getting out of debt

thefoolonthehill

Hi

I have around £15k of debt (unsecured) and was hoping for advise on the best way to get out of it.

I have spoken to a firm who advise on de bt management and they basically said they would deal with my creditors for me and i would pay around £30 per month to all my creditors. This will happen over a five year period and i will still owe a lot of money at the end of this period.

They also want around £1k for doing this as well as 5% of the amount of debt they manage to write off. I am a bit sceptical but want to sort my financies out. Does anyone have any advice on how i can go about reducing my debt by paying a manageable amount and without forking out a massive sum of money to a firm.

I currently rent my flat an d my out goings before debt repaymentr are around £400 with another £450 to debts.

Thanks in anticipation

Jessiepig

Hi
Do not do this. Why pay them money that could be used to pay off the debt.
You need to post a full list of your incomings and outgoings on here and lots of good FREE advice will come your way.
These debt agencies prey on people like you and they are bad news

homersimpson_3

Does anyone have any advice on how i can go about reducing my debt by paying a manageable amount and without forking out a massive sum of money to a firm.

1. contact cccs, - consumer credit counselling service- payplan or cab- citizens advice bureau -they do same work as debt management co and don't charge so money you would have paid this debt management co can be targeted towards debt
2. post soa (statement of affairs)- income, outgoings, savings & debts (with apr- look on statement for this) and people usually come up with suggestions to cut expenses and spare money can be targeted towards debt
3. don't be tempted to consolidate debts (glossy adverts)- you'll end up paying more than now for longer in interest- shift as much as possible to 0% interest

Wonder_Girl

If you rent then why not go bankrupt?

Of course this would depend upon your job, but it only costs £480 in England at the mo.

Otherwise I would suggest a DMP (Debt Management Plan), Google CCCS and give them a call, a Helpline agent will book you in for an appointment with a qualified counsellor who will go through all you income, expenditure and credit debts, they will then work out your monthly surplus (what’s left over). You pay CCCS this amount once a month (all services are 100% FREE) and this will be divided between all your creditors on a pro rata basis. However if this isn't the best option for your, your counsellor will tell you what is at your appointment (all done on the phone).

Hope that helps.

Jessiepig

Bankruptcy should only be done as a last resort because it stays with you for life in one shape or form
Too many other options to consider first

In_Search_Of_Me

Hi & welcome! Firstly DONT PANIC!! The best thing to do is post your statemet of affairs and get in touch with CCS/payplan/cab as suggested above. Bankrupcy is a VERY LAST RESORT...as it can affect your ability to get certain jobs in the future and stuffs up your credit rating ...plus you'l notget that wonderful life changing feeling you get when you can pay debt off and so so by blood sweat & tears! Unless you hae to avoid it at all costs! Have a hunt round here & see what you can save on things like utilities, food shopping etc...you'll be surprised what a difference these things can make & how they add up! Wouldnt touch debt management co - as said by others you can get the same advice for free!! Well done for posting! You'll get lots of advice from people who genuinely want to help & are in the same position themelves so have lots of pearls of wisdom!

thefoolonthehill

thanks to everyone who gave me advice, any further advise is also welsome.

I have been a wee bit busy so not able to sign on for a few days.


At the moment i owe.
Nationwide c/c about £4,ooo, i have however gone over my limit due to charges as i was not paying enough off each month. This is due mostly to the fact that i found it impossible to change my address and all stmnts going to old add.

Nationwide bank o/d £1200. interested in any thoughts on reclaiming / stopping fees as this costs me a fortune each month (last two months over £200)

Virgin c/c £4400.

Marks & spencer loan £6,000 roughly.

as the song goes"i just dont know what to do with myself"

thefoolonthehill

sorry just thought of some other stuff. I currently earn £13800 per year, my rent is £275 + further bills of about £100 per month.

I am also hoping to emigrate to oz within a year so need to save the pennies. where would i stand with the debts in oz?

CLAPTON

post a SoA ...statement of affairs and people here may be able to help

see

http://forums.moneysavingexpert.com/showthread.html?t=107280

bargainbetty

thefoolonthehill wrote:

I am also hoping to emigrate to oz within a year so need to save the pennies. where would i stand with the debts in oz?

You might have to put this off for a while.... your debts will follow you, and the last thing you need would be court actions taken against you here while you were away. Flights back to fight your corner would get pricey.

Why not clear yourself here, and then start there with a clean slate? Much better circumstances, and once you post your statement, I am sure the good people here will help you find lots of ways to clear the debts pronto.

Good luck x

wannabedebtfreebeth

Not sure of the facts but I had a friend who wanted to emigrate and said that most countries would not let her in until she had a good credit rating.