Suicidal - please help me!

sporter_2

H Guys:beer:

Received my summary from CCCS today. They made a recommendation of a pro rata payment of £28 per month in total to all 4 creditors. Outstanding debt £28,000.:eek:

HOWEVER, my sister said she would loan me the money to clear ALL cards, but this will mean me having to pay back the loan at approx £300 per month, whereas I was paying around £500 on the cards (struggling to the max).

What shall I do? Mess up credit file (dont want anymore credit anyway, but only concerned about mortgage next year) or TAKE DA MONEY, get a second income and pay £300 per month?

Need to give her an answer in the morning................

H E L P!!!!!

What to do...............what to do

Sporter

boredofbeingathome

It depends whether you can afford it sporter, plus it also the obligation towards her..can she afford to be without the money long term?V.generous of her by the way.

boredofbeingathome

Or what about negoiating a full and final settlement then maybe you would not have to borrow all of it? If they are aware of financial problems..try and see if they wiil accept a certain amount, a percentage of the amount..

bank_of_slate

Hi Sporter,
agree with Bob above!
Worth a try!

How long would you be paying that £300 per month back to your sister?
You would do well to come to a clear agreement, we see so many families ripped apart by informal financial arrangements.
...Linda xx

sporter_2

Some great ideas there guys.........:j

I think I will ask for full and final settlement and see what the outcome will be. I guess this will still mess up my credit rating, but I was just reading the literature from CCCS and all I can see is doom and gloom, i.e. Charging Orders, Court cases, summons, CCJs, Debt Collection agencies..........cant get my head around all these things.

How do I go about asking for a full and final settlement..........dont want to come across being silly and not really knowing what Im talking about (duh!)

Sporter

bank_of_slate

Basically just phone each of them up and ask for a settlement figure.

I did this with my old loan and got a fair few hundred knocked off!
Sometimes it depends if you have any penalties attached to your debts for settling early.
ALWAYS get them to confirm in writing and keep it for your records.
...Linda xx

GeorgeUK

If you are not comfortable phoning them to discuss this, there is a template letter you can use. Either way, i would make it clear to them that you are gtettng this money from a family member as a loan and that the time for which it is available is limited. They won't really care where the money is coming from as long as they get paid but if it is clear that you are unable to increase the offer it may help sway them.

Also, where is she getting the money from? Does she have savings or is she going to take out a loan on your behalf? If you get into trouble further down the road and she has taken out credit to help you - as it is in her name she will be liable for the full debt.

Just want you to look at this carefully before doing anything. Also have you discussed with her what would happen in some of the creditors accept while others don't?

sporter_2

Once again thanks guys.........:A

Yes GeorgeUK, I do understand what you are saying...........and I think you are right..........its going to be a big problem if I get into arrears and cant make payments to my sister................

Well, thats sorted then..............no loan I think I had best stick with the pro rata payments for now and see how that goes.....

I have been advised to change bank accounts because of my overdraft with NatWest...........thinking of switching to Royal Bank of Scotland (is this part of NatWest?) or maybe Halifax (is this a good idea as my mortgage is with them?). What details would they need in order for me to open an account - Ive been with NatWest for over 25 years now, cant remember what information they request.

Anyway, really hope this is the right path to take.............im getting so nervous now.

Sporter

very_silly_and_scared

I am new here too and in exactly the same position as you with £22,000 of debt and no way out of it...some whopping APRs on my MBNA cards too.

I think you just have to admit to yourself (this is what I have done) that you aren't even 'managing' as you are and that irrespective of the credit rating etc you have to do something to make your situation better.

I will keep up with what's going on with you....as I said we're both in the same position at the moment....payplan have recommended a DMp and I am ready to take the plunge but very very nervous.... Hang in there!!!

sporter_2

Will look about switching bank account tomorrow............actually, think I'll have to send "offer of pro rata payment" letters to creditors first and then do bank account next week........payday is at the end of the month and a lot of direct debits needs to come out of account...........after this has passed I will need to cancel direct debits and switch to new account.....

Feeling sick now.........

Sporter