Advice needed!

hehehe

Hi there! I am in a situation where i am not sure what to do or what are my options. Appreciate your help.
Basicaly, i took out a loan with Halifax for £5000. before starting paying £200/month I lost my job and arranged for smaller payments £40/month. It was 7 month ago. Few days ago i receive a statement with default and arrears notice. And worse that i haven't realised that loan is not getting smaller but it increases. now i own about £5700. Halifax add over £100/month interest and some default fines. i think loan is for 3 years and APR is around 30%. so basicaly i need to do something about it, otherwise it will just grow up...
my question is what is a best way to pay it up. i can increase monthly payments but to return to £200/month might be hard for me. should i stop paying it at all. so court will stop interest added(or not?).and i can slowly pay it off. what do you think guys about it? what would be your advise? ideally they would stop adding interest and i can pay it off with affordable monthly payments over a time. appreciate your answers.or if you need more info. thanks!

chalkie99

You asked about this 5 months ago and were given good advice to speak to either CCCS, Payplan or Citiziens Advice Bureau but claimed you could manage your debts yourself.

Clearly that is not the case and things have got out of control so please take that advice now and speak to one of these organisations who will give you free advice on how best to deal with it. Do not deal with anyone other than these though.

hehehe

thank you all for the replys!things not got out of control thanks god :)its just time to evaluate my situation and certain priorities.
i do have another 4 debts i am paying:£40,£100,£100,£120/month.so its possible to lower some of the payments and increase loan payments up to £200/month.but this is not a prefered way.also i can mention that other debts are smaller:£600,£800,£2000,£2700.credit card,overdraft,HP and some others.
i am working,taking about £1000/month.so money has been and is tight.
about stoping interest: after paying for 7month what i can afford(small monthly payments),loan is not getting smaller,but bigger.is this reason will not justify to stop interest?
so what about court if i would stop paying them? will i be better off?
other options? try to negotiate with bank? thanks again

CLAPTON

no-one can give you any sensible advice without knowing your full circumstances... income, spending and full debt details
and equally you would be foolish to accept advice from anyone without them having the full facts.
format here
http://www.makesenseofcards.com/soacalc.html

maybe best to post over on the debt free wannabe board

onlypaddy

hehehe wrote: »

thank you all for the replys!things not got out of control thanks god :)its just time to evaluate my situation and certain priorities.
i do have another 4 debts i am paying:£40,£100,£100,£120/month.so its possible to lower some of the payments and increase loan payments up to £200/month.but this is not a prefered way.also i can mention that other debts are smaller:£600,£800,£2000,£2700.credit card,overdraft,HP and some others.
i am working,taking about £1000/month.so money has been and is tight.
about stoping interest: after paying for 7month what i can afford(small monthly payments),loan is not getting smaller,but bigger.is this reason will not justify to stop interest?
so what about court if i would stop paying them? will i be better off?
other options? try to negotiate with bank? thanks again

I think courts will not order them to stop interest.
Your debt management skills are useless to be frank about it. You are paying your smallest debtors the most money, while letting the interest spiral out of control on your biggest.

A debt management plan (which to re-iterate what it seems you've been told a hundred times now) provided by the CCCS, CAB and Payplan will take you through a detailed income and expenditure calculation and then negotiate direct with your creditors to stop interest and pay them in proportion to the level of debt with them.

This is your only route at the minute, as you have shown you can't manage your own debt and I feel that your creditors will not negotiate terms with you, as you have shown to be dis-proportionate with your payments.

hehehe

hi there. thanks for the answers. so one thing i have got from your responses is to manage most important debt (my loan) first, so that intersest will not spiral out.i agree on that.i will make it my priority. that means returning to initial £200/month payments. any other option for me here apart paying?

onlypaddy

hehehe wrote: »

any other option for me here apart paying?

Oh !!!!!!.....How many times - YES

Go to the CAB, CCCS or Payplan and get help. They are the experts at dealing with creditors and negotiating payment plans with reduced or frozen interest through a free Debt Management Plan.

If you do not do this, you have no option (short of trying to negotiate with your creditors individually, which will be a lot more time consuming and very difficult) but to stump up the cash over a longer period and pay a huge amount more in interest.

Here is a link to a thread on the Debt Free Wannabe board, in which you can post a message for a CCCS counsellor and they will advise you of the best course of action:

https://forums.moneysavingexpert.com/discussion/2402327

Stop asking the same question. You asked it 5 months ago, you asked it at the start of this thread and you just asked it again. The answer has been the same every time. It is your choice now if you choose to ignore it again.

Movies_in_Running

How about taking on another job to bring in extra money. Just a thought, there's plenty of work out there.

Hax

Or, do you have anything to show for the ~£11K of debt you have amassed? Something you could sell to repay some of that debt maybe?

hehehe

***thanks***