Paying off my debts

frenchy06.2007

Hi

I am £9500 in debt with a mixture of 2 loans, a credit card and overdraft. I am about to inherit enough to pay these off fortunately as they were far higher and i have struggled for two years paying them off. Does anyone have any advice when it comes to settling them. Is there any way i can have them reduced if i am paying them straight off.

I have always just gone with the flow and paid all charges fees etc and have been ripped off by these banks and companies as i am quite laidback about money. Now that i have enough money to be debt free i dont want to give them a penny more than i have to.

I am new to the site if nayone has any suggestions please let me know.

Thanks

Tubbss

Hi,

Simply contact your crediors, ask for a settlement figure, then once they give it, ask for a reduction if you pay now!

Rafter

Depends - totally agree if you have been charged too much in fees you should try to get some of them back.

If you have a loan agreement though and may want to borrow in future, then trying to 'settle' your debts may result in a default on your credit file.

Generally with your loans you will have to pay 1 months interest to settle on top of your current balance - you don't have to pay the sum of your remaining payments though.

Your credit card is simply a matter of paying off the statement balance, although there will probably be a bit of 'trailing interest' for the period between the statement date and when you make your payment.

Your overdraft will simply stop charging your interest when it is paid off.

If you have paid lots of fees for late payments on credit cards or loans, then keep an eye on this site for updates about reclaiming them. Similarly if you are paying 'payment protection insurance' on your loan or credit card and have an existing medical condition or were told the insurance was compulsory by the salesperson, then you may be able to get refunds.

Good luck

R.

Imani

with settlement figures. First see if they will offer you a figure. some places will not offer a figure they want to know what you will offer how much your indivual creditor debts are and what you are paying them to settle. your age will play a factor source of funds if you are working and your circumstances. some will register defaults others will not depends