Debts of £17k, all with debt collection agencies... don't know how to fix it!

claire03

Hi all,

My debt is standing at £17k, all my debts have been passed to collection agencies as I have kind of ignored them for a few years.

I want to get this sorted but don't know where to start.. do I write to the agencies or phone them? Should I try and save and pay them off one by one, or pay in monthly payments?

My other question is do I have a chance of getting a good credit rating again before they are all paid in full, or does the fact that they are with the debt agencies now mean that I will not have good credit until they are all paid in full?

Does anyone have any good tips on making extra money from home or how to save money and keep motivated so I can try and become debt free?

Thanks

Tixy

Hi Claire

Have you lived at the same address for the last few years - do you have lots of correspondance from creditors or if you have moved have you managed to lose touch with all the paperwork you send.

My advice would be firstly to focus on any debts you might have with CCJs - do you know if you have any at all?

Do you have any debts for priority expenditure (council tax, rent, utilities etc) as these should also be proritised above unsecured debt.

It may be useful if you could write out a detailed statement of affairs to show your income & expenditure and each of your debts so we can an idea of the situation.

Regarding working from home etc there are loads of tips of the 'up your income board'. Easy places to start are selling any unwanted possessions on ebay or amazon or gumtree, writing reviews and doing online surveys. Mystery shopping is quite popular (although not actually online).

Good luck.

GeorgeUK

Have you not paid any of the debts for about 6 years? If so, they may be statute barred.

If you want to get in touch with the creditors, the best thing to do is never phone them - keep everything in writing. If you get a copy of your credit report, this will probably flag up to the creditors where you are and you should also be able to see how many accounts you have a debt with. (free at experian if you cancel within 30 days)

Do you have any savings?
If so, you may be able to make a reduced settlement offer (make sure it is a ccepted as a full and final and not a partial or short settlement).