debt consolidation

legoman

hi there,

is this a good choice? i have a lot of debt all over the place and wondered if consolidation is the way forward. companies can claim thay can write off 75% of the debt. does anyone have any expierence with these companies?

cheers,
mike.

LydiaSophia

What companies are claiming that!!!!!!!!!!!!!!!

What a load of rubbish - if a company can write of 75% of the debt then everyone would use them - I would stay clear of that. Is that a debt mamangement scheme?

James&Shell

You would be better off contacting a free charity such as Payplan Or CCCS

thefoolonthehill

lego man the companies that claim they write off 75% of your debt are trying to sell IVA's.

speak to someone at payplan or cccs who will advise you best on your situation. you should also post a full statement of affairs on here, people can then try help you out on here as well.

Storm

I think you've got 2 different things confused here.

A consolidation loan covers all your debts and you pay a set sum each month to one company - however, the interest rate and timescale may actually cost you more in the long term. Also, consolidation doesn't mean that the reasons for the debt have changed - you may have a little more money each month, but will you honestly stay away from the credit cards forever? There's many people on this site who have consolidated several times and run up debts again.

An IVA (Individual Voluntary Agreement) is using government legislation where you can pay the maximum you can afford each month which is split between your creditors for 5 or sometimes 6 years, and then the rest of the debt is written off. However - you have to have a reasonable amount of money each month to pay into the IVA, and 75% of your creditors have to agree to the plan.

immoral_angeluk

The companies that claim they can write off 75% of your debt are just trying to sell IVA's. They often charge substantial fees, and even though you may be paying them £200 a month.. pennies will actually be going to your creditors and the company will be pocketing the rest. Steer well clear. The '75%' depends a lot on the creditors and it really isn't as easy as it sounds.
Your best bet is to contact the CCCS or payplan who are registered charities, and they can do the same thing for you for free, and help you every step of the way including advice and writing to your creditors on your behalf.

Could you post up your SOA for us to see if we can help you get your outgoings down to help you pay off your debts? There may be ways to get your debt sorted without relying on IVA's etc. See southernscouser's post for first time DFWers...

legoman

cheers guys. i have already posted all my financial details but i just want all of my debt in one place. i'm getting tired of having to pay out money at different times of the month to differnet people. it's driving me mad and i am actually suffering from insomnia too.

i cant remember where the post is, i'm sure i could locate my details but i thought of getting one big business loan from another bank to pay off all the little bits and have one loan to pay. natwest turned me down on the first phone call asking if i had a flawless credit history. i said no and they said they couldn't help and hung up. b******s!

i konw this is not a good path but i need to do something... i will look into calling these charities most of you have mentioned.

thanks again.

here's one of the sites http://www.moneymanagersuk.com/

legoman

i have just sent a form off to payplan. so i'll await a reply. i'm also screwing hsbc for my charges back too!

lynzpower

Monthly Incomings:

My salary – average of £600 per month (sporadic as self employed web designer) it’s not always that much.
Partners salary – n/a
Benefits – n/a

Total - £600

Monthly Outgoings:

Mortgage/Rent - £160.00 (includes all bills)
Council Tax – n/a
Gas – n/a
Electric – n/a
TV License – n/a
Sky n/a
Phone - £35.00
Food - £100
Car Insurance – n/a – don’t drive.
Petrol – n/a
Life Insurance n/a

Total: £295.00


Barclaycard – Balance £3,500 (limit £3,500) APR 14.9%

Aqua card – Balance £850.00 (limit £850) APR 35.9%

Capital one card – Balance £200 (limit £200) APR 19.9%

Capital one business card Balance £150 (limit £200) APR 19.0%

Barclays Business loan. £16000 at £333.00 per month starting march 17th 2007.

Tiscali broadband - £12.99 per month
BT line rental - £13.00 per month
Norwhich Union public liability insurance - £19.00 per month

Overdraft facility - business account – Balance £1200 (Limit -£750)
Overdraft facility – personal account – Balance £88 (Limit -£10)

I found your old SOA here

Is it all still current or has anything changed ?

legoman

lynzpower wrote:

Monthly Incomings:

My salary – average of £600 per month (sporadic as self employed web designer) it’s not always that much.
Partners salary – n/a
Benefits – n/a

Total - £600

Monthly Outgoings:

Mortgage/Rent - £160.00 (includes all bills)
Council Tax – n/a
Gas – n/a
Electric – n/a
TV License – n/a
Sky n/a
Phone - £35.00
Food - £100
Car Insurance – n/a – don’t drive.
Petrol – n/a
Life Insurance n/a

Total: £295.00


Barclaycard – Balance £3,702 (limit £3,500) APR 14.9% INTEREST FOR REFUSED DIRECT DEBIT!

Aqua card – Balance £850.00 (limit £850) APR 35.9%

Capital one card – Balance £180 (limit £200) APR 19.9%

Capital one business card Balance £150 (limit £200) APR 19.0%

Barclays Business loan. £16000 at £333.00 per month starting march 17th 2007.

Tiscali broadband - £12.99 per month
BT line rental - £13.00 per month
Norwhich Union public liability insurance - £19.00 per month

Overdraft facility - business account – Balance £1200 (Limit -£750)
Overdraft facility – personal account – Balance £345 (Limit -£10) IN CREDIT!

I found your old SOA here

Is it all still current or has anything changed ?

My salary – average of £600 per month (sporadic as self employed web designer) it’s not always that much.
Partners salary – n/a
Benefits – n/a

Total - £600

Monthly Outgoings:

Mortgage/Rent - £160.00 (includes all bills)
Council Tax – n/a
Gas – n/a
Electric – n/a
TV License – n/a
Sky n/a
Phone - £35.00
Food - £100
Car Insurance – n/a – don’t drive.
Petrol – n/a
Life Insurance n/a

Total: £295.00


Barclaycard – Balance £3,702 (limit £3,500) APR 14.9% INTEREST FOR REFUSED DIRECT DEBIT!

Aqua card – Balance £850.00 (limit £850) APR 35.9%

Capital one card – Balance £180 (limit £200) APR 19.9%

Capital one business card Balance £150 (limit £200) APR 19.0%

Barclays Business loan. £16000 at £333.00 per month starting march 17th 2007.

Tiscali broadband - £12.99 per month
BT line rental - £13.00 per month
Norwhich Union public liability insurance - £19.00 per month

Overdraft facility - business account – Balance £1200 (Limit -£750)
Overdraft facility – personal account – Balance £345 (Limit -£10) IN CREDIT!

legoman

just an update,

i emailed payplan and they called me back! they took some details and have arranged a 1 hour consultation phone call for next thursday! plus the women was really nice and warming. they are going to look into my details and arrange the best options for me. thanks for the advice guys....

mike.