4 Pounds cleared!!! - Advice needed

FTD02

I defaulted on 3 credit cards/loans around the same time and all three were passed over to various collection agencies. As two told me the interest was now suspended I foolishly assumed the third one was. I've kept up on the agreed payments and doing some end of year finances I've found out I have only actually cleared £4 of one of my debts.

The debt when the company took over was £1160, it is now £1156 but I have made 23 payments of £30, totaling £690!!!

I realise I have been stupid but what do I do next? I can't afford to increase my payments but paying interest of £686 is going to be impossible to clear.

Is the agency acting entirely legally? Should I contact the CAB and see if they can write to them and freeze the interest. I could possibly afford £470, should I write to them, making an offer to clear the debt without interest?

Any advice on what to do would be more than appreciated as after a year or two of finally getting things back on track this has come as a bit of a blow.

Thanks

Broken_hearted

Thats bad, have you spoken to them and asked them to freeze interest.

Xbigman

Ask for a breakdown of the charges on the account to see what has happened. If it is just interest at the rate you agreed to in the original credit agreement there isn't much you could do from a legal standpoint.

Your next step is to write to the creditor requesting that interest is frozen.

If that fails you might consider working through CCCS or Payplan (assuming you are not with them already) because they will attempt to stop interest and creditors do respect them more.

Or another option if they will not stop interest is to tell them to take you to court. This means a CCJ but the court will almost certainly stop interest as your payments barely cover it.
Regards



X

dancingfairy

Have you posted an SOA yet? we may be able to help you find some cuts and free up some more money for debt repayment. Also are you snowballing your debts - ie paying off the one with the highest interest first while paying minimum payments on the rest?

immoral_angeluk

My god that's disgusting!! I hope you get it sorted out!