Author Topic: Urgent advice needed!!  (Read 4507 times)


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Urgent advice needed!!
« on: Apr 20, 2009, 12:10:51 PM »
I am currently unemployed and owe over £25,000 to various card companies. In 2007 I started my own car hire company which went dreadfully wrong and I ended up closing the business with £55,000 in debt. I managed to clear the entire debt of £55,000 however being the prat that I am, I maxed out all my cards in order to raise just over £22,000 which I had paid towards the initial debt. I now owe over £25,000 which is increasing by the day due to heavy interest charges and late payment fees. I simply do not have a single penny left and am now living with a relative whilst claiming an appaling amount of £90 every 2 weeks as job seekers allowance. I havnt paid my creditors for months now and they have written and phoned endless amount of times. Everytime I see the letter I simply ignore it hoping that some help will arise from somewhere eventually. Everytime I answer their calls, I hang up immediately after its made clear to me who is calling. I have even contemplated suicide on various occasions but thankfully I came to my senses. PLEASE PLEASE HELP ME...I REALLY DONT KNOW WHAT TO DO..WHAT IS THE ABSILUTE MOST THE CARD COMPANIES CAN DO IF I REFUSE TO PAY THE CARD BILLS OTHER? CAN ANYBODY PLEASE TELL ME WHAT I SHOULD DO?


Re: Urgent advice needed!!
« Reply #1 on: Apr 23, 2009, 11:41:54 AM »
Hi there,

Have you tried calling a debt helpline. Sometimes its good to speak to an expert. There are always options available.
Sell House


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Re: Urgent advice needed!!
« Reply #2 on: Apr 23, 2009, 04:53:25 PM »
It would be good to give your creditors a phone call and discuss with them the possibility of making small monthly payments. I have had cases where the person has been allowed to pay as small as £5.00 per month.


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Re: Urgent advice needed!!
« Reply #3 on: May 08, 2009, 06:42:23 AM »
Contact the card companies and explain that you are now on jsa and can not afford to pay the amount they are asking for.
Create an income and expenditure sheet so that they can see that your expenses exceed your income.  Offer to pay them
a token payment until you sort out your current circumstances.  Tell them that you have been advised by debt advisors and
await their response. I read this in one of those how to get out of debt guides and have now done this with three of my creditors.  I am paying £1 per month
to each of them.  :)  I have a friend who is also paying £1 to around five of her creditors now.  So it does work. The manual even had a template inside it that I used to send to each of my creditors. Whatever you do, dont ignore them.  Good luck!  You may even get lucky and have them freeze your interest until your circumstances change.
Let us know how you get on.


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Re: Urgent advice needed!!
« Reply #4 on: May 08, 2009, 03:41:52 PM »
You have various options, and NONE of them include suicide!
First, there are non-profit Debt Management organizations that provide you a free debt counceling session, where they go through your bills and debts and give you professional advice. They can also offer you free courses of financial literacy.
Second, you can address a for-profit debt management company for them to negotiate the debt settlement plan with your creditors on your behalf. In this case, you are free from creditor harrassment and phone calls, because the debt management company handles all negotiation for you. However, they charge you on a monthly basis (i.e. their fees vary around 10-20% of each of your monthly payments).
Third, you can manage your negotiations with creditors on your own. Beleive this simple fact - they'd rather get at least something from you rather than nothing. So, contact them for an alternative payment plan, lower interest rates or lower monthly payments. They usually have some alternative repayment plans to offer.
Third, there is bankruptcy. It's not always a fiasco, it's a fresh start, a new chance for a new beginning.
Cheer up and good luck!
Debt Mana


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Re: Urgent advice needed!!
« Reply #5 on: May 18, 2009, 02:43:32 PM »
Hi there

The worst thing that you can do is nothing - you need to seek advice urgently.  The level of debt and income that you have will severely limit your options, however it is clear that you cannot pay what you simply do not have.  If all else fails bankruptcy may be the answer, at least you will lose the burden of debt if you go down this route.


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Re: Urgent advice needed!!
« Reply #6 on: Jun 24, 2009, 05:26:31 PM »
Hi All,

I totally agree with wrightey, the worst thing you can do is ignore them. I would explain your current situation to your creditors and see if there is someway to resolve this, that failing i would consider an IVA or possibly bankruptcy.


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Re: Urgent advice needed!!
« Reply #7 on: Jun 30, 2009, 08:47:16 PM »
Hi, Just read your post hope you have found the right help for you, as you can see I am new and have had a lot of wait lifted from my shoulders I found help.

Be Happy :) :)


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Re: Urgent advice needed!!
« Reply #8 on: Jul 17, 2009, 12:06:00 PM »
Hi Steve

There are solutions out there for you and everyone else experiencing financial difficulties.  Get in touch with your creditors so they are aware of your situaton and can (hopefully) freeze interest and charges.  If you haven't got anything you can offer them in the way of token payments, don't get drawn into discussion about what you can afford to pay but ask them for address details where you can send a letter and breakdown of your financial circumstances.

Speak to experts.  Being on JSA, it's unlikely you are currently able to offer anything to a Debt Management Plan or an Individual Voluntary Arrangement, but you may be in a position to do this and offer what you can reasonably afford once you secure employment.

You don't need to suffer this alone - there are many, many people out there who can provide help and assistance.

Good luck - things can only get better!
Angela Rosler
Insolvency Manager  e: [email protected]