Debt advice request

marklar_2

Firstly Hello to everyone on the forums and its great to read through and see the helpful discussions taking place.

I am looking for some advice regarding my own debt situation.

I have debts totalling 9k on 1 loan and 1k on 1 credit card. Although bad this was managable until my income dropped significantly recently.
The problem is that i can only afford to pay about £80 a month maximum (and im on the 'money diet') whereas my payments are approx £240 minimum.
Can anyone offer the best advice to solve this as im currently borrowing on my c/card to make payments. Also i want to avoid damaging my credit file too much as although im steering well clear of loans etc. from now on i want to be hopeful i can get a mortgage in the future.

Im also VERY worried about the harrasment from the debt collection companies if i try to negotiate lower payments as im a rather nervous/worrying person anyway.

ALL your advice is much appreciated...

tomstickland

Can you move the credit card onto a 0% offer?

marklar_2

I dont think so.

I already have a default from dealings with HSBC - they removed my £200 overdraft and i couldnt repay it immediately which resulted in a default being registered. I have asked them if they will remove it but just got some ignorant letter from a debt management company saying it will remain for 6 years!

tomstickland

OK, well there are people who know a lot more than me about how to progress.
Essentially, there are free debt help services who will help you draw up a statement of income and expenditure and then work how much you can afford to pay off per month.

Justicia

tomstickland wrote:

OK, well there are people who know a lot more than me about how to progress.
Essentially, there are free debt help services who will help you draw up a statement of income and expenditure and then work how much you can afford to pay off per month.

Some suggestions to look into to;

Citizen's Advice Bureau
Pay Plan
Consumer Credit Counselling Service

If you are using credit to pay off credit, then I would urge you to seek debt management advice as soon as possible

Also please take advantage of the advice that this site has to offer in regards to adjusting any other spending to assist you in clearing your debts, Mark. If you post a list of your full monthly income and outgoings, then you will get advice regarding reducing your other payment obligations if possible.

Justicia

marklar wrote:

Im also VERY worried about the harrasment from the debt collection companies if i try to negotiate lower payments as im a rather nervous/worrying person anyway.

A decent credit counselling service (like the examples above, not the ones who charge you for their help), will assist you with any negotiations between you and your creditors