Avalon
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get on touch with your creditors and start to work out some kind of payment plan...do not ignore them |
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lazyloveruk
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Firstly you need to sit down and work yourself out a budget and stick to it.
If you have a regular income you need to work out how much you can afford to pay off and set up a standing order to that effect.
It will take you a long time, and there is no quick fix solution. If things are really really bad you should talk to your bank or a financial advisor.
Good Luck |
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MissR
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I've got the same problem, with student loans, cred and store cards, they just seem to be building up.
I've decided to set up a standing order from one account to another of £40 a week and make myself live off that. All my bills will be paid by direct debit from the main account, a slow process but i'm hoping they will slowly decrease. |
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mcfifi
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If you are in the UK contact the Citizen's Advice Bureau. They are very good at giving advice on debt problems and their services are free:
http://www.citizensadvice.org.uk/index/getadvice.htm |
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mandy b
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go to CAB they are fab 'citizens advice bureau' |
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dougzinboston
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Write down all your debt amounts and next to it write all the minimum payments. Take the amount (if you know how much you make every week) you have available to pay your bills and subtract all the minimum payment amounts. After you're done subtracting, all the money left over should be sent to your SMALLEST debt. Let's say your smallest debt is $300 and you pay a minimum of $40 per month. You have $120 extra to put towards your monthly bills. You will pay the small debt off in 2 months and then in the third month, you will have $160 extra since you no longer have to pay that $40 minimum. Then move on to the next smallest bill and so on and so forth.
Your credit score will increase as your debt will go down (lower credit debt ratio). The score will also rise as you have less creditors (bills). You DO NOT require to pay for services or counselling, it is something that can easily be done all by yourself. You just need a little time to write down what your bills are, the payment amounts, how much money you want to pay with and line up the bills. Services will do the exact same thing and charge you for it...and that money could be used to pay off your bills. Use it to pay off your bills, not thiers. |
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angie
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i went to see my bank manager and she helped me to get a loan to pay everything off so now i have 1 affordable payment. I tore up my credit cards and paid off my car loan while in the bank and now even have spare money so i can save a little so i can buy things with cash when needed. so don't struggle go and ask for help...believe me you'll sleep easier at night its amazing how much we worry subconsciously |
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Linds
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refinance debt into your mortgage or open a personal loan that can consolidate all your bills into one monthly bill payment. |
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ramoldo
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Prepare a statement of your income and outgoings. Then submit and payment plan to your creditors also submit a final settlement figure if you are able to, usually about 25% of the outstanding. This normally works. The companies will not take you to court as the court is on your side. Also if the companies reject you offer, don't worry just start paying the amount you can afford, this will help you alot if they pursue it, which they won't... |
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Brian M
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Cut the cards up, and stop spending what you have'nt got |
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Hima K
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As everyone suggests u can approach your creditors directly so that they can set up monthly payment plans. But there are two points to remember. They will give you high interest rates and your principal amount will not be reduced.
So as per my experience a debt settlement company works best. They will negotiate with your creditors and reduce your principal balance by around 30% to 70% and as they will suggest monthly payment plan which is affordable to you. You can be our of credit card debt within 12 to 36 months depending on which monthly payment option you are choosing.
Check this out
http://www.debtfreeafterall.com |
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peter w
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Start a business that requires no investment
I recommend Forever Living Products - you can do as many or as few hours as you like and typically on 1-2 hours a day you will earn £1200 per month after 5 months and £30-£40k per year after 2-3 years - if you do more hours you should get more.
They are a $2 billion company growing at 25% per year and need a lot more people - no investment required also, regulated by Dti and Office of Fair trading and have investors in people award also.
link is: www.efi-international.com |
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treacle
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I am no finanical advisor but I would consolidate all of your debts into one loan, as then you will be paying one amount of interest. Then pay as much off each month as you can afford and try not to pay for things on credit... |
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alastair.macmillan2
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their are various oganistions to go to, first of all you should contact the companies that you owe the money and let them know of your situation,secondly there are debt companies that will look at your debts and at the monies you have coming in ,they will then contact the companies and make them an offer, this will stop baillifs coming too your door,give you money to live on comfortably and your will probably be debt free within 3years GOOD LUCK |
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Laissez-Faire Guy
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Avalon offers good advice.
One additional tip, whatever solution you work out with each of your creditors, get it in writing prior to sending them the first payment. Don't buy into any "good faith payment" crap prior to getting a firm agreement in writing. Your good faith action is contacting them and asking to work out an agreement.
You do have a certain amount of power here. Your creditors do not want to get screwed and receive nothing. The harder you bargain, the better the deal you'll get.
You should also seek out some reputable credit counseling. I've linked to a good place to go to get a referral called the National Foundation for Credit Counseling. |
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luddite
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Don't consolidate your debts. Speak to a debt counsellor asap. Stop spending money and work out a budget and stick to it while your paying off your debts.
Chop up your credit and store cards. |
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Bluefurball
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Go to Citizens Advice and ask them to help negotiate settlements, they helped me, still have debt but its managable |
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tringyokel
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It is simple. There are three possible routes to becoming debt free.
1. Earn more
2. Spend less
3. Do both of these.
Consolidating will be useless unless you have got a grip on your expenditure and can live within your means. Otherwise you will just continue to run up debts and end up in a worse situation.
How did you get into debt? Was it some catastrophe or are you just spending more than you are earning?
I suggest you go to the link below and post details of your income and expenditure. They will then give you unbiased advice and guide you to becoming debt free. |
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Steve M
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Go to the Citizens Advice Bureau - they deal with this every day. You might well be able to enter into a 'voluntary arrangement' which might make things a bit easier. The last alternative is to declare yourself bankrupt - NOT the best idea. It f**** you up financially in the future but it does clear your debts. It's your call! |
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