Am I jumping the gun?

gedebage

The year 2011 is not starting off great for us. We have always been proud that we can pay our monthly bills on time. I have never defaulted or been late with a payment. Sure I dip into our overdraught a couple of times a month but overall manage to keep our finances in order.

This could all change very rapidly due to restructuring changes at work. My wages will decrease my about 25%. My wife recently lost her job, however she has another one but is spending £400 a month on travel, and working for a smaller salary than her previous job.

We owe about £38,000 in unsecured loans. I am really worried that the time will soon come that we will not be able to meet our commitments.

Out of the blue I had a phone call from Churchwood Finance. After having a chat with them explaining our situation I was sure that our prayers were answered, however after reading some posts here it seems that Churchwood does not have the best of reputations, so I have decided not to deal with them.

A friend of mine mentioned Payplan. I spoke with them and they say they can help. I have a phone appointment with them this afternoon. I am really unsure whether I am doing the right thing. Can anyone please advise me the best plan of action to help solve our looming debt crisis. Any advice really appreciated.

Thanks, Liam

BackOnTrack

You realise you have a problem coming and are acting now so that is a good thing, you are definitley not jumping the gun far to many people wait until they are really in deep trouble before acting. Payplan should give you good advice, certainly you were right not to use Churchwood Finance.

Good luck.

Tixy

Hi

Have you worked out a monthly budget - a statement of affairs? if not then this is worth doing as payplan (or whoever) will need all that info anyway and it helps if you can see your full position to start with to see how far short you are per month. http://www.makesenseofcards.com/soacalc.html This will allow you to see whether you can manage with a few cutbacks and alterations or if you do need something like a debt management plan. If you post the SoA on here as well then people can give you some advice as to where you can reduce costs or other options you may have.

Payplan should offer you various options and explain the consequences of them all. Aside from them or if you want a second opinion then contact one of the debt advice charities - IMPORTANT - Where to seek professional impartial advice about your debts.