freezing interest

BigDebtBoy

hi guys
well as no one seems to have a idea about my last question im thinking about paying my debts off myself insted of using a dmp

if i was to ring my credit cards and ask them if they would frezze my interest as i want to pay off my accounts asap would they do this and what is the best way to go about this


i dont think the bank i have the loan with would do this would they so best to just try it with the cc companies

cheers

Tondella

Big boy debt, haven't got much experience in this area but couldn't bear to see this go unanswered. As i understand it the banks have a good working relationship with CCCS and Payplan therefore I would suspect that you are probably better off going to them for your dmp and making use of their experience. They also probably have a pretty fair idea of what is a reasonable offer to make to the banks etc. I haven't seen your other post, what is making you think you should go it alone?

Xbigman

I only just read your other thread as I haven't had time to read everything since the board got so busy.

As already stated your personal and business debts are the same and you need to address the problems all together. Now CCCS do try to protect your job and will try not to endanger your business as this gives you an income. Unfortunately this will wreck your credit rating and the credit rating of your business. You will also encounter a minefield of grief from creditors, many will not care that you need to meet business debts first but will only see that you are paying others more than them.
My advice is to do a full SOA (statement of affairs) which would include your business income and all debts of yourself and your business. Only when that is done can you see the exact situation you are in and what options you have.

As to your question in this thread. Will creditors freeze interest so you can pay your debts of more quickly? A. Not a chance.
They will only do this if you default first and cannot service the debt.
Regards



X

BigDebtBoy

Thanks for your replys

i am thinking of doing it myself because it would be a nightmare regarding my business bank account etc and i think that i can get business debt sorted by selling most of my stock and pay off my credit cards by not spening hardly owt for the next 12 months and blitzing my credit cards (also selling some stuff on ebay ) so then i would just have my loan to run at £280 a month which is affordable

Xbigman

It is possible to do it yourself but you need a tough hide. Prepare an income and expenditure statement but put your business debts in with the secured debts, to be paid in full each month. Then split the remaining income up pro rata between creditors. You will get a lot of threatening calls and questions regarding the business debts but just keep sending the income/expenditure sheet you have prepared along with the payments you are offering. Hopefully this will buy enough time to clear the business debts.

The other option is to remove the business debts from your income/expenditure and theoretically pay yourself a salary, and put that down as your income. However, this is a bit dodgy as you might be asked to provide proof of these figures at some point and you could end up looking dishonest.
Regards

jobbingmusician

Also get yourself over to the oldstyle board for advice on 'not spening hardly owt'

robertbruce

Hi
Because you have a business debt and a personal debt to consider, I must say that I would always advise you to TRADE OUT of your situation. Anyone who can earn a little can earn a lot by better personal organisation, working harder, making slight changes to be more effective, or all three.

You also sound as if you have a good attitude and that will help a lot. Just stand up to creditors who harass you, always be polite but firm to get what you want from the situation, and give THEM some hope of getting paid so that it is worth them supporting your plans.

Check elsewhere as metioned for info on savings while you do all this, but concentrate on your income first. Cheers. Bob.