Debt help and advice please... :cry:

Ecurb7

Hi there,

I am looking for some advice, and after reading quite a lot of posts, believe this is the best place to ask.

I took what can only be viewed as a poor business decision just before we went into the recession (I invested in a SUBSTANTIAL amount of top of the range (RCF) sound equipment to assist in my DJ-ing and to do much larger events and parties e.g. The Notting Hill Carnival - I am still keen to utilise it or sell it, as it is an asset I have), resulting in quite a lot of debt, spread over 2 credit cards and 2 loans. I have successfully managed to pay off 1 loan with Hitachi Capital. But, more recently I began earning less money (not through choice, it was either no job, or one paying less money!), and have really struggled to keep up my minimum payments.

The total debt is approximately £26,000, spread between a Virgin Credit Card (MBNA), a Halifax Credit Card and a HSBC Loan paying off a previous Credit Card.

And I also owe approximately £300 per month on my car payments, through HP payments. Is there any way of lowering these payments?

I work quite a long way away from home, and as a result cannot afford to lose my car.

I do NOT wish to run away or take the "bankruptcy" option, but at the moment the stress and pressure of it all is really getting the better of me. I can only realistically afford at most £10 per month per creditor, and the payments being requested currently are:

Virgin MBNA (mostly interest!) = £300+
Halifax (mostly interest!) = £130+
HSBC loan = £130

I know these are my debts that I have incurred and wish to deal with them in a mature way.

I thought that requesting to "add" the total amount to my outstanding mortgage would definitely assist, because I CAN afford my mortgage, particularly if I remove all 3 of these debts. My mortgage company (C & G) said "No" approximately 3 months ago. This was due in the main to HSBC cancelling ALL of my direct debits, when two payments went out, when there was no money in my current account. C & G said I have to not "miss" any payments for 6 months in a row to consider this. Does anyone believe this is an option?

I have considered an IVA - but after lots of reading they only usually accept £200 monthly payments in total to be split with all creditors. This amount is simply not affordable for me currently.

I have drafted letters to the 4 MAIN creditors explaining my exact situation, but have not sent them yet, because on my families advice they believe they will not accept to freeze my interest and accept only £10 per month in payment, and would rather make me go bankrupt. My opinion is surely it is better for them to get SOME money, rather than none? And IF they made me go bankrupt, I am almost certain they would not get a penny, because selling my flat would probably only just pay off the mortgage outstanding...

I know this situation is of my own creation, but I work extremely hard (as a Head Chef) for my money and to enable me to pay my mortgage.

Thank you very much in advance for any assistance or advice. I look forward to your messages.

Numpty_Monkey

Hi and welcome along:hello:

I think the best you can do for now is contact one of these
Non-profit Debt Counsellors' List
Is the DJing your main income or part time/extra?
There are a few templete letters you can send to your creditors, that may help :cool:

Ecurb7

Thanks Numpty (seems a bit wrong to call you that!),

Cheers for your input, really appreciated!

My main source of income is working as a Head Chef.

My DJ-ing was quite successful as a secondary income, in clubs, events and private parties. However, due in the main to the recession, I am now working as my main job as a Head Chef - the hours of these two occupations do not gel at all. Additionally, the parties virtually vanished in the recession.

Any more thoughts/advice greatly appreciated.

Thanks.

LuckyBiscuit

Your probably best putting up your SOA so these guy's can see where you can make savings to free up more money, plus it gives you a reality check(we'll it did me anyway)

Good luck...............

Numpty_Monkey

Ecurb7 wrote: »

Thanks Numpty (seems a bit wrong to call you that!),

Cheers for your input, really appreciated!

My main source of income is working as a Head Chef.

My DJ-ing was quite successful as a secondary income, in clubs, events and private parties. However, due in the main to the recession, I am now working as my main job as a Head Chef - the hours of these two occupations do not gel at all. Additionally, the parties virtually vanished in the recession.

Any more thoughts/advice greatly appreciated.

Thanks.

Everyone calls me Numpty:D so don't worry:T

Numpty_Monkey

I agree with TMVen, post your SOA up, the clever and good will see where you can make make a few savings
use this link,
http://www.makesenseofcards.com/soacalc.html
It might be an eye opener to you aswell as giving us a bit more of an insight

Happytogetdebtfree

Hi and welcome, i wish you all the best in sorting out the finances