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

ct2008

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?

~Beanie~

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.

10past6

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