Please help!

Kerriw_2

Ok, so about 10 grand in debt, paying off a payday loan of 2000, i have two credit cards of 250 and 500, thre retailers of 1100, 100 and 300. a past debt of 80, two overdrafts of 1000 each and a guarentor loan of 4000 (i know i cannot do much about this but pay it so leave that one aside!). I am considering a debt management plan and would like to know opionions on the best one? a thought before doing that was to contact each creditor and let them know the situation and say could i come to an arrangment whereby they freeze my accounts and charges and interest and i pay £15 a month to each of them what are peoples ideas on this? or is it better to go straight to a DMP? I am ready to pull my head out of the sand and advice would be much apprecited.

Shelski_2

Other people are much more qualified on this, but I thought lenders only accepted arrangements if you we're doing the same for all lenders. I'm not sure what this would mean re. your guarantor loan.

Kerriw_2

i am going to carry on paying my guarentor loan as usual, i am not including this in the DMP or if i speak to creditors myself to make arrangements.

harrys_dad

Within a DMP you divide what you have available for debt repayments between your creditors in the same proportion as the outstanding balances. Fpr example if you have a total of £10000 of debt and you owe a creditor £1000 you pay them 1000/10000 = 1/10th of the money available. In my view this should include the £4000 guarantor loan too.

Contact one of the free debt charities (see sticky above) and get them to help you organise it asap. There are other things too, such as making sure you have opened a different basic bank account into which you have all your income paid, so that the PDL companies don't pinch all your money as soon as they get a whiff of problems.