What should I do £16,000 in debt

Grichardallen

I currantly have 2 tenant loans I pay £250 per month to each loan company, But I only earn £200 per week then theys my other outgoings like car and food etc. The settlement figures are currantly at £8,000 each I do have £6,000 in the bank but I do not want to take out an extra £2,000 loan because due to my really bad credit rateing (talking default notices and solisitors letters ect.) its going to be a no.
Where should I go from here Im defanatly interested in paying off one loan or even better both!!

Thanks Richard

moneywolf

so from my estimations you have an income of about £690 p month

so after your loans you have £190 p/month to live on, so i guess you re sinking at present.

1 . Renegotiaite the loans over alonger period to reduce the payments & when you can afford more increase payments.

2. See if one of the companies will give youfull & final settlement for 6K, if not advise them that you are having finacial difficulties and will be going for an iva.

Cleosmum

Do an accurate SOA and post it up, maybe we can see places you can cut back. Also, put all the details into the snowball calc, I found it invaluable. I was also able to see how much better things would be if I threw as much as possible at it! If you have cash in the bank then I would throw it at the loan with the highest interest, but first make sure you have been through your SOA, make sure you consider all options first. You could also CCA the loan companies and make sure the debts are enforceable.