25+k in debt and need advice please...

seaview_2

Hi I am 30 years old, 25+k in debt and would appreciate some advice. My debt is through University, my own spending and bailing out a seasonal business I have abroad. My parents helped me a few years back but since I have had to borrow again and as a result I now have a bad credit rating and letters at the door.
I owe the following:

£17'000 family loan / £200 pcm
£1'174.65 Graduate Loan / £140 pcm
£2'892.69 Mint card / £75 pcm
£2'898.71 Cahoot / £75 pcm

I also have student loans amounting to just under £5k which I defer as I earn below the required salary.

Debtcare estimated my expenditures as follows:

Rent £260
CT £20
Health £20
Travel £100
Housekeeping £150
Rentals £50

Out of my salary (£1000/month) and including the family loan I have a disposable income of £150.

Is Debtcare or similar a good idea? What are my other options?

Many thanks.

Little_Miss_Winner

Hi,
You dont mention what the seasonal business is? Does this bring you an income?

seaview_2

No it is a holiday company plagued by problems every year but I am still determined to make it work. I have a good forecast for next year but cannot rely on it any more!
Just have to get back on my feet now I have a full time job in the Uk.

chilli_dog

Are Debt care a debt management company who charge a fee?

If so please stay away from these people, Advise from the CCCS and the CAB will be better than theirs and free.

seaview_2

The first months payment is a fee and then a monthly management fee of 17.5% (min £29.00). They say I will clear the debt (but NOT the family loan) within 5 years at around £150 a month? They freeze the interest rates?

delboypass

You probably dont need this company - you can organise it by yourself by contacting your creditors by letter and asking them to stop hte interest etc.

There are also free companies provided by our wonderful government that do exactly the same thing.

Willsnarf1983

careful delboy

i wudn't call the current government wonderul!!!!!!!!



Will

seaview_2

I need to come to a decision quite quickly - nearly sent the signed letters off to debtcare today. Now I am thinking otherwise...so is my best plan to ask the creditors direct?

chilli_dog

in my opinion,

you dont need this company, you can do this yourself or with the help of a free advice centre i.e. CAB or the https://www.cccs.co.uk ,remember debtcare are trying to sell you a service !!

Draw up a detailed budget send it to your creditors with proposed repayments on a pro rata basis, wait for some nasty letters and phone calls and possibly the debt going to debt collection people.

Debt care cannot freeze the debt, only the creditor can do this at their discretion. some are quite good when people get into trouble others are not.

Can you ask your family if they will suspend the loan repayments for say a year thus giving you breathing space to hit the other debts?


When i was in trouble with money 5 years ago i thought it was the end of the world, make sure you talk to someone about it, a problem shared is a problem halved.

Good Luck

seaview_2

Thanks chilli_dog and everyone else that has answered. If I am getting letters from debt collectors is it not too late to approach my creditiors? If I work out and stick to my payments how will this effect my credit rating and ability to join the property ladder in the next couple of years?
I feel I have £300 spare a month to spread over the debt...does this sound reasonable? Thanks again.

klare_2

Hi there,
we are working on £31K of debt and went with the cccs when we could no longer cope with the letters and calls...so go now before you reach that point. We are only able to pay £135.00 a month at this current time so your amount shuld be great.
Sure it will all turn out for the better and good luck with the business.

Klare