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I want just one debt to pay..

I have 4 catalogues and two credit cards that i have a debt on..in all i owe about £3300.00 to pay back..With my catalogues i have arranged to reduce my monthly repayments to lower amounts, but i have not yet received a confirmation letter stating if they accept my offer or not. I sent them a budget sheet and a letter stating my circumstances. I have managed to keep up to date with my repayments, but i was wondering if there is anyway i can get the whole balance transfered to just one debt so that i'm just paying one creditor? I'm on low income so i wouldn't be able to get a BT on a new credit card..

Any ideas? :confused:

Comments

  • roger56
    roger56 Posts: 478 Forumite
    List all your debts with their rates of interest.
    Start paying off the highest interest debts first.

    Talk to you bank, explain your situation and see if they can help with a loan at an interest rate lower than those of your current debts. Use it to pay off high interest debts first. (Don't fall into the trap of using the loan for non essentials!).

    Try to reduce your monthly expenditure..some suggestions (sorry if they are obvious):
    If you have a mobile, is it contract? Would PAYG be cheaper (probably yes if you minimize to necessary calls).
    Do you eat out a lot or use ready meals? Try cooking your own meals to reduce food bills (using fresh food can be healthier).
    Do you drive? Can you cut petrol bills?
    Utilities, are you getting a good price? Try this company, they have a fair trade
    policy and are one of the cheapest (Martin has highlighted these previously) http://www.ebico.co.uk/

    You've recognised debt is not a good situation and have started managing it.
    Well done and Good Luck
  • roger56
    roger56 Posts: 478 Forumite
    This CAB page offers good advice for dealing with debts:
    http://www.adviceguide.org.uk/index/life/debt/seeking_help_with_debt.htm#Typesofdebt
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    Thank you Roger..my bank has given me an interview and asked me to bring my income details and what debt i have to pay and how much i'm paying each month..i'll keep my fingers crossed that i qualify for a loan
  • roger56
    roger56 Posts: 478 Forumite
    Pleased to help. Hope the bank interview goes well.
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    Today i received a letter from one of my catalogue creditors (Littlewoods). I offered to pay them £10 a month off my arrears. They sent me a letter saying they agree for 3 months, and after this they will add on administration fees for future agreements. bah humbug :(

    This means that after 3 months and paying £30 off my arrears i will be back to square one. All i would have paid for is the admin fees and i'll never decrease my debt..

    I'm going to contact national debtline and the CAB, but can i get these admin fees stopped?
  • Xbigman
    Xbigman Posts: 3,906 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Sorry I don't know the right thread to reference you to, so someone please step in here.

    Write to all your catalogue companies asking for a copy of your signed credit agreement with them. Most catalogue companies neglect to get you to sign one so you might be able to get those debts written off. Or at least get any interest and charges stopped. In the meantime don't agree to anything with these people in writing until it is established you legally owe them money.
    Regards



    X
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    Well i've already written them all letters offering £10 and £20 a month, although i can't really afford that, but i am currently at this precise moment writing them all letters asking for my Signed credit agreement..I know there is just one i signed for and that was River island who have huge interest rates :(

    How do i go about trying to get the debts written off for those who i never signed for?
  • roger56
    roger56 Posts: 478 Forumite
    Focus on getting your case over at that bank interview.
    Highlight the fact that there are significant admin charges and high interest rates that are not going to help your situation.
    Let the bank know that you wish to consolidate and work off the debt constructively.

    Take with you that list of debts, interest rates and add the potential admin charges to help the discussion.


    Good Luck
  • Xbigman
    Xbigman Posts: 3,906 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Send those letters off asking for the credit agreements. Then concentrate on your bank interview as thats the priority right now.

    I think the situation is this.
    If a company lends you money they must supply you with a credit agreement laying out terms and conditions including interest rates and charges. Catalogue companies rarely do this so you start by asking for the signed credit agreement. If they admit there isn't one, or don't reply within 28 days, you then write to them (recorded delivery) politely informing them that, as you have no credit agreement with them there is no debt and you consider the matter closed.

    There was a thread that layed out the exact law in question and some suggested wording for the final letter, but I can't find it. Sorry. Have a look yourself or maybe some kind person would point you in the right direction.
    Regards



    X
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
  • Kimberley
    Kimberley Posts: 14,871 Forumite
    Xbigman that is fab, i know there is just one i signed for but the other 3 i didn't? I didn't think i could do that..

    Oh i hope i find that thread :)
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