reducing repayments help

jamesd

The best way to deal with this is to contact one of the free debt help charities. They will work out a budget that will be acceptable to the firms and propose a payment plan or IVA as seems appropriate. The IVA possibility provides part of the reason for the lenders to accept not charging interest, since that beats the capital loss up front of the IVA.

If he commits to do that then he should also contact each of the firms to tell them that he is seeking debt advice and asking them to cease any debt collection activity while he discusses his situation with the charity and moves on to coming to an arrangement of some sort. CAB is one option but there are others that are happy to work remotely by phone and email and he may find that both preferable and easier than working with an often overloaded CAB.

A standard feature of such agreements is that each lender is paid in proportion to the capital amount owed, not according to their standard minimum payments or existing loan payments.

planteria

thanks james. great post...very helpful. i will pass this on when i speak to him.