Strands #248 “Strumming Right...
Quizzes & Puzzles1 min ago
I am slowly drowning in debt.
Have a �3000 personal loan, a �2500 Credit card, �300 overdraft and about �500 personal debts.And a �400 outstanding phone.
I only earn �1300
I have just contacted the consumer credit council for advice and help. Is this the right way to start sorting my life out or do I need to do more.
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For more on marking an answer as the "Best Answer", please visit our FAQ.That's a good way to start. Your local Citizens' Advice Bureau will give you free solid advice as well, but you may have to wait.
The essence of getting out of debt is structure NOT borrowing more, never mind what Carol Vorderman says!
You should contact all your creditors and advise them that you have debt problems, but want to sort them out. Suggest a m onthloy payment which you can make every month, and see if they'll accept it. Don't get creative - the whole point is showing that you can, and will, repay the money.
Most companies are used to debtors, and what they want is to see your intention to pay - it saves them the tirsome and expensive business of taking you to court.
Make a plan - tell the people you owe money to, and stick to your payments.
Good luck.
just call all u owe and badger them to set up a monthly repayment/interest free period, to allow u time to catch up to date a bit on the debts. they might be a bit hard nosed but u should keep demanding to speak to a manager etc. Eventually u will get a compromise.
Same with the phone debt, use the phone less if u can and ring whoever u are with and explain that u cant afford it all but u will like to pay so much per month to stretch the debt out. Dont accept the girl on the line saying its not possible, instead get her to put the manager on (takes some demanding that does) who has the authority to set up repayments that most call staff cant.
Best thing u can do is to get the little ones that dont charge interest such as the phone bill onto a monthly repayment, so that u can pump as much money into repaying the ones with the high interest so that u are not racking up more debt by not paying them. Consider selling things for cash too, its a great time when the weather is bad to go through the house deciding to declutter and have a minimilistic lifestyle by getting rid of the portable telly in the bedroom, that video recorder u never watch videos on now, all the cd's and dvds u have seen, and raising money from cash converters or eBay. Dont spend the money raised, pay it straight on to the debts, preferably the higher interest ones. Its tough but u dont owe that much compared to a lot of people so consider yourself lucky u have realised that things are going out of control and that u have to cut back on luxuries now in the event of being completely debt free within a couple of years or so. Good luck!