Posts Tagged ‘letter’

Matching Debt Repayments to the Budget

September 4, 2008

A vital part of the process of contacting creditors to negotiate a new arrangement is the income and expenditure statement. They need it to assess what they can ask for and you need it to assess what you can afford to pay.
Usually you will receive a budget form from the company. My advice is ignore it. Not the need to present a completed form, but the actual form they send. The reasons for this are many, among them the fact that each company has its own layout, and none are about you; they are about the company!
Now more important is the fact we are facing difficult times. Living costs will inflate for some time, and it is likely that incomes will decline. A squeeze.
So long as you describe your needs clearly in this income and expenditure account it will provide the essential and accurate point for discussion.
I favour this accompanying your second letter, when you have had time to review all your affairs carefully. It might be worth setting it out roughly and putting it aside to come back to for review and correction. When you finally send this off it is vital that you have all items of expenditure included.
This is the 21st century; you are expected to continue to live without starving and without being homeless. In pursuit of this there are certain priority debts and payments. These must be deducted from your income before any attempt to assess what you might be able to pay towards settlement of non-priority debts.
If this gives a debit position—in other words if you need more money than you have to meet your needs then your creditors cannot expect payments.
As you investigate further you will learn of the options for managing your position: IVAs, bankruptcy and so on, and be told about bailiffs and court action. Court action—which rarely happens—will in any case be a long way down the road, and bailiffs can only be involved after court action.
You have research to do of course and trying to work out your personal best course of action. As you seek advice as well you will probably find your first fears recede, and options which you can handle with little discomfort becoming realistic.
That is exactly what I found. Because those who might have been intermediaries gave me advice that was not very sensible for me and made hashes of the figures I gave them I determined that it was up to me. And I am glad I took the step to control my debt crisis on my own terms.

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Posting Your Debt Letters

August 22, 2008

I am very keen on writing letters. I think it is much easier to make your points clearly and get them across. Also it is by far the best record you can make of your debt experience, and how your creditor is behaving.

But it has just been brought home to me that delivery of those letters is equally important. And this is because of an experience I am in the middle of.

In the afternoon of August 12 I sent important papers related to a debt by Recorded Signed For from our local sub-Post Office. I was assured that this would go with the Royal Mail collection man who was bustling around at the time.

It is some time since I used recorded delivery—as it used to be known—and then it cost 88p and I was able to track the course of its progress online, and it was delivered by the third day.

This time I paid £1.50 and online only reveals when it has been delivered and signed for. I am still getting “Come Back Later”, and today is August 22. As a comfy ride for Royal Mail you cannot query its delivery until 20 working days have passed—which in this case means September 1.

Normally, for cost reasons if nothing else, I sent letters—debt or otherwise—by straight first or second class, according to my sense of urgency. I cannot think of one that has not been reliably delivered, and usually within one, two or three days.

I am quite convinced now that this is lost. And, one other sign of Royal Mail’s self love and contempt for its customers; you cannot contact a live human being in the operation. Usually when something like this happens I write to the Chief Executive Officer and complain to the Office of Fair Trading.

But I will have to wait a bit longer before anyone will listen to me. Lucky it wasn’t done because of time constraint. But when the importance is to be sure it arrives this kind of service seems to me the very worst of what British is all about.

So, while I might have recommended using this signed for system for really important papers, I cannot recommend it any longer. Especially not when some aspect of your debt negotiations has serious time constraints.

Within a realistic price structure I do not know of any alternative way to be secure in the knowledge of delivery. I would say it is worth checking with the recipient.

But then again the big creditors have two problems for debtors. First I have found that the internal distribution service can hold mail up for a week. Second it is not easy to know where the letter has gone to unless you have addressed it to a named individual.

So I can now say with some certainty that I will in future be sending my mail by ordinary post, and my best suggestion to you is that you do the same.

Joseph Harris
Debt Control Man