Whats the best way to advance with debt??

gezzza

Hello everyone I'm looking for some advice on the best way forward on my partners debt.

she had a ruff time and done some silly things in the past but the past 3 years she has not defaulted on a single payment on anything new she has taken out so I'm going to help her become debt free.

she has a few out standing debts from 4+ years ago that she currently isn't paying for and 1 CCJ.
these were obtained from a credit report as the only one chasing here is black Horse.

Mail Order Agency from Phoenix Recoveries Sdfs £468
ordered from catalog and couldn't make the payments so ignored back in 2007

Current Account from Santander Current Account £391
went over draw for £60 rest is bank charges 2006

Hire Purchase from Black Horse Ltd £2618
bought a car that the cam belt went on and the company went bust so she stopped paying 2006

CCJ £783
rent arrears from 2006

So whats the best way to attack these debts? in a couple of months once i clear my debt i will have £500 a month to attack these with, do you think i will be able to make an offer of 50% or less? on these debts to clear them as she hasn't made any payments for years?

Also how to you go about clearing a CCJ?

whats the best order to clear them in to improve her credit history?

Cheers

Gary

[Deleted User]

Start by doing a SOA: http://www.makesenseofcards.com/soacalc.html

This will show all her income and outgoings and will show how much she has can afford to pay debts with.

D9

gezzza

Domino9 wrote: »

Start by doing a SOA:
This will show all her income and outgoings and will show how much she has can afford to pay debts with.

D9

she will not be paying them i will and I'll have a minimum of £500 a month.

She is on a low wage and has about £200 a month left after paying for her bills.

Im on a better wage and will have in a couple of month's £1000 after all my bills, so i will use 1/2 of that to attack her debts with

BILLIE

Gezza isn't she lucky to have a knight in shinning armour and whilst I am sure she has learnt her lesson are you sure that helping to pay these off for her will not make her think that she can run up debt and you will bail her out. I am not the expert but suggest that as you have £500 to use each month start with the smallest ones first to get out of the way. Make sure you send the payment by recorded delivery with a covering letter stating that it is full and final payment for account number/reference in the name of. Ask for confirmation that the account/debt is paid off and closed. As for the CCJ not sure how you get rid of that, but am sure someone else will have the answer. Going back to what I said at the beginning, how about explaining to your partner that you are prepared to clear these debts, but you expect her to put her £200 into a savings account so that in time you either have your payments back or there is a buffer fund for some nice things/holiday to do together. As I have already said she is very lucky. Good luck. Billie x

gezzza

To be fair she has learned her lesson as she has proved to me that she can control her finances over the last 3 years, so i will help her out but she will be paying some of it off as you don't get nowt for free.
I will be clearing it off as in the long run it will be better for us if i clear it in 6 month's rather than her clearing it in 6 years.

BILLIE wrote: »

Gezza isn't she lucky to have a knight in shinning armour and whilst I am sure she has learnt her lesson are you sure that helping to pay these off for her will not make her think that she can run up debt and you will bail her out. I am not the expert but suggest that as you have £500 to use each month start with the smallest ones first to get out of the way. Make sure you send the payment by recorded delivery with a covering letter stating that it is full and final payment for account number/reference in the name of. Ask for confirmation that the account/debt is paid off and closed. As for the CCJ not sure how you get rid of that, but am sure someone else will have the answer. Going back to what I said at the beginning, how about explaining to your partner that you are prepared to clear these debts, but you expect her to put her £200 into a savings account so that in time you either have your payments back or there is a buffer fund for some nice things/holiday to do together. As I have already said she is very lucky. Good luck. Billie x

BILLIE

No I totally agree with you and am pleased to hear that you want to help her. However, make sure the Companies ensure that the debt is settled and the account closed. Billie x