£37000 of debt what would you do?

Chigs362

Hi all,
£3700 thats what I ow,
I posted a thread a while back asking for advice everyone told me ask advice on hear or CCCS, but a interview is 2 weeks away.
So in the mean time what would you do to clear it?
Please understand if some of my replys will be "done it/tryed it" but you may sugest somthing I missed?
If you guys cant help and the CCCS are of no help than maby I will have to sign up with the TV company (I know everyone says no dont do it) but thay are the only people who have told me and I have it on paper £37000 debt free in three and a half years at £450 a month.
But I open to sugestion
James

Wee_Jo

Hi James,

Welcome to the boards! The first thing to do so that people can give you advice / suggestions would be to post your Statement of Affairs, that way we can see what you currently pay out and where you might be able to save / cut down. It takes a wee while and you have to have all your bills and statements to hand, but it is a really worthwhile exercise. Here is the website:

http://www.makesenseofcards.com/soacalc.html

Have fun

Jo

BAILEYS6904

I dont knoww hat you posted previously, but I think the first thing would be to provide an SOA (statement of Affairs) so cost savings and advise can be given.

With regards to the TV company, don't do it!! Have you wondered how they pay for costly tv ads of thousands and thousands of pounds??? Through money thats being given to them off people like yourself, money thats not going on paying the actual debt!

On the figures theyve quoted you, its half of what you currently owe, not including interest. Do you honestly think this is for real?????

Please, dont panic, wait for your appt and feel free to post SOA up, so people can help in the meantime

little_miss_muppet_face

Chigs362 wrote: »

Hi all,
£3700 thats what I ow,
I posted a thread a while back asking for advice everyone told me ask advice on hear or CCCS, but a interview is 2 weeks away.
So in the mean time what would you do to clear it?
Please understand if some of my replys will be "done it/tryed it" but you may sugest somthing I missed?
If you guys cant help and the CCCS are of no help than maby I will have to sign up with the TV company (I know everyone says no dont do it) but thay are the only people who have told me and I have it on paper £37000 debt free in three and a half years at £450 a month.
But I open to sugestion
James

Thats must be by doing an IVA or something as that is only paying back £14,700.. as £450 a month would take around 82 months on a debt management plan...:eek:

Hannah_10

James how much of the money you would pay the TV company goes to the debt and how much goes to the company?

That's a serious question by the way, I'm interested to know the figures.

NorthernLas

James - There are lots of things you can do and one of the most important is to work out what your income and outgoings are each month (SOA). If your income varies, I'd suggest that you work out an average and use that. This will give people a good idea of your situation.

For example, you could earn lots and then £37k may not be too much of a problem, or you could not very much at all and it is a big problem. As the advice would different then you need to understand that there is no magic answer (even though a company off the TV may promise that ... it is sales speak).

There are other charities that can help, like CAB and National Debtline. Have you looked at the CCCS or NDL websites? If you want to speak face to face with someone you could try CAB or CAP.

There is a thread at the top of this forum called who to go to for impartial advice, you will find all of the contact details in there

Chigs362

@wee will give that a go in min,
@baily and little if it is tru its a good deal yes???
@hanna three payments are thers so £1350 but I dont mind the total I pay back including there fees is £14,700 on a £37000 debt acording to the paperwork.
But I will do nothing untill I speak to the CCCS

little_miss_muppet_face

Chigs362 wrote: »

@wee will give that a go in min,
@baily and little if it is tru its a good deal yes???
@hanna three payments are thers so £1350 but I dont mind the total I pay back including there fees is £14,700 on a £37000 debt acording to the paperwork.
But I will do nothing untill I speak to the CCCS

Well, I entered into an IVA around 9 years ago, i had around £60k of debt due to a property reposession and other things, i paid back £100 a month for 3 years.. So for me, it worked very well.. Only downside is your credit file is a mess for 6 years, but to me that was not a problem as it gave me 6 years to get my life turned round...
For me I preffered the IVA rather than the DMP as the IVA was paid within 3 years, on a DMP you will have to pay for 6.8 years. At the time i was a single parent, and could afford no more than £100 a month, if i had to pay £100 a month for a £60k debt i would still be paying now.. i woudl have rather not gone down the IVA route, however due to difficulties at home and the house getting repossessed the IVA was best for me.,. Im now very grateful for what i have and appreciate every penny (every penny is a prisoner in my pocket now ;o) )
Good luck with whatever you do. xx

BAILEYS6904

Chigs362 wrote: »

@wee will give that a go in min,
@baily and little if it is tru its a good deal yes???
@hanna three payments are thers so £1350 but I dont mind the total I pay back including there fees is £14,700 on a £37000 debt acording to the paperwork.
But I will do nothing untill I speak to the CCCS

Chigs, I think it depends on your income and expenditure. If you can self maange yourself out of the debt, then surely this would be a better option. I looked at your previous posts, and IMHO it looks like you have seen the advert, and got overly excited thinking it could solve all your problems.

I think the first step is to see if you can reasonably pay the debt off

podperson

You need to find out exactly what they are offering you for that. It sounds like an iva, which would normally finish in either 3 or 5 years so if they are saying 3 and a half then it sounds like you are making additional payments to them for 6 months not 3. That is a lot of money when any debt charity like cccs will do it just for the costs. Is it really worth spending that much just to have it started 2 weeks sooner?
They will also be able to offer you impartial advice on whether that is really the best option for you rather then a business that will just want to sell to you.
Also as others have mentioned if you want to post an soa then people will be able to offer more specific advice on your situation.

Hannah_10

So you'd pay them £1350 cos they said they can get the debt down to £13,350 then? You realise that this means they're taking just over 10% of your money for themselves don't you?

Still on the numbers, £13,350 is 36.08% of £37,000...

That means either the TV company are lying to you to sucker you in (they do it a lot) or they're gonna try to do reduced full and final offers (called F&F's for short). The thing about F&F's is that firstly 36% is far too high, you ought to be thinking more like 20% and creditors like to deal with people more than companies anyhow because they know the companies are taking a cut and therefore they're getting paid slower. So by doing it yourself you saved money on the F&F as well as on the companies fees because you get a better offer.

I make 20% of £37,000 £7,400....

So if you do it yourself, write a few letters, it's gonna cost you a realistic maximum of £7,400
If you get the company to do it for you it's gonna cost you £14,700 and then there's still a chance it wont end there.
There's £7,300 difference in that, we're talking nearly half!

Also, if three payments is £1350, then one payment is £450 yeah... And there's 48 months in three years, so that's 48 times £450... Check it wont you, but I make that £21,600... Something's not adding up here, they told you you'd pay £14,700 didn't they?

Oh well maybe they meant you'd have paid it in 2 years 9 months eh, coz I make 2 years 9 months to £14,850 so that's you only paying £300 on the last month then...

So anyhow if you've got £450 a month spare then how long would it take you to get £7,400 together if you did decide to do it yourself with F&F's anyway? I make it 16 months with a payment of £200 on the 17th month.

Right so just to summerise, that "good deal" you've been offered is to "solve" your debt problems for £14,700 in three years (if they're not conning you). If you did it yourself you'd be looking at £7,400 and 17 months (not even a year and a half) TOPS and maybe less.

I dunno what you earn an hour James, but where I come from seven thousand three hundred quid saved by writing the letters yerself is a d*mn fine rate of pay!