Newbie and need help

drayton11

Hi all,

I'm leaving the UK for good end of this year for personal reason and decided to personally handled my debt situation with my creditors.

I have 3 unsecured debt £17k loan with Natwest, £6k cc debt with MBNA and £5k cc debt with barclaycard. I have written to all of them today and asking whether they can accept reduced payment over the next 4 months since i will struggle to make min payment as i need to use all spare cash for my relocation expenses. I have also mentioned in my letter that i have set aside sum of money to cover monthly payment from January 2012 until March 2012 and will submit new personal budget sheet to them as soon as i've settled down abroad.

I don't think i will have problem in keeping up with this reduced payment as i will start new employment as soon as i arrived.

I have never failed to make monthly payment for my loan and min payment for my cc. These are all old loans from bad personal finance management in the past. I have been living within my means over the last 3 years and really want to paid off all my debt as soon as possible....

My question is that as i've been paying my debt using direct debit, the next payment date will be in 2 weeks:-

1) should i cancel this direct debit and make the reduced payment using other alternative?

2) what happened if the creditor does not accept my proposal for reduced payment.. will they have a legal right to stop me from going abroad end of this year?

Really appreciate your advise please!!

Hovel_lady

Just bumping this for you.

drayton11

Any advice please??

Tixy

Hi

I would cancel the DD and make the payments yourself. If you bank with anyone of these companies then you'll need a new bank account with a new bank set up first to move any money to/have any income paid into. Otherwise they will use any funds in your current account to pay off the debt.

When you have a new bank account then set up a standing order to the creditors each month.

If they don't accept your repayment proposal then to start they'll keep sending you letters telling you this, eventually they could decide to take you to court if they wanted, to try to obtain a county court judgement against you. Or they might just decide to sell your debt on to a debt collector for them to chase.

They couldn't stop you leaving the UK - but I believe in a few countries having CCJs it could be a barrier to a visa?

drayton11

Thanks Tixy for your advice.

I will cancel my dd straighaway.

For your info, i don't need a visa as i'm going back to my home country.