Advice Needed on Best Way Forward for 17k debt

RealityMiracles

Hi There

I'm looking for advice on the best way forward with personal debts of 17k. I have researched DRO, IVAs and Bankruptcy- but none of these seem to be applicable in my situation.

I have written to my creditors once I released I could no longer make the repayments with a financial statement and an offer of a reduced repayment to each of them for 6 months- with the request to freeze interest on monies owed allowing me the breathing space to find another job and increase my income so that after those 6 months, I could increase my payments to all of them and so forth repay all monies owed.
I work full time, plus am running my own business which is beginning to take off. Problem is, I need it to have taken off right now!

I incurred these debts as an investment in my future- to get me through University on the other side of the Country away from family, friends and support. Unfortunately, since graduating, the jobs just have not been there- and student overdrafts and credit card fees (grants I received and work I managed to do during my time at Uni just were not enough to pay the rent and feed my son and I) have meant that I've ended up with this massive debt that I can no longer keep up with.

I am so close to achieving what I got into this debt for- yet so far from being able to sleep a night through without the worry of it all crumbling around me..I recognise this is due to hard times we all face, and in retrospect I can and will get through this.

I'm hoping there is maybe someone out there who is, or has been in a similar situation to mine- what is the best way forward from here?

Since my contact, two of my creditors have agreed to reduce payments for me- but the other two have not. I stated in my letter that unless all creditors could agree, I would not be able to make even the smaller amount of repayment I was offering. This means that I have only been able to make one repayment- I had to miss this months as the interest coming out of my bank is eating up any surplus income I would have had to repay my creditors.

I am now being inundated with letters and calls (the latter I do not answer- I have requested written contact only as I have heard how nasty they can be) threatening all sorts- and my main creditor Halifax has told me to cancel all my direct debits and that my overdraft of over £2k will be cancelled and need repaying in full- in 60 days. I do not have this to repay. My direct debits are due to come out on the 1st- and I am unsure if they will go through (internet banking is not clear on their status, still listed but can't be amended).
I have just opened up a new account with a creditor I do not have debt with, and intend to move to this as a main account. I can only hope my direct debits go through this month, so that by their next due date they can be transferred to my new account.

Other than that, I am intending to sit down and reply to each letter I have received and try to explain why I have missed this payment and my intentions to pay the next...But is there another way??

honey10

I'm not sure if you're on the right board here, but I'm gonna try to help anyway.

Firstly, have you completed a statement of affairs? See if you can cut spending anywhere else? Also it helps you see which creditor you should be throwing your money at.

Moving banks is a great move, that way you can regain a little bit of control over your money.

Lastly, without an SOA its difficult to fathom, but have you considered speaking to stepchange or payplan?

tigerfeet2006

Hi and Welcome to the Bankruptcy (BR) Board. First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind. Your BR could be refused if you have not sought advice.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *
Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Please don’t do anything rash take your time and weigh up your options and read everything you can.

We often ask you to post your SOA so we can see if you have included what you need to:-
MSE SOA Calculator - Click here
Select the MSE format at the end. Copy and paste onto your thread.

Once you have spoken to someone about your situation then you can work out your way forward. It may be BR is the way forward for you, if so come back to the BR board and we weill help and support you as much as we can. It may be an IVA is more appropriate so then post on the IVA board http://forums.moneysavingexpert.com/forumdisplay.php?f=159
or they may suggest that a DMP is the way to go so then pop onto the Debtfree Wanabe board http://forums.moneysavingexpert.com/forumdisplay.php?f=76 who will also show you hoaw to deal with creditors and pay off your debts even if you don't want to go down a more 'official' route.


Best wishes
TF...x

RealityMiracles

Thank you for your replies- I have sought advice from StepChange- will post back here with results and investigate those links you have both given.

Thank you

M

PippaGirl_2

Ime creditors often do not accept DMP proposals from the debtor themselves. I would go to the CAB and ask them to arrange the DMP and write to the creditors on your behalf. Creditors are far more likely to accept what the CAB say as they follow a national formula leaving you enough to live on before allocating creditors plus the financial ombundsmand and authorities frown on organisations for not responding to such proposals from agencies such as CAB. I would do that as a first step which will give you the breathing space you need to decide on any next step.