barely any money left what can i do?

[algorithm]

I have loans from around 8 creditors totalling 7000 pounds on average. While this may not sound like much, it is due to the high interest rate meaning that it can take many years to pay off. after rent and work expenses, there is barely any money left and I have to on most occasions not pay 1 or 2 lenders, which make the situation worse. My salary is 1200 pounds per month. what can i do?

[MelanieGiles]

Hi there and welcome to the forum

It is always a lot if you can't pay it. I suggest that you take advice from the CAB who may be able to talk to your creditors on your behalf and arrange a reduction in payments. There is new legislation also coming in this year called a Debt Relief Order, which you can avail of to remove the debts, so it might be worth waiting until that is available.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Andrew Graveson]

Hello algorithm,

After you've taken care of all of your essential expenditure how much might you have left each month to offer to your creditors?

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[algorithm]

I can offer maximum 400. its a desperate situation really because they are threatening legal action etc

[MelanieGiles]

Andrew

Is this debt at a level that your firm would be prepared to take on, as a DMP would only take under 2 years to repay?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Andrew Graveson]

Hello,

What are the contractual repayments each month?

I'm sure a DMP would work with these numbers, but less sure without more information that it's actually necessary or best advice.

My gut instinct though is that there is going to be a positive way through this one way or the other for algorithm.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[algorithm]

it would be around 600 to 650 in total

[Andrew Graveson]

Hello,

I really think that this situation could be manageable but action will be needed if legal threats are in the air.

You could make reduced payment proposals to your creditors yourself; each creditor should be offered a fair amount of the £400 according to how much you owe them. Be sure that £400 really is manageable as you'll be doing this for a while and will not want to have to renegotiate.

The creditors are likely to prefer a fair offer rather than spending money on legal action.

Alternatively you could employ a debt management company to work on a budget with you and then represent you by putting the case to the creditors. A good DMP company will request that interest is frozen as you are experiencing financial distress.

A surprising number of creditors agree to the freezing of interest as they choose to help debtors who are doing their best to pay back their debts despite having experienced some financial pain.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[algorithm]

problem is that i have 7-8 creditors and some of them do agree for 1 or 2 months, but then the amount goes back up and it takes even longer to pay off

[Andrew Graveson]

I think that's most likely because you are dealing with the frontline debt collectors.

DMP companies direct their proposals to different teams who have the power to accept longer term arrangements provided that they are fair and reasonable for all parties.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[MelanieGiles]

A common thing - and you feel that you are not getting anywhere.

I suggest you give Andrew a call - as he is very experienced in this field and can probably tell you the attitude of each creditor given his expert knowledge of the debt management industry.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[algorithm]

4 of the loans i have are from payday companies who i can either pay off in full in one month or pay a percentage and carry it over. eg 60 pounds. which i always do else i would have to pay something like 300. which would settle the debt, but i would not be able to pay all the others

[Andrew Graveson]

It's generally a good idea to pay all creditors fairly according to the proportion of the debt owed to them.

There can be exceptions where a particularly nasty interest rate exists on a certain debt.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[algorithm]

Yes, I have had a barclay loan (2 loans) for many years now and its only gone down by a small fraction. i pay 150 per month for each loan on average and around 60 pounds interest gets added on to it

[Andrew Graveson]

I'd suggest that you take some advice on this.

A reputable DMP company may be able to point you on the path to a solution yourself. Alternatively their help representing you might get the situation back under control for you.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk