Bit of advice about my debt

fctilidie

Hi

Where to start.... I started a business in about 2004, i went down the Ltd Company route, I got a personal bank loan from HSBC for £8000 and was told I passed the credit check to get a PDQ machine in my shop, but when solicitors and estate agents had finally got me into the shop about 2 months later I got turned down for the PDQ machine, they said it was because I had money going out and nothing coming in so that was classed as bad credit history, thing is the only money that went out was to them for the re-payments of the loan.

So to cut a long story short.... I was selling car audio equipment and most of the people who were buying it from me wanted to use credit cards and didn't have cash so the business was destined to fail, I didn't know much about the internet back then so I didn't even know things like PayPal were an option. As the business went from bad to worse I seemed to adopt the Ostrich Syndrome and just try and ignore it was all happening, I also started drinking everyday and using drugs (which I am not proud of). I've recently got myself clean and am trying to sort everything out, I can't actually believe now looking back just how stupid I've been, but it happened so now I have to deal with it.

So now I owe HSBC £7200, but that is now owed to a debt company, they recently offered me a pay half in full settlement but I didn't have the money. My folks have since said they could lend me £2000, but I don't have any money myself as didn't have a job during my drink and drugs stage and was using a credit card I had to live my stupid lifestyle. I also owe Halifax about £2800 on that credit card that they have passed on to a dept company, but they haven't been sending any letters since I got clean. I reckon if I ask around the rest of my family I can get another £1500, giving me £3500 cash and debt of nearly £10000.

Any advice on what I should do?

God that feels like a weight off my shoulders even sharing all that with people.


Thanks in advance

Paul

rayday2

I would negotiate with the Debt companies and offer them monthly payments you can afford and leave family out of it, my philsophy its always better owing companies than famalies!

Now you can either negotiate yourself using the National Debtline website who have a budget calculator and template letters or contact one of the charities who will do it for you, you can take this route via the internet if you feel better.

fctilidie

Will it matter that I'm not in work at the moment?

And will they be willing to settle for a lower amount and still have me paying in installments?


Thanks again for taking the time to answer me

thriftymomma

Congratulations for starting to sort yourself out. I am not overly clued up on all this but just wanted to wish you the best of luck. There is loads of good advice on this site - just grab a brew and start sifting - you'll learn so much!
You're on the way!!
I think you will definitely be able to negotiate something!

fctilidie

Thanks for the encouragement!

Yeah I'm sure I'll be able to negotiate something, I just want to get it all sorted and have a fresh start. Don't want it hanging over for me when I get myself a new job. I'm just doing a bit of cash in hand work for a friend at the moment to give me some money to live off.

guinessboy

I can't offer much in terms of advice as i'm in a bit of a situation myself (sig!). But all I can say is that by opening yourself up on here is a big step forward. I try and rationalise things by saying at the end of the day its only money, and if you dont have it they can't get it.

I would negotiate with them, put your side across and explain your deeper financial situation. I would make an offer to pay in installments because raising even the reduced amount sounds like it could be an issue, and you dont needany more stress!

Keep going and update us when you've spokent to them.