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Debt help - thanks
Comments
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Hi,
Thanks again for all the advice guys.
No - I didn't go to meeting. His sister was due to go then couldn't - really annoyed he went on his own as I think someone else there could have really helped !
Unfortunately he can't sell his equipment - he has several commitments throughout the year that he will rely on and if he backed out he could be sued !
I will get him to check if they would be open to £1 a month - He could pay more than this a month - its so ironic, The places he spoke to yesterday said they could not set up the trust deed , debt plans etc because his income is not high enough to make any lower payments - but he is doing it because he can't pay the current high ones !?
He was JUST about keeping his head above water with making his basically interest only payments to credit card - it was when lloyds introduced there overdraft fees a few months ago and now he pays approx £115 a month on OD fees. He does want to pay it back -all he wants is to pay back a lower amount each month as £300 is too much for him. Also he would like to pay it back rather than it just being interest. He applied for a loan with Lloyds a few months ago so he could pay off his lloyds debts and actually start paying it back knowing he would be debt free in future - they turned him down - I understand his circumstances are not the best however he has been with lloyds for 24 years, has had credit cards and loans with them in the past and NEVER ONCE missed a payment. Its a shame, he is trying to pay it back via the normal channels but he aint getting a break !0 -
Just looking at Debt management plans ( this looks to be an informal debt arrangement plan ? the terminology is confusing ! )
There seem to be a lot of companies that offer this for a fee - are they advisable to use? or is it the same result contacting lloyds himself avoiding fees? Do these third party companies normally get better results?
Cheers again0 -
rachaelsmith82 wrote: »Just looking at Debt management plans ( this looks to be an informal debt arrangement plan ? the terminology is confusing ! )
There seem to be a lot of companies that offer this for a fee - are they advisable to use? or is it the same result contacting lloyds himself avoiding fees? Do these third party companies normally get better results?
Cheers again
No it is absolutely not advisable to use a company to set up a DMP. There is no need whatsoever to pay a fee. He can set up a DMP on his own or if he’s not up to it through one of the debt charities; CAP UK, National Debtline or Step Change.
If you are looking for information to help him stick to the debt charities’ websites; make sure you are viewing the Scottish versions.0 -
Thank you - CAB did give him some templates that say sample offer letter - I assume he should just use this and send to lloyds with what he can afford and see what they come back with ? If they dont agree then not too sure what his options are then - if his inheritance won't cover it then I assume bankruptcy ?
He has 2 payments due out on Monday to lloyds - he can scrounge to make this payment - is it in his best interest to do this until they receive letter and respond?
He has already set up another bank account with different bank0 -
rachaelsmith82 wrote: »Thank you - CAB did give him some templates that say sample offer letter - I assume he should just use this and send to lloyds with what he can afford and see what they come back with ? If they dont agree then not too sure what his options are then - if his inheritance won't cover it then I assume bankruptcy ?
He has 2 payments due out on Monday to lloyds - he can scrounge to make this payment - is it in his best interest to do this until they receive letter and respond?
He has already set up another bank account with different bank
If he doesn't have the money he doesn!!!8217;t have the money. Lloyds can!!!8217;t get blood out a stone.0 -
Does anyone know which address he can send this too ? Having trouble finding Lloyds address as so many lloyds places ! Should he explain in letter he wishes to pay cc and overdaft off but its just he cannot afford these high repayments - he may be able afford £60-80 realistically until he has paid it off and also if they could stop the interest otherwise he will never repay it ! if he puts this in with template CAB gave him is this the kind of thing he should be saying ?
Thanks0 -
Unfortunately he can't sell his equipment - he has several commitments throughout the year that he will rely on and if he backed out he could be sued !
even if was bankrupt?...0 -
Sorry to be an absolute pain again - if anyone knows which address for lloyds, much appreciated as he is wanting to send special delivery tomorrow morning ! Cheers !0
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rachaelsmith82 wrote: »Sorry to be an absolute pain again - if anyone knows which address for lloyds, much appreciated as he is wanting to send special delivery tomorrow morning ! Cheers !
If he's sending a letter to Lloyds offering token payments for his credit card then he should send it to the Lloyds address on his credit card statements. Likewise the letter for his loan he should send to the address on his annual loan statements.
No need to waste money sending the letters special delivery. 1st class with proof of postage should be sufficient or signed for if he feels he must.0 -
rachaelsmith82 wrote: »Thank you - CAB did give him some templates that say sample offer letter - I assume he should just use this and send to lloyds with what he can afford and see what they come back with ? If they dont agree then not too sure what his options are then - if his inheritance won't cover it then I assume bankruptcy ?
He has 2 payments due out on Monday to lloyds - he can scrounge to make this payment - is it in his best interest to do this until they receive letter and respond?
He has already set up another bank account with different bank
If CAB gave him some template letters that doesn't sound as if they were just hinting that he should stop paying and let it go to debt collectors. I'm not convinced your friend has understood the advice given to him. Perhaps he should hang fire sending any letters until someone can accompany him to another meeting with CAB or phone up and speak with Business Debtline whilst he is also present.0
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