i have a car with peugeot on a passport agreement. I have had the agreement for 12 months. I no longer need this car. Payments £382.65 a month.
I also have one credit card which i owe £9000 and they have increased the interest rate to over 40% even though I am making regular payments. Payments £238 a month.
I also have a credit card with £5500 owing again i am making regular payments. payments £110 a month.
I also have a credit card with £2200 owing which is being paid by agreement all payments made. The agreement came about because of a mess up by my bank when i changed banks. Payments £115 a month
What are my options to reduce my monthly payments as my circumstances have now changed and i need to reduce my monthly out goings.
Do you only have the debts you have described? If so, a DMP would be a good starting point to reduce your payments, but of course this will directly increase your repayment period. Will the return of the car also create a creditor as well?
Hi
Thanks for the reply.
I have not spoken to peugeot yet but i think i am going to be stuck with the car until the end of the agreement. Reading through the paperwork if i end the agreement early there are massive penalties.
I made a mistake with one of the amounts owed it is not £2200 but £220, which will be paid off soon.
I do have a mobile phone on a contract. I also pay maintenance of £300 a month.
Other payments i have are union dues of £13 a month, these are a necessity with my occupation.
The reason i need to reduce my outgoings is I have been living with family but now have to find somewhere else to live.
I have worked out i need to reduce my outgoings by about £100 a month to be able to afford this. This is after i clear the soon to end credit card.
I would start by writing to your creditors directly, enclosing an income and expenditure account which shows you can only afford to make payments at a certain level. Start making these payments to the, - the calculator on the debthelpcharity site can help with this - and if any of the creditors do not accept the payments you can then seek professional advice. It does sound to me as if you have more of a debt management problem rather than a debt problem.
Melanie is right. Yours seems to be a debt management problem and if you don't want to write direct to your creditors (you should do as this will save costs)you should contact a reputable debt management plan provider. Good luck
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
