Debt management - I'd really appreciate some advice!

BlueCat_2

In a bit of a hole and not sure what to do, could really do with some advice please!

There's the situation (sorry if a bit complicated!)

In 2007 I started my own business, a franchise, and took out a personal loan of £7000 to do it, with my bank (Smile). It was a tough old slog, and then I ended up divorced and a single parent (not completely as a result of the business!) and had to max out my credit cards, which took me to about £5K in debt.

I contacted the credit card companies and explained the situation and sorted out small payments - basically I pay them a total of about £30 a month and they have been off my back since organising that.

Since then the business has failed compleltely and left me with further debts which are:
Business credit card: £3.5K
Biz bank account - about £600 overdrawn
Couple of outstanding invoices from the biz totalling about £4K
Original personal loan - £5000 still outstanding

So in total about £13K debt, plus the £5K from the personal stuff (plus a student loan but I don't think about that one!)

I'm doing some freelance work but generally we survive on tax credts (through making no p[rofit 3 yrs). So far I've not had any hassle at all from the biz creditors - Barclays keep sending me statements but no threats ... yet. I know that at seom point they are going to come down hard on me though, so recently I've been in touch with a debt management company who promised to sort everything out so that I could pay £100 a month to cover repayments for ALL the debts (plus a fee to the debt co.)

Problem is ..... the personal loan with my bank. I have a pretty good relationship with my bank, and I've got a debt card and small overdraft that is really vital to help me get by. The debt mgmt co say that if I put the personal loan into the debt payment plan, my bank are likley to downgrade/close my current account and/or clean out the money to cover the loan. I don't want to lose the account .... but equally I would struggle to find an extra £120 a month to cover the loan as well as the £100 for the other debts.

So ..... do I
(a) somehow find the extra money and keep my bank account?
(b) Scrap the bank account and settle for a cashcard one somewhere (have already applied for a new debit card one elsewhere
but been refused)
(c) Not deal with the debt mgmt co at all, but write to the biz creditors in the hope I can sort something out with them - and in that case, do I contact Smile re the loan or just keep trying to pay it to save the bank account?

Seriously I wasn't stressed about all this till I started dealing with the debt mgmt co!!!! Any help much appreciated

immoral_angeluk

If you have business debts you really need to speak to business debtline. Their number is 0800 197 6026 http://www.bdl.org.uk/

BAILEYS6904

Also, dont go to a DMP that charges a fee, there are plenty of free womans so ALL your spare money go towards your debts, rather than the DMP company

immoral_angeluk

Bailey - free womans? lol!

BlueCat_2

Thanks, I'd forgotten about PayPla. I went to them in 2008 but didn't have enough debt at the time for them to be able to take it on, though they did help with template letters etc,. have jsut contacted them again.

Does anyone know of a bank account that might accept someone in my position, with a debit card (and small overdraft if at all possible!!|) I did apply to Alliance and Leicester but they turned me down - despite having just given me a business bank account for my new freelance stuff!

fermi

BAILEYS6904 wrote: »

there are plenty of free womans

Really?

immoral_angeluk

fermi wrote: »

Really?

Ws going to say. Us women are more expensive than all the debt in the world combined

fermi

immoral_angeluk wrote: »

Ws going to say. Us women are more expensive than all the debt in the world combined

Very true.

Damn..............