 blonde.feathers
Hi
Apologies for the long reply, this is close to my heart, and I think I can offer good advice
Firstly, let me just say, no matter how bad you think the situation is, its very possible to resolve. Anything under £20k is not always worth losing too much sleep over, if you tackle things head on.
So firstly, take a deep breath. Secondly, understand this problem, and set an agenda to resolve. You need to be honest, organised, and communicative with all your creditors.
I am aware from the posts above, that some advice (which is fine advice), to go and seek debt management help, I know they can be very good, but if you can write a letter on your own, you typically dont need them, also, even for this amount of debt, I would hesitate to take out any more loans.
I personally, at 29, was over £19 thousand in debt at 21, and in a few years, through honest communication, dealing with the issues, and making regular payments, I got myself out of debt. It does help if your elequent in your communication and aware of the law, and also understand your rights, but there's also some things you should understand. It helped I have always had a high paid job, but still, I certainley stopped losing sleep and not eating, when I tackled the problem head on.
Debt consolidation is not for you. Claiming back your bank charges is no longer valid, banks are not doing that any more so forget it.
No company, wants to see you go under, as if you do, they are not going to get there money back.
Get yourself a pad and pen, and all the documentation you have, from all your creditors. If you dont have it, call them, get it. You need account references, points of contact, and account numbers for every credit account you have.
Write them down, and write down how much you owe.
Then (GULP) call them, explain your situation, explain your acknowledgement of the debt, and your intention to pay it in full, over a period of time, if you can negotiate a payment plan. Explain there is no point in promising a higher monthly payment each month, if you cant maintain it, and thus default on your agreement. Companies typically wont mind taking a lower payment, if you can prove thats all you have, but its when you default, and dont communicate with them, where you will then have issues.
Offer a statement of means, this is simply a budget document detailing all your current expenses and outgoings, in balance of what you earn. You can. from this, demonstrate your available income each month, to assign to your creditors. It doesnt matter how small.
Make sure you prioritise your rent/mortgage, council tax, and then your bank. (without your bank, you cant pay easily DD's, standing orders etc)
If you cant face calling them, send them a letter explaining the situation and include a statement of means. Then, they will call you. There are a few things you will need to know about writing letters if your not very good at it (a lot of people write appalling letters)
Also, dont be put off if you call them, and they seem agressive, they are trained to obtain full payments and are used to people lying, cheating, and scamming there way out of debt. If you persist, remain polite, try and not get upset, and show honesty and willing, THEY WILL make an arrangement with you.
Dont be tempted by settlement offers, whereby they discount a huge amount, if you can just make that one off payment. If you can fine, but if you default, that will go against you.
You must take hold of this NOW. Once you are paying regular and steady monthly payments, you will feel better that these are getting paid slowly. You can then start to rebuild your credit file, and get on with your life.
I am more than happy to help you over the phone, just because I sympathise with anyone whose in debt, and feels there is no options, no one to talk too, etc. Also, if your interested in my credentials, Im a 29 year old professional, specialising in Finance, debt, and consumer credit agreements. But DO NOT work in this industry. Its simply accreditation I have persued after getting myself out of debt, and helping a lot of friends do the same.  |
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