Trapped and unsure

[emmagam1983]

Hi all

 

Im so glad i came across this site, with honest oppinions from people who know what they are talking about.

 

ok ill try and cut a long story short. I have 2 loans with Halifax. (both unsecured)

 

Loan 1 i took out in 2006, however i topped up the loan in Oct 2008, creating a new loan. Since then im currently paying £340 PM (15.1% interest - 50 months)

Was 12k now down to just over 9. So ive paid over 5k and not really got very far

 

Loan 2 (dont remember ever getting any paperwork) from halifax again too consolidate, this loan is 2.5k and i pay £60 PM. No idea how much interest im paying, it will be alot as i know its over 7 years. I took this loan out in sep 09.

 

All under the 'fixed-sum Loan agreement regulated by the consumer credit act 1974' - Also with the loan document i was advised to read the 'personal Loan conditions 2007' booklet.

 

My problem is, is that now im 26 and in a rather dead end job and would love to re-educate/find a new job. Im currently off work (1 week) due to stress (anxiety problems) which i have a sneaky suspicion is due to my financial situation. I cant afford to move out, as after all my outgoings and dd's are taken out of my wage paket im left with little money.

 

is there any advice out there? Ive had alot of advice from friends, such as 'ring the bank and freeze the loans' get and IVA. However i feel as they dont have experience in this field its better to as people who may know a little more.

 

I guess im feeling trapped, i know my loan amount isnt partucularily huge. I just feel ive been working a job i hate for so long just to pay off debt, and too scared to change as i dont want to default, as i currently have a fantastic credit score.

 

many many many thank for any replies sorry for going on.

[loobyloo85]

Hi there, I am sorry to hear about your financial situation, you are not alone.

 

An IVA would probably not be an option for you due to the amount you owe, and the number of creditors you have. However, there is the debt management plans that are available to you. A debt management plan is an informal arrangement, and you can make a monthly payment into this plan each month until your debt is cleared in full. The interest and charges are not guaranteed to be frozen, but some companies have very high success rates at getting the charges frozen, reducing your repayment time. You would also have someone acting on your behalf at the debt management company and may relieve some of the pressure especially whilst you are looking to re-educate/find a new job. You can pay in whatever you show you can afford. It is a flexible option, and you can stop the plan at anytime. x

[emmagam1983]

Thank you this is most helpful. Im going to enquire.

 

Would you reccomend any companies in particular?

 

Thanks x

[loobyloo85]

I have been with Payplan who are very good, but there is also the CCCS or debt free direct who all have a good reputation.

All the best, I would be interested to hear how you get on x

[emmagam1983]

Thanks At this moment ive never missed a payment on any loan or anything else. Maybe having a DMP will slightly ruin my score however its better than struggling, just want to be able to breath you know?, have some freedom and find a career i want to do... not a well paid job i hate (travel far too) just to pay for debt!!