Creditors have frozen intrest

john_kent

Hi

I had posted here an age ago about my debt. Since then I have written to all my creditors and all but two (I had 7) have agreed to freeze interest and charges fpr three months. In this period , i will be actively seeking work.

I have done a few days agency work and started delivering pizza at night.

I now have £350 left in the bank after bills of which £50 will be required for petrol for the car to allow me to continue pizza job for rest of this month.

If I was to pro rata the £300 to the creditors , could they then expect this payment each month. Or am I best waiting until the three months are up , seeing what I have in the bank , do a new budget and make a payment at that point.

Xbigman

Are you making token payments for the three months? If so I would keep them up but don't add any more to that. When the 3 months is up you will hopefully have a longer term budget in place and you can sort out long term payment plans. If you build up a cash pile in the meantime you should keep this back for emergencies.
Regards




X

robnye

definately continue to make minimum payments each month, if only to show willing.... if you dont the creditors will get upset.

with the surplus each month, you could snowball it and throw it at the account i with the highest interest.

john_kent

Can i give preference to the highest interest debt though.

I may just split it all pro rata at the end and make an offer of say £x to each.

The thing is , at the moment , my income fluctuates so much uts not even funny. Last week I earnt £160 the week before £80 the week before £105. So cant see how this is going to work out

robnye

you can give preference with the surplus, but i think you will need to pay minimum payment to all of them......

john_kent

I am going to offer an extra £150 the highest intrest creditor.

All the creditors have been pretty good , as I have been blunt in my letetr and stated , that othe rthen my Car (worth £1500) and my home cinema setup , I have no Assetts.

I guess as I use the car for work purposes , this may be protected if bankruptcy ever becomes an issue.

System

Hi John

I'd be interested in just keeping the creditors happy (if they've already accepted a token payment, then that's fine surely?) and keep any surplus you have in case of emergencies until you've got a definate idea of how much income you'll have coming in.

If your income is fluctuating quite a bit, then just give your creditors an average weekly income based on whatever you've received so far. If that average is based on just two weeks money, so be it - it's still an average and you're keeping your creditors up-to-date with honest and accurate information.

Dave