Debt advice

buttercookies

I was in debt to LloydsTSB, should I say I am still in debt but the debt is managed by a debt recovery agency. I am up to date with regular monthly payments as requested over the last 2 years. The payments started off at £50 per month, after 6 months they went up to £62.50p which I could manage with HOWEVER now they want to increase the payment further to £75 per month.

I work part time and will not be able to afford the new payment amount.

My current outstanding debt with them is about £1800 down from over £3200 over 2 years ago. The debt is not incurring any interest.

How do I approach the debt collecting agency? If I cannot afford the new amount and continue paying the £62.50p what is the worst the debt collecting agency can do? Its taken a long time to get my credit rating and finances under control I do not want to see it ruined.

Thanks

Storm

Start off by telling them that you cannot afford more than £62.50 a month. They may want proof of this so you can send them a SoA (statement of affairs) showing how much money is coming in each month and how it is spent. If you want to post one on here first the wonderful people will help you get it tidied up and make sure you've not missed anything off it.

Basically the DCA will assume that your salary will increase each year, and by asking for more hope that the debt will get paid off quicker. However, you can't give them what you don't have, so stick to your guns

Storm

SSB

Hi Buttercookies

The increase seems rather unreasonable and you are right to challenge it. Phone them first and offer to send the SOA in order to back your claim. You an also ask how the increase is calculated. Good luck.