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HELP!! Debt advice needed please
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Alanwright87
Posts: 2 Newbie
Hi, I’ll give everyone as much info as I can . Here goes...
I have roughly around £4500/£5000 debts from various creditors like credit card, old bank account and also payday loan companies . For the last few years I have been stupid and ignored all this thinking it would go away. I get constant calls and texts from companies I don’t recognise from my credit file and assume that the old creditor has sold my debts off to a collection agency. The thought of answering one of these calls to find out who it is and how much owed brings on my anxiety pretty hard.
I am trying to start this year as positive as possible and get my life back. I have so many questions .
•do I contact the original creditors or the collection agency?
•once contact is made what do I say?
•can communication between us be via email?
•is a DMP (debt management plan) a good idea?
I have a young family and would hope I can get my life on track and start providing a home and a decent life for my family.
Any advice would be much appreciated
thanks
I have roughly around £4500/£5000 debts from various creditors like credit card, old bank account and also payday loan companies . For the last few years I have been stupid and ignored all this thinking it would go away. I get constant calls and texts from companies I don’t recognise from my credit file and assume that the old creditor has sold my debts off to a collection agency. The thought of answering one of these calls to find out who it is and how much owed brings on my anxiety pretty hard.
I am trying to start this year as positive as possible and get my life back. I have so many questions .
•do I contact the original creditors or the collection agency?
•once contact is made what do I say?
•can communication between us be via email?
•is a DMP (debt management plan) a good idea?
I have a young family and would hope I can get my life on track and start providing a home and a decent life for my family.
Any advice would be much appreciated
thanks
0
Comments
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Alanwright87 wrote: »Hi, I’ll give everyone as much info as I can . Here goes...
I have roughly around £4500/£5000 debts from various creditors like credit card, old bank account and also payday loan companies . For the last few years I have been stupid and ignored all this thinking it would go away. I get constant calls and texts from companies I don’t recognise from my credit file and assume that the old creditor has sold my debts off to a collection agency. The thought of answering one of these calls to find out who it is and how much owed brings on my anxiety pretty hard.
I am trying to start this year as positive as possible and get my life back. I have so many questions .
•do I contact the original creditors or the collection agency? Collection agency I believe, as they've been given your accounts
•once contact is made what do I say? Tell them you'd like to start paying, see what the minimum is each month or offer what you can afford?
•can communication between us be via email? I've contacted all my creditors by email, easier to phone as its quicker
•is a DMP (debt management plan) a good idea? Not sure on this one sorry
I have a young family and would hope I can get my life on track and start providing a home and a decent life for my family.
Any advice would be much appreciated
thanks
I'm also in debt, a much smaller amount and I have found this forum has helped alot. Maybe post a SOA? People can help you. Find put APRs for your debts and the exact figures. Hope some of this helps!I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe boards and spending & discounts boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Debt owed;Salad Money - £616.47/£1200 JAJA - £679.70/ £900 Zable - £338.60/£1300 = £1,634.77
Time to start a fresh. — MoneySavingExpert Forum
Time to start a Fresh part 2, 2022! — MoneySavingExpert Forum
New fresh diary for 2023! — MoneySavingExpert Forum
https://forums.moneysavingexpert.com/discussion/6494873/fresh-diary-for-2024#latest
https://forums.moneysavingexpert.com/discussion/6577209/fresh-diary-for-2025/p1?new=10 -
I agree. Post an SOA and loads of people here will help you get yourself on track today!0
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What is an SOA0
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Alanwright87 wrote: »What is an SOA
https://www.lemonfool.co.uk/financecalculators/soa.php
Have a look at others on this thread to get an idea of what goes on it and what level if info is helpful to include.0 -
Hi,
You contact whoever is writing to you, but it depends how you are going to tackle this, as the debt is reasonably small, you need to decide if you are going to attempt to settle each debt individually for a reduced amount, or make them all a monthly offer as part of say a debt management plan, either way, you make your offers in writing, and be specific about what you are wanting to do.
Basically if you intend to make monthly payments, you need to know what your disposable income is, the SOA will tell you that, but you must be honest, your other option is to save up and settle each debt individually, by making a reduced offer in full settlement, again, everything must be agreed in writing first.
Its whatever you decide to do, you can contact stepchange and they will set up a DMP and deal with your creditors on your behalf if you want them to, or you can easily do it yourself.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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