student paying interest - advice needed!

interpol

I'm returning to uni as a mature student soon and will be in my final year, and am currently working part time 20 hrs.
I have an outstanding debt with the collections agency DLC of £2,200(no interest),and have been struggling to make payments of £30/month to keep them off my back.
I was called by one of their advisors and infomed that interest would now be charged, which would make the required monthly payments £70/month, after explaining my situation, she said it was my lifestyle choice to go to uni and this debt had to be repaid! I told her i wanted to pay the debt but at a rate that i can afford, after some time, and heated exchanges (mainly from the advisor!) i spoke to a supervisor who extended the interest free period for a further 3 months which has now expired and said there was nothing more they could do for me. I am now expected to pay the £70/month.

Is there anything i can do to lower the interest charges as i am in serious hardship now. There is nothing more i want to do than pay this debt off and be away from this situation.(Other than being successful at uni!) I'll have my student loan to pay off after uni too, so i want to concentrate on employment and paying that off without the trouble of this debt too.

I was told that there is no more help that they can give me, so i need advice if i am to contact them to help me in this situation.

Any help would be greatly appreciated, many thanks.:rolleyes:

kathfisch

Hi! I'm not sure about your specific situation but it might be worth seeking some free advice from the likes of Citizen's Advice Bureau, Consumer Credit Counselling Service and the like (not one of the fee-charging ones you see on telly!!!). They'll be able to advise about your rights and what the company can and can't do.

I'm sure others who know more will be along soon!!!

CLAPTON

if you'ld like to post your SoA it may be possible to help.


also what does you first sentence mean ...i dont really understand it
'I'm returning to uni as a mature student soon and will be in my final year'?

CLAPTON

just to clarify things, a SoA is a statement of affairs...basically says what your income is , what your spending is and details of your debts.
also say if you have any savings and a little about your general situation..living with partner, any children, rent or own a property..that sort of thing that helps set to financial scene.
see this thread for more details ..
http://forums.moneysavingexpert.com/showthread.html?t=107280

Voyager2002

I think that DLC are bluffing about the interest, but try to find the CAB website that gives advice about debt, interest payments, and even model letters to lenders.

Basically, if you take out a loan you will almost invariably agree to pay interest on that loan. However, if you find yourself in difficulties then the lender may be forced to take you to court. A court is likely to order you to make regular payments, set at a level that you can realistically afford (and would not give you bullsh*t about studying being a lifestyle choice), but these payments would only go towards the amount outstanding -- interest charges cannot be enforced under these circumstances. Most lenders would prefer to get the regular payments without the nuisance of going to court, and so are likely to accept a reasonable sum and to freeze interest by direct negotiation with the debtor. So they are unlikely to be able to force you to pay interest if you refuse/cannot.