Multiple debts and multiple options

[Vodka1]

Hi Folks,

I am going to try and sort out my debts into a debt plan and would appreciate anyones thoughts and advice on what to do.

First my debts

Council tax arrears £1500
Student Loans £3000
Credit cards (none yet in default) £1800


I do not feel like i have enough debt to be looking into ways to reduce the amount i owe through legal means, i just want to set up an amount each month that i pay that will eventually pay off the debts i am responsible for.

My question is this.

Would people advise me to try and do this myself?

I have tried dealing with Buchanan Clark and Wells about the first two amounts but everytime i get someone on the phone they end up getting me to agree to difficult repayment terms that i eventually default on. I think i might benefit greatly from having someone go through my finances and help me talk to them.

If people would advise getting someone in to help, can people recommend a process or a company that is good for this.

Really i know it is my problem and i should sort it out but i just want to know how much i pay every month and be able to work out what i have to spend. I have a decent income (1300 net per month) and should be able to clear the full amounts. However whenever i speak to credit companies (esp BC&W) they make comments like 'Do you feel like you don't have to pay your bills?' which totally put me off and scare me.

I would really like a buffer inbetween me and them.

Any and all responses/personal experiences would be appreciated.

cheers

[IdaInFife]

Hiya and welcome to cag,

there a lots of places that can help you free of charge like CAB, your local trading standards will have a money advice and nationla debtline scotland.

To be honest, i used the TS money advice in 2001 and ended up bankrupt and if I knew know, from this site, I would have managed prob to pay everything of in 3 years and clear everything.

Now, I personally use this site to help me and my family and friends.

What you can do:

Make up and income and exp sheet:

List your income in one column and then the next write down all your outgoings even food shopping clothes allowance etc. I would include your monthly credit card payments in this as well as ther will be interst on these.

Whatever you have left split between your student loan and council tax arrears.

Send a copy of your income and ecp sheet to bC&W and 2 seperate letters for the SL and CT including the first payments.

1 High Street,
Newtown,
Kent
R21 4RH

June 28, 2006

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Re Account No/Reference No:− 4563210025897412

Since making that above agreement with you, our circumstances have changed.

We cannot now afford to agreed monthly payments because ... [your paragraph added here]

We enclose a Personal Budget sheet which shows our total income from all sources, and our outgoings. As you can see we have only £123 per month left for our creditors. The offers we have made to our creditors have worked out on a pro−rata basis, and we have written to all our creditors asking them to accept reduced payments.

In view of our circumstances, please would you agree to accept a reduced offer of £27 per month. If interest or other charges are being added to the account we would be grateful if you would freeze these so that all payments made will reduce what I owe you.

Should our circumstances improve we will contact you again.

We would be grateful if you would send a paying−in book to make it easier to pay you. Thank you for your assistance. We look forward to hearing from you as soon as possible.

Yours faithfully
Mr A N Other
(edit to suit)

If you use online banking you could make payments that way. Even if bc&w refuse just keep making the payments you have proposed as they would look pretty stupid not too.

Ida x