow a smaller amount to be paid for 3- 5 months. Without the a full financial assesment form. Once this has run out fill in the income and outgoing form and you get an amount to pay for a year. What I did and kept doing it paid off most of my debt in 2 years. no interest :)
 
boxman2000 said:
I think the things should be banned personally.
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I don't. Lots of use find credit cards very useful and we dont buy things we cant afford with them, and then have a big cry and ask how to get the debt written off.

Best way to write the debt off is to pay for the items you bought. If you cant afford this, then sell items you own in order to pay. Sell the TV first - you can live without that and it could be worth quite a bit. Perhaps sell your car and downgrade to a much cheaper one. etc.
 
to be honest mate i think the best advice here is CCCS i'm about 7.5k in debt and have a set up a DMP with them, only creditor that hassles me now is HSBC but because I have the DMP i tell politely to FO and then inform CCCS about it

anticonscience said:
OH NOES!!!! DEBT, MUST GET IT WRITTEN OFF! BECAUSE I CANT AFFORD WAHT I'VE BOUGHT!
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go away
 
Why should I go away?

You know just as little about the circumstances of his mother as I do.

To come on and ask how to wipe £7.4k of debt out by doing an IVA is just stupid.

As fox says, try selling things you have bought with the £7.4k to pay it off if she is struggling with payments.
 
anticonscience said:
Why should I go away?

You know just as little about the circumstances of his mother as I do.

To come on and ask how to wipe £7.4k of debt out by doing an IVA is just stupid.

As fox says, try selling things you have bought with the £7.4k to pay it off if she is struggling with payments.
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He came on to ask for advice regarding his mothers situation, although I will admit worded it badly. You the come in and make a first most of HAHAHAHAHAHAHA (really constructive) the procede to troll even more. If you can't give advice then go away.
 
anticonscience said:
Why should I go away?

You know just as little about the circumstances of his mother as I do.

To come on and ask how to wipe £7.4k of debt out by doing an IVA is just stupid.

As fox says, try selling things you have bought with the £7.4k to pay it off if she is struggling with payments.
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not much use if she's lost it all to gambling ....

Or used it to pay for food and heating for the family because of other problems

People are very quick to judge.

This stereotype of people buying big TVs and big cars they cant really afford is the one peddled by the tabloids, but isnt always the case.
 
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But why should someone else foot the bill for their stupidity/recklessness/carelessness?

I hate these IVA etc adverts everytime I see them.

If I had no morals I know what I'd do, I'd get loads of credit cards out, buy holidays abroad, splash loads of cash on booze and hookers, have a 50" telly and massive surround sound system, get the best car possible on credit and pay nothing at all back. Then just say I have no money and cant pay. Get an IVA or get declared bankrupt.

As above, sell things, stop services, sell mobile phone, cancel sky and TV and broadband and eat cheaper food and wear more clothes to spend less on heating etc etc.
 
matt_fsr said:
But why should someone else foot the bill for their stupidity/recklessness/carelessness?

I hate these IVA etc adverts everytime I see them.
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who says anybody else should pay ?

The alternatives offered revolve around paying a rate you can afford, rather than heaping charges on top of charges for payments you cant afford making things worse.
 
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