Help! Don't know what to do!

Katie_Chainsaw

We went to see a welfare / benefit and debt advisor the other day as our debts are spiralling out of contro. The gentleman suggested this to us:

- Open a new bank account and change over all direct debits / benefits / wages etc to go into this new account.

- Stop paying credit card for three months as it then goes to debt collectors and interest is stopped.

- Same as above for dealing with overdraft and bank loan.

- When it goes to debt collectors then send income / expenditure forms off to these companies and offer so much £ each month that we can pay.

This sounds like a great way for us to get back on our feet, we know it's going to destroy our credit rating but at the moment anything is better than having our wages eaten up by our overdraft / bank charges etc and essentially living just to pay these off.

What's your honest opinion about all of this?

riers_bloc

If you are not paying a mortgage on your home, it might be worthwhile considering bankruptcy. Once you start defaulting on credit cards or loans that will remain on your credit history for six years anyway.

The alternative to bankruptcy is an IVA but CCCS will also be able to advise you on this. They are independent and impartial.

I would contact them urgently because it sounds as though you have been given poor advice.

staffssandra

Hi Blind as a Bat,

Interesting statement you made about CAB volunteers: they do have the experience to deal with debt, as not all bureaus can employ specialist money advisors, so in our 12mth of training we cover debt as well as all the other areas such as benefits, housing etc. Agree with what you said about if a specialist money advisor is employed go see them, but if a bureau doesn`t have one the volunteers will still be able to help.
Just thought I should say this as I don`t want anyone put off from using the CAB just because it doesn`t have a specialist on board

rog2

staffssandra wrote: »

Just thought I should say this as I don`t want anyone put off from using the CAB just because it doesn`t have a specialist on board

Sounds like you've just volunteered SS. :rotfl: :rotfl:
Seriously, most of us have nothing but respect for the work that CAB do, and as it covers so much more than debt, it is not surprising that not all CAB offices have specialist debt advisors. I think that I saw, on a recent tv interview, that over 60% of their work is now debt-related and that they would, wherever possible, involve a debt specialist.
Keep up the good work ss.