my debt got worse...

legoman

learntmydebtlesson wrote: »

they sent me a termination of loan complete with final demand. my original loan was for £16000 and they now want me to pay £22.350.53p!!!!!!! this is interest during and for cancelling the loan. what the hell is all that about.

Can't offer much advice here but what I would advise you to do is check the paperwork that you signed for this loan. As you say, there may be a penalty for ending the loan early and because this has gone to a final demand this would mean that the credit agreement has been broken and therefore may come with a fee as well as the interest.

Has the final demand come from the bank or an agency?

Good luck with this.

the final demand has come straight from my bank/business manager at barclays. he has arranged it all for me but was shocked at the amount.

legoman

i just read on the CAB site about bankruptcy. it sounds awful. you have to pay for it (£400) ish and flog your goods and have all your accounts frozen. i dont mind paying the fee but it's all the court stuff and general feeling of being ashamed of myself. i just cannot see any other way of paying off my debts.

is there an alternative to bankruptcy?? i'll still be paying off my debts when i'm 80!!!

Storm

OK, so you've told them you can't meet the monthly payments, and they've sent a final demand for £22K (which will be the original loan plus all the interest had you seen the loan through to its conclusion). Unless you've got assets then there's no way you'll be able to pay this off, so either a DMP, IVA or Bankrupcy are your options - they'll all leave marks on your credit file, but it will stop you getting any more debt. Talk to people on the bankrupcy board about their experiences, as many have found it not as scary as initially thought, and although I believe notices are put in the local paper, how many people actually read those? Not many I bet!

Get back in touch with PayPlan, and make sure that all your debts are included when you talk to them and they'll be able to advise you better.

C_Ronaldo

legoman wrote: »

i'm not quite sure what AFAIK is?? um, i think i saw it printed once in our local paper?? a local chap had been made bankrupt so business know not to set up acounts with him as he is bankrupt.

maybe bankruptcy is tha answer but i've just been reading on here about it and it sounds a bit horrible.

AFAIK means As Far As I Knw

moozie_2

Hello Legoman

Here are my thouights, meant in the best spirit possible.

legoman wrote: »

i am curently with payplan. It doesn't sound like you are. Having a reference number doesn't mean they are acting on your behalf.

my payment holiday has run out on my loan from barclays so i told barclays i cant pay the monthly amount so i need to do something.

they sent me a termination of loan complete with final demand. my original loan was for £16000 and they now want me to pay £22.350.53p!!!!!!! this is interest during and for cancelling the loan. what the hell is all that about. You should check your T&Cs but many loans are offered with clauses that if they are paid off, interest and /or charges may be added on at that point.

i owe £4000 on a credit card too which mercers debt collection are now calling and writing to me about!!! harrassing me actually! threatening balifs and the like but i am just ignoring them and making my token payment. Have you written to the credit card to explain your circumstances, with an expenditure breakdown and the reasons for your token payments? There are letters around that you can use but it's important to do it as early as possible when you are sending token payments.

i need some advice on what's best for me. We cannot give you comprehensive advice without having a look at your incomings/outgoings and debts. Put it all together and we'll help you find a way out.

i want a way out of this debt but bankruptcy is far to embarrassing as my father would find out and just hate me. is there a way out for me??? i just dont earn enough to pay it all. i will be aquiring part of my fathers business in 9 years time which will set me up for life but it's so far away! If you are planning to be running a business, it's best to stay clear of bankruptcy anyway. Stay focussed on that and another way to pay back what you owe.

i desperatly need help on this. i thought i had my debt under control?? I don't know what you mean by this. Taking a loan repayment holiday and then not being able to meet the payments is not taking control, it's turning away from it. I speak from experience here. POlease get all your figures together and we'll offer our support.

lonely_2

Firstly, if you have been paying into Payplan then you can get in touch with them for advice - they should be your first port of call. Secondly, you should send them these threatening letter so they can liaise with Barclays on your behalf (it's their job). It seems Barclays are just trying their luck - often these letters are computer generated. You should try to speak to someone at Barclays and check that they have been receiving correspondence from Payplan. Then let them know that you can't afford to pay your minimum payments let alone meet a final settlement demand. Give them your payplan case number and tell them to liaise with payplan from now on. Be polite but assertive. And don't be scared of the threats - Barclays know that their threats would never stand up in court especially if you have tried to address your problem by starting a DMP. In the meantime, as long as you are making the payments, your dad doesn't need to know anything.

legoman

i just wanna say thanks to you all for your ideas. all food for thought. i apologise if some of it seems confused it's just that this has been a complete shock with the massive increase in what i owe.

i understand i should've known it was gonna be this much but i guess i messed up. the last thing i want to do is affect my future plans anymore so i guess bankruptcy is a bad idea. IVA? i hear bad things about those too....

i am not officially with payplan as suggested. they wouldn't let me until i paid at least 3 payments to barclays but now i can even do that!

legoman

lonely wrote: »

Firstly, if you have been paying into Payplan then you can get in touch with them for advice - they should be your first port of call. Secondly, you should send them these threatening letter so they can liaise with Barclays on your behalf (it's their job). It seems Barclays are just trying their luck - often these letters are computer generated. You should try to speak to someone at Barclays and check that they have been receiving correspondence from Payplan. Then let them know that you can't afford to pay your minimum payments let alone meet a final settlement demand. Give them your payplan case number and tell them to liaise with payplan from now on. Be polite but assertive. And don't be scared of the threats - Barclays know that their threats would never stand up in court especially if you have tried to address your problem by starting a DMP. In the meantime, as long as you are making the payments, your dad doesn't need to know anything.

unfortunatally i'm not 100% with payplan. they do give advice but my payment plan has not been set up yet due to the reasons above...thanks anyway. i am working for my dad full time now so inevitably he would find out i guess?

brownie2

Have you got a SOA (statement of affairs) that you can put up? There are some great people on here who can see where you can cut back on your outgoings which you can throw at your debts - every little helps.

legoman

brownie2 wrote: »

Have you got a SOA (statement of affairs) that you can put up? There are some great people on here who can see where you can cut back on your outgoings which you can throw at your debts - every little helps.

not yet brownie2. i gotta do it this evening when i am at home and have it all to hand. i have done one before but it's changed now. i can predict there will be consideable more outgoings than incomings...