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Debt Recovery companies….otherwise known as arseholes May 17, 2010

Posted by Just a typical dad in Uncategorized.
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When i was 18 the car i was driving died. Now i had already had had about s cars before but they were also £200-£300 bangers ant werent going to last forever so after the last one died enough was enough and i took a loan out for a nice newish one so after a week or two of shopping i decided on a ford focus to which i still have today ( a good investment methinks) and it has only had one or two problems (find me a car that has no problems.

So with this loan came a credit card that was a standard part of the deal apparently, i wasnt complaining i mean i was 18 it was like someone giving me free money! but at the start i was the very stereo typical person and said “yeah im only going to use this in an emergency…..well lets just say nights out bowling and nights out getting drunk became emergancys.

It didnt take me long to max that credit card out as luckily it only had a £500 limit although i still managed to rack it up to £800?? so my answer to this debt i hear you asking well that quite obviously was get another credit card and ignore that one and hope it goes away!

So the new credit card arrived and i had money again (fortunately i had been repaying my loan) and again it was a case of  an emergency only and again those nights out turned out to be real a real emergency.

I should add at this point i had an outstanding O2 bill of about £500 that i had “blanked” from my imagination.

So i went on my merry way of working to earn money and then spending more than i earned. untill the second credit card was maxed out and again luckily this limit was only £200 but still it was all gone! So in my mind i did the right thing and tried to get another credit card but this time i got a shock as i was rejected! it was only then i realised that i had quite a lot of debt but being a typical 18 year old ( i know i dont speak for all 18 year olds im just speaking from experience of my friends too) i ignored it and carried on just living off my wages.

Things were ok i got the odd letter and phone call but nothing i couldnt ignore i then started to realise i was too used to the lifestyle of having more money than i earned and got myself an overdraft on my account at with a certain bank beginning with L and to my surprise i got offered a £300 one.

So i snapped it up and for the first month it was great i had £300 more than usual but then obviously wages went in and it swallowed a large majority of them up! i know its getting ever so repetitive now but the solution that would fix my money problems was to increase my overdraft! which the big L were more than happy to do and to cut it short guess what? i maxed it out!!

So heres where it began to get interesting i started to get bank charges and not just the odd £35 mine were arriving in lump sums of £105 a month sometimes more and it went on for quite a few months and i was getting bank charges for not being able to pay the bank charges.

I was in quite a bit of financial trouble for an 18 year old and began to worry and get stressed about it i had all sorts of collection agencies calling me on the phone letters coming everyday and i was too embarrassed to tell my mum about all of the debt! i coped with it for a bout a month or two before i received an orange phone bill for £1200 (yes that was for month) and then i nearly cried when i opened it up i just sat there trying to take it all in and i as i did i think i just cried more and more. it was time to take action!

So i plucked up the courage to explain to my mum about all of the debt (oh yeah i had missed three months on my loan payments and any wages i earned got swallowed up by the bank charges) and rather than her shouting at me and making me feel worse she sat there and told me everything was going to be ok and then we laid out how much debit i was in and the solutions i could use!

So straight away instead of ignoring the phone calls i answered them and was prepared to tackle the debt collectors in any way i could  a few of them were sympathetic and a few not so but after about a month of creating payment plans and changing bank accounts to the lovely bank that i will call the big H i was back on track once more the last battle i had was with that bank beginning with L. After days of phoning and trying to plea my case against them and explain that the £800 that i had gone over my overdraft limit was all bank charges that they had taken! but unfortunately they didn’t care and i was forced to set up a payment plan that i was very sad and annoyed at.

So yeah i was back on track i had wages and i was paying off my debts which is great, even if i am still paying some today the thought that one day they will all be gone is good enough motivation for me to keep paying them! and since that time ive got a lot better with my finances and controlled them all…..except one.

Now it didn’t take me long to pay off the credit card that was at £200ish and it got hidden away for about a year or so, well till a few months ago to be precise and i thought why not check if the account was still open so i did all of the internet business and would you belive it! they have upped yes upped! my limit to £1000 now the month that they had decided to do it on was a bad month for money what with council tax car insurance debts rent and a few other things coming out on the same day (you know whats coming) so i lived off the credit card for the month and before you know it it is maxed out again and the repayments are phenomenal and ones i couldnt afford and so i get today and the inspiration behind this post.

my initial thought for todays post was to write about my tattoos and future plans for them but when i got in i thought you know what enough is enough so i picked up the debt letter and phoned them to arrange a payment plan.

the phone rang and then what sounded like a 16 year old boy answered the phone and asked me the usual security questions and then came out with the line i absolutely despise “so sir the outstanding debt is (insert debt here) amount can you p this today”……. no of course i cant pay it today thats why i havent paid it in the past you arsehole! and then when i said no i was made to feel bad and told that i could pay over 3 months of £400 installments…hahaha yeah right so he waffles on and i say “look yeah i cant afford anywhere near that whats the lowest you can take” and he then says sorry sir you need to make offer so i ponder and say ok £50 and he says sorry the minimum we can accept it £57….THEN WHY DIDNT YOU JUST BLOODY SAY WHEN I ASKED THAT INSTEAD OF RACKING UP MY PHONE BILL!!

