Debt help.?

i asked for help with my debt online this morning, and i recieved a phone call, from a gentleman, my debts come to about 2000 pounds, he said if we paid 145 amonth for 2 yrs we would be debt free, there charges are in with this amount, and no more phone calls at all hours, need advice what should we do, my husband disabled and these phone call getting me down , this sounds a good thing for peace in my life any other ways or comments appreciated,
Additional Details
credit cards when both in work then husband was diagnosed with epilepsy, both had to give up work, now living on income support and disability allowance.

CCCS is a great company as they help you work out an affordable plan each month, you just send them the money and they pay your creditors and they do not charge you as its a registered charity

but you will be paying almost 1500 pounds above what you already owe!

I dont think its a good move based on this and the fact that in two years anything can happen (as you have already discovered with your health issues)

Circumstances could change and what are the repercussions if you default on this other payment?
Is the lender going to come and break your legs?
Take you to court?
It can get very messy.

There are three ways to go and you probably wont like any but I am speaking from personal experience here.

1. Apply for bankrupcy ...at least this way you have NO debts and no one that you owe money to is able to harrass you,its a real weight off your mind to file for bankcrupcy.
The down side is you may have restrictions on the values of the car you own and may be required to show that you do not have valuable assetts.You will not be able to apply for any credit for a set amount of years and if you earn over a set figure that sum will be assessed and its possible it will be garnished BUT its usually a VERY high amount. Try the citizens advice bureau they have a legal branch that can help with this if you choose to go this way.

2. Sell whatever you have of value,its not easy but force yourself to lose your attachment to your material things and you will sleep better at night.Lets face it a peaceful exisitance has more value than the old oak dresser that Granny left you in her will.If your car is worth $10,000 sell it and buy a $3,000 car.

3. Financial counsellors are terrific and very helpful if you get a good one look for a counsellor who is recommended by others.Usually the community based counsellors are free to those in debt crisis but even if you end up paying a few pounds a good expert on finances is worth their weight in gold.They may be able to suggest other ways that you can consolidate your debts and pay one managable amount each month.

Most companies are reasonable and understanding if you owe them but if you just ignore their calls they tend to lose their compassion see if you can get help to do a budget and from that contact all the poeple you owe money to and make tham an offer that is possible for you.
At the end of the day they just want their money and its better for them to get some than none.
good luck

Thats quite a lot of interest. You should be able to get a loan at a much cheaper rate than that if you look around.

You should really try to get some advice from the citizens advice centre as its free and impartial or do some research into the company that is making you the offer. Be very careful what you agree to do as you may end up in a worse situation.

If your debts are on a credit card then consolidate them onto one with 0% interest for over a year you will need to pay back only Ā£83 over 24 months to be free of this debt. Also don't spend another penny on them, then look into changing your electricity/gas suppliers, although you will have to pay any amount owing before you start with a new supplier - also change your telephone/broadband suppliers a good website for this is moneysupermarket.com -

I think paying Ā£3480 for a Ā£2000 debt is excessive. Head to the Citizens Advice Bureau and talk to them.

OK hear it is as long as you ow this money to more than 3 creditors your in luck, everyone one is right your first port of call is citizens advice, you then need to contact a company like pay plan citizens advice should put you on to them they will contact your creditors and they should get all the interest frozen or removed you then go through your out goings and income with pay plan they then look at what you can afford to pay and dish this out to your creditors, your creditors are not allowed to hassle you you only pay what you can afford less sometimes good luck

We need to know more about your debts and how you got into this situation.... Ā£2000 can be paid back fairly quickly so long as you are living modestly, and are working.

Ā£2000 is a reasonable amount but the company you are talking about are asking for Ā£3480 for lending you Ā£2000... doesn't seem very reasonable to me and there must be other people out there who will be able to help you out (but then we don't know your circumstances)

As the other people said, speak to the Citizens Advice Bureau.. you can tell them all your information and they can find the best solution for you

P.S. Maybe I am being harsh but I don't see why you both needed to give up work because your husband has epilepsy... can you not even get a part time job? A lot of people will be hesitant to lend you money because they don't believe you can support yourselves and make decent payments on your income support and disability allowance.. do you even have a spare Ā£145 a month from your allowances?

Try CAB they are good and will help you good luck.

