10 year debt still holding me back

nicsj79

Hi all

I'm 32 and stupidly got myself loans and credit cards between the ages of 21 and 24 thinking I would pay them off without a hitch. Unfortunately when I was 26 I had a spell of depression and on the advise of my mother I went onto incapacity benefit and raked up a ton of debt!

I'm now in between 15k and 20k of debt with various companies and have been paying a 'token' amount for the last 6 years. I have increased my 'token' payment when I can but at this rate my debt will never be paid off. The most annoying part that most of it is from the interest and charges that built up while I was trying to sort all the money/benefit/depression etc out.

I've let this debt ruin my life as I can't afford to have children with this hanging over me and my partner. (He has no debt btw)

I'm too skint, and shy, to go bankrupt and I earn too much for that other option. I'm hoping the companies will get bored of me and wipe the debt but can't see that happening!

Any thought on what I could do would be very much appreciated!

bottleofred

Hi and welcome to the forum,

As you have been paying the debts they obviously are not statute barred. However, as they are so old, the companies may accept full and final settlement offers. As you have been paying them off, they probably won't accept silly offers, but if you can offer 20% of the total debt with each company, wait to see what the reaction is. Even if you only have enough money to do this with one or two debts now, then it would be a start. Make all offers in writing though and use the template letter from the national debtline webpage. Creditors may make counter offers of say 50%, but you could then offer 25% and so on.

Good luck

Red

nicsj79

Thanks a lot Red.

I will certainly give that a try. Better start saving those pennies!

bottleofred

I didn't mention earlier that if you do get full and final settlement offers accepted, then don't pay until you have this in writing from each company and has the words/phrase "as a full and final settlement of the debt" or words to that effect. You should probably post on the board though before settling to make sure that they or some other company can't come after you in the future for the outstanding cash. Keep all letters for a minimum of 6 years and pay through the bank etc so there is a record of payment.

Good luck and don't let them harass you into paying more than you can

Red