So i sorted that out and now im happy to say that 100% of my debts are under control and being paid off! im sorry that this post is a bit long winded but i had to vent my anger at the 16 year old lecturing me about money!

anyways there is a very important moral to this blog simply dont ignore the debt because 9 times out of 10 it wont go away and the quicker you act the less you will end up paying back!

Thanks for being so patient and making it to the end 🙂

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Comments»

1. Magic Mummy - May 17, 2010

It is soooo easy to get into debt isn’t it?

I’ve been there in the past and we’re still paying it off!

Have you claimed back all of your bank charges yet?

2. Magic Mummy - May 17, 2010

I meant credit card charges (not bank charges) 😉

Just a typical dad - May 17, 2010

no not yet il pay it off and then start the procedures to do that lol and yeah very easy i think they should make it harder to get credit cards/overdrafts etc especially if your 18! 😀

Magic Mummy - May 18, 2010

Do it sooner rather than later as you can only claim back the last six years worth and they’re not allowed to close your accounts now if you reclaim charges – lol you’d think I was on commission wouldn’t you 😉

I reclaimed mine a few years ago and got a fair amount back now – I’m much better with money now lol

Just a typical dad - May 18, 2010

is that credit card or bank charges? as i had a hell of a lot more bank charges than credit card ones! 🙂

3. Jenny Paulin - May 17, 2010

At least yours are sorted now at your age! I am older and my debts have got waaaaay out of control!!! Still, things will be sorted but it was not the route I wanted to go down. But hey ho – it is not the end of the world and hopefully when it is all over I can start again with a clean slate. So, from one person who is crap with controlling their finances to one who has sorted himself out – keep up the good debt sorting work
🙂

Just a typical dad - May 17, 2010

thanks and yeah as long as you approach it rather than ignoring it, it will sort its self out (with a little help from your bank account now and again lol) i know i wont be debt free for a while but it will all be worth it in the end 😀

Emma - May 17, 2010

Oh we’ve not even started to pay mine off yet! Been avoiding them until I registered with creditexpert and then they all found me! Oops!

4. JenC - May 17, 2010

I used to work in a bank (don’t live in the UK btw) and the one thing I used to say to students when they got loans was don’t ignore them, come back if you can’t pay, it is much better in the long run. You did the right thing, yeah its a pain that paying them off takes so long, but it shows your good character 🙂 Jen.

Just a typical dad - May 17, 2010

thanks! yeah i was just given papers to sign and i got a few grand! there was no warnings! there should be more people like you working in our banks!! 😀

5. Vic - May 17, 2010

I sometimes wonder why they give 18 year olds credit cards and loans. Then I remember it’s cos financial institutions are money grabbing bastards.
I couldn’t tell you the exact figure on our debt, but it’s in the region of a deposit for a small house.

6. Just a typical dad - May 17, 2010

blimey! thats quite a lot! but again as long as its under control thats the main thing a close friend of mine has a current debt of £218,000 due to a business expedition gone wrong and he’s fine because he’s slowly paying it and no one can chase money if your already paying it!
i think there could be a certain limit on loans introduced to under 20′ or have someone with a very good credit rating to be a guarantor on the loan therefor theirs more of a reason to pay it back!: D it certainly would of kicked my arse into shape if i had a friend or my mother as mine!

7. becky - May 17, 2010

I was much better with money as a student! Yes I finished in debt but cleared all but Student Loan within 6 months of leaving.

My problems have arisen since I had children and carried on using the credit limit I’d had earning 30k when only earning 16k… needless to say it all rapidly spiralled out of control and I’m on the verge of bankrupcy.

Hope I can teach my kids to be more sensible. I’m able to survive without credit cards now and I’m not sure I ever want one again!

8. Just a typical dad - May 17, 2010

im the same i never want to have a credit card again and have informed said credit card company that as soon as the debt it cleared to close my account. it must suck to be close to bankruptcy, i wont lie i considered it once upon a time but my debt was too small. i hope you figure a better way of sorting it out but sometimes i understand that bankruptcy it the best/only solution as i have a friend who had roughly £38,000 worth of debt built up by a few things that declared bankrupt and at the time was a little upset but now looks back and she is glad she did it and as far as i know she’s now doing pretty well for herself! but depending on how much you owe there are always options! 😀


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