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Original poster

in a mess with debt

4 replies

facingfacts · 03/08/2010 13:39

Im in a total mess with debt.

Im ok on rent, but im behind in everything else, plus ive about 5 things with debt collection agents.

I cant afford to make all the payments, its silly things like £50 a month. I work part time and am a lone parent. If i work more hours or get a second job i lose tax credits/housing benefit and end up worse off.

Im ebaying like mad.. but dont have much stuff i can ebay.. and its not going to pay the debts..

I need to concentrate on the council tax and utilities. I know you can use letter templates.. but im not sure where to get them from. To write to the debt collectors propsing stopping interest. With an offer with what you can pay.. .along with a total breakdown of finances so they can see.

does anyone know anything about these letter templates?

OP posts:

shongololo · 03/08/2010 13:44

www.cccs.co.uk/

Do yourself a favour and speak to these people - they are awesome and will give you the best advice on how to proceed.

LIZS · 03/08/2010 13:45

go to CAB or contact a charity like CCCS, NOT a debt consolidator though. You need to be totally honest about your financial situation but they can write letters on your behalf and freeze interest so that your payments go towards reducing the debt rather than servicing accumulating interest. You must pay rent, Council tax and Utilities as a minimum then use whatever if left for the debts.

Rhian82 · 13/08/2010 20:07

Yep go to CCCS or PayPlan (www.payplan.com). Don't deal with anyone that wants money to help you, or consolidate your loans.

You might be able to get a Debt Management Plan, where you present your incomes and all essential outgoings, and then they have what's left over towards your debts. Most creditors will freeze interest (though they'll probably default you, so your credit rating will plummet - but if you're behind anyway that's not really an issue) and you'll be left with a realistic amount to live on every month.

PayPlan will give you template letters and do all the negotiating for you, and give you lots of advice and support along the way.

marioweezer · 20/08/2010 12:48

I'd recommend Payplan as well. The web address is www.payplan.com

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