Cant pay my credit card bill, dont know where to start..HELP

sunnyv

Dear all,
I’m not sure where to start......
Due to a loss of income I have had to sell my business which I own the freehold on, I am in the process of selling the business at market value which pays the outstanding mortgage I have on it, so I will not clear any funds from when it’s sold.

I have credit card debts of around £50,000 with several credit card companies and loans. My current personal banks accounts have been closed by the bank as I am in arrears with the loan payments etc.

The phone and letters have started arriving as its been 90 days + since I last paid my minimum payments.
I’ve read a few forums here but can’t seem to get my head around where to start, I believe if I write letters explaining I no longer have the income that was paying the bills they would come to some arrangement to pay say 50/60% of the outstanding..... if this a correct statement and if so is there a standard letter template I can download ?

Has anyone here gone though this process ?

I have a car worth maybe £4,000 tops, can they reposes the car, that’s pretty much all I own with value, we don’t have savings of any kind ?


Please please could anyone help my though this process as I’m starting to worry and loosing sleep and I thing the depression is starting to kick in.

Thank you in advance.

Sunny

jonesMUFCforever

Bankruptcy?

You need serious debt advice - contact CAB or the National debt advice line.

Tixy

Hi Sunny

I would think it is highly unlikely your creditors will settle for such low figures at the moment. If you default on all your debts and pay reduced/token payments for 6months or more and the debts are sold on to debt collectors they may accept reduced settlements but at the moment your bank would be exceptionally unlikely to. And presumably you don't have 50/60% of the £50k anyway?

Are you earning anything? have you found employment since ceasing your business?
Even if you cannot pay the minimum payments the best advice is to at least make token payments of a £1 whilst you seek professional advice.

I would suggest you post on the bankruptcy board for some advice or as Jones says speak to one of the debt charities urgently.
In the meantime you could send this letter which should give you a month to make a decision without your creditors taking any further action. http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

Have you set up a new bank account with another bank that neither you nor your business owe any money to?

*Louise*

Please go and speak to someone at CAB - they will give you lots of advice and help you draft up letters to the companies.

izools

*Louise* wrote: »

Please go and speak to someone at CAB - they will give you lots of advice and help you draft up letters to the companies.

Agreed.

Not that I'm saying my position was the same as yours or your income was as low as mine, but I used to owe £50,000 on credit cards and loans.

They didn't accept my affordable reduced payment plan proposal, refused my IVA proposal, so I had to declare myself Bankrupt.

Yeah, I had to give my house back and live with parents for nine months to sort myself out but I've learned over the years since going bank a level of financial aptitude that most people my age had never dreamed of.

It all worked out fine and I feel my life is more stable that it could ever have been had I not gone down the Bankruptcy route, and I've learned more about financial management than I would have had I not messed up in the first place.

Not saying you'll end up being bankrupt, just reassuring you that no matter what happens, it's for the best and if done right will lead to a more stable future