Advice on clearing existing debt

rw3399

:mad: Hi everyone!

I am new to this site/forum so sorry if I have posted this in the wrong place. I currently have a debt of approx £6000 and can only make payments of £20.00 per month. The problem with that is I am only paying off interest and the arrears keep growing so I'm not actually paying off any of the original loan of £5000. I have contacted the bank about writing off the debt and they say they cannot do that. They have suggested taking another loan out with them to pay off the existing loan but surely I'm still not going to be able to pay back the monthly payments on that one??!! Another thing I have considered is getting an interest free credit card and paying it off with that?

I would be very grateful of any advice or ideas you have.

Thanks

Rachel

immoral_angeluk

What are the contracted payments and why are you only able to pay £20? Not being nosey it's just we need an idea of your situation to be able to advise properly. If you take a look at Southernscousers first time posters thread there's lots of helpful info on there to get you start.
Welcome to DFW!

rw3399

I can only afford to pay £20 per month as I am on long term sick. The agreed payments, off the top of my head, are around £143 per month. Where do I find the article you mentioned?