Help please - loans & credit cards + new baby

doughy1822

Hi All

Here is my predicament.

We are expecting another baby in Sept and my wife will go on mat leave for approx 6 months. She is the main earner in the household so we are going to lose approx £1200 per month.

Est income will be £2000
Est outgoings will be £2600

Outgoings include £900 of loans, credits cards and other finance.

If I could 1/2 the payments I am making to these lenders in the short-term (6-12 months) and make a few cutbacks elsewhere, I think I could make the books balance.

Finance includes the following:
Private loan £20k @ £280 p/m
Personal loan of £8k @ £230 p/m
3x credit cards of £6k @ £140 p/m
DFS @ £70 p/m
Solicitor @ £100 p/m

What I plan to do is write to all these creditors with an offer:

• Are they likely to listen and help?
• Is there any chance they might freeze interest?
• Would DFS try to reposes the sofa?
• Any other advice?

I know this is going to affect my credit rating and quite frankly I would be glad of it. Finance people throw credit at me and I am not responsible enough (see above).

The alternative is IVA or BR but I think as it's a short-term problem and we are homeowners, I should avoid that.

I would be extremely grateful for any advice.

Thanks
Ryan

agrinnall

This isn't the right place for this question, hopefully the board guides will move it to the Debt Free Wannabe board.