Unsecured loan, can't afford to pay, what do I do?

ct2008
ct2008 Posts: 19 Forumite
First Anniversary Combo Breaker
in Debt-free wannabe
I have an unsecured loan with AA Financial services for £15000. the payments are £378 per month. I am a builder and have been struggling for work and at the moment cannot afford to make these payments. I have agreed with the company to pay £50 per month until things improve and have asked them to freeze the interest on the loan. They refused to do this unless I go to the Citizens Advice Bureau but I have already been and after my mortgage lender suggested it during negotiations with them, but when I saw the CAB they were too busy to handle my case as they had much more sever cases to deal with. When I explained this to the loan company they suggested I contact CCCS who I understand are a debt management company. I have another loan with another finance company, also unsecured, they have already agreed to freeze the interest for 12 months and accept a reduced payment without me having to go to these lengths. What can I do as I don't want to use the debt management companies as I have heard on a radio programme featuring Debt Wizard that these are not advised?

Comments

  • ~Beanie~
    ~Beanie~ Posts: 3,043 Forumite
    First Post Combo Breaker First Anniversary
    You definately should contact the CCCS. They are a debt management charity and won't charge you for any advice that they give you.

    The debt managament compaines to avoid are the ones that charge you a fee for doing the same thing as the CCCS or PayPlan will do for free.

    Unfortunately, even if the CCCS get involved, there is nothing to say that the AA will freeze interest although they are more likely to listen to them than to you. Some companies are just more understanding than others.
    :p
  • 10past6
    10past6 Posts: 4,962 Forumite
    ct2008 wrote: »
    I have heard on a radio programme featuring Debt Wizard that these are not advised?
    Look at the first line within my signature.

    This is MARTIN LEWIS'S website :j the link with my signature is HIS advice ;)
    Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.

    All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.1K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards