help with paying debt

[bingbong86]

hi i currently owe creditors £909 to a credit card capital 1, £2358 to lloyds tsb credit card £9000 tsb loan, mbna £800, vanquist £1000 im currenty on benifits have not made any payment in over a year but am gettin letters all the time wanting the money. i have worked all my finances out and have £42 a week spare but also need to live on it. im currently renting so no morgage or anything and have a child. what would b your advise to do i was thinking about making an offer to each to settle the debt as my mum will lend me but only £1500 she will lend as she doesnt know how much i owe and dont want to tell her. my other option was to put a monthly payment offer to each but that would have to be low as only have £42 a week. how much should i offer each crediotor as a settlement and how much if was to pay monthly would you recomend plz will much appreciate the help thanks

[Jan1957]

When I was having problems I visited this site and used their advice and letters they provide. It helped a lot although not everyone agreed to reduced payments.

https://debtremedy.cccs.co.uk/start.aspx

[venator]

I have a pal in a similar situation, and he made himself bankrupt.

I don't know enough to say whether it would do for you, but you could have a look at the Government Insolvency service website.

http://www.insolvency.../whatisbankruptcy.htm

[boxtops]

I would look at the Government website, they can offer free advice to you. There has been a lot in the press lately about some of these debt settlement companies - who negotiate with the people you owe money to, but take a big wodge of the payments to cover their own fees. Don't negotiate yourself until you have spoken to someone. Just not paying is racking up huge fees for you - have a look at venator's link straigh away. (not to ignore jan's but free advice is better than paying!)

[Jan1957]

Boxy, the CCCS one is free. It was set up by the Government.

[christine50]

go to citizen's advice and they will help you sort everything out

[welshlibranr]

OK, go look at this site, they are very helpful, and free too!...they will really help to get you sorted!
www.payplan.co.uk

[boxtops]

Excellent jan, thanks, I didn't know that - I am just very cautious about some of these which aren't, and which take fees from payment!

[lcg]

bankruptcy is the quickest and cheapest solution (around £500 and lasts for a year) - although your credit rating will be shot to Sugar for 7 years and probably everafter. and you cannot be certain professional roles, either. debt consolidationd can last from 5 to 25 years depending on the debt and cooperation from your lenders. get proper advice from cab and their contacts and...good luck x

[lcg]

p.s. DO NOT borrow any further money - is pointless and will ruin family relationships as well x

[Jan1957]

I know what you mean boxy. I didn't use them in the end but they give you specimen letters to use and advice which was were very helpful and now nearly have my debts paid off and at least it is manageable.

[venator]

Just checked out CCCS - they don't seem to be at all dodgy, well worth trying.

The one thing to avoid like the plague is an IVA , although I don't think you owe enough for one. An IVA is a VERY expensive option, takes longer than bankruptcy.

The CAB is good, buy you may experience delay in getting help - they're very busy and many are being closed down.

Best of luck!

[jules77]

The interest rate on credit cards is very high, and small payments will make no inroads into the hardcore borrowing, unless your credits agree to freeze the interest. If you could get a job and regular income, the best way would be to get a low interest rate bank loan over 5 - 10 years, and at least then you would see a light at the end of the tunnel.

[themas]

CCCS, Payplan & CAB are all free. If your only income is benefits then you should not have any money available to pay anything more than a nominal £1 p mth to each creditor. Don't let them pressurise you to do more.

From your figures it seems your total debt at present is below £15000. If that is so, & you satisfy certain other conditions you may qualify for a Debt Relief Order, which is a simpler & cheaper form of bankruptcy & results in the debts being wiped out withoput you having to pay anything towards them. But your debts total near the £15000 limit & interest etc. is probably being added to them so you must act quickly if you are to be able to do a DRO. Any of the above 3 organisations can advise you on that option, or on any other way you could deal with the problem.