URGENT is it legal for a loan company to charge 180% interest? In a BIG mess

[G2B]

When Dp and I met, he had a lot of debt and very bad credit. We've paid off a few bits, but there's one charging 180% and we cannot pay it. What are we going to do? We can't even pay a small amount a month, we have next to nothing to even live on after paying rent, council tax, other bills, other debts etc.

We probably owe a good few thousand by now.

Please help us We're at our wits end.

yes its legalbut a debt advisor maybe able to get them to freeze the interest if you agree to and stick to regular payments. id advise going to CAB asap and they will help you out and negotiate on your behalf with your creditors.

Go to the Citizens Advice Bureau tomorrow www.citizensadvice.org.uk

It is possible to enter into a Voluntary Arrangment with creditors - also please remember that Bankruptcy is not such a stigma these days.

Good luck.

What exactly is bankruptcy?

also try the financial ombudsman - They will investigate extortionate interest rates & if they decide unfair can award compensation and/or have the debt written off.

In summary Bankruptcy is a from of Insolvency - which occurs when you do not have enough assets to cover your debts - or are unable to pay your debts when they become die.

Only an individual can declare themself bankrupt - businesses go into administration/receivership/liquidation.

The Enterprise Act 2002 changed the law. The law has tried to identify between 'culpable' and 'non-culpable' bankrupts. If you are non-culpable the debts have occured through no fault of your own - for example there has been no dishonesty, negligence or criminal activity.

If you are deemed to be non-culpable you are automatically discharged from Bankruptcy after a maximum period of 12 months. In essence your debts are gone.

180% not uncommon on the home credit market - that's about what provident charge. Go to CAB or local debt advice centre - what area are you in - I can find this out for you, and make sure they are decent. A credit union can also help - much more reasonable rate of interst and they'll only ask you to repay in installments they know you can afford. They might be able to clear off the loan for you and youpay them back instead. Who ever you see there are some golden rules...

NEVER pay for debt advice
TELL THEM EVERYTHING

ONCE THINGS ARE UNDER CONTROL START SAVING EVEN IF ITS A TOKEN AMOUNT EACH WEEK.

Steer clear of IVA's they sound good but when you work out the interest they often cost more.

YOU CAN GET THIS UNDER YOUR CONTROL!! It wont be easy and you'll have to be patient if the service is busy but persevere. Most debt advisors can get your repayments reduced or your interest frozen or some of the balance written off. You'll feel so much better once you have had some proper advice. Let me know how you get on. good luck.x