Introduction...What I've done so far...
Unfortunately after racking up a large amount of debt with Natwest and being unable to make re-payments my bank account has now been closed, making it impossible to make payments to creditors via debit card or cheque, so far I've been using boyfriends account but,I've now found out that people with bad credit such as myself can open a BASIC account, that I can have my wages paid into, set-up Direct debits and standing orders but I can't have an overdraft, cheque book or even a debit card. I've opened an account with HSBC and so far so good, I like that fact that I have to pay for everything by cash now, it means I can't get into any more debt at least!
With some of my creditors I have now entered into what I think is known as an informal voluntary agreement. I did this by I writing to them, I found a template of this letter on The Citizens Advice Bureau website....
"To whom it may concern,
RE ACCOUNT NUMBER XXXXXXXXXXX
I regret that I have been unable to maintain monthly payments because I lost my job earlier on this year and during this time I was only receiving job seekers allowance which was only able to cover my basic needs. I have now taken a temporary position so feel I am able to make an offer to repay the outstanding debt.
I am enclosing a copy of my financial statement that gives details of my income and expenses and makes offers to all my creditors. You will see from this information that I am able to offer you £50.00 per month. I propose to make my first payment on 06.10.06. I trust you will except my offer as realistic given my circumstances and agree to suspend interest and any other charges on my account provided regular payments are made. I shall of course keep you informed of any changes in my circumstances.
Thank you in anticipation for your response."
...I sent this letter along with my financial statement (a list of all my in-comings and outgoings). Since sending these, I received a letter from MBNA asking me to call them to arrange to make payments (they were suprisingly very nice) and I have arranged to pay £50 per month by direct debit for the moment. I had to call 'Moorcroft' who are dealing with my Natwest Credit card account and have agreed to pay them £50 per month by D/D aswell.
I will be calling Westcott credit agency this weekend to arrange a re-payment plan for my Natwest Bank account again for £50 per month, I've been having problems with this as part of the money I owe is from a joint account (I 'll explain more about this later). All of these Direct Debits will be presented on 22nd of each month. (Anyone thinking of considering this type of agreement should be aware that this will show on your credit record for up to 6 years after the debt has been cleared in full)
Regarding my utility bills, well, I'm not so organised with this yet, Powergen will be coming to fit a pre-payment metre for gas and electricity next week, £40 per month of any money I put onto the metre will go directly towards paying the debts. I have sent a letter to the City Council similar to the letter above stating I will arrange to pay them £80 per month and will have paid the amount in full by April 2007. I have also set-up a D/D for TV license and home contents insurance. Not doing too bad! x
With some of my creditors I have now entered into what I think is known as an informal voluntary agreement. I did this by I writing to them, I found a template of this letter on The Citizens Advice Bureau website....
"To whom it may concern,
RE ACCOUNT NUMBER XXXXXXXXXXX
I regret that I have been unable to maintain monthly payments because I lost my job earlier on this year and during this time I was only receiving job seekers allowance which was only able to cover my basic needs. I have now taken a temporary position so feel I am able to make an offer to repay the outstanding debt.
I am enclosing a copy of my financial statement that gives details of my income and expenses and makes offers to all my creditors. You will see from this information that I am able to offer you £50.00 per month. I propose to make my first payment on 06.10.06. I trust you will except my offer as realistic given my circumstances and agree to suspend interest and any other charges on my account provided regular payments are made. I shall of course keep you informed of any changes in my circumstances.
Thank you in anticipation for your response."
...I sent this letter along with my financial statement (a list of all my in-comings and outgoings). Since sending these, I received a letter from MBNA asking me to call them to arrange to make payments (they were suprisingly very nice) and I have arranged to pay £50 per month by direct debit for the moment. I had to call 'Moorcroft' who are dealing with my Natwest Credit card account and have agreed to pay them £50 per month by D/D aswell.
I will be calling Westcott credit agency this weekend to arrange a re-payment plan for my Natwest Bank account again for £50 per month, I've been having problems with this as part of the money I owe is from a joint account (I 'll explain more about this later). All of these Direct Debits will be presented on 22nd of each month. (Anyone thinking of considering this type of agreement should be aware that this will show on your credit record for up to 6 years after the debt has been cleared in full)
Regarding my utility bills, well, I'm not so organised with this yet, Powergen will be coming to fit a pre-payment metre for gas and electricity next week, £40 per month of any money I put onto the metre will go directly towards paying the debts. I have sent a letter to the City Council similar to the letter above stating I will arrange to pay them £80 per month and will have paid the amount in full by April 2007. I have also set-up a D/D for TV license and home contents insurance. Not doing too bad! x
posted by Vikki at 3:47 pm
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