Debt over £100k

Zhanna

Hi,

I have the following debts and looking for a way to minimize or pay them off, could anyone suggest methods?

HSBC: £3,500.00
AL L: £1,000.00
A A: £25,000.00
B Horse: £5,000.00
HSBC: £20,000.00
Barclaycard: £4,000.00
Barclaycard: £1,600.00
MBNA: £5,000.00
Barclays overdraft: £1,000.00
HSBC overdraft: £2,000.00
RBS (Carloan): £2,000.00

Total: £100,000.00

I run my own business too so going bankrupt isnt really an option. Any ideas?

Tixy

Hi Zhanna and welcome

The best way to tackle them will depend on your income and your essential costs and how much you have left to make debt repayments each month.
For us to really understand your position and advise you it would help if you could complete a detailed financial statement of affairs using this link.
http://www.makesenseofcards.com/soacalc.html

For the income at the top make sure you use your income after business expenses, tax etc and don't include business expenses in your outgoings.
If any of the debts are related to your business then can you mark which ones are.

Also on the SoA you will see there are sections to complete the APR and the monthly repayment - this information will really help us advise you best.

kissjenn

Zhanna wrote: »

Hi,

I have the following debts and looking for a way to minimize or pay them off, could anyone suggest methods?

HSBC: £3,500.00
AL L: £1,000.00
A A: £25,000.00
B Horse: £5,000.00
HSBC: £20,000.00
Barclaycard: £4,000.00
Barclaycard: £1,600.00
MBNA: £5,000.00
Barclays overdraft: £1,000.00
HSBC overdraft: £2,000.00
RBS (Carloan): £2,000.00

Total: £100,000.00

I run my own business too so going bankrupt isnt really an option. Any ideas?

Hi,

without minimising the problem, the debts shown only add up to £70,100. Have you miscounted somewhere or missed some off or is that a 30% saving straight off?

KJ

Morgan_Ree

From my experience most companies will accept reduced payments if you can prove you are struggling
I wrote each of my creditors a letter with a statment of my income/outgoings and offered reduced payments
All were accepted with no problems at all

The other thing is, I don't know if this is an option for you but if you have enough money you could offer a settlement figure in order to clear your debts
This is what I did to pay mine off
In total I owed just over £14000 and I managed to settle all of them for just under £9500

liverpool1988

how did you come to a settlement?

Morgan_Ree

liverpool1988 wrote: »

how did you come to a settlement?

When I had the money in the bank I just phoned them and said I have xxx amount of money would you accept this in order to clear the debt
A few of them refused at first but you just keep on at them, ask to speak to a manager, plead poverty, say this is all I have and If you don't accept this I'll have to carry on paying my minumim payments and use this money to pay are more willing debt etc etc

It worked everytime

Tixy

Further to Morgan's advice

For anyone who is doing a settlement it is vital to get in writing that the payment you make will be in full & final settlment of the debt and the neither the creditor or anyone else will chase you for the remainder. Get this in writing before you pay the debt. Failure to do so could mean that you find someone chasing you for the remainder 5 or 6years down the line.

ILW

Tixy wrote: »

Further to Morgan's advice

For anyone who is doing a settlement it is vital to get in writing that the payment you make will be in full & final settlment of the debt and the neither the creditor or anyone else will chase you for the remainder. Get this in writing before you pay the debt. Failure to do so could mean that you find someone chasing you for the remainder 5 or 6years down the line.

Also bear in mind that you credit file could be marked as a partial settlement, which may affect your business if you are a sole trader or partner.

Morgan_Ree

ILW wrote: »

Also bear in mind that you credit file could be marked as a partial settlement, which may affect your business if you are a sole trader or partner.

This can also be negotiated when offering a settlement
None of the companies were forthcoming with this information, I had to actually ask about it