Advice Please

Smile

Hello Everyone,

I'm looking for some advice, I have debts of £25,114.64p and I only faced it last Sunday after living off credit for the last couple of years!

I have written to all of my creditors explaining that I am experiencing financial difficulties and if they would except reduced payments every month and if they are willing to freeze the interest on my accounts. These letters have gone out today and I'm worrying that they wont accept the offers. Included with the letters I have included a personal budged sheet. (taken from https://www.nationaldebtline.co.uk)

These are the new offers (all of which are about £30 less than the original agreed fee)
Creditor Name

HSBC Loan - £9,832.71
Monthly Offer- £251.89

Beneficial Finance Loan - £4,229.71
Monthly Offer - £98.87

Frizzell Loan - £4,612.89
Monthly Offer - £107.83

MBNA - £1,588.10
Monthly Offer - £37.12

EGG - £1,904.27
Monthly Offer £44.51

Morgan Stanley - £2,946.96
Monthly Offer - £68.89

Total Creditors - £25,114.64
Total Outgoing per month to creditors - £609.11

I take home £1,054 a month and have £444.89 to live off (e.g. rent, food, car expenses)

If they don't accept my offers what other options do I have? I don't think that I can offer anymore and the moment and am really scared they will take me to court!

am I doing the right thing? if they don't accept should I use PayPlan? would they listen to them more than me?

I have calculated its going to take me about 3 and a half years to clear this debt taking into account that no more interest will be added to my debts, but how will my credit rating be after this? will I be blacklisted?

if anyone has any advice I would be very grateful.

Thank You.

Smile

Willsnarf1983

444 quid ain' alot to live on inc rent! if u feel u can live of that easily well done but i think u will struggle, whats ur rent?, petrol costs etc etc...have u thought bout a second job to earn that little bit extra?


Will

Magentasue

Like Will said, if you can live on £445 a month, fine. But I think you may have this the wrong way round - you need to work out how much you need to live on and THEN work out your repayments. Well maybe not, you said you'd used a budget sheet.

Second job could be good, so could a lodger if you are able to do that.

I think using CCCS, CAB or the like could be helpful - people on this board do report that they continue to support you negotiating with your creditors. Good luck!

Smile

thanks for the reply,

I think I can manage with what I have.

I've created a savings account with nationwide that moves over some money for me to live on from week to week so I cant touch the money that's going out to the creditors and other bills etc.

do you think that what I have offered is enough?

what are the implications of doing this?

Smile

Peachy_2

Hi Smile
I think what you are paying HSBC is HUGE! I had a debt with them and was paying off less - Have you looked at all the interest rates and made sure you are paying the most to the most? I would call them all in a week and arrange to discuss each one in detail... this is what I did - you might have to fight to speak with an actual "manager" - customer service at the initial point of contact are quite vague and unhelpful. But if you speak to someone high up enough and say, look I can only afford to pay this much - what else can they do? I think you should work out what you can live off first and then what you actually have left, pay the biggest interest debt off with the biggest repayment amount, and the smallest with smaller repayments etc - If, like me, you can't (yet) get a 0% credit card to transfer, this is really the only way. I have spent YEARS arguing with banks and creditors to get them to accept the minimum payment - please do keep on at them, even your reduced amounts still seem high? I'd go back and argue something affordable to YOU - after all... as this site says, they've been screwing us so pay them back how YOU CAN - without screwing yourself too?

Hope that helps - What a nightmare debt it, and sooo complicated it makes me feel physically sick! Still, keep at it !

Peachy

Threepints

Smile,

I would definately advise you to contact the CCCS http://www.cccs.co.uk/

I was in a similair situation to yourself several years ago. I stuck my head in the sand hoping the debts would go away, until eventually realising that they would not. After a lot of stress and worry I contacted the CCCS and sought advise from them.

They are helpful and a charitable organisation who are funded by many of the major banks and lenders. Contact them for advice, your not obligated and there is no charge.

System

Hi Smile - welcome to the forum

Smile wrote:

I think I can manage with what I have.

Like others have said, it's great if you can afford to use £600 to repay your debts each month. But I'd err on the side of caution and be generous (but not unrealistic) when completing your Budget. Have you included a reserve for emergency expenditure?

What strikes me about your first post is you say you've been living on credit for a couple of years - does that mean you've been in work and unable to survive on your wage, or have you just now returned to work?

There's no point starving in order to get the debt repaid sooner. An affordable plan, with a bit of "legroom" will make your budget easier to stick to.

do you think that what I have offered is enough?

what are the implications of doing this?

You've certainly offered them enough compared to alot of people with debt problems (myself included!) - and (from my short time on this forum) I'd be surprised if they don't accept your offers, but it's impossible to say really.

Immediate implications that I can see are that as you'll be below your minimum payments, you'll build up account arrears and these will noted on your credit file.

You'd be best to call the CCCS and go thru all your options with them - totally free service.

Dave