Hello,

I made a lot of silly financial commitments about four years ago as I was working and in college, just turned 18 and assumed I'd be able to just walk into a job when I went to uni the following year. That didn't happen, and my student loan just hasn't been able to cover living costs and the debts I have. I've been trying to make payments as and when, but I realised that the charges I was getting on my accounts were more a month than I'd be able to actually pay them so, instead of being an adult about the situation, I just ignored it. I am now finishing uni in a few weeks time and have found a job and would really like to be able to start working towards being debt free but I've no idea what to do.

My debts currently are:

£560 to Lowell (o2 phone bill) I set up a payment plan with them about six months ago for £15 a month, even though it was more than I could really afford but was told it was the minimum they could accept or they'd escalate the situation(the idea of bailiffs at my student halls terrified me) but after some reading around I realise that I've probably been lied to.

£1600 Simply Be

£2000 Littlewoods

I've no idea where to start with approaching companies and stuff, so any help would be much appreciated.

It can take years before there is any court enforcement of such debts. If you are making small repayments, the debt owners are usually quite happy, as they are adding interest and charges, which increase the debt further. Plus in regard to statute of limitation, your payments are keeping these debts alive.

You really need to ask the companies owning the debts to freeze interest and stop adding charges. You also need them to provide you with statements of account showing you all interest and charges added to date. You might be able to have any excess charges taken off the current debts, therefore reducing them.

If £15 a month is too much to Lowell, then reduce it. Have you actually investigated with 02 whether the debt amount is correct and is legally all due ? If there is any chance of reducing this debt, then worth looking into this with 02. The debt being sold to Lowell does not stop 02 being accountable for any issues.

In regard to these catalogue debts, are they still owned by Simple Be and Littlewoods ? Have you advised these companies of your current circumstances ? If you can't pay debts due to financial issues, then you must advise companies, otherwise they won't know and will continue to add interest/charges.

There are letters in the CAG library such as the following linked letter, but ideally you need more information about the debts to help you.

http://www.consumeractiongroup.co.uk/forum/showthread.php?387436-Letter-for-consideration-regarding-Hardship-or-Financial-Difficulty

Suggest you set up a folder for each debt and start to get all the information you need. Armed with the information, you might well be able to negotiate reductions in debts and to stop interest/charges being added.