If it is your best solution then go for it,,,,,you shouldn`t have to be hassled at all hours by creditors,,,you will be paying another Ā£1,480 over the 2 years but if you feel this to be your best bet then just sign up and do it,,,,,

i would go to cab for advice first. also companies like catalouges etc will put you on a reduced payment scheme where you are paying a certain amount a month without occuring too much of an extra charge.

go to the C.A.B their advice is free and will help you sort it all out asap they can contact the people u owe money to and arrange a reasonable re-payment plan

First of all, know that you are not alone! Secondly, you do NOT need to pay someone to get rid of your debt. YOU CAN DO THIS, with a little determination. The first thing I would recommend you do is call all your creditors and ask them to lower the interest rate...to 0%!! Plead with them, tell them your story and ask for a three month break from making payments, in which after you this period you will resume payments (very important part). Now, after you do that, go to www.josephsangl.com. Be forewarned, this is a CHRISTIAN financial website, so if your agnostic or something I make no apologies, but just maybe you'll learn something, after all, the Bible talks about money almost more than any other subject, because God knows that it's the one area nearly everyone will struggle with (remember the tale of the rich man, the camel, and the eye of the needle). Click on TOOLS at the top and open the Monthly Budget Form (use web based if no Excel). The point of this form is to set up a budget and to spend all your money on paper EVERY MONTH! Fill in all your monthly credit debt, rent, car payment, groceries, into this form-EVERYTHING! When I say everything I mean if your used to spending say $1200 for Christmas, then $1200/12 = $100 goes on the monthly budget. This rule goes double for annual taxes, as nothing breaks the budget like an unexpected bill. Which leads me to why I told you to ask your creditors for a three month halt on payments...you're going to use this "break" time to create a $1000-$2000 dollar cash buffer for things like car breakdowns (its gonna happen so plan for it, don't complain) and medical expenses. This way, when you hit one of life's bumps in the road, you don't have to accrue more debt because you have cash to pay for it!!! Anyway, this is a long drawn out response, and I'm sorry about the examples in American currency, but it's something I'm passionate about because it's working for me! Also, I HIGHLY RECOMMEND that you read what joe sangl has to say, his advice has saved my LIFE and MY MARRIAGE!! I would start by clicking debt reduction under categories and then budget(ing) and success stories. Oh, and if you are christian already, I apologize for assuming you're not...it seems to be the trend these days NOT to believe in God...and if you're not a christian, let me just say this...if you follow my advice above God will do a work in your life, whether you like it or not, because He believes that you have the power to get out of debt, and if you let Him, He will show you how far the depths of His FAITH runs. Because God put you here for a reason, and it was not to be in debt, but to do GREAT things with all the things that He has provided you. Remember, everything in Heaven and on Earth is Yours, O Lord and we are but managers, and I don't know ANYONE that EVER went wrong, by following the Word of God, not even poor Job, who was blessed in the end. God never promised we would be free from rain, storms, or disease in our lives, but he did promise eternity just by believing in His Son. I hope this helps!!

why don't you go and see the bank and get an over draft to pay off this debt its got to work out cheaper.

Dont worry.

Ā£2000 of debt is tiny!! I know its significant to you but it is a very small debt indeed.

I can sense you are worrying about this situation a lot and it's causing you anxiety, so I think it's best you have somebody there to help you through.

Go to your local Citisens Advice Bureau. Their services are free. Have a list of all the people you owe money too and your bank statements and your letters proving your benefits.

They will help you write letters to the people you owe money to and make an offer of repayment you can afford easily. They will, 99 out of 100 times, accept your offer. Make it clear in the letters your unique circumstances regarding your husbands illness etc.

Please dont get these 'on line debt buster loans' they are a con.

Prioritise your debts - your most important bill is your rent/mortgage, then food, then council tax, then utilities, then other debts - strictly in that order, the CAB will help and guide you through the process, they are superb.

I know, everybody in debt fears the worst - the Bailiff knocking at the door - thats unlikley in your case but if they did - NEVER LET THEM IN - YOU DONT HAVE TO LET A BAILIFF IN AND ONCE YOU DO YOUR BUGGERED.

Talk to the CAB NOW. I have tons of experience with personal debt so please feel free to contact me anytime and I will guide you all the way.

Take it easy.

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